SB1216 - Relating to the authority of the Railroad Commission of Texas to permit the release into the air of natural gas from a gas well.

  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.