By Cook H.B. No. 2705
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the salvage and disposition of oil and gas well-site or
1-3 other facility equipment or hydrocarbons on plugging or cleanup by
1-4 the state and to the oil-field cleanup fund.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 89.002(a), Natural Resources Code, is
1-7 amended by adding Subdivisions (5), (6), (7), and (8) to read as
1-8 follows:
1-9 (5) "Well-site equipment" means any production-related
1-10 equipment or materials specific to the well being plugged,
1-11 including motors, pumps, pump jacks, tanks, tank batteries,
1-12 separators, compressors, casing, tubing, and rods.
1-13 (6) "Lease" means the lease on which a well made the
1-14 subject of a plugging contract is located.
1-15 (7) "Delinquent inactive well" means an unplugged well
1-16 that has had no reported production, disposal, injection, or other
1-17 permitted activity for a period of greater than 12 months and for
1-18 which, after notice and opportunity for a hearing, the commission
1-19 has not extended the plugging deadline.
1-20 (8) "Plugging" includes replugging.
1-21 SECTION 2. Section 89.043, Natural Resources Code, is
1-22 amended by amending Subsection (b) and adding Subsections (c), (d),
1-23 and (e) to read as follows:
1-24 (b) If a well is leaking salt water, oil, or gas or is
2-1 likely to leak salt water, oil, or gas, and the leakage will cause
2-2 or is likely to cause a serious threat of pollution or injury to
2-3 the public health, the commission, through its employees or agents,
2-4 may direct the operator to take remedial action or to plug the well
2-5 or may plug or replug the well without holding a hearing under
2-6 Section 89.041 of this code or giving notice under Subsection (c)
2-7 of this section.
2-8 (c) On or before the 30th day before the date the commission
2-9 enters into a contract to plug a delinquent inactive well, the
2-10 commission shall send a notice by certified mail to the operator of
2-11 the well at the address last reported to the commission as required
2-12 by Section 91.142 of this code and commission rules. The notice
2-13 shall direct the operator to plug the well and shall state that:
2-14 (1) the commission may plug the well unless the
2-15 operator requests a hearing not later than the 10th day after the
2-16 date the operator receives the notice;
2-17 (2) if the commission plugs the well, all well-site
2-18 equipment will be presumed to have been abandoned and the
2-19 commission may dispose of the equipment and hydrocarbons from the
2-20 well as provided by Section 89.085 of this code; and
2-21 (3) the attorney general may file suit against the
2-22 operator to recover the plugging costs if the commission plugs the
2-23 well and the operator fails to reimburse the commission for the
2-24 plugging costs.
2-25 (d) The operator of a well made the subject of a prior
2-26 commission final order directing that it be plugged is not entitled
2-27 to a second hearing under this section.
3-1 (e) The commission shall file for record a copy of the
3-2 notice in the office of the county clerk of the county in which the
3-3 well is located. The copy of the notice filed in the office of the
3-4 county clerk must contain the section, block, survey, and abstract
3-5 number, when available to the commission, of the land on which the
3-6 well is located. The clerk shall record the notice in the real
3-7 property records of the county. The commission shall furnish a
3-8 copy of the notice to a holder of a lien on the well or a
3-9 nonoperator on that person's request. For purposes of title
3-10 insurance policies issued under authority of Chapter 9, Insurance
3-11 Code, this notice is not a notice of enforcement or violation of
3-12 law, ordinance, or governmental regulation unless the notice
3-13 contains a legally sufficient description of the specific land on
3-14 which the well is located.
3-15 SECTION 3. Section 89.083, Natural Resources Code, is
3-16 amended to read as follows:
3-17 Sec. 89.083. FIRST LIEN ON EQUIPMENT; CAUSE OF ACTION IF
3-18 COMMISSION PLUGS. (a) If a well has not been plugged by the
3-19 deadline for plugging established by commission rules, the state
3-20 has a first lien, superior to all other preexisting and subsequent
3-21 liens and security interests, on the operator's and nonoperator's
3-22 interests in well-site equipment, in the amount of the total costs
3-23 of removing well-site equipment from the well, plugging the well,
3-24 and transporting, storing, and disposing of the well-site
3-25 equipment.
