Tex. Natural Resources Code § 89.049 — TX Code / Code nr / Chapter 89 / Section 89.049
§ 89.049. ANNUAL REPORT.
Status: in_force

Not later than December 1 of each year, the commission shall produce and deliver to the governor, lieutenant governor, and legislature a report that includes:

(1) the number of inactive wells in this state;

(2) the age and length of inactivity of each inactive well;

(3) the number of inactive wells for which an extension of the deadline to plug the inactive well has been granted by the commission under Section 89.023;

(4) the financial assurance methods used by operators of inactive wells, including the number of wells using each financial assurance method available;

(5) the number of wells plugged in the preceding year, including a breakdown of wells plugged by operators versus wells plugged by the commission using state money;

(6) the number of inactive wells returned to production or put into use as an injection well or other operation in the preceding year;

(7) a summary of the number of operators of inactive wells based on organization reports submitted to the commission under Section 91.142, including the total number, based on the reports, of operators and inactive wells that are in compliance, are delinquent, are delinquent for longer than a year, or have been granted an extension under Section 89.023;

(8) the number of organization reports the commission has not renewed or approved under Section 91.142, including:

(A) for each report that has not been renewed or approved:

(i) the associated well count; and

(ii) the total amount of financial security submitted by the operator; and

(B) the total amount of financial security collected from each operator who filed a report that has not been renewed or approved; and

(9) the annual cost calculation for plugging an inactive well, as described by Section 89.023(a).(a) In this section, "operator in good standing" and "orphaned well" have the meanings assigned by Section 89.047.

(b) An operator in good standing who is the owner of an interest in a current oil and gas lease or the mineral estate of a tract of land on which an orphaned well is located or the owner of the surface estate of a tract of land on which an orphaned well is located may contract with a commission-approved well plugger to plug or replug the well.

(c) A well plugger who enters into a contract under Subsection (b) shall:

(1) not later than the 30th day before the date the well is to be plugged or replugged, mail notice of the plugger's intent to plug or replug the well to the operator of the well or the surface owner, as applicable, at the operator's or surface owner's address as shown by the records of the commission; and

(2) plug or replug the well in accordance with commission rules.

(d) An operator in good standing or a surface owner who enters into a contract under Subsection (b) does not assume responsibility for the physical operation and control of the orphaned well and is not liable for any plugging or replugging responsibility or damages that may occur as a result of acts done or omitted to be done relating to plugging or replugging the well under this section.

(e) Paying money to or contracting with a well plugger to plug or replug an orphaned well under this section is not an admission that the person paying the money or contracting for the plugging or replugging of the well is obligated to plug or replug the well. Evidence that a person has paid money to or contracted with a well plugger to plug or replug a well under this section is not admissible against the person in a suit in which the person's obligation to plug or replug the well is an issue, and introducing the evidence is a compulsory ground for mistrial.

(f) The commission may require a plugging or replugging operation conducted under this section to be supervised by a commission employee. A plugging or replugging operation conducted under this section is not considered complete until approved by the commission.

(g) This section does not apply to the owner of the surface estate of a tract of land on which an orphaned well is located if the surface owner was the operator who abandoned the well.

(h) The commission shall adopt any rules reasonably necessary to implement this section, including rules prescribing procedures for the approval by the commission of a well plugging or replugging operation conducted under this section.