By Craddick H.B. No. 2484
Substitute the following for H.B. No. 2484:
By Earley C.S.H.B. No. 2484
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to enforcing the duty to plug wells which have been
1-3 abandoned or which 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 which 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 Subdivisions (b)(1) through (b)(3) of Section 91.104
2-14 and Section 91.107 of this 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 Subparts (2)(A) through (2)(D) of Section 89.002(a)
3-10 of this code have been met. The person acquiring the seller's
3-11 interest through such a sale or conveyance succeeds the seller as
3-12 the operator of the well for purpose of plugging responsibility
3-13 once the provisions of Subparts (2)(A) through (2)(D) of Section
3-14 89.002(a) of this code have been met.
3-15 SECTION 3. This Act applies to an operator and nonoperator
3-16 who do not have a duty to plug a well as a result of a conveyance
3-17 and the satisfaction of the requirements of Subparts (2)(A) through
3-18 (2)(D) of Section 89.002(a), Natural Resources Code, as added by
3-19 this Act without regard to whether the conveyance of the well took
3-20 place before, on, or after the effective date of this Act.
3-21 SECTION 4. This Act takes effect September 1, 1993.
3-22 SECTION 5. The importance of this legislation and the
3-23 crowded condition of the calendars in both houses create an
3-24 emergency and an imperative public necessity that the
3-25 constitutional rule requiring bills to be read on three several
4-1 days in each house be suspended, and this rule is hereby suspended.