3-26 (b) The lien arises on the date by which the well is
3-27 required to be plugged under commission rules.
4-1 (c) The commission may foreclose on the lien by entering
4-2 into a plugging contract. The commission is not required to give
4-3 notice or an opportunity for a hearing to subordinate lienholders
4-4 or nonoperators before entering into a plugging contract.
4-5 (d) The lien is extinguished if the well is plugged or
4-6 otherwise brought into compliance in accordance with commission
4-7 rules by any person authorized to do so before the commission
4-8 enters into a plugging contract.
4-9 (e) The lien is extinguished as to any item of well-site
4-10 equipment that is lawfully removed by any person other than the
4-11 operator or a nonoperator pursuant to a lien, lease, judgment,
4-12 written contract, or security agreement before the commission
4-13 enters into a plugging contract. Equipment necessary to prevent
4-14 the well from serving as a conduit for the passage of oil, gas,
4-15 saltwater, oil and gas wastes, or freshwater from one stratum or
4-16 formation to another or to the surface or from the surface downward
4-17 may not be removed from an inactive well site except in the course
4-18 of plugging in accordance with commission rules.
4-19 (f) If the commission plugs a well under Sections 89.043
4-20 through 89.044 of this code, the state has a cause of action for
4-21 all reasonable expenses incurred in plugging or replugging the well
4-22 and not recovered under Section 89.085 of this code or through
4-23 reimbursement to the commission <according to the rules of the
4-24 commission in effect at the time the well is plugged or replugged>.
4-25 (g) <(b)> The cause of action is:
4-26 (1) first, against the operator, to be secured by a
4-27 first lien, superior to all preexisting and subsequent liens and
5-1 security interests, on the operator's <his> interest in the oil and
5-2 gas in the land and the <his> fixtures, machinery, and equipment
5-3 found or used on the land where the well is located; and
5-4 (2) second, against a <the> nonoperator at the time
5-5 the well should have been plugged, to be secured by a lien on the
5-6 nonoperator's <his> interest in the oil and gas in the land. A
5-7 nonoperator may be made a party defendant in the suit against the
5-8 operator.
5-9 (h) <(c)> The commission shall seek reimbursement for all
5-10 reasonable expenses incurred in plugging any well through an action
5-11 instituted by the attorney general.
5-12 (i) <(d)> Money collected in a suit under this section shall
5-13 be deposited in the state oil-field cleanup fund.
5-14 (j) <(e)> A civil action for reimbursement under this
5-15 section may be brought in Travis County, the county in which the
5-16 plugged well is located, or the county in which any defendant
5-17 resides.
5-18 SECTION 4. Section 89.085, Natural Resources Code, is
5-19 amended to read as follows:
5-20 Sec. 89.085. POSSESSION AND SALE OF EQUIPMENT TO COVER
5-21 PLUGGING COSTS<; CRIMINAL PENALTY>. (a) When the commission
5-22 enters into a contract to plug a delinquent inactive well,
5-23 well-site equipment and any amount of hydrocarbons from the well
5-24 that is stored on the lease are presumed to have been abandoned and
5-25 may be disposed of by the commission in a commercially reasonable
5-26 manner by either or both of the following methods:
5-27 (1) a plugging contract may provide that the person
6-1 plugging or cleaning up pollution, or both, will take title to
6-2 well-site equipment, hydrocarbons from the well that are stored on
6-3 the lease, or hydrocarbons recovered during the plugging operation
6-4 in exchange for a sum of money deducted as a credit from the
6-5 contract price; or
6-6 (2) the well-site equipment, hydrocarbons from the
6-7 well that are stored on the lease, or hydrocarbons recovered during
6-8 the plugging operation may be sold at a public auction or a public
6-9 or private sale.
