By: Hinojosa H.B. No. 1174       A BILL TO BE ENTITLED   AN ACT   relating to a requirement that an applicant for a permit to drill an   oil or gas well submit a gas capture plan for the well.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter F, Chapter 86, Natural Resources   Code, is amended by adding Section 86.186 to read as follows:          Sec. 86.186.  GAS CAPTURE PLAN. (a)  The commission may not   issue a permit to drill, deepen, plug back, or reenter an oil or gas   well unless the applicant submits with the application a gas   capture plan to minimize flaring from the well.          (b)  The gas capture plan must include:                (1)  the volume of gas anticipated to be produced from   the well annually, measured in thousands of cubic feet;                (2)  the volume of oil anticipated to be produced from   the well annually, measured in barrels;                (3)  the volume of condensate anticipated to be   produced from the well annually, measured in barrels;                (4)  a detailed map depicting each existing, planned,   and anticipated gas gathering system in the general area of the   well;                (5)  the following information with regard to the gas   gathering system that the operator of the well has contracted to use   or, if the operator has not entered into a contract, the gas   gathering system that is closest to the well:                      (A)  the name of the operator of the gas gathering   system;                      (B)  a description of the approximate route of the   pipeline required to connect the well to the gas gathering system;                      (C)  the distance in feet of the pipeline required   to connect the well to the gas gathering system;                      (D)  the volume of gas in thousands of cubic feet   per day that the gas gathering system is capable of transporting;                      (E)  the volume of gas in thousands of cubic feet   per day that the gas gathering system is currently transporting;                      (F)  the volume of gas in thousands of cubic feet   per day that the gas gathering system is anticipated to be   transporting on the date of first sale of gas from the well;                      (G)  the reliability of the gas gathering system,   including the average annual downtime of the system; and                      (H)  the name and location of the gas processing   plant that receives or is anticipated to receive gas from the gas   gathering system;                (6)  any plans for expanding the gas gathering systems   in the general area of the well;                (7)  any other issues affecting the gathering of gas in   the general area of the well;                (8)  a plan for connecting the well to a gas gathering   system, including:                      (A)  a description of any potential right-of-way   issues;                      (B)  the schedule for constructing any necessary   gas gathering facilities;                      (C)  the date a gas gathering line will be   available;                      (D)  a statement of whether the gas gathering   system described by Subdivision (5) has the capacity to accept the   volume of gas anticipated to be produced from the well at the time   of application for the permit; and                      (E)  a description of any discussions the operator   of the well has had with other upstream operators regarding the   construction or availability of a gas gathering line; and                (9)  a description of any options available to the   operator of the well for the beneficial use of gas from the well if   the well cannot be connected to a gas gathering system, including:                      (A)  on-site use of the gas;                      (B)  the processing of liquids in the gas;                      (C)  the use of the gas for electric power   generation;                      (D)  the conversion of the gas to liquid fuels;                      (E)  the compression of the gas on the lease on   which the well is located;                      (F)  the reinjection of the gas for underground   storage;                      (G)  the reinjection of the gas for temporary   storage;                      (H)  the reinjection of the gas for enhanced oil   recovery; and                      (I)  shutting in the well, taking into account the   effect of doing so on the reservoir as well as public health,   safety, and the environment.          SECTION 2.  The change in law made by this Act applies only   to a permit the application for which is filed with the Railroad   Commission of Texas on or after the effective date of this Act. A   permit the application for which is filed before the effective date   of this Act is subject to the law in effect on the date the   application is filed, and that law is continued in effect for that   purpose.          SECTION 3.  This Act takes effect September 1, 2025.