HB 2663 amends Texas law governing extensions of the deadline to plug inactive oil and gas wells. The bill requires an operator seeking an extension from the Railroad Commission of Texas to affirm that electric service has been physically terminated at the well’s production site. For wells inactive for five to under 10 years, the operator must also affirm that all piping, tanks, vessels, and equipment exclusive to the well have been emptied or purged of production fluids if the operator does not own the surface estate. For wells inactive 10 years or more, the operator must affirm that a broader set of surface equipment, related piping, tanks, tank batteries, pump jacks, headers, fences, junk, trash, and most electric-service equipment have been removed, subject to the exception for utility-owned equipment.
The bill also adds an enforcement mechanism by directing the Railroad Commission to impose an administrative penalty on a person who makes the required affirmation but fails to actually terminate electric service or remove the required equipment and materials. The penalty may be up to $25,000 per violation. The new requirements apply only to extension applications filed on or after the bill’s effective date; earlier applications remain governed by prior law.
HB 2663 affects the Natural Resources Code, specifically Section 89.029, and strengthens the regulatory conditions tied to inactive well plugging extensions. It increases compliance obligations for oil and gas operators and gives the Railroad Commission a clearer penalty authority for false or incomplete affirmations. The measure is aimed at reducing the risk that inactive wells remain connected to power or retain surface equipment longer than allowed.
The overall sentiment around the bill appears strongly supportive and noncontroversial. It passed the House 148-0 and the Senate 31-0, with no recorded dissent in the available votes. The lack of committee transcript discussion suggests the bill was treated as a technical or enforcement-oriented update rather than a contested policy change.
There is little visible contention in the available record. Any potential concern would likely come from operators facing added compliance costs or the possibility of substantial penalties, while supporters would emphasize better enforcement, cleanup of inactive well sites, and protection against prolonged abandonment. The unanimous votes indicate that, if any objections existed, they were not significant enough to affect passage.
HB 2663 amends Section 89.029 of the Texas Natural Resources Code to tighten the requirements for obtaining an extension to the deadline for plugging an inactive well and authorizes the Railroad Commission of Texas to assess administrative penalties of up to $25,000 per violation for false affirmations or noncompliance. It directly affects oil and gas operators, especially those seeking to delay plugging obligations, and reinforces state oversight of inactive well cleanup and site restoration.
The bill’s sentiment was overwhelmingly positive and bipartisan, with unanimous or near-unanimous floor support in both chambers and no recorded opposition in the available votes. The absence of committee transcript debate suggests the measure was viewed as a straightforward regulatory enforcement bill rather than a controversial policy shift.
No major contention is evident in the available materials. The main practical burden falls on oil and gas operators who must meet stricter affirmation and cleanup requirements to qualify for plugging extensions, and they face a new administrative penalty if their statements are inaccurate or their cleanup is incomplete. Supporters likely favored stronger enforcement and environmental compliance, while any operator concerns about cost or administrative burden did not surface as recorded opposition.