HB 5123
Darby Bill Lets One Bond Cover Every Subsidiary
Died in committee
Verdict: Smells
Why it's charged
Carve-out
THE TEXT
“An operator that owns or controls multiple subsidiaries operating under separate P-5 organization reports may satisfy financial security requirements through a single consolidated bond”…
Bill text, introduced version (I)
The consolidated-bond option helps only operators that control several subsidiaries, a favor to larger corporate families. The caption reads as a neutral rule on financial assurance and does not say the change loosens security for that group.
Carve-outInitial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade
Caption
relating to financial assurance requirements for operators under the jurisdiction of the Railroad Commission of Texas.
Caption from analyzed text · version I.
Summary
Only operators with several subsidiaries get it. Recycling pit operators can self-insure, too.
The bill orders the Railroad Commission to accept cheaper forms of financial guarantees, such as self-insurance and bonds backed by a parent company, from operators running produced water recycling pits and related facilities. It also lets a company with several subsidiaries cover all of them with one consolidated bond, and it has the Commission build an annual reporting system to track which bond covers which facility when assets change hands. Oil and gas operators, especially large corporate families, get more ways to meet cleanup security rules, and the Commission keeps its power to demand more security if it finds an operator's guarantee is not enough.
Labels
Labels: NEVER GOT A HEARING. Filed Mar 13, 2025 and referred to the House Energy Resources committee. No public hearing. The bill died.
Receipt
The receipt
89R-HB5123 · 2025-03-13
SOLD BY
ITEM
relating to financial assurance requirements for operators under the jurisdiction of the Railroad Commission of Texas.
WHAT IT DOES
Only operators with several subsidiaries get it. Recycling pit operators can self-insure, too.
The bill orders the Railroad Commission to accept cheaper forms of financial guarantees, such as self-insurance and bonds backed by a parent company, from operators running produced water recycling pits and related facilities. It also lets a company with several subsidiaries cover all of them with one consolidated bond, and it has the Commission build an annual reporting system to track which bond covers which facility when assets change hands. Oil and gas operators, especially large corporate families, get more ways to meet cleanup security rules, and the Commission keeps its power to demand more security if it finds an operator's guarantee is not enough.
CHARGES
[x] CARVE-OUTanalysis confidence 45%
THE TEXT
“An operator that owns or controls multiple subsidiaries operating under separate P-5 organization reports may satisfy financial security requirements through a single consolidated bond”…
Bill text, introduced version (I)
The consolidated-bond option helps only operators that control several subsidiaries, a favor to larger corporate families. The caption reads as a neutral rule on financial assurance and does not say the change loosens security for that group.
TOTAL
No fiscal note in the loaded record.
HISTORY
- Filed
- Read first time
- Referred to Energy Resources
FILED UNDER
No verified beat found.
THANK YOU FOR CHECKING THE RECEIPT
CAMPAIGN PAID FOR BY
CAMPAIGN PAID FOR BY
Donors
Not tied to this bill.
Sources
The author's campaign account only. Own money and internal transfers are separate on the member page.
Derived itemized flow · Jul 9, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Texans for Truth and Liberty PAC$50,000.00
Texans for Truth and Liberty PAC
$50,000.00
- Cash
- $50,000.00
- Paid by others
- $0.00
- Total
- $50,000.00
Also funds 44 other sitting lawmakers.
Derived recipient stock · Jun 24, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.
TEC account match.
TeamSources
Derived itemized flow · Jun 25, 2025 to Oct 8, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 101007659, 101072052.
Dustin Burrows Campaign$27,600.00
Dustin Burrows Campaign
$27,600.00
- Cash
- $0.00
- Paid by others
- $27,600.00
- Total
- $27,600.00
Also funds 39 other sitting lawmakers.
Derived recipient stock · Sep 13, 2025 to Sep 23, 2026. State data as of Nov 4, 2026.
Name match, not a verified identity: normalized filed name and state.
TeamSources
Derived itemized flow · on Aug 5, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 101068080.
Missing data does not establish zero giving. Display amounts are rounded.
Texans for Truth and Liberty PAC
$50,000.00
- Cash
- $50,000.00
- Paid by others
- $0.00
- Total
- $50,000.00
Also funds 44 other sitting lawmakers.
Derived recipient stock · Jun 24, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.
TEC account match.
TeamSources
Derived itemized flow · Jun 25, 2025 to Oct 8, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 101007659, 101072052.
Dustin Burrows Campaign
$27,600.00
- Cash
- $0.00
- Paid by others
- $27,600.00
- Total
- $27,600.00
Also funds 39 other sitting lawmakers.
Derived recipient stock · Sep 13, 2025 to Sep 23, 2026. State data as of Nov 4, 2026.
Name match, not a verified identity: normalized filed name and state.
TeamSources
Derived itemized flow · on Aug 5, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 101068080.
Votes
No floor vote loaded for this bill.
Fiscal
No fiscal note in the loaded record.
How this was graded
Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.
Sources
Texas House · Filed Mar 13, 2025
04/07/2025 H Referred to Energy Resources: Apr 7 2025 5:28PM
Texas Legislature Online · Introduced
Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.
House committee · Energy Resources · Final status: Died in committee
Companion
SB 2449 by Sparks (identical)
Subjects
Financial--General
Oil & Gas
RAILROAD COMMISSION
Text
The text as introduced · 312 words
By: Darby H.B. No. 5123 A BILL TO BE ENTITLED AN ACT relating to financial assurance requirements for operators under the jurisdiction of the Railroad Commission of Texas. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 91, Natural Resources Code, is amended by adding Section 91.115 to read as follows: Sec. 91.115. FINANCIAL ASSURANCE REQUIREMENTS FOR OPERATORS. (a) The Railroad Commission shall accept financial assurance mechanisms, including but not limited to, self-insurance and parental bonding, to demonstrate an operator’s ability to satisfy financial security obligations for the operation and closure of produced water recycling pits and other related facilities. (b) An operator that owns or controls multiple subsidiaries operating under separate P-5 organization reports may satisfy financial security requirements through a single consolidated bond, subject to a demonstration of financial adequacy to the Commission. (c) The Railroad Commission shall develop and implement a system allowing operators to submit an annual report identifying facilities covered under specific bonding mechanisms and ensuring financial responsibility is properly assigned when assets are transferred through mergers, acquisitions, or sales. (d) The Commission shall adopt rules necessary to implement this section, including but not limited to establishing: (1) criteria for demonstrating financial adequacy for self-insurance and parental bonding; (2) requirements for the submission and approval of consolidated bonding structures for multiple P-5 operators; and (3) procedures for tracking and assigning financial responsibility when transactions result in changes of ownership. (e) Nothing in this section shall diminish the authority of the Railroad Commission to require additional financial security in cases where the commission determines that an operator’s financial assurance is insufficient to cover potential closure and remediation costs. SECTION 2. The Railroad Commission shall adopt rules to implement Section 91.115, Natural Resources Code, as added by this Act, no later than December 31, 2025. SECTION 3. This Act takes effect September 1, 2025.