AUSTIN, Texas (AP) — The Texas comptroller's office is seeking federal approval to reform a troubled state program designed to protect a rare lizard species in the petroleum-rich Permian Basin.

Texas Comptroller Glenn Hegar has requested the U.S. Fish and Wildlife Service approve the state agency's new version of the Texas Conservation Plan, the Austin American-Statesman reported. The move comes amid threats by the federal agency to designate the dunes sagebrush lizard as endangered, which would enact strict land-use regulations.

Some environmentalists have critiqued the old Texas Conservation...