73R7994 SMH-F
          By Cook                                               H.B. No. 2705
          Substitute the following for H.B. No. 2705:
          By Cook                                           C.S.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.
    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 a copy of the notice in the
    3-2  office of the county clerk of the county in which the well is
    3-3  located in the manner provided by Section 51.002, Property Code.
    3-4  The commission shall furnish a copy of the notice to a holder of a
    3-5  lien on the well  or a nonoperator on that person's request.
    3-6        SECTION 3.  Section 89.083, Natural Resources Code, is
    3-7  amended to read as follows:
    3-8        Sec. 89.083.  FIRST LIEN ON EQUIPMENT; CAUSE OF ACTION IF
    3-9  COMMISSION PLUGS.  (a)  If a well has not been plugged by the
   3-10  deadline for plugging established by commission rules, the state
   3-11  has a first lien, superior to all other preexisting and subsequent
   3-12  liens and security interests, on the operator's and nonoperators'
   3-13  interests in well-site equipment, in the amount of the total costs
   3-14  of removing well-site equipment from the well, plugging the well,
   3-15  and transporting, storing, and disposing of the well-site
   3-16  equipment.
   3-17        (b)  The lien arises on the date by which the well is
   3-18  required to be plugged under commission rules.
   3-19        (c)  The commission may foreclose on the lien by entering
   3-20  into a plugging contract.  The commission is not required to give
   3-21  notice or an opportunity for a hearing to subordinate lienholders
   3-22  or nonoperators before entering into a plugging contract.
   3-23        (d)  The lien is extinguished if the well is plugged or
   3-24  otherwise brought into compliance in accordance with commission
   3-25  rules by any person authorized to do so before the commission
   3-26  enters into a plugging contract.
   3-27        (e)  The lien is extinguished as to any item of well-site
    4-1  equipment that is lawfully removed by any person other than the
    4-2  operator or a nonoperator pursuant to a lien, lease, judgment,
    4-3  written contract, or security agreement before the commission
    4-4  enters into a plugging contract.  Equipment necessary to prevent
    4-5  the well from serving as a conduit for the passage of oil, gas,
    4-6  saltwater, oil and gas wastes, or freshwater from one stratum or
    4-7  formation to another or to the surface or from the surface downward
    4-8  may not be removed from an inactive well site except in the course
    4-9  of plugging in accordance with commission rules.
   4-10        (f)  If the commission plugs a well under Sections 89.043
   4-11  through 89.044 of this code, the state has a cause of action for
   4-12  all reasonable expenses incurred in plugging or replugging the well
   4-13  and not recovered under Section 89.085 of this code or through
   4-14  reimbursement to the commission <according to the rules of the
   4-15  commission in effect at the time the well is plugged or replugged>.
   4-16        (g) <(b)>  The cause of action is:
   4-17              (1)  first, against the operator, to be secured by a
   4-18  first lien, superior to all preexisting and subsequent liens and
   4-19  security interests, on the operator's <his> interest in the oil and
   4-20  gas in the land and the <his> fixtures, machinery, and equipment
   4-21  found or used on the land where the well is located; and
   4-22              (2)  second, against a <the> nonoperator at the time
   4-23  the well should have been plugged, to be secured by a lien on the
   4-24  nonoperator's <his> interest in the oil and gas in the land.  A
   4-25  nonoperator may be made a party defendant in the suit against the
   4-26  operator.
   4-27        (h) <(c)>  The commission shall seek reimbursement for all
    5-1  reasonable expenses incurred in plugging any well through an action
    5-2  instituted by the attorney general.
    5-3        (i) <(d)>  Money collected in a suit under this section shall
    5-4  be deposited in the state oil-field cleanup fund.
    5-5        (j) <(e)>  A civil action for reimbursement under this
    5-6  section may be brought in Travis County, the county in which the
    5-7  plugged well is located, or the county in which any defendant
    5-8  resides.
