H.B. No. 2766 aims to enhance regulations regarding the plugging of inactive wells under the jurisdiction of the Railroad Commission of Texas. The bill amends Section 89.023 of the Natural Resources Code, introducing new criteria that restrict operators from obtaining extensions for plugging inactive wells if they have been inactive for over 15 years or if 25 years have passed since the well was completed, unless specific exceptions are granted. These exceptions can be approved by the commission based on the operator's history of returning inactive wells to active status or if the well is part of an approved compliance plan that commits to plugging or restoring the well by September 1, 2040. Additionally, the bill establishes a framework for compliance plans, including factors the commission must consider when approving such plans.

Furthermore, the bill mandates the commission to prepare and submit an annual report on inactive wells, detailing statistics such as the number of inactive wells, their age, and the methods used for extending plugging deadlines. It also requires the commission to adopt rules for inactive wells, focusing on public safety, well integrity, and regional risks. Operators will be required to submit reports demonstrating compliance with testing requirements within one year of a well's 15th anniversary of inactivity. The act is set to take effect on September 1, 2025.

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)