SB 2449

relating to financial assurance requirements for operators under
the jurisdiction of the Railroad Commission of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 91, Natural Resources Code, is amended
by adding Section 91.115 to read as follows: Sec. 91.115. FINANCIAL
ASSURANCE REQUIREMENTS FOR OPERATORS.
(a)  The Railroad Commission shall accept financial
assurance mechanisms, including but not limited to, self-insurance
and parental bonding, to demonstrate an operator's ability to
satisfy financial security obligations for the operation and
closure of produced water recycling pits and other related
(b)  An operator that owns or controls multiple subsidiaries
operating under separate P-5 organization reports may satisfy
financial security requirements through a single consolidated
bond, subject to a demonstration of financial adequacy to the
(c)  The Railroad Commission shall develop and implement a
system allowing operators to submit an annual report identifying
facilities covered under specific bonding mechanisms and ensuring
financial responsibility is properly assigned when assets are
transferred through mergers, acquisitions, or sales.
(d)  The Commission shall adopt rules necessary to implement
this section, including but not limited to establishing:
(1)  criteria for demonstrating financial adequacy for
self-insurance and parental bonding;
(2)  requirements for the submission and approval of
consolidated bonding structures for multiple P-5 operators; and
(3)  procedures for tracking and assigning financial
responsibility when transactions result in changes of ownership(e)
Nothing in this section shall diminish the authority of the
Railroad Commission to require additional financial security in
cases where the Commission determines that an operator's financial
assurance is insufficient to cover potential closure and
SECTION 2.  The Railroad Commission shall adopt rules to
implement Section 91.115, Natural Resources Code, as added by this
Act, no later than December 31, 2025.
SECTION 3.  This Act takes effect September 1, 2025.