Chair lays out HB2766, addressing inactive and orphan wells in Texas. The bill aims to reduce the number of orphan wells by setting timelines for plugging inactive wells.
The bill mandates that wells must either be plugged or returned to production once the well reaches 15 years of inactivity and 25 years of life. Exceptions for extensions are allowed under specific conditions.
Railroad Commission's role includes evaluating compliance plans submitted by operators, which consider various factors such as economic conditions and number of inactive wells.
Todd Staples, President of Texas Oil and Gas Association, supports the bill, highlights industry efforts, and expresses a need for reducing the number of inactive and orphan wells.
Ben Sheppard of Permian Basin Petroleum Association supports the bill but notes some members' concerns about meeting the timelines. The bill includes harsh conditions for obtaining extensions.
Travis McCormick, representing Panhandle Producers and Royalty Owners Association, provides neutral testimony, supporting the goal but suggesting improvements for smaller operators.
Karr Ingham, Texas Alliance of Energy Producers, remains neutral, waiting for integration with the Senate version. Concerns about timeline and economic impacts on small operators are discussed.
Colin Leyden from the Environmental Defense Fund supports the bill but suggests shortening the timeline for plugging inactive wells and notes the need for better financial assurances.
Schuyler Wight, a rancher, opposes the bill, arguing it lacks sufficient enforcement and monitoring measures, potentially leaving surface owners out of the loop.
Cyrus Reed from the Sierra Club testifies neutral, suggesting improvements in reporting and supports an interim study to assess real plugging costs and bonding issues.
Virginia Palacios, a resident and rancher, stresses the importance of addressing the water crisis and advocates for more strict regulations to ensure groundwater protection.
Julie Range, Commission Shift Action policy manager, urges amendments to further limit inactive well timeframes, improved testing, and plugging extensions.
Edward Rogers supports the bill, emphasizing the environmental risks associated with uncapped wells and the need for comprehensive assessment and remediation.
General consensus on the need for the bill with differing opinions on the specifics such as timelines for well plugging, financial assurances, and the role of the Railroad Commission.
Representative Anchía introduced HB2891, aiming to update penalties for non-pipeline oil and gas violations established in 1983.
The bill proposes increasing natural resources code violations from $10,000 to $25,000 and water code violations from $5,000 to $25,000 per day.
The Railroad Commission currently has limited enforcement on oil and gas violations with only 366 enforcement dockets and 163 repeat violators from last year's report.
Schuyler Wight, a rancher, testified for the bill, highlighting the issue of false form submissions by operators and the need for integrity.
Cyrus Reed from Sierra Club supported the bill, stating the importance of updating codes and aligning fines with economic inflation.
Virginia Palacios from Commission Shift Action backed the bill, asserting that increased penalties are necessary to deter noncompliance and protect water resources.
There is a broad consensus that stricter penalties will help eliminate bad actors within the industry.
After testimonies, the committee left the bill pending for further consideration.
Chairman Darby explains the introduction of HB3334 by Chairman King, addressing fire protection for well sites initiated due to landowner concerns following extensive wildfires.
The bill requires third-party inspections of well sites, aims to improve fire safety, and seeks collaboration between the Railroad Commission and the Public Utilities Commission.
Testimony by Craig Cowden, representing Texas and Southwestern Cattle Raisers Association, highlights personal losses from wildfires due to neglected electrical infrastructure on his property.
Cowden submitted numerous complaints about well violations to the Railroad Commission, with minimal remedial action observed.
Currie Smith, a rancher, supports the bill, citing frequent fires started by faulty infrastructure and advocates for operator accountability.
Joe Leathers, manages large ranches, emphasized the repeated historical fires on his properties due to electrical issues and calls for stronger, enforceable legislation.
Dale Smith, another rancher, testified about the devastating impact of fires, urging for legal instruments to hold operators accountable and improve safety oversight.
Schuyler Wight, a rancher, shared neutral testimony, detailing the challenges faced with orphan wells and the costly removal of hazardous electrical lines, advocating for better infrastructure management.
Concerns about the Railroad Commission's effectiveness and accountability, especially in District 10, were discussed, suggesting a need for better legislative oversight.
HB3791 aims to streamline the excavation notification process in Texas by changing the timeframe from 48 hours to two business days.
