By Craddick H.B. No. 2484
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to enforcing the duty to plug wells that have been
1-3 abandoned or that have ceased operation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 89.002(a), Natural Resources Code, is
1-6 amended to read as follows:
1-7 (a) In this chapter:
1-8 (1) "Well" means a hole drilled for the purpose of:
1-9 (A) producing oil or gas;
1-10 (B) injecting fluid or gas in the ground in
1-11 connection with the exploration or production of oil and gas; <or>
1-12 (C) obtaining geological information by taking
1-13 cores or through seismic operations; or
1-14 (D) producing geothermal energy and associated
1-15 resources that are subject to the jurisdiction of the Railroad
1-16 Commission of Texas.
1-17 (2) "Operator" means a person who is responsible for
1-18 the physical operation and control of a well at the time the well
1-19 is about to be abandoned or ceases operation. However, in the
1-20 event of a sale or conveyance of an unplugged well or the right to
1-21 operate an unplugged well that has ceased operation, but that was
1-22 in compliance with commission rules applicable to such wells that
1-23 have ceased operation at the time of sale or conveyance, the term
2-1 "operator" for the purpose of determining plugging responsibility
2-2 shall not mean the person who sells or conveys the well or right to
2-3 operate the well, once the person who acquires the well or right to
2-4 operate the well:
2-5 (A) specifically identifies the well as a well
2-6 for which it assumes plugging responsibility on such forms as may
2-7 be required by the commission and such filings are approved by the
2-8 commission;
2-9 (B) has a commission-approved organization
2-10 report as required by Section 91.142 of this code;
2-11 (C) has a commission-approved bond covering the
2-12 well or is eligible for a nonrefundable annual fee of $100 as
2-13 provided by Sections 91.104(b)(1)-(3) and Section 91.107 of this
2-14 code; and
2-15 (D) places the well in compliance with
2-16 commission rules.
2-17 (3) "Nonoperator" means a person who owns a working
2-18 interest in a well at the time the well is required to be plugged
2-19 pursuant to commission rules <about to be abandoned or ceases
2-20 operation> and is not an operator as defined in Subdivision (2) of
2-21 this subsection.
2-22 (4) "Commission" means the Railroad Commission of
2-23 Texas.
2-24 SECTION 2. Section 89.011, Natural Resources Code, is
2-25 amended to read as follows:
3-1 Sec. 89.011. DUTY OF OPERATOR. (a) The operator of a well
3-2 shall properly plug the well when required and in accordance with
3-3 the commission's rules that are in effect at the time of the
3-4 plugging.
3-5 (b) The duty of a person to plug an unplugged well that has
3-6 ceased operation ends if the person's interest in the well is sold
3-7 or conveyed while the well is in compliance with rules of the
3-8 commission applicable to wells that have ceased operation and the
3-9 provisions of Sections 89.002(a)(2)(A)-(D) of this code have been
3-10 met. The person acquiring the seller's interest through such a
3-11 sale or conveyance succeeds the seller as the operator of the well
3-12 for the purpose of plugging responsibility once the provisions of
3-13 Sections 89.002(a)(2)(A)-(D) of this code have been met.
3-14 SECTION 3. This Act applies to an operator and nonoperator
3-15 who do not have a duty to plug a well as a result of a conveyance
3-16 and the satisfaction of the requirements of Sections
3-17 89.002(a)(2)(A)-(D), Natural Resources Code, as added by this Act,
3-18 without regard to whether the conveyance of the well took place
3-19 before, on, or after the effective date of this Act.
3-20 SECTION 4. This Act takes effect September 1, 1993.
3-21 SECTION 5. The importance of this legislation and the
3-22 crowded condition of the calendars in both houses create an
3-23 emergency and an imperative public necessity that the
3-24 constitutional rule requiring bills to be read on three several
3-25 days in each house be suspended, and this rule is hereby suspended.