| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to oil and gas operations; increasing fees. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 81.067(c), Natural Resources Code, is |
|
|
amended to read as follows: |
|
|
(c) The fund consists of: |
|
|
(1) proceeds from bonds and other financial security |
|
|
required by this chapter and benefits under well-specific plugging |
|
|
insurance policies described by Section 91.104(c) that are paid to |
|
|
the state as contingent beneficiary of the policies, subject to the |
|
|
refund provisions of Section 91.1091, if applicable; |
|
|
(2) private contributions, including contributions |
|
|
made under Section 89.084; |
|
|
(3) expenses collected under Section 89.083; |
|
|
(4) fees imposed under Section 85.2021; |
|
|
(5) costs recovered under Section 91.457 or 91.459; |
|
|
(6) proceeds collected under Sections 89.085 and |
|
|
91.115; |
|
|
(7) interest earned on the funds deposited in the |
|
|
fund; |
|
|
(8) oil and gas waste hauler permit application fees |
|
|
collected under Section 29.015, Water Code; |
|
|
(9) costs recovered under Sections 89.043(c-1) and |
|
|
[Section] 91.113(f); |
|
|
(10) hazardous oil and gas waste generation fees |
|
|
collected under Section 91.605; |
|
|
(11) oil-field cleanup regulatory fees on oil |
|
|
collected under Section 81.116; |
|
|
(12) oil-field cleanup regulatory fees on gas |
|
|
collected under Section 81.117; |
|
|
(13) fees for a reissued certificate collected under |
|
|
Section 91.707; |
|
|
(14) fees collected under Section 91.1013; |
|
|
(15) fees collected under Section 89.088; |
|
|
(16) fees collected under Section 91.142; |
|
|
(17) fees collected under Section 91.654; |
|
|
(18) costs recovered under Sections 91.656 and 91.657; |
|
|
(19) fees collected under Section 81.0521; |
|
|
(20) [fees collected under Sections 89.024 and 89.026; |
|
|
[(21)] legislative appropriations; |
|
|
(21) [(22)] any surcharges collected under Section |
|
|
81.070; |
|
|
(22) [(23)] fees collected under Section 91.0115; |
|
|
(23) [(24)] fees collected under Subchapter E, |
|
|
Chapter 121, Utilities Code; |
|
|
(24) [(25)] fees collected under Section 27.0321, |
|
|
Water Code; |
|
|
(25) [(26)] fees collected under Section 81.071; and |
|
|
(26) [(27)] money collected under Section 81.021. |
|
|
SECTION 2. Section 85.2021(a), Natural Resources Code, is |
|
|
amended to read as follows: |
|
|
(a) With each application or materially amended application |
|
|
for a permit to drill, deepen, plug back, or reenter a well, the |
|
|
applicant shall submit to the commission a nonrefundable fee of: |
|
|
(1) $2,000 [$200] if the total depth of the well is |
|
|
2,000 feet or less; |
|
|
(2) $2,250 [$225] if the total depth of the well is |
|
|
greater than 2,000 feet but less than or equal to 4,000 feet; |
|
|
(3) $2,500 [$250] if the total depth of the well is |
|
|
greater than 4,000 feet but less than or equal to 9,000 feet; |
|
|
(4) $3,000 [$300] if the total depth of the well is |
|
|
greater than 9,000 feet. |
|
|
SECTION 3. Subchapter A, Chapter 89, Natural Resources |
|
|
Code, is amended by adding Section 89.004 to read as follows: |
|
|
Sec. 89.004. ACTIVE STATUS. For the purposes of this |
|
|
chapter, an inactive well that is not permitted as a disposal or |
|
|
injection well may not be considered to be active again until: |
|
|
(1) the well has reported production of at least 10 |
|
|
barrels of oil for oil wells or 100 MCF of gas for gas wells each |
|
|
month for at least three consecutive months; or |
|
|
(2) the well has reported production of at least one |
|
|
barrel of oil for oil wells or at least one MCF of gas for gas wells |
|
|
each month for 12 consecutive months. |
|
|
SECTION 4. Subchapter B, Chapter 89, Natural Resources |
|
|
Code, is amended by adding Section 89.013 to read as follows: |
|
|
Sec. 89.013. DUTY OF COMMISSION. The commission shall |
|
|
monitor wells in this state to ensure that operators and |
|
|
nonoperators comply with the requirements of this subchapter. |