Currently, Texas is one of the few states still using the 48-hour system, while most other states have modernized their notification requirements to two business days.
The bill maintains current protections excluding weekends and holidays, preserving emergency procedures, and retaining the 14-day advanced notification option.
The bill author, Representative Dyson, highlights that the new system would encourage greater participation and improve safety and efficiency.
Concerns were raised by Representative Rosenthal about the lack of penalties for locators compared to excavators in meeting deadlines, with Dyson noting that these are market-managed through contracts.
Testimonies for and against the bill were heard, with some arguing for improved efficiency and others concerned about the impact on project timelines.
Nancy Mitchell of USIC supports the bill, stating it could improve on-time performance by 15-20% and help modernize Texas's notification requirements.
Sean Murphy of Stake Center Locating expressed that the proposed change would eliminate confusion and improve efficiency without additional costs to stakeholders.
Tracy Schieffer from AGC of Texas, opposed the bill citing longer wait times and potential project delays for excavators.
David Ferguson from Texas811 explained the current notification process and highlighted training challenges, favoring a transition to a two-business-day system for consistency.
The bill was left pending in committee for further consideration and potential negotiations with stakeholders.
Chairman Darby introduced HB3911, which creates a pathway to accelerate the plugging of orphan oil and gas wells in Texas.
There are 8,000 orphan wells in Texas, which pose risks such as groundwater contamination.
Current law discourages responsible operators and landowners from plugging these wells due to liability concerns.
HB3911 allows operators or landowners in good standing to contract with approved well pluggers without assuming long-term legal liability.
The Railroad Commission will oversee and enforce the plugging standards.
A committee substitute was introduced to remove a section complicating liability issues and require Railroad Commission oversight and approval.
Todd Staples, president of the Texas Oil and Gas Association, testified in favor of the bill, highlighting its benefits to the industry, landowners, and state.
Schuyler Wight, a rancher, supported the bill and suggested increasing cost-sharing incentives for landowners for plugging orphan wells.
He recalled a previous legislature that allowed for a 50% cost-share on plugging orphan wells and suggested restructuring it.
No further testimonies were recorded, and HB3911 was left pending without objection.
Representative Dyson introduced HB4021, explaining that Texas leads in oil and gas production, which poses disposal challenges for waste.
The bill seeks to address liability concerns in emergency situations by offering protections similar to Good Samaritan laws, aiming to encourage companies to assist in emergencies without fear of legal repercussions, unless they act negligently.
The bill allows the executive director of the Railroad Commission to declare emergencies for 30 days with possible extensions, specifying emergencies related to uncontrolled releases from wells.
Vance Long from Waterbridge testified, sharing a real-world example of responding to a breakout of produced water during a holiday weekend and emphasizing the need for protections provided by HB4021.
Members of the committee, including Representative Rosenthal, discussed the nature of produced water and expressed support for companies that proactively manage spills.
The Railroad Commission regulates propane gas distribution similarly to natural gas but lacks authority to charge a pipeline safety fee for propane systems.
Texas utility code currently excludes propane from this fee due to an outdated terminology.
The bill proposes changing references from 'natural gas' to 'gas' for regulatory consistency.
A $1 pipeline safety fee per service line is proposed to offset regulation costs.
Approximately 18,500 propane service lines are impacted.
The fee will support the Railroad Commission to continue customer service as propane use increases.
Chairman Darby introduced HB4384 addressing financial strain from regulatory lag for natural gas utilities due to delayed cost recovery.
The bill proposes allowing utilities to defer costs related to new infrastructure investments to reduce financial pressure and impact on credit ratings.
The Railroad Commission of Texas will review these deferred costs in rate proceedings, with authority to order refunds if costs are disallowed.
Opponents, including Alfred Herrera and Thomas Brocato, argue the bill favors utilities, leading to guaranteed cost recovery and potential annual customer bill increases.
Detractors claim the bill promotes retroactive rate-making and incentivizes excessive capital investment by utilities.
Jason Ryan from CenterPoint Energy argues that the bill improves affordability and consistency for utilities and customers by addressing hidden costs and aligning treatment of new and replacement infrastructure.
The bill is seen as providing a credit positive effect for utilities, reducing borrowing costs, which benefits both the utility and customers.
The bill was left pending with no objections from committee members.
