bill requiring gas capture plans for drilling permits

The text as introduced · 750 words

By: Hinojosa
H.B. No. 1174

A BILL TO BE ENTITLED

AN ACT

relating to a requirement that an applicant for a permit to drill an

oil or gas well submit a gas capture plan for the well.

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

SECTION 1. Subchapter F, Chapter 86, Natural Resources

Code, is amended by adding Section 86.186 to read as follows:

Sec. 86.186. GAS CAPTURE PLAN. (a) The commission may not

issue a permit to drill, deepen, plug back, or reenter an oil or gas

well unless the applicant submits with the application a gas

capture plan to minimize flaring from the well.

(b) The gas capture plan must include:

(1) the volume of gas anticipated to be produced from

the well annually, measured in thousands of cubic feet;

(2) the volume of oil anticipated to be produced from

the well annually, measured in barrels;

(3) the volume of condensate anticipated to be

produced from the well annually, measured in barrels;

(4) a detailed map depicting each existing, planned,

and anticipated gas gathering system in the general area of the

well;

(5) the following information with regard to the gas

gathering system that the operator of the well has contracted to use

or, if the operator has not entered into a contract, the gas

gathering system that is closest to the well:

(A) the name of the operator of the gas gathering

system;

(B) a description of the approximate route of the

pipeline required to connect the well to the gas gathering system;

(C) the distance in feet of the pipeline required

to connect the well to the gas gathering system;

(D) the volume of gas in thousands of cubic feet

per day that the gas gathering system is capable of transporting;

(E) the volume of gas in thousands of cubic feet

per day that the gas gathering system is currently transporting;

(F) the volume of gas in thousands of cubic feet

per day that the gas gathering system is anticipated to be

transporting on the date of first sale of gas from the well;

(G) the reliability of the gas gathering system,

including the average annual downtime of the system; and

(H) the name and location of the gas processing

plant that receives or is anticipated to receive gas from the gas

gathering system;

(6) any plans for expanding the gas gathering systems

in the general area of the well;

(7) any other issues affecting the gathering of gas in

the general area of the well;

(8) a plan for connecting the well to a gas gathering

system, including:

(A) a description of any potential right-of-way

issues;

(B) the schedule for constructing any necessary

gas gathering facilities;

(C) the date a gas gathering line will be

available;

(D) a statement of whether the gas gathering

system described by Subdivision (5) has the capacity to accept the

volume of gas anticipated to be produced from the well at the time

of application for the permit; and

(E) a description of any discussions the operator

of the well has had with other upstream operators regarding the

construction or availability of a gas gathering line; and

(9) a description of any options available to the

operator of the well for the beneficial use of gas from the well if

the well cannot be connected to a gas gathering system, including:

(A) on-site use of the gas;

(B) the processing of liquids in the gas;

(C) the use of the gas for electric power

generation;

(D) the conversion of the gas to liquid fuels;

(E) the compression of the gas on the lease on

which the well is located;

(F) the reinjection of the gas for underground

storage;

(G) the reinjection of the gas for temporary

storage;

(H) the reinjection of the gas for enhanced oil

recovery; and

(I) shutting in the well, taking into account the

effect of doing so on the reservoir as well as public health,

safety, and the environment.

SECTION 2. The change in law made by this Act applies only

to a permit the application for which is filed with the Railroad

Commission of Texas on or after the effective date of this Act. A

permit the application for which is filed before the effective date

of this Act is subject to the law in effect on the date the

application is filed, and that law is continued in effect for that

purpose.

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