Relating to the plugging of and reporting on inactive wells subject to the jurisdiction of the Railroad Commission of Texas; authorizing an administrative penalty.
SB 1150 amends Texas Natural Resources Code provisions governing inactive oil and gas wells under the Railroad Commission of Texas. The bill tightens the rules for extending plugging deadlines for long-inactive wells, generally barring extensions for wells that have been inactive for more than 15 years and were completed more than 25 years before the extension request, unless the operator qualifies under one of several exceptions. Those exceptions include a demonstrated history of returning inactive wells to production, an approved compliance plan committing to plug or restore the well by September 1, 2040, or the filing of an individual performance bond covering the full plugging cost for the life of the well.
The bill also requires operators and the commission to provide more reporting and oversight. Operators must submit annual test results for certain long-inactive wells, and the Railroad Commission must adopt rules to regulate and monitor inactive wells, including considering public safety, environmental risk, well integrity, and regional geological hazards. In addition, the commission must produce an annual report to state leadership detailing the number, age, status, and financial assurance methods of inactive wells, plugging activity, returned-to-production wells, and compliance information for operators.
SB 1150 further addresses transfers of inactive wells by requiring joint written affirmations from both operators that the transfer was made in good faith and that the receiving operator will remain in compliance. It also authorizes the Railroad Commission to establish an administrative penalty for violations of the new requirements. The act takes effect September 1, 2025, with the first annual report due by December 1, 2026.
Overall, the bill appears aimed at reducing the backlog of aging inactive wells and improving state oversight of plugging obligations, financial assurance, and environmental risk. The voting history suggests the measure ultimately advanced with strong support, including unanimous or near-unanimous votes on later readings and concurrence in House amendments. The only visible point of contention in the record is an unsuccessful amendment in the House, indicating some disagreement over the bill’s details even though the core policy received broad backing.
SB 1150 changes Chapter 89 of the Natural Resources Code by narrowing when operators may extend plugging deadlines for certain inactive wells, adding new reporting duties for operators and the Railroad Commission, and authorizing administrative penalties for violations. It affects oil and gas operators with long-inactive wells, requires more documentation and testing for wells inactive 15 years or more, and expands the commission’s rulemaking and oversight responsibilities. The bill also creates a recurring statewide reporting framework on inactive wells, financial assurance, plugging activity, and compliance status.
The bill’s overall sentiment appears favorable and pragmatic, with broad legislative support for stronger inactive-well oversight and accountability. The vote record shows strong passage on later readings and concurrence in House amendments, suggesting the measure was not highly controversial in its final form. The absence of committee transcript material limits insight into detailed debate, but the available votes indicate general agreement on the need for tighter regulation and reporting.
The main apparent contention was over an amendment that failed in the House, which indicates at least one attempt to alter the bill’s approach did not gain enough support. Based on the bill text, likely areas of disagreement could include how strict the extension limits should be, whether the compliance-plan deadline of September 1, 2040 is appropriate, and how burdensome the new testing, bonding, and reporting requirements will be for operators. The bill’s requirements could be viewed as more demanding by operators with older inactive wells, while environmental and regulatory interests would likely support the added safeguards.