HB 2663

relating to the affirmation required to be made by an operator as
part of an application to the Railroad Commission of Texas for an
extension of the deadline for plugging an inactive well; providing
for the imposition of a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 89.029, Natural Resources Code, is
amended by amending Subsection (a) and adding Subsection (g) to
(a)  An application for an extension of the deadline for
plugging an inactive well must include a written affirmation by the
(1)  that the operator has physically terminated
electric service to the well's production site; and
(2)  stating the following, as applicable, if the
operator does not own the surface of the land on which the well is
(A)  if the well has been inactive for at least
five years but for less than 10 years as of the date of renewal of
the operator's organization report, that the operator has emptied
or purged of production fluids all piping, tanks, vessels, and
equipment associated with and exclusive to the well; or
(B)  if the well has been inactive for at least 10
years as of the date of renewal of the operator's organization
report, that the operator has removed:
(i)  all surface process equipment and
related piping, tanks, tank batteries, pump jacks, headers, and
fences, as well as junk and trash as defined by commission rule,
associated with and exclusive to the well; and
(ii)  all equipment associated with
providing electric service to the well's production site.
(g)  The commission may impose an administrative penalty on a
person who provides an affirmation under Subsection (a) but fails
to terminate electric service to the well's production site in
accordance with Subsection (a)(1) or remove all equipment and
materials in accordance with Subsection (a)(2)(B). The amount of
the penalty may not exceed $10,000 for each violation.
SECTION 2.  The change in law made by this Act applies to an
application for an extension of the deadline for plugging an
inactive well filed with the Railroad Commission of Texas on or
after the effective date of this Act.  An application for an
extension of the deadline for plugging an inactive well filed with
the Railroad Commission of Texas before the effective date of this
Act is governed by the law in effect on the date the application was
submitted, and the former law is continued in effect for that
SECTION 3.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.