6-10 (b) The commission shall assign separate costs to:
6-11 (1) removing well-site equipment;
6-12 (2) plugging the well; and
6-13 (3) transporting, storing, and disposing of the
6-14 well-site equipment.
6-15 (c) The commission shall dispose of well-site equipment or
6-16 hydrocarbons under this section at a price or value that reflects
6-17 the generally recognized market value of the equipment or
6-18 hydrocarbons, with allowances for physical condition.
6-19 (d) The commission shall deposit money received from the
6-20 sale of well-site equipment or hydrocarbons under this section to
6-21 the credit of the oil-field cleanup fund. The commission shall
6-22 separately account for money and credit received for each well.
6-23 (e) A person who acquires well-site equipment or
6-24 hydrocarbons under this section by sale or contract receives a
6-25 clear title, free of all prior legal or equitable claims of
6-26 whatever nature, whether perfected or inchoate.
6-27 (f) Not later than the 30th day after the date well-site
7-1 equipment or hydrocarbons are disposed of under this section, the
7-2 commission shall mail a notice by first class mail to the operator
7-3 of the well at the address last reported to the commission as
7-4 required by Section 91.142 of this code and commission rules and,
7-5 on request, to any lienholder or nonoperator.
7-6 (g) The notice required by Subsection (f) of this section
7-7 shall state:
7-8 (1) the lease name;
7-9 (2) the well number;
7-10 (3) the county in which the well is located;
7-11 (4) the abstract number of the property on which the
7-12 lease is situated;
7-13 (5) the commission lease or gas well identification
7-14 number or drilling permit number;
7-15 (6) a list of the property disposed of under this
7-16 section; and
7-17 (7) a statement that any person who has a legal or
7-18 equitable ownership or security interest in the equipment or
7-19 hydrocarbons that was in existence on the date the commission
7-20 entered into a contract to plug or clean up the well may file a
7-21 claim with the commission.
7-22 (h) Not later than the 180th day after the date the
7-23 well-site equipment or hydrocarbons are disposed of under this
7-24 section, the commission shall publish a notice that states:
7-25 (1) the lease name;
7-26 (2) the well number;
7-27 (3) the county in which the well is located;
8-1 (4) the commission lease or gas well identification
8-2 number or drilling permit number; and
8-3 (5) that equipment or hydrocarbons if applicable from
8-4 the well and lease were disposed of under this section and that any
8-5 person who has a legal or equitable ownership or security interest
8-6 in the equipment or hydrocarbons that was in existence on the date
8-7 the commission entered into a contract to plug or clean up the well
8-8 may file a claim with the commission.
