Relating to the authority of the Railroad Commission of Texas to designate certain persons as the operator of an orphaned oil or gas well.

Contracts

• Lease Agreements: Standard mineral leases are likely insufficient. You must secure agreements that explicitly convey the "geologic space" or "subsurface pore space."
• Surface Use Agreements (SUAs): In Texas, the surface estate often owns the pore space. You may need to renegotiate SUAs to include subsurface storage/usage rights if your current mineral lease does not cover geothermal operations.
• Purchase & Sale Agreements (PSAs): When acquiring assets for this purpose, representations and warranties must be expanded to cover title to the geologic estate, not just the hydrocarbon estate.

Hiring/Training

• Land Departments: Landmen and title attorneys must be retrained to run title on the *surface/geologic estate* specifically for geothermal rights, rather than standard mineral title chains.
• Regulatory Staff: Staff filing Form P-4 must be trained to attach the specific possessory documents required by SB 1762, or the application will be rejected.

Reporting & Record-Keeping

• New Filing Requirement: Alongside Form P-4, you must file a recorded deed, lease, or a "factually supported claim" proving your right to the geologic space.
• Exclusion Documentation: Ensure internal project documentation explicitly categorizes these assets as "Geothermal Energy Conservation" and *not* "Battery Energy Storage," as the latter is statutorily excluded from this program.

Fees & Costs

• Application Fee: A nonrefundable fee of $250 per well is required upon application.
• Bonding: Acquiring these wells transfers plugging and abandonment (P&A) liability to your entity. You must adjust your P-5 Organization Report and financial assurance (bonds/letters of credit) to account for the increased active well count.