TennesseeSB 2231114th General Assembly (2025-2026)SenateWALLET

AN ACT to amend Tennessee Code Annotated, Title 59; Title 60 and Title 68, relative to the production of oil and gas.

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 1 benefits, 6 costs, 4 mixed.

Higher penalties and faster enforcement

Civil penalties can be up to $10,000 for each day a violation occurs. You can appeal within 30 days; a conference is set within 30 days, the hearing finishes within 180 days, and an initial order issues within 90 days, with board review available. The supervisor must send a violation notice within 6 months of an inspection and set an abatement time. If problems are not fixed, the supervisor may order bond forfeiture; you have 30 days to appeal. Operators must also file drilling logs and downhole data within 60 days after drilling stops.

Landowners get notice and approval right

Applicants must send you a certified‑mail notice before site work and when they file a drilling permit. The notice must show the proposed well site and surface disturbance areas. You and the applicant have 15 business days from mailing to discuss the locations. A permit is issued only if every owner of record signs a no‑objection or a court approves the site.

Erosion control and access road rules

Operators must prevent or reduce soil erosion and water pollution during all phases, including prep work, and must reclaim all disturbed areas, including access roads. At well sites, install controls like sediment ponds, berms, diversion ditches, or hay bales. Access roads must be built and maintained to all local, state, and federal laws and board rules.

Plugging bonds and reclamation fund

You must post a plugging bond when you submit a permit application; it takes effect when surface work starts. You may use a certificate of deposit, an irrevocable letter of credit, or other agreed cash or securities held in a separate account. All penalties and bond forfeitures go into the Tennessee oil and gas reclamation fund. The supervisor can hire outside contractors to plug wells and reclaim sites when enforcing the law.

Reclamation standards and staged bond release

Reclamation bonds must cover reclaiming the well site and access roads. Unused bond money is refunded when all conditions are met; if not, funds are held for remaining duties and a supplementary bond can be required. The supervisor may release one‑third of the bond after regrading and revegetation. The rest is released after plugging, final reclamation, and vegetation survival. Revegetation success is judged after two growing seasons, unless the supervisor allows less.

Stricter permits and new siting rule

You may not disturb the surface for drilling until you submit a permit application. You must have a permit to drill or operate a well. Your approved plan is part of the permit; breaking it can suspend work, revoke the permit, forfeit bonds, and trigger penalties. The stream buffer used in siting is now one‑fourth mile from the well site (replacing the old one‑half‑mile reference).

Landowner access road upkeep duties

Access roads must be reclaimed unless you file a sworn affidavit that the road will keep being used for non‑well purposes. If you keep the road, you must maintain it in usable condition and follow all laws. The operator may still use the road to check or improve vegetation.

Mineral test hole fees set

The Mineral Test Hole Regulatory Act is compiled under Title 59. The supervisor sets its regulatory fees under § 59‑9‑105. The law does not list specific fee amounts.

Broader definitions expand who is regulated

The law clarifies key terms. “Operator” includes anyone responsible for drilling, operating, repairing, abandoning, or plugging a well. “Producer” means the owner or operator of a well that can produce in paying amounts. “Well” includes boreholes drilled or producing oil or gas. “Person” covers individuals and many public or private entities and agents. More roles are clearly covered by permitting, bonding, and reporting rules.

Two oil and gas sections repealed

The law deletes sections 60‑1‑105 and 60‑1‑705 from Tennessee’s code. The effect depends on what those sections used to say.

Unitization and shut-in powers expanded

The board can force separate tracts into a drilling or poolwide unit if producers holding more than 50% of pool acreage ask and owners get at least 60 days’ notice. The board may also shut in a pool to prevent waste and protect correlative rights until producers present an acceptable plan.

Sponsors & Cosponsors

Sponsor

Jack Johnson
Republican • Senate

Cosponsors

Shane Reeves
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 39 • No: 0

Senate vote • 2/23/2026

FLOOR VOTE: Motion to Adopt 2/23/2026

Yes: 32 • No: 0

Senate vote • 2/18/2026

SENATE ENERGY, AGRICULTURE AND NATURAL RESOURCES COMMITTEE

Yes: 7 • No: 0

Actions Timeline

Signed by Governor.
4/14/2026Senate
Signed by H. Speaker
4/2/2026House
Transmitted to Governor for action.
4/2/2026Senate
Enrolled and ready for signatures
4/1/2026Senate
Signed by Senate Speaker
4/1/2026Senate
Subst. for comp. HB.
3/30/2026House
Passed H., Ayes 82, Nays 1, PNV 10
3/30/2026House
Rcvd. from S., held on H. desk.
2/26/2026House
Passed Senate, Ayes 32, Nays 0
2/23/2026Senate
Engrossed; ready for transmission to House
2/23/2026Senate
Placed on Senate Consent Calendar 2 for 2/23/2026
2/20/2026Senate
Recommended for passage, refer to Senate Calendar Committee
2/18/2026Senate
Sponsor(s) Added.
2/11/2026Senate
Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 2/18/2026
2/11/2026Senate
Passed on Second Consideration, refer to Senate Energy, Ag., and Nat. Resources Committee
2/5/2026Senate
Filed for introduction
2/2/2026Senate
Introduced, Passed on First Consideration
2/2/2026Senate

Bill Text

Fiscal Note
PDF
Introduced
PDF

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