|
|
SECTION 5. Section 89.022(a), Natural Resources Code, is |
|
|
amended to read as follows: |
|
|
(a) On [Except as provided by Section 89.023, on] or before |
|
|
the date the operator is required to renew the operator's |
|
|
organization report required by Section 91.142, an operator of an |
|
|
inactive well must plug the well in accordance with statutes and |
|
|
commission rules in effect at the time of plugging. |
|
|
SECTION 6. Section 89.043, Natural Resources Code, is |
|
|
amended by adding Subsections (c-1) and (g) to read as follows: |
|
|
(c-1) Costs recovered under Subsection (c) shall be |
|
|
deposited to the credit of the oil and gas regulation and cleanup |
|
|
fund. |
|
|
(g) The commission shall establish a goal of plugging at |
|
|
least 1,400 wells per year under this section. |
|
|
SECTION 7. Section 91.1013(a), Natural Resources Code, is |
|
|
amended to read as follows: |
|
|
(a) With each application for a fluid injection well permit, |
|
|
the applicant shall submit to the commission a nonrefundable fee of |
|
|
$500 [$200]. In this section, "fluid injection well" means any well |
|
|
used to inject fluid or gas into the ground in connection with the |
|
|
exploration or production of oil or gas other than an oil and gas |
|
|
waste disposal well regulated by the commission pursuant to Chapter |
|
|
27, Water Code. |
|
|
SECTION 8. Section 91.1041(a), Natural Resources Code, is |
|
|
amended to read as follows: |
|
|
(a) A person required to file a bond, letter of credit, or |
|
|
cash deposit under Section 91.103 who operates one or more wells may |
|
|
file a bond in an amount equal to $10 [$2] for each foot of well |
|
|
depth for each well. The amount of the bond, letter of credit, or |
|
|
cash deposit shall be adjusted every three years based on the |
|
|
percentage change in the consumer price index or actual plugging |
|
|
costs. In this subsection, "consumer price index" means the |
|
|
consumer price index for all urban consumers for all items and for |
|
|
all regions of the United States combined, as determined by the |
|
|
United States Department of Labor, Bureau of Labor Statistics, or, |
|
|
if that index is discontinued or superseded, a similar index |
|
|
selected or calculated by the comptroller. |
|
|
SECTION 9. Section 91.1042, Natural Resources Code, is |
|
|
amended by amending Subsection (a) and adding Subsection (a-1) to |
|
|
read as follows: |
|
|
(a) A person required to file a bond, letter of credit, or |
|
|
cash deposit under Section 91.103 may file a blanket bond in the |
|
|
amount of $100,000 to cover all wells for which a bond, letter of |
|
|
credit, or cash deposit is required [as follows: |
|
|
[(1) a person who operates 10 or fewer wells shall file |
|
|
a $25,000 blanket bond; |
|
|
[(2) a person who operates more than 10 but fewer than |
|
|
100 wells shall file a $50,000 blanket bond; and |
|
|
[(3) a person who operates 100 or more wells shall file |
|
|
a $250,000 blanket bond]. |
|
|
(a-1) The commission may require an additional blanket bond |
|
|
in an amount not to exceed $10 per foot for each idle well. The |
|
|
amount of the blanket bond shall be adjusted every three years based |
|
|
on the percentage change in the consumer price index or actual |
|
|
plugging costs. In this subsection: |
|
|
(1) "Consumer price index" means the consumer price |
|
|
index for all urban consumers for all items and for all regions of |
|
|
the United States combined, as determined by the United States |
|
|
Department of Labor, Bureau of Labor Statistics, or, if that index |
|
|
is discontinued or superseded, a similar index selected or |
|
|
calculated by the comptroller. |
|
|
(2) "Idle well" means a well that is not producing, |
|
|
injecting, or disposing in an economically significant manner. |
|
|
SECTION 10. Sections 89.022(b), 89.023, 89.024, 89.025, |
|
|
89.026, 89.027, 89.028, and 89.029, Natural Resources Code, are |
|
|
repealed. |
|
|
SECTION 11. This Act takes effect September 1, 2021. |