Texas oil and gas operators, carbon-storage developers, and gas utilities have three new Texas Railroad Commission (RRC) rulemakings to watch—and November comment deadlines are approaching. At its October 6, 2026, open meeting, the RRC approved for public comment proposed amendments addressing long-inactive wells, Class VI wells used for carbon capture and storage (CCS), and gas utility tax filings. The proposals could affect plugging obligations, financial assurance, CCS permitting strategy, and regulatory reporting across multiple segments of the Texas energy industry.
- New Requirements Proposed for Long-Inactive Wells
The most consequential proposal for conventional oil and gas operators would amend 16 TAC §§3.15 and 3.58 to implement SB 1150 (89th Legislature, 2025). The proposal creates procedures for “15/25 wells”—wells that have been inactive for more than 15 years and were completed more than 25 years before an operator seeks a plugging extension.
Operators seeking to plugging extensions for 15/25 wells would need RRC approval under one of four statutory pathways: a demonstrated history of returning inactive wells to service; financial hardship; an approved compliance plan with annual plugging or reactivation commitments designed to achieve compliance by September 1, 2042; or an individual performance bond covering at least the full calculated plugging cost and the lifetime of the well, regardless of a change in operator. Extensions would be valid for one year and subject to annual renewal. Extensions based on restoration history or financial hardship would not transfer to a new operator. The proposal also expands testing and annual reporting requirements for older inactive wells.
SB 1150 requires the implementing rules to take effect September 1, 2027. Comments on the RRC proposal are due November 13, 2026, at 5:00 p.m. - RRC Proposes Post-Primacy Changes to Class VI Rules
The RRC also proposed amendments to Chapter 5 governing Class VI wells used for geologic storage of carbon dioxide. Texas obtained primary enforcement authority over the Class VI Underground Injection Control (UIC) program in late 2025, allowing the RRC to administer the federal Class VI program in Texas, other than on Indian lands.
The proposed amendments would provide additional flexibility for well casing, tubing, and packer placement; revise public participation procedures, including the affected person definition and the distinction between public meetings and contested case hearings; and expand permissible financial responsibility mechanisms. Proposed financial assurance options include trust funds, surety bonds, letters of credit, insurance, escrow accounts, and other mechanisms approved by the RRC director, subject to additional financial strength and security requirements.
For CCS developers, the proposal warrants review from an engineering perspective and for its potential effects on permitting strategy, public participation, and the structure and cost of long-term financial assurance. Comments are due November 23, 2026, at 5:00 p.m. - Gas Utility Tax Filing Moves Fully Online
Finally, the RRC proposed amending 16 TAC §7.351 to eliminate obsolete provisions allowing gas utility tax reports and payments to be submitted by mail. The rule would conform to the RRC’s existing electronic payment system, under which reports and payments are submitted through the agency’s online portal. The proposal does not change the statutory one-half-of-one-percent gas utility tax rate under Utilities Code Chapter 122. Comments on which are due November 23, 2026, at 5:00 p.m.
Operators, CCS developers, and gas utilities should review the proposals for potential operational, permitting, financial-assurance, and reporting impacts and consider whether comments are appropriate before the applicable deadlines.
For questions regarding these proposed RRC rules or participation in the rulemaking process, please contact Raj Lahoti or Miguel Suazo.