8-9 (i) The commission shall publish the notice required under
8-10 Subsection (h) of this section in a newspaper of general
8-11 circulation in the county in which the lease is located. A single
8-12 notice may contain the information required for more than one well
8-13 and lease. A notice given under this section following the
8-14 plugging of a well may be combined with a notice given under
8-15 Section 91.115 of this code following the cleanup of a site or
8-16 facility. <Well-site equipment is presumed abandoned if, for
8-17 longer than one year, the well has shown no activity in terms of
8-18 production, injection, disposal, testing, allowables, and has not
8-19 otherwise been maintained in compliance with plugging rules and
8-20 regulations.>
8-21 <(b) Before state funds are expended to plug or replug a
8-22 well that is not actively polluting but that is likely to pollute
8-23 fresh water above or below the ground, the attorney general shall
8-24 bring a suit within 30 days of the request of the commission
8-25 seeking a declaratory judgment that well-site equipment is
8-26 abandoned and that the commission has the right to possession of
8-27 the equipment and the authority to sell it or otherwise dispose of
9-1 it for the purpose of wholly or partially compensating the person
9-2 acting as agent for the commission for plugging or replugging the
9-3 well if the commission has determined that the equipment has a
9-4 salvageable value greater than the cost of suit.>
9-5 <(c) After state funds have been expended to plug or replug
9-6 a polluting well, the attorney general shall bring a suit within 30
9-7 days of the request of the commission seeking a declaratory
9-8 judgment that well-site equipment is abandoned and that the
9-9 commission has the right to possession of the equipment and the
9-10 authority to sell it or otherwise dispose of it for the purpose of
9-11 wholly or partially reimbursing the commission for plugging or
9-12 replugging the well if the commission has determined that the
9-13 equipment has a salvageable value greater than the cost of suit.>
9-14 <(d) Before a suit is filed as provided for in Subsections
9-15 (b) and (c) of this section, the commission shall give notice as
9-16 provided by the rules of civil procedure to the operator, lessor,
9-17 landowner, lienholders who have recorded a security interest in the
9-18 county in which the property is situated, or any other known
9-19 interested party that the commission intends to seek a court order
9-20 authorizing the reduction to possession and sale or disposal of the
9-21 well-site equipment. The notice shall provide a description of the
9-22 equipment and a statement that any claim thereto shall be made in
9-23 writing to the commission within 30 days after the date that notice
9-24 is given. Failure of the operator, lessor, landowner, lienholders,
9-25 or other known interested party to make such claim to the equipment
9-26 within the time provided shall be presumed a waiver of all right,
9-27 title, and interest in the well-site equipment and their consent to
10-1 entry of a judgment for possession and sale or disposal of the
10-2 equipment.>
10-3 <(e) If the court enters the declaratory judgment, the
10-4 commission may authorize its agent to take possession of the
10-5 equipment recovered following completion of plugging operations as
10-6 whole or partial compensation.>
10-7 <(f) Hydrocarbons contained in storage facilities located at
10-8 the abandoned well site or recovered during plugging operations are
10-9 presumed abandoned, and the commission's right to possession and
10-10 authority to sell the hydrocarbons shall be included in the suit
10-11 for declaratory judgment provided for in Subsections (b) and (c) of
10-12 this section.>
10-13 <(g) A suit for declaratory judgment under this section
10-14 shall be brought in Travis County, Texas. Upon request of the
10-15 attorney general, the court may appoint an attorney ad litem to
10-16 represent any interests not otherwise represented before the court.>
10-17 <(h) A suit under this section has priority on the court
10-18 calendar as provided by Section 23.101(a), Government Code.>
10-19 <(i) A person not authorized by the commission or its
10-20 authorized agent who knowingly removes well-site equipment after a
10-21 declaratory judgment has been obtained granting the commission
10-22 possession of the equipment commits a felony of the third degree.>
10-23 SECTION 5. Subchapter D, Chapter 89, Natural Resources Code,
10-24 is amended by adding Sections 89.086, 89.087, and 89.088 to read as
10-25 follows:
10-26 Sec. 89.086. CLAIMS AGAINST THE OIL-FIELD CLEANUP FUND. (a)
10-27 A person with a legal or equitable ownership or security interest
11-1 in well-site equipment or hydrocarbons disposed of under Section
11-2 89.085 of this code may make a claim against the oil-field cleanup
11-3 fund unless an element of the transaction giving rise to the
11-4 interest occurs after the commission enters into a plugging
11-5 contract.
11-6 (b) The commission shall adopt a form on which a person may
11-7 file a sworn claim with the commission.
11-8 (c) A claimant must identify the well-site equipment or
11-9 hydrocarbons in which the claimant has an interest and state the
11-10 amount of the property interest as of the date the commission
11-11 entered into the plugging contract.
11-12 (d) The commission may require a person to include with a
11-13 claim documentation that substantiates the claim or to disclose
11-14 whether the claimant was an operator or nonoperator of the well.
