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The Texas W-3X form is an important document for operators of inactive oil and gas wells seeking to extend their deadline for plugging these wells. This application is submitted to the Railroad Commission of Texas and requires specific information about the operator, including their name, address, and P-5 number. Operators can apply for a blanket extension for all inactive land wells or for a single well, depending on their needs. To qualify for a blanket extension, operators must demonstrate that they have plugged or restored a certain percentage of their inactive wells, or provide financial security to cover the costs of plugging. For individual well extensions, operators must meet specific criteria, such as having an approved abeyance of plugging report or being part of a Commission-approved Enhanced Oil Recovery (EOR) project. Each application must be completed carefully, with all necessary supporting documentation attached. The process is designed to ensure that inactive wells are managed responsibly, minimizing environmental impact while allowing operators to maintain their assets. Understanding the requirements and options available through the W-3X form can help operators navigate the complexities of well management in Texas.

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RAILROAD COMMISSION OF TEXAS
Oil and Gas / Admin. Compliance
PO Box 12967
Austin, TX 78711-2967
READ INSTRUCTIONS ON BACK
APPLICATION FOR AN
EXTENSION OF DEADLINE FOR
PLUGGING AN INACTIVE WELL
Form W-3X
(Rev. 08/2019)
1. OPERATOR NAME exactly as shown on Form P-5, Organization Report
2. OPERATOR ADDRESS including city, state and zip code
3. OPERATOR P-5 NO.
- If you are applying for a blanket plugging extension for all inactive land wells operated by this entity:
Blanket Extension Options (See Instructions)
A
The filing operator has plugged or restored to active status 10% of the number of inactive land wells operated at the time of the
last annual renewal of the operator’s organization report;
B
The filing operator is a publicly traded entity and has filed with the Commission documentation naming the operator as “debtor”
and the Railroad Commission of Texas as the “secured creditor” and specifies the funds covered by the documents in the
amount of the cost calculation for plugging all inactive wells.
C
The filing operator has submitted additional financial security covering the amount of the cost calculation for plugging all
inactive wells or $2 million, whichever is less.
OR
- If you are applying for a plugging extension for a single well:
4. LEASE NAME as shown on Proration Schedule
5. FIELD NAME as shown on Proration Schedule
6. API NUMBER
42-
7. RRC DISTRICT NO.
9. WELL NO.
10. COUNTY
Individual Well Extension Options (See Instructions)
D
The well identified above is covered by an abeyance of plugging report and the operator has paid the required filing fee and
surcharge of $250.00 under Rule 78 and Tex. Nat. Res. Code §81.070 (Please attach the abeyance of plugging report.)
E
The well identified above is part of a Commission-approved EOR Project.
F
The well identified above is not otherwise required by Commission rule or order to conduct a fluid level or hydraulic pressure
test of the well, and the operator has conducted a successful fluid level or hydraulic pressure test of the well and has paid
the required filing fee and surcharge of $125.00 under Rule 78 and Tex. Nat. Res. Code §81.070 (The test results must be
filed with the Railroad Commission on Form H-15.)
G
The operator has filed additional financial security in the amount of the cost calculation for plugging the well identified
above.
H
The operator has filed an escrow fund deposit in an amount at least equal to 10% of the cost calculation for plugging the
well identified above. (In the form of a certified cashier check or currency)
CERTIFICATION: I certify under penalties prescribed by the Texas Natural Resources Code 91.143 and the Texas Penal
Code that, to the best of my knowledge, the information given in this application is true, complete, and correct.
_____________________________________________ _____________________________________________
Signature Name (print or type)
_____________________________________________ ______________________ _____________________
Title Date Phone No.
Contact Person and Phone Number if different from above: ________________________________________________
Reference: Statewide Rule 15 and 78
Instructions:
File Form W-3X as required by Oil & Gas Statewide Rule 15 (16 Tex. Admin. Code §3.15) to apply for an extension to the
deadline to plug an inactive well. All items on this form should be typed or clearly printed in blue or black ink.
Blanket Application for Extensions:
If you are filing Form W-3X to request blanket plugging extensions for all wells that you operate:
1) Complete items 1 through 3;
2) Indicate the applicable blanket extension option;
3) Attach any necessary supporting documentation (see below); and
4) Sign and date the Form W-3X.
Under Statewide Rule 15(f)(2)(B), blanket plugging extensions require that you file with the Commission one of the following:
