Low-Producing Oil Wells in Texas Cause Headaches for Landowners

In Tom Green County, Texas, landowners like retired engineer Jackie Chesnutt are raising concerns about low-producing oil wells on their properties that produce only a few barrels of oil per month. Chesnutt claims the five wells on her ranch, operated by CORE Petro, are out of compliance with state regulations and should be shut down. CORE Petro disputes this, stating that all its wells meet state requirements and that the company struggles financially to cover the costs of properly plugging wells. This situation reflects a broader issue across Texas, where about two-thirds of the state’s 150,000 active oil wells produce less than 10 barrels daily. Texas regulations require wells to produce at least five barrels of oil for three consecutive months or one barrel for 12 consecutive months to remain active. However, many companies maintain minimal production levels to avoid the costly process of plugging wells, which can run into tens of thousands of dollars. This practice has drawn criticism from landowners and environmental advocates, who argue that it leads to pollution risks and leaves burdensome equipment on private land. They also warn that the state could ultimately bear the financial responsibility for abandoned wells if companies do not comply with plugging requirements. The Texas Railroad Commission, which regulates oil and gas operations, maintains that all wells are producing and in compliance. Nonetheless, calls for reform have intensified, with advocates urging stricter enforcement and updated regulations to ensure companies promptly plug wells and cover associated costs. The issue highlights the tension between economic pressures on oil companies and environmental and landowner concerns, underscoring the need for policy adjustments to address the growing number of marginal wells in Texas’s oil industry.