S.B. No. 1150 amends the Natural Resources Code to enhance regulations regarding the plugging of inactive wells under the jurisdiction of the Railroad Commission of Texas. The bill introduces new provisions that restrict operators from obtaining extensions for plugging inactive wells that have been inactive for over 15 years or completed more than 25 years prior, unless certain conditions are met. These conditions include demonstrating a history of returning inactive wells to operation, proving financial hardship, or submitting a compliance plan approved by the commission. Additionally, the bill mandates that operators asserting financial hardship must provide a sworn financial statement and allows the commission to consider various factors when evaluating extension requests.

The bill also establishes new reporting requirements, including an annual report from the commission detailing the status of inactive wells, the number of extensions granted, and the financial assurance methods used by operators. Furthermore, it requires operators of inactive wells to submit annual reports on fluid level tests after 15 years of inactivity. The commission is tasked with adopting rules to regulate and monitor inactive wells, ensuring public safety and environmental protection. An administrative penalty for violations of these regulations is also introduced, with the commission determining the penalty amount. The act is set to take effect on September 1, 2025, with specific provisions taking effect on September 1, 2027.

Statutes affected:
Introduced: Natural Resources Code 89.023, Subchapter B- , Chapter , Natural Resources Code 89.002 (Subchapter B- , Chapter , Natural Resources Code 89, Natural Resources Code 89)
Senate Committee Report: Natural Resources Code 89.023 (Subchapter B- , Chapter , Natural Resources Code 89, Natural Resources Code 89)
Engrossed: Natural Resources Code 89.023 (Subchapter B- , Chapter , Natural Resources Code 89, Natural Resources Code 89)
House Committee Report: Natural Resources Code 89.023 (Subchapter B- , Chapter , Natural Resources Code 89, Natural Resources Code 89)
Enrolled: Natural Resources Code 89.023 (Subchapter B- , Chapter , Natural Resources Code 89, Natural Resources Code 89)