11-15 (e) The commission may set a hearing to receive evidence on
11-16 a claim filed under this section. The commission shall notify the
11-17 claimant of the date, time, and place of a hearing.
11-18 (f) If the commission holds a hearing, the commission shall
11-19 issue:
11-20 (1) a decision on the claim;
11-21 (2) a statement of findings of fact that includes the
11-22 substance of the evidence heard; and
11-23 (3) the conclusions of law that support the decision.
11-24 (g) The commission shall consider the validity of claims in
11-25 the order in which the claims are filed.
11-26 (h) The commission shall suspend an amount of money in the
11-27 oil-field cleanup fund equal to the amount of the claim until the
12-1 claim is finally resolved. If the provisions of Subsection (k) of
12-2 this section prevent suspension of the full amount of the claim,
12-3 the commission shall treat the claim as two consecutively filed
12-4 claims, one in the amount of funds available for suspension and the
12-5 other in the remaining amount of the claim.
12-6 (i) A claim made by or on behalf of the operator or a
12-7 nonoperator of a well or a successor to the rights of the operator
12-8 or nonoperator is subject to a ratable deduction from the proceeds
12-9 or credit received for the well-site equipment to cover the costs
12-10 incurred by the commission in removing the equipment or
12-11 hydrocarbons from the well or in transporting, storing, or
12-12 disposing of the equipment or hydrocarbons. A claim made by a
12-13 person who is not an operator or nonoperator is subject to a
12-14 ratable deduction for the costs incurred by the commission in
12-15 removing the equipment from the well. If a claimant is a person
12-16 who is responsible under law or commission rules for plugging the
12-17 well or cleaning up pollution originating on the lease or if the
12-18 claimant owes a penalty assessed by the commission or a court for a
12-19 violation of a commission rule or order, the commission may recoup
12-20 from or offset against a valid claim an expense incurred by the
12-21 oil-field cleanup fund that is not otherwise reimbursed or any
12-22 penalties owed. An amount recouped from, deducted from, or offset
12-23 against a claim under this subsection shall be treated as an
12-24 invalid portion of the claim and shall remain suspended in the
12-25 oil-field cleanup fund in the manner provided by Subsection (j) of
12-26 this section.
12-27 (j) If the commission finds that a claim is valid in whole
13-1 or in part, the commission shall pay the valid portion of the claim
13-2 from the suspended amount in the oil-field cleanup fund not later
13-3 than the 30th day after the date of the commission's decision. If
13-4 the commission finds that a claim is invalid in whole or in part,
13-5 the commission shall continue to suspend in the oil-field cleanup
13-6 fund an amount equal to the invalid portion of the claim until the
13-7 period during which the commission's decision may be appealed has
13-8 expired or, if appealed, during the period the case is under
13-9 judicial review. If on appeal the district court finds the claim
13-10 valid in whole or in part, the commission shall pay the valid
13-11 portion of the claim from the suspended amount in the oil-field
13-12 cleanup fund not later than 30 days after the date the court's
13-13 judgment becomes unappealable. On the date the commission's
13-14 decision is not subject to judicial review, the commission shall
13-15 release from the suspended amount in the oil-field cleanup fund the
13-16 amount of the claim held to be invalid.
13-17 (k) If the aggregate of claims paid and money suspended that
13-18 relates to well-site equipment or hydrocarbons from a particular
13-19 well equals the total of the actual proceeds and credit realized
13-20 from the disposition of that equipment or those hydrocarbons, the
13-21 oil-field cleanup fund is not liable for any subsequently filed
13-22 claims that relate to the same equipment or hydrocarbons unless and
13-23 until the commission releases from the suspended amount money
13-24 derived from the disposition of that equipment or those
13-25 hydrocarbons. If the commission releases money, then the
13-26 commission shall suspend money in the amount of subsequently filed
13-27 claims in the order of filing.
