By:  Cook                                             H.B. No. 2705
       73R5267 SMH-F
                                 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 upon state fund plugging
    1-4  or cleanup.
    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) and
   1-23  (d) 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 commission shall file a copy of the notice in the
   2-26  office of the county clerk of the county in which the well is
   2-27  located in the manner provided by Section 51.002, Property Code.
    3-1  The commission shall furnish a copy of the notice to a holder of a
    3-2  lien on the well on that person's request.
    3-3        SECTION 3.  Section 89.083, Natural Resources Code, is
    3-4  amended to read as follows:
    3-5        Sec. 89.083.  FIRST LIEN ON EQUIPMENT; CAUSE OF ACTION IF
    3-6  COMMISSION PLUGS.  (a)  If a well has not been plugged by the
    3-7  deadline for plugging established by commission rules, the state
    3-8  has a first lien, superior to all other preexisting and subsequent
    3-9  liens and security interests, on the operator's and nonoperators'
   3-10  interests in well-site equipment, in the amount of the total costs
   3-11  of removing well-site equipment from the well, plugging the well,
   3-12  and transporting, storing, and disposing of the well-site
   3-13  equipment.
   3-14        (b)  The lien arises on the date by which the well is
   3-15  required to be plugged under commission rules.
   3-16        (c)  The commission may foreclose on the lien by entering
   3-17  into a plugging contract.  The commission is not required to give
   3-18  notice or an opportunity for a hearing to subordinate lienholders
   3-19  before entering into a plugging contract.
   3-20        (d)  The lien is extinguished if the well is plugged in
   3-21  accordance with commission rules by any person authorized to do so
   3-22  before the commission enters into a plugging contract.
   3-23        (e)  The lien is extinguished as to any item of well-site
   3-24  equipment that is lawfully removed by any person other than the
   3-25  operator or a nonoperator pursuant to a lien, lease, judgment, or
   3-26  security agreement before the commission enters into a plugging
   3-27  contract.  Equipment necessary to prevent the well from serving as
    4-1  a conduit for the passage of oil, gas, saltwater, oil and gas
    4-2  wastes, or freshwater from one stratum or formation to another or
    4-3  to the surface or from the surface downward may not be removed from
    4-4  an inactive well site except in the course of plugging in
    4-5  accordance with commission rules.
    4-6        (f)  If the commission plugs a well under Sections 89.043
    4-7  through 89.044 of this code, the state has a cause of action for
    4-8  all reasonable expenses incurred in plugging or replugging the well
    4-9  and not recovered under Section 89.085 of this code or through
   4-10  reimbursement to the commission <according to the rules of the
   4-11  commission in effect at the time the well is plugged or replugged>.
   4-12        (g) <(b)>  The cause of action is:
   4-13              (1)  first, against the operator, to be secured by a
   4-14  first lien, superior to all preexisting and subsequent liens and
   4-15  security interests, on the operator's <his> interest in the oil and
   4-16  gas in the land and the <his> fixtures, machinery, and equipment
   4-17  found or used on the land where the well is located; and
   4-18              (2)  second, against a <the> nonoperator at the time
   4-19  the well should have been plugged, to be secured by a lien on the
   4-20  nonoperator's <his> interest in the oil and gas in the land.  A
   4-21  nonoperator may be made a party defendant in the suit against the
   4-22  operator.
   4-23        (h) <(c)>  The commission shall seek reimbursement for all
   4-24  reasonable expenses incurred in plugging any well through an action
   4-25  instituted by the attorney general.
   4-26        (i) <(d)>  Money collected in a suit under this section shall
   4-27  be deposited in the state oil-field cleanup fund.
    5-1        (j) <(e)>  A civil action for reimbursement under this
    5-2  section may be brought in Travis County, the county in which the
    5-3  plugged well is located, or the county in which any defendant
    5-4  resides.
    5-5        SECTION 4.  Section 89.085, Natural Resources Code, is
    5-6  amended to read as follows:
    5-7        Sec. 89.085.  POSSESSION AND SALE OF EQUIPMENT TO COVER
    5-8  PLUGGING COSTS<; CRIMINAL PENALTY>.  (a)  When the commission
    5-9  enters into a contract to plug a delinquent inactive well,
   5-10  well-site equipment and any amount of hydrocarbons from the well
   5-11  that is stored on the lease are presumed to have been abandoned and
   5-12  may be disposed of by the commission in a commercially reasonable
   5-13  manner by either or both of the following methods:
   5-14              (1)  a plugging contract may provide that the person
   5-15  plugging or cleaning up pollution, or both, will take title to
   5-16  well-site equipment, hydrocarbons from the well that are stored on
   5-17  the lease, or hydrocarbons recovered during the plugging operation
   5-18  in exchange for a sum of money deducted as a credit from the
   5-19  contract price; or
   5-20              (2)  the well-site equipment, hydrocarbons from the
   5-21  well that are stored on the lease, or hydrocarbons recovered during
   5-22  the plugging operation may be sold at a public auction or a public
   5-23  or private sale.
