By: Darby H.B. No. 5123       A BILL TO BE ENTITLED   AN ACT   relating to financial assurance requirements for operators under   the jurisdiction of the Railroad Commission of Texas.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 91, Natural Resources Code, is amended   by adding Section 91.115 to read as follows:          Sec. 91.115.  FINANCIAL ASSURANCE REQUIREMENTS FOR   OPERATORS.  (a)  The Railroad Commission shall accept financial   assurance mechanisms, including but not limited to, self-insurance   and parental bonding, to demonstrate an operator’s ability to   satisfy financial security obligations for the operation and   closure of produced water recycling pits and other related   facilities.          (b)  An operator that owns or controls multiple subsidiaries   operating under separate P-5 organization reports may satisfy   financial security requirements through a single consolidated   bond, subject to a demonstration of financial adequacy to the   Commission.          (c)  The Railroad Commission shall develop and implement a   system allowing operators to submit an annual report identifying   facilities covered under specific bonding mechanisms and ensuring   financial responsibility is properly assigned when assets are   transferred through mergers, acquisitions, or sales.          (d)  The Commission shall adopt rules necessary to implement   this section, including but not limited to establishing:                (1)  criteria for demonstrating financial adequacy for   self-insurance and parental bonding;                (2)  requirements for the submission and approval of   consolidated bonding structures for multiple P-5 operators; and                (3)  procedures for tracking and assigning financial   responsibility when transactions result in changes of ownership.          (e) Nothing in this section shall diminish the authority of   the Railroad Commission to require additional financial security in   cases where the commission determines that an operator’s financial   assurance is insufficient to cover potential closure and   remediation costs.          SECTION 2.  The Railroad Commission shall adopt rules to   implement Section 91.115, Natural Resources Code, as added by this   Act, no later than December 31, 2025.          SECTION 3.  This Act takes effect September 1, 2025.