88R5576 ANG-D
 
  By: Hinojosa H.B. No. 1782
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a requirement that an applicant for a permit to drill an
  oil or gas well submit a gas capture plan for the well.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter F, Chapter 86, Natural Resources
  Code, is amended by adding Section 86.186 to read as follows:
         Sec. 86.186.  GAS CAPTURE PLAN. (a)  The commission may not
  issue a permit to drill, deepen, plug back, or reenter an oil or gas
  well unless the applicant submits with the application a gas
  capture plan to minimize flaring from the well.
         (b)  The gas capture plan must include:
               (1)  the volume of gas anticipated to be produced from
  the well annually, measured in thousands of cubic feet;
               (2)  the volume of oil anticipated to be produced from
  the well annually, measured in barrels;
               (3)  the volume of condensate anticipated to be
  produced from the well annually, measured in barrels;
               (4)  a detailed map depicting each existing, planned,
  and anticipated gas gathering system in the general area of the
  well;
               (5)  the following information with regard to the gas
  gathering system that the operator of the well has contracted to use
  or, if the operator has not entered into a contract, the gas
  gathering system that is closest to the well:
                     (A)  the name of the operator of the gas gathering
  system;
                     (B)  a description of the approximate route of the
  pipeline required to connect the well to the gas gathering system;
                     (C)  the distance in feet of the pipeline required
  to connect the well to the gas gathering system;
                     (D)  the volume of gas in thousands of cubic feet
  per day that the gas gathering system is capable of transporting;
                     (E)  the volume of gas in thousands of cubic feet
  per day that the gas gathering system is currently transporting;
                     (F)  the volume of gas in thousands of cubic feet
  per day that the gas gathering system is anticipated to be
  transporting on the date of first sale of gas from the well;
                     (G)  the reliability of the gas gathering system,
  including the average annual downtime of the system; and
                     (H)  the name and location of the gas processing
  plant that receives or is anticipated to receive gas from the gas
  gathering system;
               (6)  any plans for expanding the gas gathering systems
  in the general area of the well;
               (7)  any other issues affecting the gathering of gas in
  the general area of the well;
               (8)  a plan for connecting the well to a gas gathering
  system, including:
                     (A)  a description of any potential right-of-way
  issues;
                     (B)  the schedule for constructing any necessary
  gas gathering facilities;
                     (C)  the date a gas gathering line will be
  available;
                     (D)  a statement of whether the gas gathering
  system described by Subdivision (5) has the capacity to accept the
  volume of gas anticipated to be produced from the well at the time
  of application for the permit; and
                     (E)  a description of any discussions the operator
  of the well has had with other upstream operators regarding the
  construction or availability of a gas gathering line; and
               (9)  a description of any options available to the
  operator of the well for the beneficial use of gas from the well if
  the well cannot be connected to a gas gathering system, including:
                     (A)  on-site use of the gas;
                     (B)  the processing of liquids in the gas;
                     (C)  the use of the gas for electric power
  generation;
                     (D)  the conversion of the gas to liquid fuels;
                     (E)  the compression of the gas on the lease on
  which the well is located;
                     (F)  the reinjection of the gas for underground
  storage;
                     (G)  the reinjection of the gas for temporary
  storage;
                     (H)  the reinjection of the gas for enhanced oil
  recovery; and
                     (I)  shutting in the well, taking into account the
  effect of doing so on the reservoir as well as public health,
  safety, and the environment.
         SECTION 2.  The change in law made by this Act applies only
  to a permit the application for which is filed with the Railroad
  Commission of Texas on or after the effective date of this Act. A
  permit the application for which is filed before the effective date
  of this Act is subject to the law in effect on the date the
  application is filed, and that law is continued in effect for that
  purpose.
         SECTION 3.  This Act takes effect September 1, 2023.