   5-24        (b)  The commission shall assign separate costs to:
   5-25              (1)  removing well-site equipment;
   5-26              (2)  plugging the well; and
   5-27              (3)  transporting, storing, and disposing of the
    6-1  well-site equipment.
    6-2        (c)  The commission shall dispose of well-site equipment or
    6-3  hydrocarbons under this section at a price or value that reflects
    6-4  the generally recognized market value of the equipment or
    6-5  hydrocarbons, with allowances for physical condition.
    6-6        (d)  The commission shall deposit money received from the
    6-7  sale of well-site equipment or hydrocarbons under this section to
    6-8  the credit of the oil-field cleanup fund.  The commission shall
    6-9  separately account for money and credit received for each well.
   6-10        (e)  A person who acquires well-site equipment or
   6-11  hydrocarbons under this section by sale or contract receives a
   6-12  clear title, free of all prior legal or equitable claims of
   6-13  whatever nature, whether perfected or inchoate.
   6-14        (f)  Not later than the 30th day after the date well-site
   6-15  equipment or hydrocarbons are disposed of under this section, the
   6-16  commission shall mail a notice by first class mail to the operator
   6-17  of the well at the address last reported to the commission as
   6-18  required by Section 91.142 of this code and commission rules and,
   6-19  on request, to any lienholder.
   6-20        (g)  The notice required by Subsection (f) of this section
   6-21  shall state:
   6-22              (1)  the lease name;
   6-23              (2)  the well number;
   6-24              (3)  the county in which the well is located;
   6-25              (4)  the commission lease or gas well identification
   6-26  number or drilling permit number;
   6-27              (5)  a list of the property disposed of under this
    7-1  section; and
    7-2              (6)  a statement that any person who has a legal or
    7-3  equitable ownership or security interest in the equipment or
    7-4  hydrocarbons that was in existence on the date the commission
    7-5  entered into a contract to plug or clean up the well may file a
    7-6  claim with the commission.
    7-7        (h)  Not later than the 180th day after the date the
    7-8  well-site equipment or hydrocarbons are disposed of under this
    7-9  section, the commission shall publish a notice that states:
   7-10              (1)  the lease name;
   7-11              (2)  the well number;
   7-12              (3)  the county in which the well is located;
   7-13              (4)  the commission lease or gas well identification
   7-14  number or drilling permit number; and
   7-15              (5)  that equipment or hydrocarbons if applicable from
   7-16  the well and lease were disposed of under this section and that any
   7-17  person who has a legal or equitable ownership or security interest
   7-18  in the equipment or hydrocarbons that was in existence on the date
   7-19  the commission entered into a contract to plug or clean up the well
   7-20  may file a claim with the commission.
   7-21        (i)  The commission shall publish the notice required under
   7-22  Subsection (h) of this section in a newspaper of general
   7-23  circulation in the county in which the lease is located.  A single
   7-24  notice may contain the information required for more than one well
   7-25  and lease.  A notice given under this section following the
   7-26  plugging of a well may be combined with a notice given under
   7-27  Section 91.114 of this code following the cleanup of a site or
    8-1  facility.  <Well-site equipment is presumed abandoned if, for
    8-2  longer than one year, the well has shown no activity in terms of
    8-3  production, injection, disposal, testing, allowables, and has not
    8-4  otherwise been maintained in compliance with plugging rules and
    8-5  regulations.>
    8-6        <(b)  Before state funds are expended to plug or replug a
    8-7  well that is not actively polluting but that is likely to pollute
    8-8  fresh water above or below the ground, the attorney general shall
    8-9  bring a suit within 30 days of the request of the commission
   8-10  seeking a declaratory judgment that well-site equipment is
   8-11  abandoned and that the commission has the right to possession of
   8-12  the equipment and the authority to sell it or otherwise dispose of
   8-13  it for the purpose of wholly or partially compensating the person
   8-14  acting as agent for the commission for plugging or replugging the
   8-15  well if the commission has determined that the equipment has a
   8-16  salvageable value greater than the cost of suit.>
   8-17        <(c)  After state funds have been expended to plug or replug
   8-18  a polluting well, the attorney general shall bring a suit within 30
   8-19  days of the request of the commission seeking a declaratory
   8-20  judgment that well-site equipment is abandoned and that the
   8-21  commission has the right to possession of the equipment and the
