Regular Session
Government Affairs & Regulatory Compliance Analysis
Effective immediately, HB2663 mandates that oil and gas operators must perform physical field remediation—specifically terminating electric service and removing surface equipment—before applying for an inactive well plugging extension (Form W-3X). This legislation converts a formerly administrative filing into a field-verified compliance event, backed by a new administrative penalty of up to $25,000 for non-compliance.
Rep. Drew Darby·House Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-05-29). Review with your legal and compliance teams to understand implications.
Affected business types:
mediumModerate costs expected for implementation.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation 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.
This bill's path through the Texas Legislature
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Common questions about HB2663
Effective immediately, HB2663 mandates that oil and gas operators must perform physical field remediation—specifically terminating electric service and removing surface equipment—before applying for an inactive well plugging extension (Form W-3X). This legislation converts a formerly administrative filing into a field-verified compliance event, backed by a new administrative penalty of up to $25,000 for non-compliance.
HB2663 was authored by Texas Representative Drew Darby during the Regular Session.
HB2663 was signed into law by Governor Greg Abbott on May 29, 2025.
HB2663 is enforced by Railroad Commission of Texas.
The regulatory priority for HB2663 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB2663 is estimated as "medium". This may vary based on industry and implementation requirements.
HB2663 addresses topics including oil & gas, safety, utilities, utilities--electric and railroad commission.
Key dates for HB2663: Effective date is 2025-05-29. Consult with legal counsel regarding applicability.
HB2663 establishes the following penalties: administrative penalty of Up to $25,000 per violation for Providing the required affirmation but failing to physically terminate electric service or failing to remove specified surface equipment and trash.. Consult with legal counsel for specific applicability to your situation.
HB2663 primarily affects utility companies and energy providers. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