    5-9        SECTION 4.  Section 89.085, Natural Resources Code, is
   5-10  amended to read as follows:
   5-11        Sec. 89.085.  POSSESSION AND SALE OF EQUIPMENT TO COVER
   5-12  PLUGGING COSTS<; CRIMINAL PENALTY>.  (a)  When the commission
   5-13  enters into a contract to plug a delinquent inactive well,
   5-14  well-site equipment and any amount of hydrocarbons from the well
   5-15  that is stored on the lease are presumed to have been abandoned and
   5-16  may be disposed of by the commission in a commercially reasonable
   5-17  manner by either or both of the following methods:
   5-18              (1)  a plugging contract may provide that the person
   5-19  plugging or cleaning up pollution, or both, will take title to
   5-20  well-site equipment, hydrocarbons from the well that are stored on
   5-21  the lease, or hydrocarbons recovered during the plugging operation
   5-22  in exchange for a sum of money deducted as a credit from the
   5-23  contract price; or
   5-24              (2)  the well-site equipment, hydrocarbons from the
   5-25  well that are stored on the lease, or hydrocarbons recovered during
   5-26  the plugging operation may be sold at a public auction or a public
   5-27  or private sale.
    6-1        (b)  The commission shall assign separate costs to:
    6-2              (1)  removing well-site equipment;
    6-3              (2)  plugging the well; and
    6-4              (3)  transporting, storing, and disposing of the
    6-5  well-site equipment.
    6-6        (c)  The commission shall dispose of well-site equipment or
    6-7  hydrocarbons under this section at a price or value that reflects
    6-8  the generally recognized market value of the equipment or
    6-9  hydrocarbons, with allowances for physical condition.
   6-10        (d)  The commission shall deposit money received from the
   6-11  sale of well-site equipment or hydrocarbons under this section to
   6-12  the credit of the oil-field cleanup fund.  The commission shall
   6-13  separately account for money and credit received for each well.
   6-14        (e)  A person who acquires well-site equipment or
   6-15  hydrocarbons under this section by sale or contract receives a
   6-16  clear title, free of all prior legal or equitable claims of
   6-17  whatever nature, whether perfected or inchoate.
   6-18        (f)  Not later than the 30th day after the date well-site
   6-19  equipment or hydrocarbons are disposed of under this section, the
   6-20  commission shall mail a notice by first class mail to the operator
   6-21  of the well at the address last reported to the commission as
   6-22  required by Section 91.142 of this code and commission rules and,
   6-23  on request, to any lienholder or nonoperator.
   6-24        (g)  The notice required by Subsection (f) of this section
   6-25  shall state:
   6-26              (1)  the lease name;
   6-27              (2)  the well number;
    7-1              (3)  the county in which the well is located;
    7-2              (4)  the abstract number of the property on which the
    7-3  lease is situated;
    7-4              (5)  the commission lease or gas well identification
    7-5  number or drilling permit number;
    7-6              (6)  a list of the property disposed of under this
    7-7  section; and
    7-8              (7)  a statement that any person who has a legal or
    7-9  equitable ownership or security interest in the equipment or
   7-10  hydrocarbons that was in existence on the date the commission
   7-11  entered into a contract to plug or clean up the well may file a
   7-12  claim with the commission.
   7-13        (h)  Not later than the 180th day after the date the
   7-14  well-site equipment or hydrocarbons are disposed of under this
   7-15  section, the commission shall publish a notice that states:
   7-16              (1)  the lease name;
   7-17              (2)  the well number;
   7-18              (3)  the county in which the well is located;
   7-19              (4)  the commission lease or gas well identification
   7-20  number or drilling permit number; and
   7-21              (5)  that equipment or hydrocarbons if applicable from
   7-22  the well and lease were disposed of under this section and that any
   7-23  person who has a legal or equitable ownership or security interest
   7-24  in the equipment or hydrocarbons that was in existence on the date
   7-25  the commission entered into a contract to plug or clean up the well
   7-26  may file a claim with the commission.