1) for all inactive land wells that an operator has operated for more than 12 months, documentation that the operator has plugged or
restored to active operation, as defined by Commission rule, 10% of the number of inactive land wells operated at the time of the last
annual renewal of the operator's Organization Report (Form P-5);
2) if the operator is a publicly traded entity, for all inactive land wells, the operator has filed with the Commission a copy of the operator's
federal documents filed to comply with Financial Accounting Standards Board Statement No. 143, Accounting for Asset Retirement
Obligations, and an original executed Uniform Commercial Code Form 1 Financing Statement, filed with the Secretary of State, that
names the operator as the "debtor" and the Railroad Commission of Texas as the "secured creditor" and specifies the funds covered
by the documents in the amount of the cost calculation for plugging all inactive wells; or
3) the filing of a blanket bond on Commission Form P-5PB(2), Blanket Performance Bond, a letter of credit on Commission Form P-5LC,
Irrevocable Documentary Blanket Letter of Credit, or a cash deposit, in the amount of either the lesser of the cost calculation for
plugging all inactive wells or $2 million.
Individual Well Application for Extension:
If you are filing Form W-3X to request a plugging extension for a single well that you operate:
1) Complete items 1 through 10;
2) Indicate the applicable individual well extension option;
3) Attach any necessary supporting documentation (see below); and
4) Sign and date the Form W-3X
Under Statewide Rule 15(f)(2)(B), individual well plugging extensions require that you document one of the following:
1) For each inactive land well identified in the application, the operator has paid the required filling fee and surcharge, and the
Commission or its delegate has approved an abeyance of plugging report which includes the following certification under the seal of
the certifying professional engineer or professional geoscientist: “I hereby certify, that I am a currently licensed professional engineer
or professional geoscientist and based on my personal knowledge of the inactive well identified in this report, the well has a future
utility based on both 1) a reasonable expectation of economic value in excess of the cost of plugging the well during the period
covered by this report; and 2) a reasonable expectation that the well will ultimately be restored to a beneficial use that will prevent
waste of oil or gas resources that otherwise would not be produced if the well is plugged. I further certify that I have reviewed the
documentation demonstrating the basis for the affirmation of the well’s future utility attached to this application. An abeyance of
plugging report filed under Tex. Nat. Res. Code §89.023(a)(3)(B) is valid for a period of not more than five years.
2) for each inactive land well identified in the application, the operator has filed a statement that the well is part of a Commission-
approved EOR project;
3) for each inactive land well identified in the application that is not otherwise required by Commission rule or order to conduct a fluid
level or hydraulic pressure test of the well, the operator has conducted a successful fluid level test or hydraulic pressure test of the
well and the operator has paid the required filing fee and surcharge;
4) for each inactive land well identified in the application, the Commission or its delegate has approved a supplemental bond, letter of
credit, or cash deposit in an amount at least equal to the cost calculation for plugging an inactive land well for each well specified in
the application; or
5) for each time an operator files an application for a plugging extension and for each inactive land well identified in the application, the
Commission or its delegate has approved an escrow fund deposit in an amount at least equal to 10% of the total cost calculation for
plugging an inactive land well.
Cost Calculation for Plugging an Inactive Well:
The cost calculation pursuant to Statewide Rule 15 is the cost, calculated by the Commission or its delegate, for each foot of well depth
plugged based on average actual plugging costs for wells plugged by the Commission for the preceding state fiscal year for the Commission Oil
and Gas Division district in which the inactive well is located.

Form Specifications

Fact Name Details
Purpose The Texas W-3X form is used to request an extension for plugging an inactive well.
Governing Laws This form is governed by Statewide Rule 15 and Texas Natural Resources Code §81.070.
Filing Fees There are specific filing fees associated with the application, such as $250 for an abeyance of plugging report.
Extension Options Operators can apply for blanket extensions for multiple wells or individual extensions for single wells.
Documentation Requirements Supporting documents may be required, including proof of plugging or financial security.
Certification The operator must certify that the information provided is true and complete under penalties of law.

Texas W 3X: Usage Guidelines

After gathering the necessary information, you can proceed to fill out the Texas W-3X form. Ensure that all details are accurate and complete to avoid delays in processing your application.

