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A BILL TO BE ENTITLED
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AN ACT
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relating to a requirement that an applicant for a permit to drill an |
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oil or gas well submit a gas capture plan for the well. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter F, Chapter 86, Natural Resources |
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Code, is amended by adding Section 86.186 to read as follows: |
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Sec. 86.186. GAS CAPTURE PLAN. (a) The commission may not |
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issue a permit to drill, deepen, plug back, or reenter an oil or gas |
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well unless the applicant submits with the application a gas |
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capture plan to minimize flaring from the well. |
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(b) The gas capture plan must include: |
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(1) the volume of gas anticipated to be produced from |
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the well annually, measured in thousands of cubic feet; |
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(2) the volume of oil anticipated to be produced from |
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the well annually, measured in barrels; |
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(3) the volume of condensate anticipated to be |
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produced from the well annually, measured in barrels; |
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(4) a detailed map depicting each existing, planned, |
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and anticipated gas gathering system in the general area of the |
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well; |
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(5) the following information with regard to the gas |
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gathering system that the operator of the well has contracted to use |
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or, if the operator has not entered into a contract, the gas |
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gathering system that is closest to the well: |
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(A) the name of the operator of the gas gathering |
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system; |
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(B) a description of the approximate route of the |
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pipeline required to connect the well to the gas gathering system; |
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(C) the distance in feet of the pipeline required |
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to connect the well to the gas gathering system; |
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(D) the volume of gas in thousands of cubic feet |
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per day that the gas gathering system is capable of transporting; |
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(E) the volume of gas in thousands of cubic feet |
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per day that the gas gathering system is currently transporting; |
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(F) the volume of gas in thousands of cubic feet |
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per day that the gas gathering system is anticipated to be |
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transporting on the date of first sale of gas from the well; |
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(G) the reliability of the gas gathering system, |
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including the average annual downtime of the system; and |
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(H) the name and location of the gas processing |
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plant that receives or is anticipated to receive gas from the gas |
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gathering system; |
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(6) any plans for expanding the gas gathering systems |
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in the general area of the well; |
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(7) any other issues affecting the gathering of gas in |
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the general area of the well; |
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(8) a plan for connecting the well to a gas gathering |
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system, including: |
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(A) a description of any potential right-of-way |
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issues; |
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(B) the schedule for constructing any necessary |
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gas gathering facilities; |
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(C) the date a gas gathering line will be |
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available; |
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(D) a statement of whether the gas gathering |
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system described by Subdivision (5) has the capacity to accept the |
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volume of gas anticipated to be produced from the well at the time |
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of application for the permit; and |
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(E) a description of any discussions the operator |
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of the well has had with other upstream operators regarding the |
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construction or availability of a gas gathering line; and |
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(9) a description of any options available to the |
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operator of the well for the beneficial use of gas from the well if |
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the well cannot be connected to a gas gathering system, including: |
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(A) on-site use of the gas; |
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(B) the processing of liquids in the gas; |
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(C) the use of the gas for electric power |
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generation; |
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(D) the conversion of the gas to liquid fuels; |
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(E) the compression of the gas on the lease on |
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which the well is located; |
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(F) the reinjection of the gas for underground |
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storage; |
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(G) the reinjection of the gas for temporary |
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storage; |
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(H) the reinjection of the gas for enhanced oil |
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recovery; and |
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(I) shutting in the well, taking into account the |
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effect of doing so on the reservoir as well as public health, |
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safety, and the environment. |
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SECTION 2. The change in law made by this Act applies only |
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to a permit the application for which is filed with the Railroad |
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Commission of Texas on or after the effective date of this Act. A |
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permit the application for which is filed before the effective date |
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of this Act is subject to the law in effect on the date the |
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application is filed, and that law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |