Senate Bill No. 1216 amends Section 86.185 of the Natural Resources Code, which governs the release of natural gas into the air from gas wells. The bill establishes that no gas may escape into the air after 10 days from when it is first encountered or from the time of perforating the casing, unless the Railroad Commission of Texas permits an extension. To obtain this permission, the operator must demonstrate the necessity for the gas release and show that they made a good faith and commercially reasonable effort to capture, sell, or otherwise utilize the gas. The bill also clarifies that the amount of gas flared under the commission's authority will be charged to the operator's allowable production.

Additionally, the bill defines what constitutes a necessity for gas release, including situations such as cleaning a well or repairing a gas-gathering system. It outlines criteria for operators to prove they have made reasonable efforts to utilize the gas, including evaluating pipeline connections and on-site consumption options. The Railroad Commission is required to adopt rules to implement these changes by December 1, 2025, and the act will take effect on September 1, 2025.

Statutes affected:
Introduced: Natural Resources Code 86.185 (Natural Resources Code 86)