Monitoring the Session

HB 5123

Darby Bill Lets One Bond Cover Every Subsidiary

Died in committee

Verdict: Smells

SmellsInitial review
Rep. Drew DarbyRHouse 72
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-out

Initial 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

  1. Filed
  2. Read first time
  3. Referred to Energy Resources
FILED UNDER

No verified beat found.

Smells

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.

Team
Sources

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.

Gideon Powell$30,000.00
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
polling $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.

Team
Sources

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.

Money

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.

Team
Sources

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
polling $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.

Team
Sources

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.