The Texas Legislature has earmarked more than US$593 million for the Railroad Commission of Texas (RRC), the states oil and gas regulatory agency, over the next two fiscal years. This funding includes US$100 million for oil and gas well plugging to be used by the RRC’s State Managed Plugging Program (SMP) to address critical plugging projects. This is the largest one-time infusion of funds from the legislature to support the SMP, which has plugged more than 46,000 wells since its inception in 1984.
The US$100 million approved by lawmakers will help address the high number of emergency well pluggings across the state where immediate action is required. These emergency wells are often more expensive and technically challenging than other plugging projects. In addition to emergency pluggings, a portion of the funding will be earmarked to plug non-emergency high priority wells, such as those in hydrogen sulfide fields, as well as offshore wells. Plugging these wells as a preventative measure helps mitigate any potential risks before they escalate into an emergency.
The legislature also addressed other funding needs at the RRC, signing off on support to multiple modernization initiatives to improve the efficiency of the RRC. This includes investments of more than US$16.7 million into data reporting systems to track produced water, authorized pits registrations, and oversight and safety regulatory filing and permitting. More than US$2 million was also allocated for upgrades to the agency’s GIS Cloud systems.
The RRC will also receive US$1.3 million to establish an Underground Injection Well Investigation Team to help ensure injected fluids remain confined to the disposal formations and safeguard ground and surface fresh water. This team will supplement the RRC’s ongoing measures to mitigate seismicity and protect residents in areas including West Texas.
The state’s biennial budget passed in Senate Bill 1 takes effect on September 1, 2025.
