Midland Reporter-Telegram

by Mella McEwen

Texas legislators have been meeting for just over a month amid the nearly 5,000 bills already filed in both the Texas House and Senate. Oil and gas associations are closely watching a number of pieces of legislation.

“(With) a little over two weeks remaining for bills to continue to be filed, there are many items of interest that PBPA is reviewing,” Ben Shepperd, president of the Permian Basin Petroleum Association told the Reporter-Telegram.

First and foremast are Senate Bill 1 and House Bill 1, each chamber’s budget bills. Shepperd said there is a focus on funding several items to ensure the agencies that regulate oil and gas activity and needs are able to efficiently permit items necessary to produce the oil and gas in the Permian Basin.

Shepperd said the PBPA wants funding for new reporting systems, job creation, salary increases and staff retention at the Railroad Commission, the Public Utility Commission and Texas Commission on Environmental Quality.

Ed Longanecker, president of the Texas Independent Producers and Royalty Owners Association, told the Reporter-Telegram that TIPRO is currently tracking 150 bills of relevance and expects that number to surpass 200 by the March 14 filing deadline.

Longanecker and Shepperd both referred to House Bill 2766 and companion Senate Bill 1150, which require the plugging of a well that's been inactive for more than 15 years and was completed 25 years ago or more. While it allows the Railroad Commission to issue some exceptions, it mandates an operator’s history of reactivating inactive wells be considered. It also requires the commission to submit an annual report to each member of the legislature on inactive wells in Texas by Sept. 1, 2026, and yearly thereafter.

Oilfield theft is also a focus, with Sen. Kevin Sparks of Midland has filing Senate Bill 1320, a bill that requires the director of Department of Public Safety to create an organized oilfield theft prevention unit headquartered in the Permian Basin. In addition to enforcing laws pertaining to theft and oil and gas, the unit will also develop and deploy specialized training, resources, policing strategies tailored to investigating and preventing organized oilfield theft to local law enforcement. Rep. Drew Darby of San Angelo filed a companion bill, HB 3035.

Longanecker cited several bills addressing water development and regulation of produced water. Electricity is also being addressed, with Sparks introducing SB 391, which allows for a five-year review of the work done to implement the Permian Basin Reliability Plan.

Other industry topics being closely watched include general ERCOT grid reform, oversight and voidability of state agency rules, repeal of the franchise tax, limiting increases in appraisal value of property and general school finance reform.

“In all of those instances we have found the state cannot be pennywise and a pound foolish. We want good government with agencies who are able to work with the industry in helping to address new permitting areas in transmission, produced water, and more,” Shepperd said.

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