   8-22  authority to sell it or otherwise dispose of it for the purpose of
   8-23  wholly or partially reimbursing the commission for plugging or
   8-24  replugging the well if the commission has determined that the
   8-25  equipment has a salvageable value greater than the cost of suit.>
   8-26        <(d)  Before a suit is filed as provided for in Subsections
   8-27  (b) and (c) of this section, the commission shall give notice as
    9-1  provided by the rules of civil procedure to the operator, lessor,
    9-2  landowner, lienholders who have recorded a security interest in the
    9-3  county in which the property is situated, or any other known
    9-4  interested party that the commission intends to seek a court order
    9-5  authorizing the reduction to possession and sale or disposal of the
    9-6  well-site equipment.  The notice shall provide a description of the
    9-7  equipment and a statement that any claim thereto shall be made in
    9-8  writing to the commission within 30 days after the date that notice
    9-9  is given.  Failure of the operator, lessor, landowner, lienholders,
   9-10  or other known interested party to make such claim to the equipment
   9-11  within the time provided shall be presumed a waiver of all right,
   9-12  title, and interest in the well-site equipment and their consent to
   9-13  entry of a judgment for possession and sale or disposal of the
   9-14  equipment.>
   9-15        <(e)  If the court enters the declaratory judgment, the
   9-16  commission may authorize its agent to take possession of the
   9-17  equipment recovered following completion of plugging operations as
   9-18  whole or partial compensation.>
   9-19        <(f)  Hydrocarbons contained in storage facilities located at
   9-20  the abandoned well site or recovered during plugging operations are
   9-21  presumed abandoned, and the commission's right to possession and
   9-22  authority to sell the hydrocarbons shall be included in the suit
   9-23  for declaratory judgment provided for in Subsections (b) and (c) of
   9-24  this section.>
   9-25        <(g)  A suit for declaratory judgment under this section
   9-26  shall be brought in Travis County, Texas.  Upon request of the
   9-27  attorney general, the court may appoint an attorney ad litem to
   10-1  represent any interests not otherwise represented before the court.>
   10-2        <(h)  A suit under this section has priority on the court
   10-3  calendar as provided by Section 23.101(a), Government Code.>
   10-4        <(i)  A person not authorized by the commission or its
   10-5  authorized agent who knowingly removes well-site equipment after a
   10-6  declaratory judgment has been obtained granting the commission
   10-7  possession of the equipment commits a felony of the third degree.>
   10-8        SECTION 5.  Subchapter D, Chapter 89, Natural Resources Code,
   10-9  is amended by adding Sections 89.086 and 89.087 to read as follows:
  10-10        Sec. 89.086.  CLAIMS AGAINST THE OIL-FIELD CLEANUP FUND.  (a)
  10-11  A person with a legal or equitable ownership or security interest
  10-12  in well-site equipment or hydrocarbons disposed of under Section
  10-13  89.085 of this code may make a claim against the oil-field cleanup
  10-14  fund unless an element of the transaction giving rise to the
  10-15  interest occurs after the commission enters into a plugging
  10-16  contract.
  10-17        (b)  The commission shall adopt a form on which a person may
  10-18  file a sworn claim with the commission.
  10-19        (c)  A claimant must identify the well-site equipment or
  10-20  hydrocarbons in which the claimant has an interest and state the
  10-21  amount of the property interest as of the date the commission
  10-22  entered into the plugging contract.
  10-23        (d)  The commission may require a person to include with a
  10-24  claim documentation that substantiates the claim or to disclose
  10-25  whether the claimant was an operator or nonoperator of the well.
  10-26        (e)  The commission shall set a hearing to receive evidence
  10-27  on a claim filed under this section.  The commission shall notify
   11-1  the claimant of the date, time, and place of the hearing.
   11-2        (f)  After the claimant has an opportunity for hearing, the
   11-3  commission shall issue:
   11-4              (1)  a decision on the claim;
   11-5              (2)  a statement of findings of fact that includes the
   11-6  substance of the evidence heard; and
   11-7              (3)  the conclusions of law that support the decision.
   11-8        (g)  The commission shall consider the validity of claims in
   11-9  the order in which the claims are filed.
  11-10        (h)  The commission shall suspend an amount of money in the
  11-11  oil-field cleanup fund equal to the amount of the claim until the
  11-12  claim is finally resolved.  If the provisions of Subsection (k) of
  11-13  this section prevent suspension of the full amount of the claim,
  11-14  the commission shall treat the claim as two consecutively filed
  11-15  claims, one in the amount of funds available for suspension and the
  11-16  other in the remaining amount of the claim.
