Current Policymaking
SB 1150 Rulemaking
In 2025, the Texas Legislature passed SB 1150, which takes a modest step toward addressing the growing number of inactive wells, but still contains loopholes. Now, the Railroad Commission (RRC), the state oil and gas agency, is deciding the details of how the law is implemented. When creating the rules to implement the law, the RRC must adhere to the statutory language and intent of the law and must respect the “four corners” of the statutory language.
Sign on to strengthen the law and eliminate loopholes. Below are topics which should be considered when making rules to implement SB 1150:
Time Limits: After a well has been inactive for 15 years, operators should be limited to only two extra years of extensions, unless they submit a full, RRC-approved compliance plan. Companies should be limited to a maximum of three financial hardship extensions and demonstrate they can viably meet their asset retirement obligations.
No Extensions in High-Risk Zones: The RRC should identify the most dangerous areas (such as those with corrosive chemicals or high-pressure formations) and consider banning plugging extensions for all vintages of inactive wells in those zones, as the risk of well failure is too high.
Notify Landowners: All surface and mineral owners must be notified of who is buying and selling the wells on their property, and given standing in any proceedings regarding transfers or extensions.
Good Faith Deals Only: Require a certified analysis demonstrating that the well still has economic value greater than the estimated cost to plug it, and that the new operator has a track record of compliance and appears financially able to plug their wells.
Read the full suggestions in the Take Action form and sign to submit your comments before the deadline. Unique and individualized messages carry weight!
We encourage you to edit the letter to include your connection to Texas, proximity to inactive or orphaned oil and gas wells, any mineral rights ownership, and what you think the RRC should do to better manage unplugged wells
Background
Railroad Commission leadership and the state legislature have recognized the need for tighter limits on inactive and low producing wells. There are now more than 12,000 of these orphaned wells in the state, and nearly 110,000 inactive unplugged wells still owned by active operators in Texas. Only 15% of wells that have been inactive for more than 5 years ever return to operation. Many will become orphaned wells themselves. SB 1150 only applies to inactive wells that are 25 years old and that have been inactive for 15 years or more. The RRC estimates the total cost of plugging the current population of inactive wells at over $16 billion.
This link contains an analysis of how the rules could be written to be most effective.
Beyond the SB 1150 Rulemaking
SB 1150 is a first step toward addressing the stockpile of unplugged wells that has been building for decades, but more work needs to be done to implement solutions. We still need the Texas Legislature to sufficiently fund the Railroad Commission to do their job, and improve laws that require operators to set aside sufficient funding for well plugging.
We need your voice! When you submit your comments, sign up to learn about more opportunities to address the orphaned and inactive well problem during the upcoming Texas legislative session, and beyond. Or, contact us at info@texasorphanedwells.com to connect.