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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of oil and gas waste; imposing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 85.2021, Natural Resources Code, is |
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amended by adding Subsection (b-1) to read as follows: |
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(b-1) An applicant shall submit an additional nonrefundable |
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fee of $200 for a permit to drill, deepen, plug back, or reenter a |
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well for which the applicant proposes to use a reserve pit located |
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at the well site to dispose of oil and gas waste, as defined by |
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Section 91.1011, from the well. |
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SECTION 2. Section 91.110, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 91.110. OIL AND GAS WASTE REDUCTION AND MINIMIZATION. |
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To encourage the reduction and minimization of oil and gas waste, |
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the commission shall implement a program to: |
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(1) provide operators with training and technical |
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assistance on oil and gas waste reduction and minimization; |
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(2) assist operators in developing oil and gas waste |
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reduction and minimization plans; and |
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(3) by rule establish and offer well operators |
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incentives for oil and gas waste reduction and minimization through |
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the use of solids control equipment and closed-loop drilling |
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systems at well sites. |
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SECTION 3. Section 91.113, Natural Resources Code, is |
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amended by adding Subsection (a-1) to read as follows: |
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(a-1) Subsection (a) includes oil and gas waste or other |
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substances or materials regulated by the commission under Section |
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91.101 that are disposed of or stored at a well site using a reserve |
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pit, an aboveground tank, or other means. |
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SECTION 4. Section 91.1132, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 91.1132. PRIORITIZATION OF HIGH-RISK WELLS. The |
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commission by rule shall develop a system for: |
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(1) identifying abandoned wells that pose a high risk |
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of contaminating surface water or groundwater, including those with |
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reserve pits at the well site; |
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(2) periodically testing high-risk wells by |
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conducting a fluid level test or, if necessary, a pressure test; and |
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(3) giving priority to plugging high-risk wells with |
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compromised casings. |
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SECTION 5. Subchapter D, Chapter 91, Natural Resources |
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Code, is amended by adding Section 91.118 to read as follows: |
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Sec. 91.118. DISCLOSURE OF LOCATION OF NONCOMMERCIAL |
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SURFACE DISPOSAL. (a) In this section, "noncommercial surface |
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disposal" means the disposal of oil field fluids or oil and gas |
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waste at a facility: |
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(1) for which the disposal is not a primary business |
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purpose; or |
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(2) at which the disposal is performed without |
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compensation. |
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(b) The commission by rule shall require the owner or |
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operator of a facility that performs noncommercial surface disposal |
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to file with the county clerk of the county where the disposal |
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occurs a notice of noncommercial surface disposal that includes a |
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legal description of the exact location of the noncommercial |
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surface disposal. |
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SECTION 6. Sections 91.141(a) and (b), Natural Resources |
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Code, are amended to read as follows: |
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(a) Owners and operators of oil and gas wells shall keep |
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books and records that show accurately: |
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(1) the amount of sold and unsold stock; |
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(2) the amount of promotion money paid; |
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(3) the amount of oil and gas produced and disposed of |
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and the price for which the oil and gas was sold; |
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(4) the volume and types of oil and gas waste generated |
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at each well site and the primary method of disposal of the waste, |
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including waste that is managed: |
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(A) at the well site; |
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(B) by a third-party commercial surface disposal |
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facility, as defined by Section 91.116; or |
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(C) by a recycling facility; |
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(5) the receipts from the sale or transfer of leases or |
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other property; and |
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(6) [(5)] disbursements made in connection with or for |
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the benefit of the business. |
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(b) The books and records shall be kept open for the |
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inspection of the commission or any accredited representative of |
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the commission and any stockholder or shareholder or royalty owner |
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in the business. |
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SECTION 7. Section 91.753, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 91.753. NOTICE REQUIRED. (a) Not later than the 15th |
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business day after the date the commission issues an oil or gas well |
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operator a permit to drill a new oil or gas well or to reenter a |
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plugged and abandoned oil or gas well, the operator shall give |
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[written notice of the issuance of the permit to] the surface owner |
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of the tract of land on which the well is located or is proposed to |
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be located written notice of: |
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(1) the issuance of the permit; and |
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(2) whether a reserve pit will be used to permanently |
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dispose of oil and gas waste on the surface owner's property, |
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including the estimated volume and types of waste to be disposed of |
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at the well site, if any. |
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(b) An oil or gas well operator is not required to give |
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notice under this subchapter to a surface owner if: |
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(1) the operator and the surface owner have entered |
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into a written [an] agreement that contains alternative provisions |
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regarding the operator's obligation to give notice of oil and gas |
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operations; or |
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(2) the surface owner has waived in writing the owner's |
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right to notice under this subchapter. |
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SECTION 8. Section 85.2021(b-1), Natural Resources Code, as |
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added by this Act, applies only to an application or materially |
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amended application that is submitted to the Railroad Commission of |
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Texas on or after the effective date of this Act. An application or |
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materially amended application submitted to the commission before |
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the effective date of this Act is governed by the law in effect when |
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the application or materially amended application was submitted, |
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and the former law is continued in effect for that purpose. |
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SECTION 9. Section 91.753, Natural Resources Code, as |
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amended by this Act, applies only to a permit issued by the Railroad |
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Commission of Texas on or after the effective date of this Act. A |
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permit issued by the commission before the effective date of this |
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Act is governed by the law in effect when the permit was issued, and |
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the former law is continued in effect for that purpose. |
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SECTION 10. This Act takes effect September 1, 2021. |