14-1 (l) A person who informs a potential claimant that the
14-2 potential claimant may be entitled to file a claim under this
14-3 section or who files a claim on behalf of a claimant may not
14-4 contract for or receive from the claimant for services an amount
14-5 greater than 10 percent of the paid claim.
14-6 Sec. 89.087. JUDICIAL REVIEW OF COMMISSION DECISIONS;
14-7 IMMUNITY FROM SUIT AND LIABILITY. (a) A claimant aggrieved by the
14-8 commission's decision on a claim may appeal the decision in a
14-9 district court of Travis County on or before the 60th day after the
14-10 date the decision was issued. If the commission does not decide a
14-11 claim by the 90th day after the date it was filed, the claimant may
14-12 appeal within the 60-day period beginning on the 91st day after the
14-13 date of filing.
14-14 (b) Judicial review under this section is by trial de novo.
14-15 (c) No interest accrues on a claim before an appeal is filed
14-16 under this section.
14-17 (d) Except to the extent permitted by this chapter, and
14-18 notwithstanding any other provision of law, the commission, its
14-19 employees or agents, and the State of Texas are immune from suit
14-20 and from liability based on the disposition of well-site equipment
14-21 or hydrocarbons in accordance with this chapter.
14-22 Sec. 89.088. RECORD OF REQUEST FOR NOTICE BY LIENHOLDER OR
14-23 NONOPERATOR; FORM; FEE. (a) The commission shall maintain a
14-24 record of a request for notice by a lienholder or nonoperator under
14-25 Section 89.043(e) or 89.085(f) of this code for five years after
14-26 the date on which the commission receives the request.
14-27 (b) The commission shall prepare a form for a request for
15-1 notice. The commission shall require a person who requests notice
15-2 to include on the form information that identifies the lease
15-3 covered by the request.
15-4 (c) The commission may charge a filing fee for a request for
15-5 notice not to exceed $10 for each lease covered by the request.
15-6 SECTION 6. Section 91.111, Natural Resources Code, is
15-7 amended by amending Subsection (c) and adding Subsection (d) to
15-8 read as follows:
15-9 (c) The fund consists of:
15-10 (1) penalties imposed under Section 85.381 of this
15-11 code for violation of a law, order, or rule relating to well
15-12 plugging requirements;
15-13 (2) proceeds from bonds and other financial assurances
15-14 required by this chapter, subject to the refund provisions of
15-15 Section 91.1091 of this code;
15-16 (3) private contributions, including contributions
15-17 made under Section 89.084 of this code;
15-18 (4) expenses collected under Section 89.083 of this
15-19 code;
15-20 (5) drilling permit fees imposed under Subsections (a)
15-21 and (c) of Section 85.2021 of this code;
15-22 (6) civil penalties collected for violations of
15-23 Chapter 89 of this code or of rules or orders relating to plugging
15-24 that are adopted under this code;
15-25 (7) proceeds collected under Sections <Section> 89.085
15-26 and 91.115 of this code;
15-27 (8) interest earned on the funds deposited in the
16-1 fund;
16-2 (9) fees collected under Section 91.104 of this code;
16-3 (10) civil penalties or costs recovered under Section
16-4 91.457 or Section 91.459 of this code;
16-5 (11) oil and gas waste hauler permit application fees
16-6 collected under Section 29.015, Water Code;
16-7 (12) costs recovered under Subsection (f) of Section
16-8 91.113 of this code;
16-9 (13) hazardous oil and gas waste generation fees
16-10 collected under Section 91.605 of this code;
16-11 (14) oil-field cleanup regulatory fees on oil
16-12 collected under Section 81.116 of this code;
16-13 (15) oil-field cleanup regulatory fees on gas
16-14 collected under Section 81.117 of this code;
16-15 (16) fees for a reissued certificate collected under
16-16 Section 85.167 of this code;
16-17 (17) fees collected under Subsection (b) of Section
16-18 91.1013 of this code; <and>
16-19 (18) fees collected under Section 89.088 of this code;
16-20 and
16-21 (19) legislative appropriations.
