Relating to the plugging or replugging of certain inactive wells subject to the jurisdiction of the Railroad Commission of Texas.

Contracts

• Vendor MSAs: Update Master Service Agreements with plugging contractors. You must explicitly require the vendor to maintain "Commission-approved" status throughout the project.
• Scope of Work: Insert a mandatory hold point: Plugging operations cannot physically commence until 30 days *after* the vendor or operator provides proof of mailed notice to the required parties.

Hiring/Training

• Land Departments: Train landmen to verify "Orphaned" status via RRC records before proposing a project. If the well is not officially classified as orphaned, the liability shield does not apply.
• Vendor Vetting: Procurement teams must verify that plugging contractors hold specific Commission approval, not just a general business license.

Reporting & Record-Keeping

• The "Defense File": Create a specific compliance file for each voluntary plugging project containing:
• 1. Proof of the well's "Orphaned" status at the time of contract.
• 2. Certified Mail Return Receipt proving the 30-day notice was sent to the surface owner or operator of record.
• 3. The final RRC approval document (likely Form W-3 or a new certificate).
• Admissibility: Retain these records indefinitely. They are your primary evidence to bar the admission of the plugging contract in future liability litigation.

Fees & Costs

• Project Costs: The plugging entity bears the full cost of the operation.
• No State Fees: There are no new filing fees mandated by the bill, but standard RRC administrative costs for form processing may apply.