   7-27        (i)  The commission shall publish the notice required under
    8-1  Subsection (h) of this section in a newspaper of general
    8-2  circulation in the county in which the lease is located.  A single
    8-3  notice may contain the information required for more than one well
    8-4  and lease.  A notice given under this section following the
    8-5  plugging of a well may be combined with a notice given under
    8-6  Section 91.114 of this code following the cleanup of a site or
    8-7  facility.  <Well-site equipment is presumed abandoned if, for
    8-8  longer than one year, the well has shown no activity in terms of
    8-9  production, injection, disposal, testing, allowables, and has not
   8-10  otherwise been maintained in compliance with plugging rules and
   8-11  regulations.>
   8-12        <(b)  Before state funds are expended to plug or replug a
   8-13  well that is not actively polluting but that is likely to pollute
   8-14  fresh water above or below the ground, the attorney general shall
   8-15  bring a suit within 30 days of the request of the commission
   8-16  seeking a declaratory judgment that well-site equipment is
   8-17  abandoned and that the commission has the right to possession of
   8-18  the equipment and the authority to sell it or otherwise dispose of
   8-19  it for the purpose of wholly or partially compensating the person
   8-20  acting as agent for the commission for plugging or replugging the
   8-21  well if the commission has determined that the equipment has a
   8-22  salvageable value greater than the cost of suit.>
   8-23        <(c)  After state funds have been expended to plug or replug
   8-24  a polluting well, the attorney general shall bring a suit within 30
   8-25  days of the request of the commission seeking a declaratory
   8-26  judgment that well-site equipment is abandoned and that the
   8-27  commission has the right to possession of the equipment and the
    9-1  authority to sell it or otherwise dispose of it for the purpose of
    9-2  wholly or partially reimbursing the commission for plugging or
    9-3  replugging the well if the commission has determined that the
    9-4  equipment has a salvageable value greater than the cost of suit.>
    9-5        <(d)  Before a suit is filed as provided for in Subsections
    9-6  (b) and (c) of this section, the commission shall give notice as
    9-7  provided by the rules of civil procedure to the operator, lessor,
    9-8  landowner, lienholders who have recorded a security interest in the
    9-9  county in which the property is situated, or any other known
   9-10  interested party that the commission intends to seek a court order
   9-11  authorizing the reduction to possession and sale or disposal of the
   9-12  well-site equipment.  The notice shall provide a description of the
   9-13  equipment and a statement that any claim thereto shall be made in
   9-14  writing to the commission within 30 days after the date that notice
   9-15  is given.  Failure of the operator, lessor, landowner, lienholders,
   9-16  or other known interested party to make such claim to the equipment
   9-17  within the time provided shall be presumed a waiver of all right,
   9-18  title, and interest in the well-site equipment and their consent to
   9-19  entry of a judgment for possession and sale or disposal of the
   9-20  equipment.>
   9-21        <(e)  If the court enters the declaratory judgment, the
   9-22  commission may authorize its agent to take possession of the
   9-23  equipment recovered following completion of plugging operations as
   9-24  whole or partial compensation.>
   9-25        <(f)  Hydrocarbons contained in storage facilities located at
   9-26  the abandoned well site or recovered during plugging operations are
   9-27  presumed abandoned, and the commission's right to possession and
   10-1  authority to sell the hydrocarbons shall be included in the suit
   10-2  for declaratory judgment provided for in Subsections (b) and (c) of
   10-3  this section.>
   10-4        <(g)  A suit for declaratory judgment under this section
   10-5  shall be brought in Travis County, Texas.  Upon request of the
   10-6  attorney general, the court may appoint an attorney ad litem to
   10-7  represent any interests not otherwise represented before the court.>
   10-8        <(h)  A suit under this section has priority on the court
   10-9  calendar as provided by Section 23.101(a), Government Code.>
  10-10        <(i)  A person not authorized by the commission or its
  10-11  authorized agent who knowingly removes well-site equipment after a
  10-12  declaratory judgment has been obtained granting the commission
  10-13  possession of the equipment commits a felony of the third degree.>
  10-14        SECTION 5.  Subchapter D, Chapter 89, Natural Resources Code,
  10-15  is amended by adding Sections 89.086, 89.087, and 89.088 to read as
  10-16  follows:
  10-17        Sec. 89.086.  CLAIMS AGAINST THE OIL-FIELD CLEANUP FUND.  (a)
  10-18  A person with a legal or equitable ownership or security interest
  10-19  in well-site equipment or hydrocarbons disposed of under Section
  10-20  89.085 of this code may make a claim against the oil-field cleanup
  10-21  fund unless an element of the transaction giving rise to the
  10-22  interest occurs after the commission enters into a plugging
  10-23  contract.
  10-24        (b)  The commission shall adopt a form on which a person may
  10-25  file a sworn claim with the commission.
