Texas 2025 - 89th Regular

Texas Senate Bill SB1146 Compare Versions

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1-By: Birdwell, Blanco S.B. No. 1146
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1+By: Birdwell S.B. No. 1146
2+ (In the Senate - Filed February 6, 2025; February 24, 2025,
3+ read first time and referred to Committee on Natural Resources;
4+ March 24, 2025, reported adversely, with favorable Committee
5+ Substitute by the following vote: Yeas 8, Nays 0; March 24, 2025,
6+ sent to printer.)
7+Click here to see the committee vote
8+ COMMITTEE SUBSTITUTE FOR S.B. No. 1146 By: Parker
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611 A BILL TO BE ENTITLED
712 AN ACT
813 relating to the plugging or replugging of certain inactive wells
914 subject to the jurisdiction of the Railroad Commission of Texas.
1015 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1116 SECTION 1. Section 89.045, Natural Resources Code, is
1217 amended to read as follows:
1318 Sec. 89.045. LIABILITY FOR DAMAGES. The commission and its
1419 employees and agents, the operator, [and] the nonoperator, and any
1520 private person who has paid money to the commission to plug or
1621 replug a well under Section 89.084 are not liable for any damages
1722 that may occur as a result of acts done or omitted to be done by them
1823 or each of them in a good-faith effort to carry out this chapter.
1924 SECTION 2. Subchapter C, Chapter 89, Natural Resources
2025 Code, is amended by adding Section 89.049 to read as follows:
2126 Sec. 89.049. PLUGGING OR REPLUGGING OF ORPHANED WELL BY OIL
2227 AND GAS LESSEE OR MINERAL ESTATE OWNER. (a) In this section,
2328 "operator in good standing" and "orphaned well" have the meanings
2429 assigned by Section 89.047.
2530 (b) An operator in good standing who is the owner of an
2631 interest in a current oil and gas lease or the mineral estate of a
2732 tract of land on which an orphaned well is located or the owner of
2833 the surface estate of a tract of land on which an orphaned well is
2934 located may contract with a commission-approved well plugger to
3035 plug or replug the well.
3136 (c) A well plugger who enters into a contract under
3237 Subsection (b) shall:
3338 (1) not later than the 30th day before the date the
3439 well is to be plugged or replugged, mail notice of the plugger's
3540 intent to plug or replug the well to the operator of the well or the
3641 surface owner, as applicable, at the operator's or surface owner's
3742 address as shown by the records of the commission; and
3843 (2) plug or replug the well in accordance with
3944 commission rules.
4045 (d) An operator in good standing or a surface owner who
4146 enters into a contract under Subsection (b) does not assume
4247 responsibility for the physical operation and control of the
4348 orphaned well and is not liable for any plugging or replugging
4449 responsibility or damages that may occur as a result of acts done or
4550 omitted to be done relating to plugging or replugging the well under
4651 this section.
4752 (e) Paying money to or contracting with a well plugger to
4853 plug or replug an orphaned well under this section is not an
4954 admission that the person paying the money or contracting for the
5055 plugging or replugging of the well is obligated to plug or replug
5156 the well. Evidence that a person has paid money to or contracted
5257 with a well plugger to plug or replug a well under this section is
5358 not admissible against the person in a suit in which the person's
5459 obligation to plug or replug the well is an issue, and introducing
5560 the evidence is a compulsory ground for mistrial.
5661 (f) The commission may require a plugging or replugging
5762 operation conducted under this section to be supervised by a
5863 commission employee. A plugging or replugging operation conducted
5964 under this section is not considered complete until approved by the
6065 commission.
6166 (g) This section does not apply to the owner of the surface
6267 estate of a tract of land on which an orphaned well is located if the
6368 surface owner was the operator who abandoned the well.
6469 (h) The commission shall adopt any rules reasonably
6570 necessary to implement this section, including rules prescribing
6671 procedures for the approval by the commission of a well plugging or
6772 replugging operation conducted under this section.
6873 SECTION 3. This Act takes effect September 1, 2025.
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