HB 2259 (81R/2009) - Transferring Wells to New Operators

Wells may be transferred from one operator to another operator. Once the Commission has approved the Form P-4, Producer's Transportation Authority and Certificate of Compliance transferring operatorship, the prior operator will no longer be responsible for compliance with these provisions.

The acquiring operator will have 6 months from the date of Form P-4 approval to bring any inactive wells into compliance with 16 Texas Administrative Code §3.15. The operator may comply by plugging the well, returning the well to active operation, or by applying for and being granted a plugging extension on the well. Important: Until the acquiring operator has brought the well into compliance with 16 TAC §3.15, the Commission may not approve any further transfers of the inactive well to a subsequent operator.

Following the expiration of the 6-month period after transfer, if any transferred well remains out of compliance with 16 TAC §3.15, the Commission may, after notice and opportunity for hearing, revoke the operator’s Organization Report.