TX HB5123

Requires the Railroad Commission of Texas to accept alternative financial assurance mechanisms, including self-insurance and parental bonding, for operators to demonstrate ability to cover financial security obligations for produced water recycling pits and related facilities

Allows operators with multiple subsidiaries operating under separate P-5 organization reports to satisfy financial security requirements through a single consolidated bond, contingent on demonstrating financial adequacy

Mandates the Commission develop an annual reporting system for operators to identify facilities covered under specific bonding mechanisms and ensure proper financial responsibility assignment during mergers, acquisitions, or sales

Directs the Commission to adopt implementing rules by December 31, 2025, including criteria for self-insurance/parental bonding, consolidated bonding structures, and procedures for tracking financial responsibility during ownership changes

Preserves Commission authority to require additional financial security when an operator's existing assurance is deemed insufficient to cover potential closure and remediation costs