| 1 | 1 | | 88R5576 ANG-D |
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| 2 | 2 | | By: Hinojosa H.B. No. 1782 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a requirement that an applicant for a permit to drill an |
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| 8 | 8 | | oil or gas well submit a gas capture plan for the well. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter F, Chapter 86, Natural Resources |
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| 11 | 11 | | Code, is amended by adding Section 86.186 to read as follows: |
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| 12 | 12 | | Sec. 86.186. GAS CAPTURE PLAN. (a) The commission may not |
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| 13 | 13 | | issue a permit to drill, deepen, plug back, or reenter an oil or gas |
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| 14 | 14 | | well unless the applicant submits with the application a gas |
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| 15 | 15 | | capture plan to minimize flaring from the well. |
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| 16 | 16 | | (b) The gas capture plan must include: |
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| 17 | 17 | | (1) the volume of gas anticipated to be produced from |
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| 18 | 18 | | the well annually, measured in thousands of cubic feet; |
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| 19 | 19 | | (2) the volume of oil anticipated to be produced from |
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| 20 | 20 | | the well annually, measured in barrels; |
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| 21 | 21 | | (3) the volume of condensate anticipated to be |
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| 22 | 22 | | produced from the well annually, measured in barrels; |
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| 23 | 23 | | (4) a detailed map depicting each existing, planned, |
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| 24 | 24 | | and anticipated gas gathering system in the general area of the |
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| 25 | 25 | | well; |
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| 26 | 26 | | (5) the following information with regard to the gas |
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| 27 | 27 | | gathering system that the operator of the well has contracted to use |
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| 28 | 28 | | or, if the operator has not entered into a contract, the gas |
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| 29 | 29 | | gathering system that is closest to the well: |
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| 30 | 30 | | (A) the name of the operator of the gas gathering |
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| 31 | 31 | | system; |
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| 32 | 32 | | (B) a description of the approximate route of the |
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| 33 | 33 | | pipeline required to connect the well to the gas gathering system; |
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| 34 | 34 | | (C) the distance in feet of the pipeline required |
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| 35 | 35 | | to connect the well to the gas gathering system; |
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| 36 | 36 | | (D) the volume of gas in thousands of cubic feet |
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| 37 | 37 | | per day that the gas gathering system is capable of transporting; |
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| 38 | 38 | | (E) the volume of gas in thousands of cubic feet |
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| 39 | 39 | | per day that the gas gathering system is currently transporting; |
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| 40 | 40 | | (F) the volume of gas in thousands of cubic feet |
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| 41 | 41 | | per day that the gas gathering system is anticipated to be |
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| 42 | 42 | | transporting on the date of first sale of gas from the well; |
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| 43 | 43 | | (G) the reliability of the gas gathering system, |
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| 44 | 44 | | including the average annual downtime of the system; and |
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| 45 | 45 | | (H) the name and location of the gas processing |
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| 46 | 46 | | plant that receives or is anticipated to receive gas from the gas |
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| 47 | 47 | | gathering system; |
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| 48 | 48 | | (6) any plans for expanding the gas gathering systems |
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| 49 | 49 | | in the general area of the well; |
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| 50 | 50 | | (7) any other issues affecting the gathering of gas in |
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| 51 | 51 | | the general area of the well; |
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| 52 | 52 | | (8) a plan for connecting the well to a gas gathering |
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| 53 | 53 | | system, including: |
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| 54 | 54 | | (A) a description of any potential right-of-way |
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| 55 | 55 | | issues; |
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| 56 | 56 | | (B) the schedule for constructing any necessary |
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| 57 | 57 | | gas gathering facilities; |
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| 58 | 58 | | (C) the date a gas gathering line will be |
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| 59 | 59 | | available; |
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| 60 | 60 | | (D) a statement of whether the gas gathering |
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| 61 | 61 | | system described by Subdivision (5) has the capacity to accept the |
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| 62 | 62 | | volume of gas anticipated to be produced from the well at the time |
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| 63 | 63 | | of application for the permit; and |
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| 64 | 64 | | (E) a description of any discussions the operator |
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| 65 | 65 | | of the well has had with other upstream operators regarding the |
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| 66 | 66 | | construction or availability of a gas gathering line; and |
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| 67 | 67 | | (9) a description of any options available to the |
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| 68 | 68 | | operator of the well for the beneficial use of gas from the well if |
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| 69 | 69 | | the well cannot be connected to a gas gathering system, including: |
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| 70 | 70 | | (A) on-site use of the gas; |
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| 71 | 71 | | (B) the processing of liquids in the gas; |
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| 72 | 72 | | (C) the use of the gas for electric power |
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| 73 | 73 | | generation; |
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| 74 | 74 | | (D) the conversion of the gas to liquid fuels; |
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| 75 | 75 | | (E) the compression of the gas on the lease on |
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| 76 | 76 | | which the well is located; |
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| 77 | 77 | | (F) the reinjection of the gas for underground |
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| 78 | 78 | | storage; |
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| 79 | 79 | | (G) the reinjection of the gas for temporary |
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| 80 | 80 | | storage; |
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| 81 | 81 | | (H) the reinjection of the gas for enhanced oil |
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| 82 | 82 | | recovery; and |
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| 83 | 83 | | (I) shutting in the well, taking into account the |
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| 84 | 84 | | effect of doing so on the reservoir as well as public health, |
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| 85 | 85 | | safety, and the environment. |
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| 86 | 86 | | SECTION 2. The change in law made by this Act applies only |
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| 87 | 87 | | to a permit the application for which is filed with the Railroad |
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| 88 | 88 | | Commission of Texas on or after the effective date of this Act. A |
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| 89 | 89 | | permit the application for which is filed before the effective date |
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| 90 | 90 | | of this Act is subject to the law in effect on the date the |
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| 91 | 91 | | application is filed, and that law is continued in effect for that |
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| 92 | 92 | | purpose. |
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| 93 | 93 | | SECTION 3. This Act takes effect September 1, 2023. |
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