Railroad Commission of Texas - Final Order - Oil & Gas Docket No. 7C-0319024

Sep 10, 2026

Final Order from the Railroad Commission of Texas in Oil & Gas Docket No. 7C-0319024 regarding a single-signature Form P-4 filing by Mission Energy Inc. The Commission finds notice and hearing opportunity were timely provided, determines TKP Petroleum, Inc. failed to request a hearing and lacked a good faith claim, while Mission demonstrated a good faith claim based on the continuing right to operate. The operator of record is transferred to Mission, subject to statutory and regulatory compliance.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages3

Reading Time8 min

AccessFree to download

Findings of Fact

Notice, filings, and good faith claim determinations

Operator of record transfer

Conclusions of Law

Ordering Provisions

Approval, conditions, and finality timeline

RAILROAD COMMISSION OF TEXAS HEARINGS DIVISION OIL & GAS DOCKET NO. 7C-0319024 SINGLE SIGNATURE P-4 FILING BY MISSION ENERGY INC. (OPERATOR NO. 570410) FOR THE ANDERGRAM UNIT (09496) LEASE, WELL NOS. 3 AND 4, ANDERGRAM (PALO PINTO) FIELD, RUNNELS COUNTY, TEXAS, TO CHANGE THE OPERATOR FROM TKP PETROLEUM, INC. (OPERATOR NO. 860891) TO MISSION ENERGY INC. FINAL ORDER The Railroad Commission of Texas (“Commission” or “RRC”) finds that after statutory notice and an opportunity for hearing regarding the captioned proceeding, TKP Petroleum, Inc. failed to request a hearing and did not otherwise respond such that this case can proceed as a default. This proceeding having been duly submitted to the Commission at a conference held in its offices in Austin, Texas, the Commission makes the following findings of fact and conclusions of law. Findings of Fact 1. On or about March 21, 2019 , Mission Energy Inc. (“Mission”), RRC Operator No. 570410 , filed a single-signature Form P-4 Certificate of Compliance and Transportation Authority (“Form P-4”) requesting that it be designated the Commission operator of record for the Andergram Unit Lease , Lease No. 09496 , Well Nos. 3 and 4 (“Wells”) . The Form P-4 did not contain the signature of the current Commission operator of record for the Wells. 2. TKP Petroleum, Inc. (“TKP”), RRC Operator No. 860891 , is the current Commission operator of record for the Wells. 3. In a letter dated March 29, 2019 , a Commission Administrative Law Judge (“ALJ”) requested in writing that TKP either: (1) provide evidence that it holds a “good faith claim” to a continuing right to operate the referenced property; or (2) request a hearing on the matter on or before April 29, 2019. This letter expressly notified TKP that failure to timely request a hearing would constitute waiver of the opportunity to request a hearing for this proceeding. The letter was sent via firstclass mail to TKP’s address of record at the Commission as identified in TKP’s most recent filing of Form P-5 Organization Report (“Form P-5”) . 4. A “good faith claim” is defined in Commission Statewide Rule 15(a)(5) as “Afactually supported claim based on a recognized legal theory to a continuing possessory right in the mineral estate, such as evidence of a currently valid oil and gas lease or a recorded deed conveying a fee interest in the mineral estate.” 16 Tex. Admin. Code § 3 . 15(a)(5) . 5. TKP failed to provide evidence that it holds a good faith claim to a continuing right to operate the Wells, failed to respond to the ALJ’s March 29, 2019 letter and failed to request a hearing. 6. At least ten days’ notice of an opportunity for hearing was given to Mission and TKP. 7. To demonstrate its good faith claim to operate the Wells, Mission presented documentation including an oil and gas lease giving Mission the right to operate and produce the minerals from the tract where the Wells are located. 8. Mission has a current Form P-5 with a $50,000 bond as its financial assurance. Mission is currently the record operator of 31 wells. Mission’s status at the Commission is active. 9. TKP does not have a good faith claim to operate the Wells. 10. Pursuant to Tex. Gov’t Code §§ 2001.056 and 2001.062(e), TKP was provided an opportunity to request a hearing and failed to do so. 11. Mission has demonstrated a good faith claim to a continuing right to operate the Wells. 12. The Wells should be transferred to Mission as operator of record. Conclusions of Law 1. Proper notice of hearing was timely issued to persons entitled to notice. See, e.g., Tex. Gov’t Code § 2001.051; 16 Tex. Admin. Code §§ 1.42, 1.45. 2. The Commission has jurisdiction in this case. See, e.g., Tex. Nat. Res. Code § 81.051. 3. TKP does not have a good faith claim , as that term is defined in Statewide Rule 15(a)(5), to continue operating the Wells. 16 Tex. Admin. Code § 3 . 15(a)(5) . 4. Mission does have a good faith claim to operate the Wells.

FAQs

What filing initiated the proceeding in Oil & Gas Docket No. 7C-0319024?

Mission Energy Inc. filed a single-signature Form P-4 Certificate of Compliance and Transportation Authority requesting designation as the Commission operator of record for the Andergram Unit lease, wells 3 and 4.

Why did the Commission proceed by default?

TKP Petroleum, Inc. did not timely request a hearing or otherwise respond after receiving written notice, so the matter could proceed as a default proceeding.

What is the Commission’s ruling on the operator of record?

The Commission orders that the wells be transferred to Mission Energy Inc. as operator of record after finding Mission has a good faith claim and TKP does not.

Sep 10, 2026

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