By: Birdwell  S.B. No. 1146
         (In the Senate - Filed February 6, 2025; February 24, 2025,
  read first time and referred to Committee on Natural Resources;
  March 24, 2025, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 8, Nays 0; March 24, 2025,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1146 By:  Parker
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the plugging or replugging of certain inactive wells
  subject to the jurisdiction of the Railroad Commission of Texas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 89.045, Natural Resources Code, is
  amended to read as follows:
         Sec. 89.045.  LIABILITY FOR DAMAGES. The commission and its
  employees and agents, the operator, [and] the nonoperator, and any
  private person who has paid money to the commission to plug or
  replug a well under Section 89.084 are not liable for any damages
  that may occur as a result of acts done or omitted to be done by them
  or each of them in a good-faith effort to carry out this chapter.
         SECTION 2.  Subchapter C, Chapter 89, Natural Resources
  Code, is amended by adding Section 89.049 to read as follows:
         Sec. 89.049.  PLUGGING OR REPLUGGING OF ORPHANED WELL BY OIL
  AND GAS LESSEE OR MINERAL ESTATE OWNER. (a) In this section,
  "operator in good standing" and "orphaned well" have the meanings
  assigned by Section 89.047.
         (b)  An operator in good standing who is the owner of an
  interest in a current oil and gas lease or the mineral estate of a
  tract of land on which an orphaned well is located or the owner of
  the surface estate of a tract of land on which an orphaned well is
  located may contract with a commission-approved well plugger to
  plug or replug the well.
         (c)  A well plugger who enters into a contract under
  Subsection (b) shall:
               (1)  not later than the 30th day before the date the
  well is to be plugged or replugged, mail notice of the plugger's
  intent to plug or replug the well to the operator of the well or the
  surface owner, as applicable, at the operator's or surface owner's
  address as shown by the records of the commission; and
               (2)  plug or replug the well in accordance with
  commission rules.
         (d)  An operator in good standing or a surface owner who
  enters into a contract under Subsection (b) does not assume
  responsibility for the physical operation and control of the
  orphaned well and is not liable for any plugging or replugging
  responsibility or damages that may occur as a result of acts done or
  omitted to be done relating to plugging or replugging the well under
  this section.
         (e)  Paying money to or contracting with a well plugger to
  plug or replug an orphaned well under this section is not an
  admission that the person paying the money or contracting for the
  plugging or replugging of the well is obligated to plug or replug
  the well. Evidence that a person has paid money to or contracted
  with a well plugger to plug or replug a well under this section is
  not admissible against the person in a suit in which the person's
  obligation to plug or replug the well is an issue, and introducing
  the evidence is a compulsory ground for mistrial.
         (f)  The commission may require a plugging or replugging
  operation conducted under this section to be supervised by a
  commission employee. A plugging or replugging operation conducted
  under this section is not considered complete until approved by the
  commission.
         (g)  This section does not apply to the owner of the surface
  estate of a tract of land on which an orphaned well is located if the
  surface owner was the operator who abandoned the well.
         (h)  The commission shall adopt any rules reasonably
  necessary to implement this section, including rules prescribing
  procedures for the approval by the commission of a well plugging or
  replugging operation conducted under this section.
         SECTION 3.  This Act takes effect September 1, 2025.
 
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