16-22 (d) All revenues and balances in the oil-field cleanup fund
16-23 created in this section are exempt from Section 403.094(h) and
16-24 Section 403.095(b), Government Code.
16-25 SECTION 7. Subchapter D, Chapter 91, Natural Resources Code,
16-26 is amended by adding Section 91.115 to read as follows:
16-27 Sec. 91.115. FIRST LIEN ON EQUIPMENT. (a) If a responsible
17-1 person fails to clean up a site or facility that has ceased oil and
17-2 gas operations under the commission's jurisdiction on or before the
17-3 date the site or facility is required to be cleaned up by law or by
17-4 a rule adopted or order issued by the commission, the state has a
17-5 first lien, superior to all preexisting and subsequent liens and
17-6 security interests, on the responsible person's interest in
17-7 equipment that is:
17-8 (1) located at the site or facility; and
17-9 (2) used by the responsible person in connection with
17-10 the activity that generated the pollution.
17-11 (b) The lien is in the amount of the total costs of cleaning
17-12 up the oil and gas wastes or other substances from the site or
17-13 facility and arises on the date the site or facility is required by
17-14 law or by a rule or order of the commission to be cleaned up.
17-15 (c) The commission may foreclose on the lien by entering
17-16 into a contract to clean up the site or facility. The commission
17-17 is not required to give notice or an opportunity for a hearing to
17-18 subordinate lienholders before entering into a contract to clean up
17-19 the site or facility.
17-20 (d) The lien is extinguished if the site or facility is
17-21 cleaned up in accordance with commission rules by any person before
17-22 the commission enters into a contract to clean up the site or
17-23 facility.
17-24 (e) The lien is extinguished as to any item of equipment
17-25 that is lawfully removed by any person other than the operator or a
17-26 nonoperator according to a lien, lease, judgment, written contract,
17-27 or security agreement before the commission enters into a cleanup
18-1 contract. An item of equipment may not be removed from an
18-2 abandoned site or facility if the removal will cause the release of
18-3 a substance that may cause pollution unless the substance is
18-4 lawfully disposed of.
18-5 (f) Equipment subject to a lien under this section is
18-6 presumed to have been abandoned on the date the commission enters
18-7 into a contract to clean up the site or facility on which the
18-8 equipment is located. The commission may dispose of the equipment
18-9 in accordance with the provisions of Sections 89.085, 89.086, and
18-10 89.087 of this code for the disposition of well-site equipment.
18-11 (g) In this section "responsible person" has the meaning
18-12 assigned by Section 91.113 of this code.
18-13 SECTION 8. (a) This Act does not apply to a suit filed or
18-14 an administrative proceeding begun before the effective date of
18-15 this Act. A suit filed or an administrative proceeding begun
18-16 before the effective date of this Act is governed by the law in
18-17 effect at the time the suit was filed or the administrative
18-18 proceeding was begun, and the former law is continued in effect for
18-19 that purpose.
18-20 (b) The lien provided by Section 89.083, Natural Resources
18-21 Code, as amended by this Act, arises on the later of the effective
18-22 date of this Act or the date by which the well is required to be
18-23 plugged under the rules of the Railroad Commission of Texas.
18-24 (c) The lien provided by Section 91.115, Natural Resources
18-25 Code, as added by this Act, arises on the later of the effective
18-26 date of this Act or the date the site or facility is required by
18-27 law or by a rule or order of the commission to be cleaned up after
19-1 oil and gas operations under the jurisdiction of the commission
19-2 have ceased.
19-3 SECTION 9. This Act takes effect January 1, 1994.
19-4 SECTION 10. The importance of this legislation and the
19-5 crowded condition of the calendars in both houses create an
19-6 emergency and an imperative public necessity that the
19-7 constitutional rule requiring bills to be read on three several
19-8 days in each house be suspended, and this rule is hereby suspended.