Relating to the authority of the Railroad Commission of Texas and the Public Utility Commission of Texas to address a failure by an operator to maintain an electrical power line serving a well site or certain surface facilities in accordance with the National Electrical Code.

Contracts

• Master Service Agreements (MSAs): Update agreements with electrical contractors to require strict adherence to the NEC standards adopted by the Texas Commission of Licensing and Regulation. Insert indemnity clauses covering lost production revenue resulting from regulatory shut-ins caused by non-compliant work.
• Surface Use Agreements (SUAs): For new agreements, negotiate clauses requiring landowners to notify the Operator of electrical defects simultaneously with any report to the RRC, preserving your window to cure.

Hiring/Training

• Field Staff Training: Lease operators and pumpers must be trained to identify the statutory triggers: leaning poles, cracking equipment, and exposed wires. This is no longer just a maintenance issue; it is a regulatory trigger.
• Vendor Access: Retain an NEC-licensed electrical contractor on a 24/7 call-out basis to address defects within the statutory 10-day resolution window.

Reporting & Record-Keeping

• Maintenance Logs: Modify daily/weekly pumper logs to include a specific "Electrical Visual Inspection" field.
• Proof of Cure: Develop a standardized "Resolution Packet" (photos, work orders, contractor certification) to immediately submit to the RRC upon repair. Power restoration is contingent on the RRC formally notifying the utility that the condition is resolved.

Fees & Costs

• Mitigation Costs: Budget for immediate capital expenditures to repair aging electrical infrastructure, particularly poles and lines in high-vegetation areas.
• Business Interruption: Prepare for potential revenue loss. Most insurance policies exclude business interruption caused by failure to comply with statutes; verify your coverage immediately.