H.B. No. 1174 mandates that applicants for permits to drill, deepen, plug back, or reenter oil or gas wells must submit a comprehensive gas capture plan aimed at minimizing flaring from the well. The newly added Section 86.186 of the Natural Resources Code outlines specific requirements for the gas capture plan, which includes anticipated production volumes of gas, oil, and condensate, a detailed map of gas gathering systems in the area, and various operational details regarding the gas gathering system that the operator intends to use. The plan must also address potential right-of-way issues, construction schedules for necessary facilities, and options for beneficial use of gas if connection to a gathering system is not feasible.

The bill specifies that the changes will apply only to permit applications filed with the Railroad Commission of Texas on or after the effective date of September 1, 2025. Applications submitted before this date will be governed by the existing laws in effect at the time of filing. This legislation aims to enhance environmental protections and operational efficiency in the oil and gas industry by ensuring that operators have a clear plan for managing gas production and minimizing waste.

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