Texas 2025 - 89th Regular

Texas House Bill HB2766 Compare Versions

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1	1	By: Geren H.B. No. 2766
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the plugging of certain inactive wells subject to the
9	9	jurisdiction of the Railroad Commission of Texas.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 89.023, Natural Resources Code, is
12	12	amended by amending Subsection (b) and adding Subsections (c)
13	13	through (g) to read as follows:
14	14	(b) Notwithstanding Subsection (a), an operator may not
15	15	obtain an extension of the deadline for plugging an inactive well by
16	16	complying with that subsection:
17	17	(1) if the plugging of the well is otherwise required
18	18	by commission rules or orders; or
19	19	(2) if the inactive well:
20	20	(A) has been an inactive well for more than 15
21	21	years; and
22	22	(B) 25 years have elapsed since the well was
23	23	completed, unless:
24	24	(i) the commission approves an order
25	25	granting an applicant's exception to plugging the inactive well; or
26	26	(ii) the inactive well is included in an
27	27	approved compliance plan under Subsection (e), in which the
28	28	operator of the well commits to plug, or restore to active
29	29	operation, the inactive well within a time period ending on
30	30	September 1, 2040.
31	31	(c) When considering a request under Subsection
32	32	(b)(2)(B)(i) for an exception to plugging an inactive well, the
33	33	commission shall consider an operator's demonstrated history of
34	34	returning inactive wells to active status.
35	35	(d) An exception approved by order of the commission under
36	36	Subsection (b)(2)(B)(i) is not transferrable to another operator
37	37	and shall terminate upon transfer of the well, except that a new
38	38	operator of that well may seek an additional exception under
39	39	Subsection (b) for that well.
40	40	(e) An operator may request the commission or its delegate
41	41	to approve a compliance plan for inactive wells. In approving a
42	42	compliance plan pursuant to Subsection (b)(2)(B)(ii), the
43	43	commission or its delegate shall consider the following factors:
44	44	(1) the number of years the well has been inactive and
45	45	its age;
46	46	(2) current economic conditions;
47	47	(3) the well operator's percentage of inactive wells
48	48	as compared to its total well count;
49	49	(4) any plan of action by the well operator to plug or
50	50	bring its inactive wells into production, injection, or other
51	51	service operation, which must include a compliance report to be
52	52	submitted to the commission annually with the operator's P-5
53	53	renewal;
54	54	(5) whether the operator has financial assurance to
55	55	cover the actual plugging costs of each well;
56	56	(6) the well operator's record of compliance, the
57	57	history of any previous violations, and the seriousness of any
58	58	previous violations;
59	59	(7) any potential hazards to the health and safety of
60	60	the public or environmental risks posed by the inactive well; and
61	61	(8) the demonstrated good faith of the well operator.
62	62	(f) If the commission or its delegate denies an operator's
63	63	request for approval of a compliance plan pursuant to Subsection
64	64	(e), the operator may request a hearing and order of the commission.
65	65	(g) The commission shall adopt rules that provide for
66	66	administrative review and approval of requests to transfer an
67	67	inactive well to another operator to ensure that wells of the
68	68	receiving operator are in compliance with this section.
69	69	SECTION 2. Subchapter B-1, Chapter 89, Natural Resources
70	70	Code, is amended by adding Section 89.031 to read as follows:
71	71	Sec. 89.031. ANNUAL REPORT BY COMMISSION. On or before
72	72	September 1, 2026, and each year thereafter, the commission shall
73	73	prepare and submit to the governor, lieutenant governor, and each
74	74	member of the legislature a report on inactive wells that includes:
75	75	(1) the number of inactive wells in Texas;
76	76	(2) the age and length of inactivity for the inactive
77	77	wells;
78	78	(3) the quantity of inactive wells that use each
79	79	method for extending the deadline under this chapter for plugging
80	80	inactive wells;
81	81	(4) the identification of the financial assurance
82	82	methods being used by operators for inactive wells under this
83	83	chapter, and the quantity of the number of inactive wells for each
84	84	category of financial assurance;
85	85	(5) the number of inactive wells and total wells that
86	86	were plugged in the prior 12 months, including a breakdown by
87	87	commission district of wells plugged by industry and by the
88	88	commission using state-managed funds;
89	89	(6) the number of inactive wells that were returned to
90	90	production, injection, or other service operation in the prior 12
91	91	months;
92	92	(7) P-5 status statistical summary of the number of
93	93	operators of inactive wells including the total number of operators
94	94	and total number of inactive wells for the status categories of
95	95	active P-5, P-5 Extension, Delinquent P-5, and P-5 delinquent
96	96	greater than 12 months;
97	97	(8) the number of P-5 Organization Reports revoked
98	98	under Section 91.114, the associated well count, the total amount
99	99	of financial assurance in place for those operators, and the amount
100	100	of financial assurance collected; and
101	101	(9) the annual cost calculation for plugging an
102	102	inactive well, as defined in Section 89.002 (a)(9).
103	103	SECTION 3. Subchapter B-1, Chapter 89, Natural Resources
104	104	Code, is amended by adding Section 89.032 to read as follows:
105	105	Sec. 89.032. COMMISSION RULEMAKING. (a) The commission
106	106	shall by rule adopt requirements for inactive wells. In its
107	107	rulemaking, the commission shall consider the following factors:
108	108	(1) risk to public safety and/or the environment;
109	109	(2) wellbore integrity and wellhead integrity
110	110	including the ability to monitor casing pressures; and
111	111	(3) regional considerations of risk such as
112	112	penetration of corrosive or overpressured formations, and
113	113	completion in zones containing hydrogen sulfide.
114	114	(b) The commission's rules shall include requirements that
115	115	within one year of the 15th anniversary of a well becoming inactive,
116	116	the operator of that well submit a report to the commission that:
117	117	(1) demonstrates completion of a successful fluid
118	118	level test or a mechanical integrity test of the well conducted in
119	119	accordance with the commission's rules in effect at the time of the
120	120	test, with a phase-in period for wells that require testing on the
121	121	effective date of the rule; and
122	122	(2) includes documentation of the results of a
123	123	successful fluid level test and reporting of pressure on the
124	124	production casing prior to testing.
125	125	SECTION 4. This Act takes effect September 1, 2025.