  11-17        (i)  A claim made by or on behalf of the operator or a
  11-18  nonoperator of a well or a successor to the rights of the operator
  11-19  or nonoperator is subject to a ratable deduction from the proceeds
  11-20  or credit received for the well-site equipment to cover the costs
  11-21  incurred by the commission in removing the equipment or
  11-22  hydrocarbons from the well or in transporting, storing, or
  11-23  disposing of the equipment or hydrocarbons.  A claim made by a
  11-24  person who is not an operator or nonoperator is subject to a
  11-25  ratable deduction for the costs incurred by the commission in
  11-26  removing the equipment from the well.  If a claimant is a person
  11-27  who is responsible under law or commission rules for plugging the
   12-1  well or cleaning up pollution originating on the lease or if the
   12-2  claimant owes a penalty assessed by the commission or a court for a
   12-3  violation of a commission rule or order, the commission may recoup
   12-4  from or offset against a valid claim an expense incurred by the
   12-5  oil-field cleanup fund that is not otherwise reimbursed or any
   12-6  penalties owed.  An amount recouped from, deducted from, or offset
   12-7  against a claim under this subsection shall be treated as an
   12-8  invalid portion of the claim and shall remain suspended in the
   12-9  oil-field cleanup fund in the manner provided by Subsection (j) of
  12-10  this section.
  12-11        (j)  If the commission finds that a claim is valid in whole
  12-12  or in part, the commission shall pay the valid portion of the claim
  12-13  from the suspended amount in the oil-field cleanup fund not later
  12-14  than the 30th day after the date of the commission's decision.  If
  12-15  the commission finds that a claim is invalid in whole or in part,
  12-16  the commission shall continue to suspend in the oil-field cleanup
  12-17  fund an amount equal to the invalid portion of the claim until the
  12-18  period during which the commission's decision may be appealed has
  12-19  expired or, if appealed, during the period the case is under
  12-20  judicial review.  If on appeal the district court finds the claim
  12-21  valid in whole or in part, the commission shall pay the valid
  12-22  portion of the claim from the suspended amount in the oil-field
  12-23  cleanup fund not later than 30 days after the date the court's
  12-24  judgment becomes unappealable.  On the date the commission's
  12-25  decision is not subject to judicial review, the commission shall
  12-26  release from the suspended amount in the oil-field cleanup fund the
  12-27  amount of the claim held to be invalid.
   13-1        (k)  If the aggregate of claims paid and money suspended that
   13-2  relates to well-site equipment or hydrocarbons from a particular
   13-3  well equals the total of the actual proceeds and credit realized
   13-4  from the disposition of that equipment or those hydrocarbons, the
   13-5  oil-field cleanup fund is not liable for any subsequently filed
   13-6  claims that relate to the same equipment or hydrocarbons unless and
   13-7  until the commission releases from the suspended amount money
   13-8  derived from the disposition of that equipment or those
   13-9  hydrocarbons.  If the commission releases money, then the
  13-10  commission shall suspend money in the amount of subsequently filed
  13-11  claims in the order of filing.
  13-12        (l)  A person who informs a potential claimant that the
  13-13  potential claimant may be entitled to file a claim under this
  13-14  section or who files a claim on behalf of a claimant may not
  13-15  contract for or receive from the claimant for services an amount
  13-16  greater than 10 percent of the paid claim.
  13-17        Sec. 89.087.  JUDICIAL REVIEW OF COMMISSION DECISIONS;
  13-18  IMMUNITY FROM SUIT AND LIABILITY.  (a)  A claimant aggrieved by the
  13-19  commission's decision on a claim may appeal the decision in a
  13-20  district court of Travis County on or before the 60th day after the
  13-21  date the decision was issued.  If the commission does not decide a
  13-22  claim by the 90th day after the date it was filed, the claimant may
  13-23  appeal within the 60-day period beginning on the 91st day after the
  13-24  date of filing.
  13-25        (b)  Judicial review under this section is by trial de novo.
  13-26        (c)  No interest accrues on a claim before an appeal is filed
  13-27  under this section.
   14-1        (d)  Except to the extent permitted by this chapter, and
   14-2  notwithstanding any other provision of law, the commission, its
   14-3  employees or agents, and the State of Texas are immune from suit
   14-4  and from liability based on the distribution of well-site equipment
   14-5  or hydrocarbons in accordance with this chapter.
