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A BILL TO BE ENTITLED
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AN ACT
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relating to the affirmation required to be made by an operator as |
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part of an application to the Railroad Commission of Texas for an |
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extension of the deadline for plugging an inactive well; providing |
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an administrative penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 89.029, Natural Resources Code, is |
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amended by amending Subsection (a) and adding Subsection (g) to |
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read as follows: |
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(a) An application for an extension of the deadline for |
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plugging an inactive well must include a written affirmation by the |
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operator: |
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(1) that the operator has physically terminated |
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electric service to the well's production site; and |
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(2) stating the following, as applicable, if the |
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operator does not own the surface of the land on which the well is |
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located: |
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(A) if the well has been inactive for at least |
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five years but for less than 10 years as of the date of renewal of |
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the operator's organization report, that the operator has emptied |
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or purged of production fluids all piping, tanks, vessels, and |
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equipment associated with and exclusive to the well; or |
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(B) if the well has been inactive for at least 10 |
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years as of the date of renewal of the operator's organization |
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report, that the operator has removed: |
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(i) all surface process equipment and |
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related piping, tanks, tank batteries, pump jacks, headers, and |
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fences, as well as junk and trash as defined by commission rule, |
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associated with and exclusive to the well; and |
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(ii) all equipment associated with |
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providing electric service to the well's production site, except |
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for equipment owned by an electric utility, as defined by Section |
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31.002, Utilities Code. |
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(g) The commission shall impose an administrative penalty |
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on a person who provides an affirmation under Subsection (a) but |
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fails to terminate electric service to the well's production site |
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in accordance with Subsection (a)(1) or remove all equipment and |
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materials in accordance with Subsection (a)(2)(B). The amount of |
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the penalty may not exceed $25,000 for each violation. |
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SECTION 2. The change in law made by this Act applies to an |
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application for an extension of the deadline for plugging an |
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inactive well filed with the Railroad Commission of Texas on or |
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after the effective date of this Act. An application for an |
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extension of the deadline for plugging an inactive well filed with |
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the Railroad Commission of Texas before the effective date of this |
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Act is governed by the law in effect on the date the application was |
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submitted, and the former law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |