“The significant investment made by the Texas Legislature over the next biennium provides the Commission with the necessary resources to ensure that Texas energy is produced safely and efficiently.”
Texas Insider Report: AUSTIN, Texas – The Texas Legislature took major action this legislative session with historic funding for the Railroad Commission of Texas, appropriating more than $593 million for the agency over the next two fiscal years.
This appropriation includes $100 million for oil and gas well plugging to be used by the RRC’s renowned 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 $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 $16.7 million into data reporting systems to track produced water, authorized pits registrations and oversight and safety regulatory filing and permitting. More than $2 million was also allocated for upgrades to the agency’s GIS Cloud systems.
The RRC will also receive $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 significant investment made by the Texas Legislature over the next biennium provides the Commission with the necessary resources to ensure that Texas energy is produced safely and efficiently,” said RRC Chairman Jim Wright. “The development of our natural resources plays a vital role in our state’s economy, and I thank the Legislature for their continued commitment to the Railroad Commission to carry out our important mission.”
“This funding is critical toward the Railroad Commission’s goals to reduce the number of orphan wells across the state, improve and modernize agency technology and promote transparency and efficiency within the industry,” said RRC Commissioner Christi Craddick. “I deeply appreciate the Legislature’s support of our important mission to regulate responsibly while continuing to keep Texas’ energy industry and economy thriving.”
“The Railroad Commission of Texas is one of the world’s most respected regulatory agencies for oil and gas production, and this funding serves to further that mission,” said RRC Commissioner Wayne Christian. “The industry generates so much in tax revenues for Texas, that for every $1 appropriated by the Legislature to the Commission the industry returns $47 – talk about a return for the taxpayer! I want to congratulate Commissioner Craddick and the Commission staff for all their hard work this session on the agency’s budget and thank all the legislators and staff for efforts to make Texas the nation’s powerhouse for oil and gas.”
The state’s biennial budget passed in Senate Bill 1 takes effect on Sept. 1, 2025.