  1. Enter the Operator Name exactly as shown on Form P-5, Organization Report.
  2. Provide the Operator Address, including city, state, and zip code.
  3. Input the Operator P-5 Number.
  4. If applying for a blanket extension, choose the appropriate option and provide any required documentation. If applying for a single well, proceed to the next step.
  5. For a single well, enter the Lease Name as shown on the Proration Schedule.
  6. Fill in the Field Name as shown on the Proration Schedule.
  7. Provide the API Number (format: 42-XXXXXXX).
  8. Enter the RRC District Number.
  9. Input the Oil Lease/Gas ID Number.
  10. Fill in the Well Number.
  11. Specify the County.
  12. If applying for an individual well extension, select the applicable option and attach supporting documentation as required.
  13. Sign and date the form.
  14. Provide a contact person’s name and phone number if different from the operator.

Your Questions, Answered

What is the Texas W-3X form used for?

The Texas W-3X form is an application used to request an extension of the deadline for plugging an inactive well. Operators of oil and gas wells in Texas must plug inactive wells to prevent environmental hazards and waste of resources. This form allows operators to apply for additional time to complete the plugging process, either for a single well or for multiple wells under their management.

Who needs to file the W-3X form?

What information is required on the W-3X form?

What supporting documentation might be needed?

Common mistakes

  1. Failing to match the operator name exactly as it appears on Form P-5. Any discrepancy can lead to delays or rejection.

  2. Omitting the complete operator address, including city, state, and zip code. Incomplete information can hinder communication.

  3. Not providing the correct P-5 number. This number is essential for identifying the operator's record.

  4. Choosing the wrong blanket extension option without understanding the requirements. Each option has specific criteria that must be met.

  5. Failing to attach necessary supporting documentation when applying for blanket extensions. This can result in the application being incomplete.

  6. Not signing and dating the form. An unsigned application will be considered invalid.

  7. For individual well extensions, neglecting to fill out all required fields such as lease name, field name, and API number can lead to processing issues.

  8. Forgetting to include the filing fee and surcharge. Payment is a critical part of the application process.

  9. Not keeping a copy of the submitted form and documentation. This can be important for future reference or disputes.

  10. Ignoring the instructions on the back of the form. These instructions provide essential guidance for completing the application correctly.

Documents used along the form

When dealing with the Texas W-3X form, several other documents may be necessary to ensure compliance with state regulations regarding inactive wells. Each of these forms plays a critical role in the process of managing well plugging and maintaining environmental standards. Below is a list of relevant forms that may accompany the W-3X application.

  • Form P-5: Organization Report - This form provides essential information about the operator, including their legal name and address. It serves as a foundational document for establishing the operator's identity and compliance status with the Railroad Commission of Texas.
  • Form H-15: Fluid Level or Hydraulic Pressure Test Report - Required for operators who conduct tests on their wells, this form documents the results of fluid level or hydraulic pressure tests. Successful test results are often necessary for obtaining extensions on well plugging deadlines.
  • Form P-5PB(2): Blanket Performance Bond - This document is a financial assurance tool that operators can file to guarantee that they will fulfill their obligations to plug inactive wells. It is essential for operators seeking blanket extensions for multiple wells.
  • Form P-5LC: Irrevocable Documentary Blanket Letter of Credit - Similar to the performance bond, this form serves as a financial security measure. It provides a guarantee to the Railroad Commission that funds will be available for well plugging, should it become necessary.
  • Abeyance of Plugging Report - This report is crucial for operators seeking extensions for individual wells. It must be certified by a licensed professional engineer or geoscientist, affirming the well’s future utility and the operator's compliance with state requirements.
  • Escrow Fund Deposit Documentation - Operators may need to provide evidence of an escrow fund deposit, which must equal at least 10% of the cost calculation for plugging a well. This deposit acts as a financial safeguard for the state.
  • Documentation for EOR Projects - If a well is part of an Enhanced Oil Recovery (EOR) project, specific documentation must be submitted to demonstrate the project's approval and the well's ongoing utility.

Understanding these forms and their purposes can greatly assist operators in navigating the complexities of well management in Texas. Properly preparing and submitting the required documentation not only ensures compliance but also helps protect valuable natural resources. Always consult with a professional if you have questions about your specific situation.

