Your Legislature has adjourned after enacting significant bills affecting the energy industry. To sum it up, the industry has friends in high places whenever the Lege is in session (Alternative energy was in jeopardy for a while with regulatory burdens in SB 715 and 819 that would make California proud. My guess: Back in the day the bills’ several cosponsors preferred to picket abortion clinics rather than remain in civics class to absorb the virtues of limited government.)
HB 49 Produced Water
Operators who sell produced water for beneficial use, companies who treat the water, and landowners who pay to treat the water and then sell it will not be liable for personal injury, death, or property damage. The protections do not extend to gross negligence, intentional, wrongful acts of omission, breaking state and federal laws, or failing to meet TCEQ standards. The bill directs the commission to write rules outlining how produced water should be treated and used.
SB 1172 Landman Licensing
Amends the Occupations Code to eliminate licensing requirements by the Texas Real Estate Commission for land work. The bill is in response to a Texas Attorney General opinion that “a person negotiating a lease for property of a wind power project on behalf of another, for compensation, is required to hold a license issued by the Commission.” The new definition in the Occupations Code includes a nonexhaustive list of energy sectors that would have required licensing.
SB 1150 Plugging Inactive Wells
Requires that a well older than 25 years and that has been inactive for more than 15 years be plugged by the operator. The Bill allows extensions based on a number of factors, allows for a two-year implementation period and allows the RRC to promulgate a rulemaking by 12/26. There is also a financial hardship exception.
SB 1146 Plugging Orphan Wells
Allows operators in good standing, mineral owners, or surface owners to voluntarily plug or replug orphaned wells without assuming legal liability or operational responsibility for the well. The Bill ensures that such voluntary actions do not imply an obligation to plug the well and protects participants from liability for damages related to the plugging activity. The Bill aims to encourage cleanup of orphaned wells by reducing legal and financial risks for those willing to participate in remediation efforts.
HB 48 Oil Field Theft
Requires the director of DPS to create an organized oilfield theft prevention unit to enforce laws pertaining to the theft of oil, gas, and related equipment, develop and deploy specialized training, resources, and policing strategies tailored to investigating and preventing organized oilfield theft, among other activities. See also SB 494 and HB 1806
HB 3619 Surface Restoration
Requires the Railroad Commission to restore the surface of land on which it has plugged a well and forbids anyone working under this statute from interfering with the surface owner’s access to the land.
HB 3159 Severance Tax Exemption
Provides a severance tax incentive for hydraulic re-fracturing of inactive oil and gas wells that have been inactive for at least two years prior to re-stimulation. The incentive exempts production from severance tax for up to 36 months or until the exemption equals the lesser of actual re-fracturing costs or $750,000.
SB 1759 Limitation of Liability in Emergencies
Authorizes the Railroad Commission to declare an oil or gas emergency in response to incidents such as uncontrolled releases from wells. Anyone providing assistance, advice, or resources during an emergency at the request of a government agency will be immune from civil liability, except in cases of gross negligence, recklessness, or intentional misconduct.
HB 14 Nuclear Energy
Establishes within the governor’s office the Texas Advanced Nuclear Energy Office. The Bill will provide strategic leadership, coordination and support for the development of advanced nuclear reactor technologies. The Bill also creates the Texas Advanced Nuclear Development Fund and Grant Program and establishes a Nuclear Permitting Coordinator and an Advanced Nuclear Energy Workforce Development Program.
Your musical interlude
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