Relating to the plugging or replugging of certain inactive wells subject to the jurisdiction of the Railroad Commission of Texas.

89(R) HB 3911 - House Committee Report version - Bill Text

89R16786 JAM-F

By: Darby, Guillen, Gerdes

H.B. No. 3911

Substitute the following for H.B. No. 3911:

By: Darby

C.S.H.B. No. 3911

A BILL TO BE ENTITLED

AN ACT

relating to the plugging or replugging of certain inactive wells

subject to the jurisdiction of the Railroad Commission of Texas.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 89.045, Natural Resources Code, is

amended to read as follows:

Sec. 89.045. LIABILITY FOR DAMAGES. The commission and its

employees and agents, the operator, [
and
] the nonoperator
, and any

private person who has paid money to the commission to plug or

replug a well under Section 89.084
are not liable for any damages

that may occur as a result of acts done or omitted to be done by them

or each of them in a good-faith effort to carry out this chapter.

SECTION 2. Subchapter C, Chapter 89, Natural Resources

Code, is amended by adding Section 89.049 to read as follows:

Sec.

89.049.

PLUGGING OR REPLUGGING OF ORPHANED WELL BY OIL

AND GAS LESSEE OR MINERAL ESTATE OWNER. (a) In this section,

"operator in good standing" and "orphaned well" have the meanings

assigned by Section 89.047.

(b)

An operator in good standing who is the owner of an

interest in a current oil and gas lease or the mineral estate of a

tract of land on which an orphaned well is located or the owner of

the surface estate of a tract of land on which an orphaned well is

located may contract with a commission-approved well plugger to

plug or replug the well.

(c)

A well plugger who enters into a contract under

Subsection (b) shall:

(1)

not later than the 30th day before the date the

well is to be plugged or replugged, mail notice of the plugger's

intent to plug or replug the well to the operator of the well or the

surface owner, as applicable, at the operator's or surface owner's

address as shown by the records of the commission; and

(2)

plug or replug the well in accordance with

commission rules.

(d)

An operator in good standing or a surface owner who

enters into a contract under Subsection (b) does not assume

responsibility for the physical operation and control of the

orphaned well and is not liable for any plugging or replugging

responsibility or damages that may occur as a result of acts done or

omitted to be done relating to plugging or replugging the well under

this section.

(e)

Paying money to or contracting with a well plugger to

plug or replug an orphaned well under this section is not an

admission that the person paying the money or contracting for the

plugging or replugging of the well is obligated to plug or replug

the well. Evidence that a person has paid money to or contracted

with a well plugger to plug or replug a well under this section is

not admissible against the person in a suit in which the person's

obligation to plug or replug the well is an issue, and introducing

the evidence is a compulsory ground for mistrial.

(f)

The commission may require a plugging or replugging

operation conducted under this section to be supervised by a

commission employee. A plugging or replugging operation conducted

under this section is not considered complete until approved by the

commission.

(g)

This section does not apply to the owner of the surface

estate of a tract of land on which an orphaned well is located if the

surface owner was the operator who abandoned the well.

(h)

The commission shall adopt any rules reasonably

necessary to implement this section, including rules prescribing

procedures for the approval by the commission of a well plugging or

replugging operation conducted under this section.

SECTION 3. This Act takes effect September 1, 2025.