89R4130 CMO-F
 
  By: Eckhardt S.B. No. 1216
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of the Railroad Commission of Texas to
  permit the release into the air of natural gas from a gas well.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 86.185, Natural Resources Code, is
  amended to read as follows:
         Sec. 86.185.  PROHIBITION AGAINST GAS IN AIR.  (a) No gas
  from a gas well may be permitted to escape into the air after the
  expiration of 10 days from the time the gas is encountered in the
  gas well, or from the time of perforating the casing opposite a
  gas-bearing zone if casing is set through the zone, whichever is
  later, but the commission may permit the escape of gas into the air
  for an additional time if:
               (1)  the operator of a well or other facility presents
  information to show:
                     (A)  the necessity for the escape; and
                     (B)  the operator made a good faith and
  commercially reasonable effort to capture and sell the gas, or
  otherwise use the gas for another productive purpose, as defined by
  commission rule; and
               (2)  [provided that] the amount of gas which is flared
  under the [that] commission's authority is charged to the
  operator's allowable production.
         (b)  For the purposes of Subsection (a):
               (1)  a [A] necessity includes [but is not limited to the
  following situations]:
                     (A) [(1)]  cleaning a well of sand or acid or both
  following stimulation treatment of a well; and
                     (B) [(2)]  repairing or modifying a gas-gathering
  system; and
               (2)  an operator of a well or other facility is
  considered to have made a good faith and commercially reasonable
  effort if:
                     (A)  the well is:
                           (i)  connected to a pipeline on which
  pipeline takeaway capacity is not expected to meet the demand for
  gas produced from the well; or
                           (ii)  not connected to a pipeline and
  connection to a pipeline is technically or commercially unfeasible;
                     (B)  the operator evaluated options for on-site
  consumption of the gas and determined:
                           (i)  on-site consumption of the gas is
  technically or commercially unfeasible; or
                           (ii)  commercial interest in on-site
  consumption does not meet the demand for gas produced from the well;
  and
                     (C)  the operator evaluated options to use the gas
  for another productive purpose and determined it would be
  technically or commercially unfeasible.
         (c)  The commission shall adopt rules necessary to implement
  this section.
         SECTION 2.  Not later than December 1, 2025, the Railroad
  Commission of Texas shall adopt rules necessary to implement
  Section 86.185, Natural Resources Code, as amended by this Act.
         SECTION 3.  This Act takes effect September 1, 2025.