Relating to imposition of application fees for certain permits and permit amendments for the disposal of oil and gas waste.
ModeratePlan for compliance
Low Cost
Effective:2025-09-01
Enforcing Agencies
Railroad Commission of Texas (RRC)
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 The previous flat-fee structure is obsolete; staff must be trained to select the correct fee based on facility type (Separation vs. Disposal vs. Landfarm) to prevent application rejection.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.
S.B. 2122 would authorize the Railroad Commission of Texas (RRC) to collect permit application fees ranging from $500 to $3,000, depending on the type of permit. Fees would be assessed on landfarm and land applications ($500), commercial recycling, treatment, waste separation, storage, and reclamation facilities ($2,000 for new applications; $1,000 for amendments), and permanent commercial surface waste disposal facilities ($3,000 for new applications; $1,000 for amendments). The bill also removes outdated language in the Natural Resources Code regarding surface water discharge permit fees.
S.B. 2122 would generate an estimated $487,000 annually, strengthening RRC's ability to oversee environmental permitting and compliance while ensuring a more efficient, customer-focused permitting process. By aligning EPS with other revenue-generating divisions, S.B. 2122 would provide a sustainable funding mechanism to support RRC's ongoing efforts to modernize environmental protections and improve regulatory efficiency.
As proposed, S.B. 2122 amends current law relating to imposition of application fees for certain permits and permit amendments for the disposal of oil and gas waste.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 91.1013, Natural Resources Code, by amending Subsections (a) and (b) and adding Subsection (a-1), as follows:
(a) Defines "land application permit," "landfarm permit," and "landtreatment permit." Makes nonsubstantive changes.
(a-1) Requires an applicant, with each application for a fluid injection well permit, to submit to the Railroad Commission of Texas (RRC) a nonrefundable fee of $200.
(b) Requires an applicant for a permit to store, treat, or dispose of certain oil and gas waste to submit to RRC certain nonrefundable fees for that application. Deletes existing text requiring an applicant, with each application for a permit to discharge to surface water under Chapter 91 (Provisions Generally Applicable) and RRC rules, other than a permit for a discharge that meets National Pollutant Discharge Elimination System requirements for agricultural or wildlife use, to submit to RRC a nonrefundable fee.
SECTION 2. Makes application of Section 91.1013 (Application Fees), Natural Resources Code, as amended by this Act, prospective.
Honorable Brian Birdwell, Chair, Senate Committee on Natural Resources
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB2122 by Zaffirini (Relating to imposition of application fees for certain permits and permit amendments for the disposal of oil and gas waste.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB2122, As Introduced: an impact of $0 through the biennium ending August 31, 2027.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
$0
2027
$0
2028
$0
2029
$0
2030
$0
All Funds, Five-Year Impact:
Fiscal Year
Probable Revenue Gain from Oil & Gas Regulation 5155
2026
$1,217,500
2027
$1,217,500
2028
$1,217,500
2029
$1,217,500
2030
$1,217,500
Fiscal Analysis
This bill would amend the Natural Resources Code to revise application fees for permits related to the disposal of oil and gas waste under the jurisdiction of the Railroad Commission of Texas (RRC). The bill would define land application, land farm, and land treatment permits, which authorize different methods of disposing of oil and gas waste by incorporating it into soil. The bill would establish new permit and amendment fees, including $500 for a land farm, land treatment, or land application permit or amendment; $2,000 for a commercial oil and gas waste separation facility permit; $1,000 for an amendment to a commercial waste separation facility permit; $3,000 for a commercial surface oil and gas waste facility permit; and $1,000 for an amendment to a commercial surface waste facility permit.
Methodology
Based on the analysis of the Comptroller of Public Accounts and the RRC, it is assumed that there would be a revenue gain to General Revenue-Dedicated Account No. 5155 from permit application fee changes totaling $1,217,500 in fiscal year 2026 and continuing each subsequent fiscal year.
Based on information provided by the RRC, it is assumed that any costs associated with implementing the provisions of the bill could be absorbed within existing resources.
Technology
This analysis assumes no technology costs associated with the bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 455 Railroad Commission
LBB Staff:
JMc, TUf, MW, JOc, RStu
Related Legislation
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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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