HB2663 - Relating to the affirmation required to be made by an operator as part of an application to the Railroad Commission of Texas for an extension of the deadline for plugging an inactive well; providing an administrative penalty.

      H.B. No. 2663         AN ACT   relating to the affirmation required to be made by an operator as   part of an application to the Railroad Commission of Texas for an   extension of the deadline for plugging an inactive well; providing   an administrative penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 89.029, Natural Resources Code, is   amended by amending Subsection (a) and adding Subsection (g) to   read as follows:          (a)  An application for an extension of the deadline for   plugging an inactive well must include a written affirmation by the   operator:                (1)  that the operator has physically terminated   electric service to the well's production site; and                (2)  stating the following, as applicable, if the   operator does not own the surface of the land on which the well is   located:                      (A)  if the well has been inactive for at least   five years but for less than 10 years as of the date of renewal of   the operator's organization report, that the operator has emptied   or purged of production fluids all piping, tanks, vessels, and   equipment associated with and exclusive to the well; or                      (B)  if the well has been inactive for at least 10   years as of the date of renewal of the operator's organization   report, that the operator has removed :                             (i)   all surface process equipment and   related piping, tanks, tank batteries, pump jacks, headers, and   fences, as well as junk and trash as defined by commission rule,   associated with and exclusive to the well ; and                             (ii)     all equipment associated with   providing electric service to the well's production site, except   for equipment owned by an electric utility, as defined by Section   31.002, Utilities Code .           (g)     The commission shall impose an administrative penalty   on a person who provides an affirmation under Subsection (a) but   fails to terminate electric service to the well's production site   in accordance with Subsection (a)(1) or remove all equipment and   materials in accordance with Subsection (a)(2)(B). The amount of   the penalty may not exceed $25,000 for each violation.          SECTION 2.  The change in law made by this Act applies to an   application for an extension of the deadline for plugging an   inactive well filed with the Railroad Commission of Texas on or   after the effective date of this Act.  An application for an   extension of the deadline for plugging an inactive well filed with   the Railroad Commission of Texas before the effective date of this   Act is governed by the law in effect on the date the application was   submitted, and the former law is continued in effect for that   purpose.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 2663 was passed by the House on May 6,   2025, by the following vote:  Yeas 148, Nays 0, 1 present, not   voting.     ______________________________   Chief Clerk of the House                 I certify that H.B. No. 2663 was passed by the Senate on May   19, 2025, by the following vote:  Yeas 31, Nays 0.     ______________________________   Secretary of the Senate       APPROVED:  _____________________                      Date                           _____________________                    Governor