By: Birdwell, Blanco S.B. No. 1146
A BILL TO BE ENTITLED
AN ACT
relating to the plugging or replugging of certain inactive wells
subject to the jurisdiction of the Railroad Commission of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 89.045, Natural Resources Code, is
amended to read as follows:
Sec. 89.045. LIABILITY FOR DAMAGES. The commission and its
employees and agents, the operator, [and] the nonoperator, and any
private person who has paid money to the commission to plug or
replug a well under Section 89.084 are not liable for any damages
that may occur as a result of acts done or omitted to be done by them
or each of them in a good-faith effort to carry out this chapter.
SECTION 2. Subchapter C, Chapter 89, Natural Resources
Code, is amended by adding Section 89.049 to read as follows:
Sec. 89.049. PLUGGING OR REPLUGGING OF ORPHANED WELL BY OIL
AND GAS LESSEE OR MINERAL ESTATE OWNER. (a) In this section,
"operator in good standing" and "orphaned well" have the meanings
assigned by Section 89.047.
(b) An operator in good standing who is the owner of an
interest in a current oil and gas lease or the mineral estate of a
tract of land on which an orphaned well is located or the owner of
the surface estate of a tract of land on which an orphaned well is
located may contract with a commission-approved well plugger to
plug or replug the well.
(c) A well plugger who enters into a contract under
Subsection (b) shall:
(1) not later than the 30th day before the date the
well is to be plugged or replugged, mail notice of the plugger's
intent to plug or replug the well to the operator of the well or the
surface owner, as applicable, at the operator's or surface owner's
address as shown by the records of the commission; and
(2) plug or replug the well in accordance with
commission rules.
(d) An operator in good standing or a surface owner who
enters into a contract under Subsection (b) does not assume
responsibility for the physical operation and control of the
orphaned well and is not liable for any plugging or replugging
responsibility or damages that may occur as a result of acts done or
omitted to be done relating to plugging or replugging the well under
this section.
(e) Paying money to or contracting with a well plugger to
plug or replug an orphaned well under this section is not an
admission that the person paying the money or contracting for the
plugging or replugging of the well is obligated to plug or replug
the well. Evidence that a person has paid money to or contracted
with a well plugger to plug or replug a well under this section is
not admissible against the person in a suit in which the person's
obligation to plug or replug the well is an issue, and introducing
the evidence is a compulsory ground for mistrial.
(f) The commission may require a plugging or replugging
operation conducted under this section to be supervised by a
commission employee. A plugging or replugging operation conducted
under this section is not considered complete until approved by the
commission.
(g) This section does not apply to the owner of the surface
estate of a tract of land on which an orphaned well is located if the
surface owner was the operator who abandoned the well.
(h) The commission shall adopt any rules reasonably
necessary to implement this section, including rules prescribing
procedures for the approval by the commission of a well plugging or
replugging operation conducted under this section.
SECTION 3. This Act takes effect September 1, 2025.