Texas Railroad Commission to tighten rules on inactive oil and gas wells

At a hearing before the House Energy Resources Committee, the Texas Railroad Commission will outline revisions to its inactive-well regulations, targeting the roughly 12,000 orphaned wells that pose environmental and fiscal risks. The commission regulates nearly 160,000 oil and gas wells statewide and aims to curb extensions that let operators leave wells idle indefinitely. Industry representatives, including the Permian Basin Petroleum Association, support measures that balance stricter plugging mandates with the option to reactivate wells when viable.

Experts argue that SB 1150’s allowance for extensions creates “wiggle room” that undermines the law’s intent. Additional proposals call for higher financial assurances, replacing one outlet low-bond formula based on well depth or well count, to ensure operators can afford costly remediation. Environmental groups are urging tighter scrutiny of extension requests to protect taxpayers from future cleanup expenses.