Similar forms

The Texas W-3X form is an important document for operators seeking extensions for plugging inactive wells. Several other documents serve similar purposes in the oil and gas industry, each with its own specific focus and requirements. Below are five documents that share similarities with the Texas W-3X form:

  • Form P-5 (Organization Report): This form is essential for operators to register their organization with the Railroad Commission of Texas. Like the W-3X, it requires detailed information about the operator, including name and address. Both forms help ensure that the Commission has accurate records of operators and their activities.
  • Form H-15 (Fluid Level Test Report): This document is used to report the results of fluid level tests conducted on wells. Similar to the W-3X, it requires operators to provide specific information regarding the well being tested. Both forms aim to maintain safety and compliance in well operations.
  • Form P-5PB (Blanket Performance Bond): This form is used to secure financial responsibility for the plugging of wells. Like the W-3X, it addresses financial security measures that operators must meet to ensure they can cover plugging costs. Both forms are integral in protecting state resources and ensuring compliance.
  • Form P-5LC (Irrevocable Documentary Blanket Letter of Credit): This document provides a financial guarantee similar to the blanket performance bond. It serves to assure the Railroad Commission that funds are available for plugging inactive wells, much like the financial security options outlined in the W-3X.
  • Abeyance of Plugging Report: This report is used when an operator seeks to delay the plugging of a well. It shares similarities with the W-3X in that both require documentation and certification of the well's future utility. Each form plays a role in managing the timelines and responsibilities of well operators.

Dos and Don'ts

When filling out the Texas W-3X form, there are specific actions to take and avoid to ensure a smooth application process. Here are five guidelines:

  • Do ensure that the operator name matches exactly with the name on Form P-5.
  • Do provide a complete operator address, including city, state, and zip code.
  • Do select the appropriate extension option based on whether you are applying for a blanket extension or for a single well.
  • Do attach all necessary supporting documentation as specified in the instructions.
  • Do sign and date the form to certify the information provided is accurate.
  • Don't leave any required fields blank; incomplete forms may lead to delays.
  • Don't use ink colors other than blue or black when filling out the form.
  • Don't forget to include the required filing fees and surcharges for the application.
  • Don't submit the form without verifying that all information is accurate and up-to-date.
  • Don't ignore the specific instructions for blanket versus individual well applications, as the requirements differ.

Misconceptions

There are several misconceptions about the Texas W-3X form that can lead to confusion for operators. Understanding these misconceptions can help ensure compliance and streamline the application process. Below are six common misconceptions.

  • Misconception 1: The W-3X form is only for large operators.
  • This is not true. Any operator, regardless of size, can use the W-3X form to apply for an extension to plug an inactive well. Small operators can also benefit from this process.

  • Misconception 2: The W-3X form is not necessary if the well is inactive.
  • Even if a well is inactive, operators must file the W-3X form to request an extension for plugging. Failure to do so can result in penalties.

  • Misconception 3: Extensions are automatically granted once the W-3X form is submitted.
  • This is incorrect. Submitting the form does not guarantee approval. The Railroad Commission reviews each application based on specific criteria before granting an extension.

  • Misconception 4: Only one extension can be requested per well.
  • Operators can request multiple extensions for the same well, provided they meet the necessary requirements each time.

  • Misconception 5: The W-3X form can be submitted without supporting documentation.
  • Supporting documentation is often required for the application to be considered complete. Operators should ensure they include all necessary documents to avoid delays.

  • Misconception 6: The filing fees are the same for all types of extensions.
  • This is not the case. Different types of extensions, such as blanket or individual well extensions, have varying filing fees. Operators should check the specific fees applicable to their situation.

Key takeaways

Here are key takeaways for filling out and using the Texas W-3X form:

  • Operator Information: Ensure that the operator's name, address, and P-5 number are entered exactly as they appear on the Form P-5, Organization Report.
  • Extension Types: Identify whether you are applying for a blanket extension for multiple wells or an individual extension for a single well. Complete the appropriate sections accordingly.
  • Supporting Documentation: Attach any necessary supporting documents as specified in the instructions, such as abeyance of plugging reports or financial security documentation.
  • Filing Fees: Be aware of the required filing fees and surcharges, which vary depending on the type of extension requested.
  • Certification Requirement: Sign the form and certify that all information provided is true and correct, as per the Texas Natural Resources Code and the Texas Penal Code.
  • Deadline Awareness: Submit the form by the specified deadline to avoid penalties or complications with the plugging of inactive wells.