  10-26        (c)  A claimant must identify the well-site equipment or
  10-27  hydrocarbons in which the claimant has an interest and state the
   11-1  amount of the property interest as of the date the commission
   11-2  entered into the plugging contract.
   11-3        (d)  The commission may require a person to include with a
   11-4  claim documentation that substantiates the claim or to disclose
   11-5  whether the claimant was an operator or nonoperator of the well.
   11-6        (e)  The commission may set a hearing to receive evidence on
   11-7  a claim filed under this section.  The commission shall notify the
   11-8  claimant of the date, time, and place of a hearing.
   11-9        (f)  If the commission holds a hearing, the commission shall
  11-10  issue:
  11-11              (1)  a decision on the claim;
  11-12              (2)  a statement of findings of fact that includes the
  11-13  substance of the evidence heard; and
  11-14              (3)  the conclusions of law that support the decision.
  11-15        (g)  The commission shall consider the validity of claims in
  11-16  the order in which the claims are filed.
  11-17        (h)  The commission shall suspend an amount of money in the
  11-18  oil-field cleanup fund equal to the amount of the claim until the
  11-19  claim is finally resolved.  If the provisions of Subsection (k) of
  11-20  this section prevent suspension of the full amount of the claim,
  11-21  the commission shall treat the claim as two consecutively filed
  11-22  claims, one in the amount of funds available for suspension and the
  11-23  other in the remaining amount of the claim.
  11-24        (i)  A claim made by or on behalf of the operator or a
  11-25  nonoperator of a well or a successor to the rights of the operator
  11-26  or nonoperator is subject to a ratable deduction from the proceeds
  11-27  or credit received for the well-site equipment to cover the costs
   12-1  incurred by the commission in removing the equipment or
   12-2  hydrocarbons from the well or in transporting, storing, or
   12-3  disposing of the equipment or hydrocarbons.  A claim made by a
   12-4  person who is not an operator or nonoperator is subject to a
   12-5  ratable deduction for the costs incurred by the commission in
   12-6  removing the equipment from the well.  If a claimant is a person
   12-7  who is responsible under law or commission rules for plugging the
   12-8  well or cleaning up pollution originating on the lease or if the
   12-9  claimant owes a penalty assessed by the commission or a court for a
  12-10  violation of a commission rule or order, the commission may recoup
  12-11  from or offset against a valid claim an expense incurred by the
  12-12  oil-field cleanup fund that is not otherwise reimbursed or any
  12-13  penalties owed.  An amount recouped from, deducted from, or offset
  12-14  against a claim under this subsection shall be treated as an
  12-15  invalid portion of the claim and shall remain suspended in the
  12-16  oil-field cleanup fund in the manner provided by Subsection (j) of
  12-17  this section.
  12-18        (j)  If the commission finds that a claim is valid in whole
  12-19  or in part, the commission shall pay the valid portion of the claim
  12-20  from the suspended amount in the oil-field cleanup fund not later
  12-21  than the 30th day after the date of the commission's decision.  If
  12-22  the commission finds that a claim is invalid in whole or in part,
  12-23  the commission shall continue to suspend in the oil-field cleanup
  12-24  fund an amount equal to the invalid portion of the claim until the
  12-25  period during which the commission's decision may be appealed has
  12-26  expired or, if appealed, during the period the case is under
  12-27  judicial review.  If on appeal the district court finds the claim
   13-1  valid in whole or in part, the commission shall pay the valid
   13-2  portion of the claim from the suspended amount in the oil-field
   13-3  cleanup fund not later than 30 days after the date the court's
   13-4  judgment becomes unappealable.  On the date the commission's
   13-5  decision is not subject to judicial review, the commission shall
   13-6  release from the suspended amount in the oil-field cleanup fund the
   13-7  amount of the claim held to be invalid.
   13-8        (k)  If the aggregate of claims paid and money suspended that
   13-9  relates to well-site equipment or hydrocarbons from a particular
  13-10  well equals the total of the actual proceeds and credit realized
  13-11  from the disposition of that equipment or those hydrocarbons, the
  13-12  oil-field cleanup fund is not liable for any subsequently filed
  13-13  claims that relate to the same equipment or hydrocarbons unless and
  13-14  until the commission releases from the suspended amount money
  13-15  derived from the disposition of that equipment or those
  13-16  hydrocarbons.  If the commission releases money, then the
  13-17  commission shall suspend money in the amount of subsequently filed
  13-18  claims in the order of filing.
