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SB2122

Regular Session

Relating to imposition of application fees for certain permits and permit amendments for the disposal of oil and gas waste.

Moderate
Low Cost
Effective:2025-09-01
SB2122
Moderate
Relating to imposition of application fees for certain permits and permit amendments for the disposal of oil and gas waste.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
RRC
Primary Author: Sen. Judith Zaffirini
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: August 31, 2025 is the strategic cutoff. Applications filed on or after September 1 must include the new, higher fees or they will be rejected.
  • Agency Rulemaking: The Railroad Commission of Texas (RRC) must update fee schedules and application forms (likely Form H-11) prior to September 1. Monitor the Texas Register in Q2 2025 for definitions regarding what constitutes a billable "amendment" versus a minor administrative change.

Immediate Action Plan

  • Audit Permit Pipeline: Immediately identify all waste facility projects and amendments scheduled for late 2025.
  • Accelerate Filings: "Rush to the Docket" by filing all pending applications before August 31, 2025, to lock in current lower rates.
  • Update Internal Controls: Modify internal accounting codes to reflect the specific statutory fee categories (Landfarm vs. Commercial Separation vs. Commercial Disposal).
  • Review Insurance: Ensure Environmental Impairment Liability (EIL) policies cover operations matching the new specific statutory definitions for commercial facilities.

Operational Changes Required

Contracts

  • Joint Operating Agreements (JOAs): Operators utilizing landfarming/landtreatment must verify that the new $500 permit fees are categorized as recoverable costs under COPAS accounting procedures.
  • Master Service Agreements (MSAs): Commercial disposal vendors should review rate sheets for 2026. Increased overhead from the $1,000 amendment fees and $2,000-$3,000 new permit fees may necessitate a surcharge or rate adjustment in future vendor agreements.

Hiring/Training

  • Accounts Payable Alignment: Regulatory managers must coordinate with AP to update check request protocols. The previous flat-fee structure is obsolete; staff must be trained to select the correct fee based on facility type (Separation vs. Disposal vs. Landfarm) to prevent application rejection.

Reporting & Record-Keeping

  • Proof of Filing: Strict documentation of the filing date is now a financial imperative. For applications submitted near the September 1, 2025 deadline, utilize RRC Online digital receipts or Certified Mail with Return Receipt to prove the application was "filed" under the old fee structure.

Fees & Costs

Budget for the following nonrefundable application fees for filings on/after September 1, 2025:

  • $3,000: New Commercial Surface Disposal Facility.
  • $2,000: New Commercial Waste Separation Facility.
  • $1,000: Amendment to any Commercial Facility permit.
  • $500: New or Amended Landfarm/Landtreatment permit.
  • $200: Fluid Injection Well (unchanged).

Strategic Ambiguities & Considerations

  • Definition of "Amendment": The statute imposes a $1,000 fee for commercial permit amendments but does not distinguish between major technical modifications and minor equipment swaps. Until the RRC clarifies this through rulemaking, assume any change requiring RRC approval will trigger the $1,000 fee.
  • Hybrid Facilities: The law separates "Separation Facilities" ($2,000) from "Disposal Facilities" ($3,000). It is currently unclear how the RRC will assess fees for facilities that perform both functions. Operators of hybrid facilities should budget for the higher tier ($3,000) or potentially cumulative fees until guidance is issued.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 10, 2025
Passed Senate
Apr 16, 2025
Passed House
May 10, 2025
Signed
May 27, 2025
TopicsEnvironmentEnvironment--waterFees & Other Nontax RevenueFees & Other Nontax Revenue--stateOil & GasWaterWater--generalPermits
03

Senate Authors

Sen. Judith ZaffiriniDemocrat · Primary Author

House Sponsors

Rep. Drew DarbyRepublican · Primary Sponsor
Joint Sponsors

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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More from Sen. Judith Zaffirini

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Quick Reference

Frequently Asked Questions

Common questions about SB2122

Q

What does Texas SB2122 do?

SB2122 creates a new, tiered fee schedule for oil and gas waste permitting, significantly increasing upfront capital requirements for commercial disposal and separation facilities, as well as landfarming operations. Effective September 1, 2025, operators and commercial vendors must pay up to $3,000 for new permits and $1,000 for amendments, necessitating an immediate review of 2025 project pipelines to accelerate filings before costs rise. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: August 31, 2025 is the strategic cutoff.

Q

Who authored SB2122?

SB2122 was authored by Texas Senator Judith Zaffirini during the Regular Session.

Q

When was SB2122 signed into law?

SB2122 was signed into law by Governor Greg Abbott on May 27, 2025.

Q

Which agencies enforce SB2122?

SB2122 is enforced by Railroad Commission of Texas (RRC).

Q

How urgent is compliance with SB2122?

The compliance urgency for SB2122 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of SB2122?

The cost impact of SB2122 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB2122 address?

SB2122 addresses topics including environment, environment--water, fees & other nontax revenue, fees & other nontax revenue--state and oil & gas.

Legislative data provided by LegiScanLast updated: November 25, 2025

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