Eckhardt Gas Well Bill Lets Operators Call Capture ‘Commercially Unfeasible’

The text as introduced · 457 words

89R4130 CMO-F

By: Eckhardt
S.B. No. 1216

A BILL TO BE ENTITLED

AN ACT

relating to the authority of the Railroad Commission of Texas to

permit the release into the air of natural gas from a gas well.

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

SECTION 1. Section 86.185, Natural Resources Code, is

amended to read as follows:

Sec. 86.185. PROHIBITION AGAINST GAS IN AIR. (a) No gas

from a gas well may be permitted to escape into the air after the

expiration of 10 days from the time the gas is encountered in the

gas well, or from the time of perforating the casing opposite a

gas-bearing zone if casing is set through the zone, whichever is

later, but the commission may permit the escape of gas into the air

for an additional time if :

(1) the operator of a well or other facility presents

information to show :

(A) the necessity for the escape; and

(B) the operator made a good faith and

commercially reasonable effort to capture and sell the gas, or

otherwise use the gas for another productive purpose, as defined by

commission rule; and

(2) [ provided that ] the amount of gas which is flared

under the [ that ] commission's authority is charged to the

operator's allowable production.

(b) For the purposes of Subsection (a):

(1) a [ A ] necessity includes [ but is not limited to the

following situations ]:

(A) [ (1) ] cleaning a well of sand or acid or both

following stimulation treatment of a well; and

(B) [ (2) ] repairing or modifying a gas-gathering

system ; and

(2) an operator of a well or other facility is

considered to have made a good faith and commercially reasonable

effort if:

(A) the well is:

(i) connected to a pipeline on which

pipeline takeaway capacity is not expected to meet the demand for

gas produced from the well; or

(ii) not connected to a pipeline and

connection to a pipeline is technically or commercially unfeasible;

(B) the operator evaluated options for on-site

consumption of the gas and determined:

(i) on-site consumption of the gas is

technically or commercially unfeasible; or

(ii) commercial interest in on-site

consumption does not meet the demand for gas produced from the well;

and

(C) the operator evaluated options to use the gas

for another productive purpose and determined it would be

technically or commercially unfeasible.

(c) The commission shall adopt rules necessary to implement

this section .

SECTION 2. Not later than December 1, 2025, the Railroad

Commission of Texas shall adopt rules necessary to implement

Section 86.185, Natural Resources Code, as amended by this Act.

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