  13-19        (l)  A person who informs a potential claimant that the
  13-20  potential claimant may be entitled to file a claim under this
  13-21  section or who files a claim on behalf of a claimant may not
  13-22  contract for or receive from the claimant for services an amount
  13-23  greater than 10 percent of the paid claim.
  13-24        Sec. 89.087.  JUDICIAL REVIEW OF COMMISSION DECISIONS;
  13-25  IMMUNITY FROM SUIT AND LIABILITY.  (a)  A claimant aggrieved by the
  13-26  commission's decision on a claim may appeal the decision in a
  13-27  district court of Travis County on or before the 60th day after the
   14-1  date the decision was issued.  If the commission does not decide a
   14-2  claim by the 90th day after the date it was filed, the claimant may
   14-3  appeal within the 60-day period beginning on the 91st day after the
   14-4  date of filing.
   14-5        (b)  Judicial review under this section is by trial de novo.
   14-6        (c)  No interest accrues on a claim before an appeal is filed
   14-7  under this section.
   14-8        (d)  Except to the extent permitted by this chapter, and
   14-9  notwithstanding any other provision of law, the commission, its
  14-10  employees or agents, and the State of Texas are immune from suit
  14-11  and from liability based on the disposition of well-site equipment
  14-12  or hydrocarbons in accordance with this chapter.
  14-13        Sec. 89.088.  RECORD OF REQUEST FOR NOTICE BY LIENHOLDER OR
  14-14  NONOPERATOR; FORM; FEE.    (a)  The commission shall maintain a
  14-15  record of a request for notice by a lienholder or nonoperator under
  14-16  Section 89.043(e) or 89.085(f) of this code for five years after
  14-17  the date on which the commission receives the request.
  14-18        (b)  The commission shall prepare a form for a request for
  14-19  notice.  The commission shall require a person who requests notice
  14-20  to include on the form information that identifies the lease
  14-21  covered by the request.
  14-22        (c)  The commission may charge a filing fee for a request for
  14-23  notice not to exceed $10 for each lease covered by the request.
  14-24        SECTION 6.  Section 91.111(c), Natural Resources Code, is
  14-25  amended to read as follows:
  14-26        (c)  The fund consists of:
  14-27              (1)  penalties imposed under Section 85.381 of this
   15-1  code for violation of a law, order, or rule relating to well
   15-2  plugging requirements;
   15-3              (2)  proceeds from bonds and other financial assurances
   15-4  required by this chapter, subject to the refund provisions of
   15-5  Section 91.1091 of this code;
   15-6              (3)  private contributions, including contributions
   15-7  made under Section 89.084 of this code;
   15-8              (4)  expenses collected under Section 89.083 of this
   15-9  code;
  15-10              (5)  drilling permit fees imposed under Subsections (a)
  15-11  and (c) of Section 85.2021 of this code;
  15-12              (6)  civil penalties collected for violations of
  15-13  Chapter 89 of this code or of rules or orders relating to plugging
  15-14  that are adopted under this code;
  15-15              (7)  proceeds collected under Sections <Section> 89.085
  15-16  and 91.114 of this code;
  15-17              (8)  interest earned on the funds deposited in the
  15-18  fund;
  15-19              (9)  fees collected under Section 91.104 of this code;
  15-20              (10)  civil penalties or costs recovered under Section
  15-21  91.457 or Section 91.459 of this code;
  15-22              (11)  oil and gas waste hauler permit application fees
  15-23  collected under Section 29.015, Water Code;
  15-24              (12)  costs recovered under Subsection (f) of Section
  15-25  91.113 of this code;
  15-26              (13)  hazardous oil and gas waste generation fees
  15-27  collected under Section 91.605 of this code;
   16-1              (14)  oil-field cleanup regulatory fees on oil
   16-2  collected under Section 81.116 of this code;
   16-3              (15)  oil-field cleanup regulatory fees on gas
   16-4  collected under Section 81.117 of this code;
   16-5              (16)  fees for a reissued certificate collected under
   16-6  Section 85.167 of this code;
   16-7              (17)  fees collected under Subsection (b) of Section
   16-8  91.1013 of this code; <and>
   16-9              (18)  fees collected under Section 89.088 of this code;
  16-10  and
  16-11              (19)  legislative appropriations.
