1-1 By: Craddick (Senate Sponsor - Montford) H.B. No. 2484
1-2 (In the Senate - Received from the House May 10, 1993;
1-3 May 12, 1993, read first time and referred to Committee on Natural
1-4 Resources; May 20, 1993, reported favorably by the following vote:
1-5 Yeas 9, Nays 0; May 20, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Sims x
1-9 Truan x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Brown x
1-14 Carriker x
1-15 Lucio x
1-16 Montford x
1-17 Ratliff x
1-18 Shelley x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to enforcing the duty to plug wells that have been
1-22 abandoned or that have ceased operation.
1-23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-24 SECTION 1. Section 89.002(a), Natural Resources Code, is
1-25 amended to read as follows:
1-26 (a) In this chapter:
1-27 (1) "Well" means a hole drilled for the purpose of:
1-28 (A) producing oil or gas;
1-29 (B) injecting fluid or gas in the ground in
1-30 connection with the exploration or production of oil and gas; <or>
1-31 (C) obtaining geological information by taking
1-32 cores or through seismic operations; or
1-33 (D) producing geothermal energy and associated
1-34 resources that are subject to the jurisdiction of the Railroad
1-35 Commission of Texas.
1-36 (2) "Operator" means a person who is responsible for
1-37 the physical operation and control of a well at the time the well
1-38 is about to be abandoned or ceases operation. However, in the
1-39 event of a sale or conveyance of an unplugged well or the right to
1-40 operate an unplugged well that has ceased operation, but that was
1-41 in compliance with commission rules applicable to such wells that
1-42 have ceased operation at the time of sale or conveyance, the term
1-43 "operator" for the purpose of determining plugging responsibility
1-44 shall not mean the person who sells or conveys the well or right to
1-45 operate the well, once the person who acquires the well or right to
1-46 operate the well:
1-47 (A) specifically identifies the well as a well
1-48 for which it assumes plugging responsibility on such forms as may
1-49 be required by the commission and such filings are approved by the
1-50 commission;
1-51 (B) has a commission-approved organization
1-52 report as required by Section 91.142 of this code;
1-53 (C) has a commission-approved bond covering the
1-54 well or is eligible for a nonrefundable annual fee of $100 as
1-55 provided by Sections 91.104(b)(1)-(3) and Section 91.107 of this
1-56 code; and
1-57 (D) places the well in compliance with
1-58 commission rules.
1-59 (3) "Nonoperator" means a person who owns a working
1-60 interest in a well at the time the well is required to be plugged
1-61 pursuant to commission rules <about to be abandoned or ceases
1-62 operation> and is not an operator as defined in Subdivision (2) of
1-63 this subsection.
1-64 (4) "Commission" means the Railroad Commission of
1-65 Texas.
1-66 SECTION 2. Section 89.011, Natural Resources Code, is
1-67 amended to read as follows:
1-68 Sec. 89.011. DUTY OF OPERATOR. (a) The operator of a well
2-1 shall properly plug the well when required and in accordance with
2-2 the commission's rules that are in effect at the time of the
2-3 plugging.
2-4 (b) The duty of a person to plug an unplugged well that has
2-5 ceased operation ends if the person's interest in the well is sold
2-6 or conveyed while the well is in compliance with rules of the
2-7 commission applicable to wells that have ceased operation and the
2-8 provisions of Sections 89.002(a)(2)(A)-(D) of this code have been
2-9 met. The person acquiring the seller's interest through such a
2-10 sale or conveyance succeeds the seller as the operator of the well
2-11 for the purpose of plugging responsibility once the provisions of
2-12 Sections 89.002(a)(2)(A)-(D) of this code have been met.
2-13 SECTION 3. This Act applies to an operator and nonoperator
2-14 who do not have a duty to plug a well as a result of a conveyance
2-15 and the satisfaction of the requirements of Sections
2-16 89.002(a)(2)(A)-(D), Natural Resources Code, as added by this Act,
2-17 without regard to whether the conveyance of the well took place
2-18 before, on, or after the effective date of this Act.
2-19 SECTION 4. This Act takes effect September 1, 1993.
2-20 SECTION 5. The importance of this legislation and the
2-21 crowded condition of the calendars in both houses create an
2-22 emergency and an imperative public necessity that the
2-23 constitutional rule requiring bills to be read on three several
2-24 days in each house be suspended, and this rule is hereby suspended.
2-25 * * * * *
2-26 Austin,
2-27 Texas
2-28 May 20, 1993
2-29 Hon. Bob Bullock
2-30 President of the Senate
2-31 Sir:
2-32 We, your Committee on Natural Resources to which was referred H.B.
2-33 No. 2484, have had the same under consideration, and I am
2-34 instructed to report it back to the Senate with the recommendation
2-35 that it do pass and be printed.
2-36 Sims,
2-37 Chairman
2-38 * * * * *
2-39 WITNESSES
2-40 FOR AGAINST ON
2-41 ___________________________________________________________________
2-42 Name: Floyd Bowen x
2-43 Representing: Exxon
2-44 City: Austin
2-45 -------------------------------------------------------------------
2-46 Name: Joe Hanna x
2-47 Representing: N. TX. O&G
2-48 City: Austin
2-49 -------------------------------------------------------------------
2-50 Name: Jack Erskine x
2-51 Representing: AMOCO
2-52 City: Austin
2-53 -------------------------------------------------------------------
2-54 Name: J. Neal Miller, Jr. x
2-55 Representing: Chevron
2-56 City: Austin
2-57 -------------------------------------------------------------------
2-58 Name: David Sebree x
2-59 Representing: Conoco
2-60 City: Austin
2-61 -------------------------------------------------------------------
2-62 FOR AGAINST ON
2-63 ___________________________________________________________________
2-64 Name: A. Scott Anderson x
2-65 Representing: TIPRO
2-66 City: Austin
2-67 -------------------------------------------------------------------
2-68 Name: K. Daniel Hinkle x
2-69 Representing: Meridian
2-70 City: Austin
3-1 -------------------------------------------------------------------
3-2 Name: Steve Perry x
3-3 Representing: Texaco
3-4 City: Austin
3-5 -------------------------------------------------------------------
3-6 Name: Allan Dees x
3-7 Representing: Texaco
3-8 City: Midland
3-9 -------------------------------------------------------------------
3-10 Name: Ben Sebree x
3-11 Representing: TX Midcontinent O&G Assoc.
3-12 City: Austin
3-13 -------------------------------------------------------------------
3-14 Name: Eileen Campbell x
3-15 Representing: Marathon Oil Company
3-16 City: Houston
3-17 -------------------------------------------------------------------