S.B. 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 in the well 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 have made a good faith and commercially reasonable effort to capture, sell, or otherwise utilize the gas. The bill also clarifies what constitutes a necessity for gas release and outlines the criteria for determining whether an operator has made a reasonable effort.

Additionally, the bill specifies that the commission must adopt rules to implement these changes by December 1, 2025, and it will take effect on September 1, 2025. The amendments include the addition of detailed criteria for operators to justify the release of gas, including considerations related to pipeline connections and on-site consumption options. The language also removes previous provisions that were less specific about the conditions under which gas could be flared.

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