  16-12        SECTION 7.  Subchapter D, Chapter 91, Natural Resources Code,
  16-13  is amended by adding Section 91.114 to read as follows:
  16-14        Sec. 91.114.  FIRST LIEN ON EQUIPMENT.  (a)  If a responsible
  16-15  person fails to clean up a site or facility that has ceased oil and
  16-16  gas operations under the commission's jurisdiction on or before the
  16-17  date the site or facility is required to be cleaned up by law or by
  16-18  a rule adopted or order issued by the commission, the state has a
  16-19  first lien, superior to all preexisting and subsequent liens and
  16-20  security interests, on the responsible person's interest in
  16-21  equipment that is:
  16-22              (1)  located at the site or facility; and
  16-23              (2)  used by the responsible person in connection with
  16-24  the activity that generated the pollution.
  16-25        (b)  The lien is in the amount of the total costs of cleaning
  16-26  up the oil and gas wastes or other substances from the site or
  16-27  facility and arises on the date the site or facility is required by
   17-1  law or by a rule or order of the commission to be cleaned up.
   17-2        (c)  The commission may foreclose on the lien by entering
   17-3  into a contract to clean up the site or facility.  The commission
   17-4  is not required to give notice or an opportunity for a hearing to
   17-5  subordinate lienholders before entering into a contract to clean up
   17-6  the site or facility.
   17-7        (d)  The lien is extinguished if the site or facility is
   17-8  cleaned up in accordance with commission rules by any person before
   17-9  the commission enters into a contract to clean up the site or
  17-10  facility.
  17-11        (e)  The lien is extinguished as to any item of equipment
  17-12  that is lawfully removed by any person other than the operator or a
  17-13  nonoperator according to a lien, lease, judgment, written contract,
  17-14  or security agreement before the commission enters into a cleanup
  17-15  contract.  An item of equipment may not be removed from an
  17-16  abandoned site or facility if the removal will cause the release of
  17-17  a substance that may cause pollution unless the substance is
  17-18  lawfully disposed of.
  17-19        (f)  Equipment subject to a lien under this section is
  17-20  presumed to have been abandoned on the date the commission enters
  17-21  into a contract to clean up the site or facility on which the
  17-22  equipment is located.  The commission may dispose of the equipment
  17-23  in accordance with the provisions of Sections 89.085, 89.086, and
  17-24  89.087 of this code for the disposition of well-site equipment.
  17-25        (g)  In this section "responsible person" has the meaning
  17-26  assigned by Section 91.113 of this code.
  17-27        SECTION 8.  (a)  This Act does not apply to a suit filed or
   18-1  an administrative proceeding begun before the effective date of
   18-2  this Act.  A suit filed or an administrative proceeding begun
   18-3  before the effective date of this Act is governed by the law in
   18-4  effect at the time the suit was filed or the administrative
   18-5  proceeding was begun, and the former law is continued in effect for
   18-6  that purpose.
   18-7        (b)  The lien provided by Section 89.083, Natural Resources
   18-8  Code, as amended by this Act, arises on the later of the effective
   18-9  date of this Act or the date by which the well is required to be
  18-10  plugged under the rules of the Railroad Commission of Texas.
  18-11        (c)  The lien provided by Section 91.114, Natural Resources
  18-12  Code, as added by this Act, arises on the later of the effective
  18-13  date of this Act or the date the site or facility is required by
  18-14  law or by a rule or order of the commission to be cleaned up after
  18-15  oil and gas operations under the jurisdiction of the commission
  18-16  have ceased.
  18-17        SECTION 9.  This Act takes effect January 1, 1994.
  18-18        SECTION 10.  The importance of this legislation and the
  18-19  crowded condition of the calendars in both houses create an
  18-20  emergency and an imperative public necessity that the
  18-21  constitutional rule requiring bills to be read on three several
  18-22  days in each house be suspended, and this rule is hereby suspended.