HB 2766 strengthens the plugging requirements for inactive oil and gas wells under the jurisdiction of the Railroad Commission of Texas (RRC). The bill prohibits operators from extending plugging deadlines for wells inactive for more than 15 years unless they obtain an exception order or include the well in an approved compliance plan that commits to plugging or restoring the well by September 1, 2040. The RRC must consider an operator’s compliance history when granting exceptions. The bill also requires annual reporting on inactive wells, their age, financial assurances, and plugging progress. Additionally, operators must submit well integrity test results to the RRC within one year of the 15th anniversary of inactivity.