88R5576 ANG-D
By: Hinojosa H.B. No. 1782
A BILL TO BE ENTITLED
AN ACT
relating to a requirement that an applicant for a permit to drill an
oil or gas well submit a gas capture plan for the well.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter F, Chapter 86, Natural Resources
Code, is amended by adding Section 86.186 to read as follows:
Sec. 86.186. GAS CAPTURE PLAN. (a) The commission may not
issue a permit to drill, deepen, plug back, or reenter an oil or gas
well unless the applicant submits with the application a gas
capture plan to minimize flaring from the well.
(b) The gas capture plan must include:
(1) the volume of gas anticipated to be produced from
the well annually, measured in thousands of cubic feet;
(2) the volume of oil anticipated to be produced from
the well annually, measured in barrels;
(3) the volume of condensate anticipated to be
produced from the well annually, measured in barrels;
(4) a detailed map depicting each existing, planned,
and anticipated gas gathering system in the general area of the
well;
(5) the following information with regard to the gas
gathering system that the operator of the well has contracted to use
or, if the operator has not entered into a contract, the gas
gathering system that is closest to the well:
(A) the name of the operator of the gas gathering
system;
(B) a description of the approximate route of the
pipeline required to connect the well to the gas gathering system;
(C) the distance in feet of the pipeline required
to connect the well to the gas gathering system;
(D) the volume of gas in thousands of cubic feet
per day that the gas gathering system is capable of transporting;
(E) the volume of gas in thousands of cubic feet
per day that the gas gathering system is currently transporting;
(F) the volume of gas in thousands of cubic feet
per day that the gas gathering system is anticipated to be
transporting on the date of first sale of gas from the well;
(G) the reliability of the gas gathering system,
including the average annual downtime of the system; and
(H) the name and location of the gas processing
plant that receives or is anticipated to receive gas from the gas
gathering system;
(6) any plans for expanding the gas gathering systems
in the general area of the well;
(7) any other issues affecting the gathering of gas in
the general area of the well;
(8) a plan for connecting the well to a gas gathering
system, including:
(A) a description of any potential right-of-way
issues;
(B) the schedule for constructing any necessary
gas gathering facilities;
(C) the date a gas gathering line will be
available;
(D) a statement of whether the gas gathering
system described by Subdivision (5) has the capacity to accept the
volume of gas anticipated to be produced from the well at the time
of application for the permit; and
(E) a description of any discussions the operator
of the well has had with other upstream operators regarding the
construction or availability of a gas gathering line; and
(9) a description of any options available to the
operator of the well for the beneficial use of gas from the well if
the well cannot be connected to a gas gathering system, including:
(A) on-site use of the gas;
(B) the processing of liquids in the gas;
(C) the use of the gas for electric power
generation;
(D) the conversion of the gas to liquid fuels;
(E) the compression of the gas on the lease on
which the well is located;
(F) the reinjection of the gas for underground
storage;
(G) the reinjection of the gas for temporary
storage;
(H) the reinjection of the gas for enhanced oil
recovery; and
(I) shutting in the well, taking into account the
effect of doing so on the reservoir as well as public health,
safety, and the environment.
SECTION 2. The change in law made by this Act applies only
to a permit the application for which is filed with the Railroad
Commission of Texas on or after the effective date of this Act. A
permit the application for which is filed before the effective date
of this Act is subject to the law in effect on the date the
application is filed, and that law is continued in effect for that
purpose.
SECTION 3. This Act takes effect September 1, 2023.