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 by the commission. Additionally, the bill establishes a compliance plan process for operators, which must include a commitment to plug or restore inactive wells by September 1, 2040, and outlines factors the commission will consider when approving such plans.

Furthermore, the bill mandates the commission to prepare an annual report on inactive wells, detailing statistics such as the number of inactive wells, their age, and the financial assurance methods used by operators. It also requires the commission to adopt rules addressing the integrity and safety of inactive wells, including mandatory testing after 15 years of inactivity. The new provisions aim to ensure better management of inactive wells, protect public safety, and mitigate environmental risks. 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 (Natural Resources Code 89, Subchapter B- , Chapter , Natural Resources Code 89)