All Roll Calls
Yes: 39 • No: 0
TennesseeSB 2231114th General Assembly (2025-2026)Senate
AN ACT to amend Tennessee Code Annotated, Title 59; Title 60 and Title 68, relative to the production of oil and gas.
Sponsored By: Sponsor information unavailable
Signed by Governor
Gas, Petroleum Products, Volatile Oils
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 1 benefits, 0 costs, 7 mixed.
Landowners gain control over well locations
Well applicants must send affected surface owners certified-mail notice by the permit filing and before site preparation begins. The notice describes proposed well locations, access routes, tanks, pits, and other surface disturbances. Owners have 15 business days from mailing to discuss locations; permits require every affected owner's signed no-objection statement or a court order. Surface work requires a filed application, while drilling or operating requires an issued permit. Approved operator plans become permit conditions; violations can bring suspended operations, lost permits, forfeited bonds, and penalties.
State gains funds and contractors for cleanup
The law creates the Tennessee oil and gas reclamation fund as a separate state treasury account. Penalty and bond-forfeiture payments collected under this part must go into that fund for reclamation. The state oil and gas authority can hire private parties to plug wells or restore sites. The law sets no total funding or contract amount.
Landowners can keep roads but maintain them
Oil and gas access roads must meet applicable local, state, and federal rules, including water-pollution requirements. A landowner can avoid required road reclamation through a sworn statement that the road will serve uses beyond well access. The surface owner then must keep the road usable and compliant with applicable rules. Operators can still use the road to check plant cover or add vegetation. Without the sworn statement, applicable road reclamation requirements remain.
Well pollution controls and stream rules
Operators must prevent or reduce soil erosion and surface-water pollution throughout operations, including preparation and related work. A stream-related permit condition now covers streams within one-fourth mile of the well site. It replaces the rule covering blue-line streams within one-half mile of the well site or access roads. The change removes the blue-line restriction but shortens the distance and drops access roads as measuring points.
Well bonds face forfeiture with appeal safeguards
The supervisor can forfeit bonds to the department for violations of oil and gas law, rules, orders, or permits. Noncompliance notices must identify the violation and location within six months after inspection or investigation, and allow reasonable correction time. Extensions are available for good-faith efforts or circumstances beyond the person's control. Uncorrected violations without an agreement can lead to forfeiture; recipients have 30 days after service to appeal or must forfeit the bond. Appeals require a scheduling conference within 30 days of filing and a completed hearing within 180 days after that conference, unless extended for good cause. The judge must issue an initial order within 90 days after the hearing record is complete. The board reviews appealed initial orders afresh on the record; final orders take effect when entered unless stated otherwise, and court review is available.
Well operators face bonds and shared-production rules
Tennessee regulators gain broad rulemaking powers over well construction, plugging, records, pollution, spacing, waste, neighboring leases, and land restoration. Operators must post bonds with permit applications for wells permitted and drilled after July 1, 1987. Certificates of deposit, irrevocable letters of credit, or agreed cash or securities can replace performance bonds in a separate departmental account that does not revert to the general fund. Bonds secure plugging and land restoration; unused restoration proceeds are refunded once obligations are fully met, and blanket bonds may need added security for remaining wells. Forced shared production across an oil or gas pool requires at least 60 days' notice and a request from producers holding rights to more than 50% of its acreage; regulators can halt production without an acceptable shared-production plan.
Well operators face fines with appeal rights
The supervisor can assess civil fines up to $10,000 for each day of an oil and gas violation. Covered violations include the law, rules, board orders, and permit terms. The amount depends on seriousness, good faith, violation history, business size, economic gain, and state damages and costs. A person can appeal within 30 days after service of the assessment. Penalty procedures provide notice, a hearing opportunity, and board review that considers the hearing record afresh.
Well operators regain bonds after cleanup checks
The supervisor can release one-third of a reclamation bond after satisfactory regrading and planting of disturbed areas. This first release excludes active work areas and access roads needed for production. The remaining bond can be released after well plugging, final reclamation, and satisfactory plant survival. Planting success normally requires two successfully completed growing seasons, unless the supervisor approves a shorter period. Release can follow an operator's written request or the supervisor's determination.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
Reeves
Affiliation unavailable
Roll Call Votes
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
Bill Text
Enrolled / Public Chapter
Fiscal Note
Introduced
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