Bill > HB2663

This bill modifies regulations for oil well operators seeking to extend the deadline for plugging inactive wells by requiring more detailed affirmations and imposing potential administrative penalties. Specifically, the bill requires operators to provide written confirmation that they have terminated electric service to the well's production site and, depending on how long the well has been inactive, either emptied production-related equipment of fluids (for wells inactive 5-10 years) or completely removed surface equipment, piping, tanks, and other related infrastructure (for wells inactive 10+ years). The bill introduces a new provision allowing the Railroad Commission of Texas to impose an administrative penalty of up to $25,000 for each violation where an operator fails to terminate electric service or remove equipment as stated in their affirmation. The changes will apply to well plugging deadline extension applications filed on or after the bill's effective date, which will be either immediately upon receiving a two-thirds vote in the Texas legislature or September 1, 2025, if that threshold is not met. The bill aims to ensure more thorough cleanup and decommissioning of inactive oil wells in Texas.