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 pen, the official text

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