The bill, H.B. No. 2256, amends various sections of the Natural Resources Code to update financial security requirements for operators of oil and gas wells in Texas. Key changes include the addition of new funding sources for the oil and gas regulation and cleanup fund, such as money transferred from a sinking fund established under Section 91.1045(b)(2). The bill also modifies the conditions under which operators can apply for extensions to plug inactive wells, removing the requirement for a supplemental bond or cash deposit and instead allowing for alternative documentation to demonstrate the operator's ability to manage the well.

Additionally, the bill introduces a new section regarding the establishment of individual bonds based on decommissioning cost estimates determined by the commission, rather than a fixed rate per foot of well depth. It mandates that operators provide annual decommissioning cost information to the commission and outlines the creation of a sinking fund to cover the costs of plugging wells. The bill repeals the previous blanket bond requirement and specifies that operators are not required to meet the new individual bond requirements until September 1, 2030, for existing wells. The changes are set to take effect on September 1, 2025.

Statutes affected:
Introduced: Natural Resources Code 81.067, Natural Resources Code 89.023, Natural Resources Code 89.027, Natural Resources Code 89.028, Natural Resources Code 91.104, Natural Resources Code 91.1042 (Natural Resources Code 81, Natural Resources Code 89, Natural Resources Code 91)