1 | 1 | | 89R4112 CXP-D |
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2 | 2 | | By: Eckhardt S.B. No. 1157 |
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4 | 4 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to the flaring and venting of methane gas on land dedicated |
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10 | 10 | | to the permanent university fund. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. Subchapter C, Chapter 66, Education Code, is |
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13 | 13 | | amended by adding Section 66.455 to read as follows: |
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14 | 14 | | Sec. 66.455. METHANE FLARING AND VENTING REDUCTION PLANS. |
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15 | 15 | | (a) The board of regents of The University of Texas System shall |
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16 | 16 | | adopt a formal policy goal to eliminate routine methane flaring and |
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17 | 17 | | venting on university lands by 2029. |
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18 | 18 | | (b) Under each lease issued, modified, or renewed under this |
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19 | 19 | | subchapter relating to oil or gas, the lessee shall submit to the |
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20 | 20 | | board of regents of The University of Texas System a plan to end |
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21 | 21 | | routine methane flaring and venting in accordance with the policy |
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22 | 22 | | goal adopted under Subsection (a). The plan must: |
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23 | 23 | | (1) include provisions that prohibit routine methane |
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24 | 24 | | flaring and venting; |
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25 | 25 | | (2) for all new and existing sources, require |
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26 | 26 | | operators to adhere to the United States Environmental Protection |
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27 | 27 | | Agency's new source performance standards for methane emissions; |
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28 | 28 | | and |
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29 | 29 | | (3) require the lessee to implement quarterly |
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30 | 30 | | inspections and maintenance for the detection of malfunctioning and |
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31 | 31 | | unlit flares using leak detection equipment, such as optical gas |
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32 | 32 | | imaging cameras, and for the repair of those flares. |
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33 | 33 | | (c) The board of regents of The University of Texas System |
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34 | 34 | | shall review and approve or reject each plan submitted under |
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35 | 35 | | Subsection (b) according to procedures adopted by the board. The |
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36 | 36 | | University of Texas Bureau of Economic Geology shall assist the |
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37 | 37 | | board and lessees in matters relating to the plans. |
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38 | 38 | | (d) In adopting procedures to implement this section, the |
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39 | 39 | | board of regents of The University of Texas System may apply to new |
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40 | 40 | | facilities and existing facilities that have been modified after |
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41 | 41 | | initial construction more stringent standards than the standards |
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42 | 42 | | the board applies to other facilities. |
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43 | 43 | | SECTION 2. Section 86.185, Natural Resources Code, is |
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44 | 44 | | amended to read as follows: |
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45 | 45 | | Sec. 86.185. PROHIBITION AGAINST GAS IN AIR. (a) No gas |
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46 | 46 | | from a gas well may be permitted to escape into the air after the |
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47 | 47 | | expiration of 10 days from the time the gas is encountered in the |
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48 | 48 | | gas well, or from the time of perforating the casing opposite a |
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49 | 49 | | gas-bearing zone if casing is set through the zone, whichever is |
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50 | 50 | | later, but the commission may permit the escape of gas into the air |
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51 | 51 | | for an additional time if the operator of a well or other facility |
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52 | 52 | | presents information to show the necessity for the escape; provided |
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53 | 53 | | that the amount of gas which is flared under that authority is |
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54 | 54 | | charged to the operator's allowable production. A necessity |
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55 | 55 | | includes but is not limited to the following situations: |
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56 | 56 | | (1) cleaning a well of sand or acid or both following |
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57 | 57 | | stimulation treatment of a well; and |
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58 | 58 | | (2) repairing or modifying a gas-gathering system. |
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59 | 59 | | (b) Notwithstanding Subsection (a), the commission may |
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60 | 60 | | permit methane flaring or venting from a well on university lands |
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61 | 61 | | described by Section 66.41, Education Code, if the board of regents |
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62 | 62 | | of The University of Texas System and the well operator jointly |
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63 | 63 | | submit to the commission an attestation that: |
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64 | 64 | | (1) the well: |
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65 | 65 | | (A) is connected to a pipeline on which pipeline |
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66 | 66 | | takeaway capacity is not expected to meet the demand for gas |
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67 | 67 | | produced from the well; or |
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68 | 68 | | (B) is not connected to a pipeline and connection |
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69 | 69 | | of the well to a pipeline is technically or commercially |
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70 | 70 | | unfeasible; and |
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71 | 71 | | (2) the well operator made a good faith effort to find |
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72 | 72 | | a productive purpose for the gas the operator is seeking to flare or |
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73 | 73 | | vent. |
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74 | 74 | | SECTION 3. Not later than June 1, 2026, the board of regents |
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75 | 75 | | of The University of Texas System shall adopt procedures |
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76 | 76 | | implementing Section 66.455, Education Code, as added by this Act. |
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77 | 77 | | SECTION 4. (a) Except as provided by Subsection (b) of this |
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78 | 78 | | section, this Act takes effect September 1, 2025. |
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79 | 79 | | (b) Section 86.185, Natural Resources Code, as amended by |
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80 | 80 | | this Act, takes effect January 1, 2027. |
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