SB1157 - Relating to the flaring and venting of methane gas on land dedicated to the permanent university fund.

  89R4112 CXP-D     By: Eckhardt S.B. No. 1157       A BILL TO BE ENTITLED   AN ACT   relating to the flaring and venting of methane gas on land dedicated   to the permanent university fund.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter C, Chapter 66, Education Code, is   amended by adding Section 66.455 to read as follows:           Sec.   66.455.     METHANE FLARING AND VENTING REDUCTION PLANS.   (a) The board of regents of The University of Texas System shall   adopt a formal policy goal to eliminate routine methane flaring and   venting on university lands by 2029.           (b)     Under each lease issued, modified, or renewed under this   subchapter relating to oil or gas, the lessee shall submit to the   board of regents of The University of Texas System a plan to end   routine methane flaring and venting in accordance with the policy   goal adopted under Subsection (a). The plan must:                 (1)     include provisions that prohibit routine methane   flaring and venting;                 (2)     for all new and existing sources, require   operators to adhere to the United States Environmental Protection   Agency's new source performance standards for methane emissions;   and                 (3)     require the lessee to implement quarterly   inspections and maintenance for the detection of malfunctioning and   unlit flares using leak detection equipment, such as optical gas   imaging cameras, and for the repair of those flares.           (c)     The board of regents of The University of Texas System   shall review and approve or reject each plan submitted under   Subsection (b) according to procedures adopted by the board. The   University of Texas Bureau of Economic Geology shall assist the   board and lessees in matters relating to the plans.           (d)     In adopting procedures to implement this section, the   board of regents of The University of Texas System may apply to new   facilities and existing facilities that have been modified after   initial construction more stringent standards than the standards   the board applies to other facilities.          SECTION 2.  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 the operator of a well or other facility   presents information to show the necessity for the escape; provided   that the amount of gas which is flared under that authority is   charged to the operator's allowable production. A necessity   includes but is not limited to the following situations:                (1)  cleaning a well of sand or acid or both following   stimulation treatment of a well; and                (2)  repairing or modifying a gas-gathering system.           (b)     Notwithstanding Subsection (a), the commission may   permit methane flaring or venting from a well on university lands   described by Section 66.41, Education Code, if the board of regents   of The University of Texas System and the well operator jointly   submit to the commission an attestation that:                   (1)  the well:                       (A)     is connected to a pipeline on which pipeline   takeaway capacity is not expected to meet the demand for gas   produced from the well; or                       (B)     is not connected to a pipeline and connection   of the well to a pipeline is technically or commercially   unfeasible; and                 (2)     the well operator made a good faith effort to find   a productive purpose for the gas the operator is seeking to flare or   vent.          SECTION 3.  Not later than June 1, 2026, the board of regents   of The University of Texas System shall adopt procedures   implementing Section 66.455, Education Code, as added by this Act.          SECTION 4.  (a)  Except as provided by Subsection (b) of this   section, this Act takes effect September 1, 2025.          (b)  Section 86.185, Natural Resources Code, as amended by   this Act, takes effect January 1, 2027.