Texas Directional Drilling Regulations Every Business Owner Should Know

Nate Jones
Nov 28
2 min read

Operating a directional drilling business in Texas requires not only skilled operators and proper equipment but also a thorough understanding of state and local regulations. Compliance is essential to avoid fines, delays, or liability issues.

Whether your business operates in Houston, Dallas, Austin, San Antonio, Fort Worth, or El Paso, staying informed ensures safer and more efficient operations.

1. Licensing Requirements in Texas

Directional drilling contractors must comply with Texas licensing rules, which vary depending on project type:

State Licensing: Certain utility and construction projects require licenses issued by the Texas Department of Licensing and Regulation (TDLR).
Municipal Permits: Cities like Houston and Dallas may require additional local permits for trenching or horizontal directional drilling.
Contractor Registration: Some municipalities, such as Austin and San Antonio, require contractors to register before performing underground utility work.

Failing to obtain proper licenses can lead to penalties and lost business opportunities.

2. Utility Notification and Locating Laws

Before beginning any directional drilling project, Texas law mandates notifying utility companies:

811 “Call Before You Dig” is required statewide to locate underground utilities.
Major cities like Fort Worth and El Paso have additional local requirements for excavation notices.
Accurate utility locating protects your business from costly accidents and liability claims.

3. Safety and Environmental Regulations

Safety and environmental compliance are critical:

OSHA Standards: Workers must follow OSHA guidelines for trenching, excavation, and drilling safety.
EPA Compliance: Handling drilling fluids and waste may trigger environmental regulations.
Cities like Houston and Dallas often have stricter urban construction safety ordinances.

Implementing proper safety procedures reduces accidents, injuries, and potential fines.

4. Equipment and Operational Compliance

Regulations may also govern the type of equipment you use and operational practices:

Maintenance logs for drilling rigs and support vehicles are often required.
Noise and vibration ordinances in urban areas like Austin and San Antonio may restrict certain operations.
Proper signage, barriers, and personal protective equipment (PPE) are mandatory on-site.

5. Insurance as a Regulatory Consideration

Although not always legally required, carrying the right insurance can protect your business from regulatory and operational risks. Independent insurance agencies like One Hampton Insurance can provide coverage tailored to Texas directional drilling companies:

Final Thoughts

Staying compliant with Texas directional drilling regulations is essential for business success. Understanding licensing, utility notification, safety, environmental, and equipment rules helps reduce risk, maintain project timelines, and protect your employees. Coupled with comprehensive insurance from One Hampton Insurance, Texas business owners can operate confidently in Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso.

Contact us today.