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Re g ula to ry Ada pta tio n to E me rg ing T e c hno lo g y a nd Pra c tic e s in Oil a nd Ga s Pro duc tio n A Pro je c t o f the I nte rstate Oil and Gas Co mpac t Co mmissio n E ne rg y Re so urc e s, Re se a rc h a nd T e c hno lo

  1. Re g ula to ry Ada pta tio n to E me rg ing T e c hno lo g y a nd Pra c tic e s in Oil a nd Ga s Pro duc tio n A Pro je c t o f the I nte rstate Oil and Gas Co mpac t Co mmissio n E ne rg y Re so urc e s, Re se a rc h a nd T e c hno lo g y Co mmitte e T o m Willia ms, Cha ir | Sc o tt Da wso n, Vic e -Cha ir Re po rt: Oc to b e r 4, 2016 – L ittle Ro c k, AR

  2. Study F inding s  Re sponsive ne ss and  Risk Analysis and Risk Appr opr iate Re ac tion Communic ation  Re gulator  Data De ve lopme nt and y F le xibility Inte gr ation  Communic ation and  Re gulator E duc ation y and Polic y E xc hange : T owar d  Sc ie nc e - base d Re gulation Continuous Re gulator y Impr ove me nt I OGCC E RRT Oc t 2016 2

  3. Dra ft Re c o mme nda tio ns 1. Ide ntifying Issue s and Compiling Re sponsive T e c hnic al Infor mation  Re c omme ndation: T he IOGCC should c oor dinate with Ame r ic an Pe tr ole um Institute (API), Inte r national Assoc iation of Dr illing Contr ac tor s (IADC), Ame r ic an Ge ologic al Institute (AGI), Soc ie ty of Pe tr ole um E ngine e r s (SPE ) and othe r s as appr opr iate , to de ve lop a str uc tur e d pr oc e ss to aid in ide ntifying and tr ac king high le ve l c hange s in te c hnology or ope r ational pr ac tic e s that have the pote ntial to le ad to signific ant r e gulator y c hange s. I OGCC E RRT Oc t 2016 3

  4. Dra ft Re c o mme nda tio ns 2. Chie f T e c hnology Offic e rs  Re c omme nda tion: Sta te oil a nd g a s r e g ula tor y a g e nc ie s should de ve lop a c e ntr a lize d pr oc e ss for tr a c king ne w a nd e me r g ing te c hnolog ie s a nd ope r a tiona l pr a c tic e s. In some sta te s, the r e g ula tor y a g e nc y should e sta blish a position for a Chie f T e c hnolog y Offic e r , whose ma in func tion is to tr a c k a nd a na lyze e me r g ing te c hnolog ie s a nd pr a c tic e s. 3. Re gulatory E xc e lle nc e Ac ade my  Re c omme nda tion: T he IOGCC in c oor dina tion with its sta te a g e nc y me mbe r s should de ve lop pr oc e sse s or ve nue s tha t a llow hig he r - le ve l r e g ula tor y offic ia ls pr ofe ssiona l de ve lopme nt oppor tunitie s to sha r e le ssons le a r ne d fr om r e g ula tor y a da pta tion e ffor ts a ssoc ia te d with ne w te c hnolog ie s or ope r a tiona l pr a c tic e s. I OGCC E RRT Oc t 2016 4

  5. Dra ft Re c o mme nda tio ns 4. State Oil and Gas Re gulatory E xc hange  Re c omme nda tion: IOGCC should find sour c e s of funding a nd suppor t to c onduc t a dditiona l c onsulta tions, pe e r r e vie w pr og r a mma tic a sse ssme nts a nd suppor t a c tivitie s for sta te oil a nd g a s r e g ula tor y pr og r a ms. We r e c omme nd tha t IOGCC e xplor e wa ys to involve r e pr e se nta tive s fr om industr y, the public , a nd g ove r nme nt a g e nc ie s othe r tha n “oil a nd g a s” a g e nc ie s to a dvise r e g ula tor s in the pe e r r e vie w a sse ssme nt pr oc e sse s. 5. Inspe c tor Profe ssional Inte rac tion and T raining  Re c omme nda tion: We r e c omme nd IOGCC c ontinue a nd e xpa nd its suppor t of tr a ining pr og r a ms like the IOGCC Inspe c tor F or um a nd T OPCORP, se e king funding a nd suppor t fr om a dive r sity of sour c e s. I OGCC E RRT Oc t 2016 5

  6. Dra ft Re c o mme nda tio ns 6. Non- r ule making Polic ie s  Re c omme ndation: We r e c omme nd that IOGCC de ve lop a list of infor mal and se mi- for mal polic y tools (othe r than r ule makings and de c isions in c onte ste d c ase s) that ar e available to administr ative age nc ie s, gathe r ing and analyzing e xample s unde r diffe r ing r e gulator y r e gime s. 7. Data De ve lopme nt and E valuation  Re c omme ndation: We r e c omme nd that IOGCC suppor t c ontinue d de ve lopme nt of r obust data manage me nt syste ms like RBDMS that inc lude c apabilitie s that e nable asse ssme nt and e valuation of e me r ging te c hnologie s and pr ac tic e s. I OGCC E RRT Oc t 2016 6

  7. Dra ft Re c o mme nda tio ns 8. Risk Communic ation and Sc ie nc e E duc ation  Re c omme nda tion: We r e c omme nd tha t IOGCC suppor t mor e c ompr e he nsive a nd inte g r a te d e ffor ts to impr ove public unde r sta nding of ba sic sc ie nc e s a nd te c hnolog y a nd oil a nd g a s e xplor a tion a nd pr oduc tion ope r a tions, a nd to inte g r a te those e duc a tiona l e ffor ts with impr ove d r isk c ommunic a tion skills a t the sta te r e g ula tor y a g e nc y le ve l. 9. T e c hnology T ransfe r  Re c omme nda tion: We r e c omme nd tha t IOGCC, pe r ha ps thr oug h the E RRT Committe e , c onsult with RPSE A a nd PT T C r e g a r ding the most e ffe c tive wa ys to fa c ilita te te c hnolog y tr a nsfe r for the r e g ula tor y a udie nc e , a nd he lp c onve ne a nd sponsor oppor tunitie s a s a ppr opr ia te . We fur the r r e c omme nd a spe c ific foc us on te c hnolog y tr a nsfe r of fe de r a lly funde d r e se a r c h to sta te a g e nc ie s. I OGCC E RRT Oc t 2016 7

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