Geothermal rights could qualify orphaned-well operators

The text as introduced · 339 words

2025S0091-1 02/10/25

By: Darby
H.B. No. 5568

A BILL TO BE ENTITLED

AN ACT

relating to geothermal energy conservation wells.

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

SECTION 1. Section 89.047(a)(1-a), Natural Resources Code,

is amended to read as follows:

(1-a) " Geothermal energy [ Energy ] conservation well"

means a well used for the retention of energy that may be used to

provide dispatchable generation of electricity for the power grid.

A geothermal energy conservation well is an electric energy storage

facility but is not a battery energy storage resource.

SECTION 2. Section 89.047(f), Natural Resources Code, is

amended to read as follows:

(f) The commission shall designate the person as the

operator of the well if the person files with the commission:

(1) a factually supported claim based on a recognized

legal theory to a continuing possessory right in:

(A) the mineral estate accessed by the well, as

established by a current oil and gas lease, a recorded deed

conveying a fee interest in the mineral estate, or any other

documentation of an interest in the mineral estate;

(B) the geothermal energy and associated

resources estate accessed by the well, as established by a current

geothermal lease, a recorded deed conveying a fee interest in the

geothermal estate, or any other documentation of an interest in the

geothermal estate; or

(C) the geologic space accessed by the well for

the purpose of a geothermal [ an ] energy conservation well, as

established by a recorded deed conveying a fee interest in the space

accessed by the well or any other documentation of an interest in

that space;

(2) a completed certificate of compliance; and

(3) a nonrefundable fee in the amount of $250.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.