S.B. No. 1146 amends the Natural Resources Code to clarify the liability and procedures related to the plugging or replugging of orphaned wells under the jurisdiction of the Railroad Commission of Texas. The bill specifies that the commission, its employees, operators, nonoperators, and any private individuals who have paid for the plugging or replugging of a well are not liable for damages resulting from their good-faith efforts to comply with the law. Additionally, it introduces a new section that allows operators in good standing and surface estate owners to contract with commission-approved well pluggers to manage orphaned wells, while ensuring that these parties do not assume liability for any damages related to the plugging or replugging process.

The new provisions also require well pluggers to notify relevant parties at least 30 days before the work begins and stipulate that the plugging operation must be supervised by a commission employee and approved by the commission to be considered complete. Furthermore, the bill clarifies that paying for or contracting the plugging of a well does not imply an obligation to do so, and such evidence cannot be used against the payer in legal proceedings regarding their responsibility for the well. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Natural Resources Code 89.045 (Natural Resources Code 89)
Senate Committee Report: Natural Resources Code 89.045 (Natural Resources Code 89)
Engrossed: Natural Resources Code 89.045 (Natural Resources Code 89)
House Committee Report: Natural Resources Code 89.045 (Natural Resources Code 89)
Enrolled: Natural Resources Code 89.045 (Natural Resources Code 89)