TX HB2766

Operators cannot extend plugging deadlines for wells that have been inactive for more than 15 years AND are more than 25 years old since completion, unless they receive a commission-approved exception or submit a compliance plan committing to plug or reactivate the well by September 1, 2040

Exceptions to the plugging requirement are non-transferable and terminate upon transfer of the well to a new operator, who must then seek their own exception

Operators may request approval of compliance plans for inactive wells, with the Railroad Commission evaluating factors including inactivity duration, economic conditions, operator's violation history, financial assurance coverage, environmental risks, and demonstrated good faith

The Railroad Commission must submit annual reports to the governor, lieutenant governor, and legislature beginning September 1, 2026, detailing the number of inactive wells, their ages, plugging methods used, financial assurance categories, and wells plugged or returned to production

New rules must require operators to submit fluid level or mechanical integrity test results within one year of a well's 15th anniversary of inactivity, with the commission considering public safety, environmental risks, wellbore integrity, and regional factors like corrosive formations or hydrogen sulfide zones