BILL ANALYSIS

Senate Research Center	S.B. 1210
88R12040 JAM-D	By: Blanco
	Natural Resources & Economic Development
	3/27/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

There are over 8,000 orphan wells in Texas that the Railroad Commission is charged with plugging. Currently, there is a program in statute that allows an oil and gas operator to adopt an orphaned oil and gas well to bring it back into operation. However, there is no similar mechanism for a geothermal operator to adopt an orphaned oil and gas well. There is tremendous promise for geothermal energy in Texas, and abandoned oil and gas wells have the potential to be valuable assets for the geothermal industry in the state.

As proposed, S.B. 1210 would allow a geothermal operator to adopt an orphaned oil and gas well to convert it into a geothermal electricity production well. S.B. 1210 will reduce the number of orphaned oil and gas wells in Texas, thereby reducing the amount of money the Railroad Commission's Oilfield Regulation and Cleanup Fund must spend on plugging orphaned wells.

As proposed, S.B. 1210 amends current law relating to the designation of a person who has an interest in the geothermal resources of an orphaned oil or gas well as the operator of that well.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 89.047(f), Natural Resources Code, as follows:

(f) Requires the Railroad Commission of Texas (RRC) to designate the person as the operator of the well if the person files with RRC:

(1) a factually supported claim based on a recognized legal theory to a continuing possessory right in the mineral estate or geothermal resources accessed by the well, such as evidence of a current oil and gas lease or a recorded deed conveying a fee interest in the mineral estate or geothermal resources;

(2)-(3) makes no change to these subdivisions;

SECTION 2. Effective date: September 1, 2023.