   14-6        SECTION 6.  Section 91.111(c), Natural Resources Code, is
   14-7  amended to read as follows:
   14-8        (c)  The fund consists of:
   14-9              (1)  penalties imposed under Section 85.381 of this
  14-10  code for violation of a law, order, or rule relating to well
  14-11  plugging requirements;
  14-12              (2)  proceeds from bonds and other financial assurances
  14-13  required by this chapter, subject to the refund provisions of
  14-14  Section 91.1091 of this code;
  14-15              (3)  private contributions, including contributions
  14-16  made under Section 89.084 of this code;
  14-17              (4)  expenses collected under Section 89.083 of this
  14-18  code;
  14-19              (5)  drilling permit fees imposed under Subsections (a)
  14-20  and (c) of Section 85.2021 of this code;
  14-21              (6)  civil penalties collected for violations of
  14-22  Chapter 89 of this code or of rules or orders relating to plugging
  14-23  that are adopted under this code;
  14-24              (7)  proceeds collected under Sections <Section> 89.085
  14-25  and 91.114 of this code;
  14-26              (8)  interest earned on the funds deposited in the
  14-27  fund;
   15-1              (9)  fees collected under Section 91.104 of this code;
   15-2              (10)  civil penalties or costs recovered under Section
   15-3  91.457 or Section 91.459 of this code;
   15-4              (11)  oil and gas waste hauler permit application fees
   15-5  collected under Section 29.015, Water Code;
   15-6              (12)  costs recovered under Subsection (f) of Section
   15-7  91.113 of this code;
   15-8              (13)  hazardous oil and gas waste generation fees
   15-9  collected under Section 91.605 of this code;
  15-10              (14)  oil-field cleanup regulatory fees on oil
  15-11  collected under Section 81.116 of this code;
  15-12              (15)  oil-field cleanup regulatory fees on gas
  15-13  collected under Section 81.117 of this code;
  15-14              (16)  fees for a reissued certificate collected under
  15-15  Section 85.167 of this code;
  15-16              (17)  fees collected under Subsection (b) of Section
  15-17  91.1013 of this code; and
  15-18              (18)  legislative appropriations.
  15-19        SECTION 7.  Subchapter D, Chapter 91, Natural Resources Code,
  15-20  is amended by adding Section 91.114 to read as follows:
  15-21        Sec. 91.114.  FIRST LIEN ON EQUIPMENT.  (a)  If a responsible
  15-22  person fails to clean up a site or facility that has ceased oil and
  15-23  gas operations under the commission's jurisdiction on or before the
  15-24  date the site or facility is required to be cleaned up by law or by
  15-25  a rule adopted or order issued by the commission, the state has a
  15-26  first lien, superior to all preexisting and subsequent liens and
  15-27  security interests, on the responsible person's interest in
   16-1  equipment that is:
   16-2              (1)  located at the site or facility; and
   16-3              (2)  used by the responsible person in connection with
   16-4  the activity that generated the pollution.
   16-5        (b)  The lien is in the amount of the total costs of cleaning
   16-6  up the oil and gas wastes or other substances from the site or
   16-7  facility and arises on the date the site or facility is required by
   16-8  law or by a rule or order of the commission to be cleaned up.
   16-9        (c)  The commission may foreclose on the lien by entering
  16-10  into a contract to clean up the site or facility.  The commission
  16-11  is not required to give notice or an opportunity for a hearing to
  16-12  subordinate lienholders before entering into a contract to clean up
  16-13  the site or facility.
  16-14        (d)  The lien is extinguished if the site or facility is
  16-15  cleaned up in accordance with commission rules by any person before
  16-16  the commission enters into a contract to clean up the site or
  16-17  facility.
  16-18        (e)  The lien is extinguished as to any item of equipment
  16-19  that is lawfully removed by any person other than the operator or a
  16-20  nonoperator according to a lien, lease, judgment, or security
  16-21  agreement before the commission enters into a cleanup contract.  An
  16-22  item of equipment may not be removed from an abandoned site or
  16-23  facility if the removal will cause the release of a substance that
  16-24  may cause pollution unless the substance is lawfully disposed of.
  16-25        (f)  Equipment subject to a lien under this section is
  16-26  presumed to have been abandoned on the date the commission enters
  16-27  into a contract to clean up the site or facility on which the
   17-1  equipment is located.  The commission may dispose of the equipment
   17-2  in accordance with the provisions of Sections 89.085, 89.086, and
   17-3  89.087 of this code for the disposition of well-site equipment.
   17-4        (g)  In this section "responsible person" has the meaning
   17-5  assigned by Section 91.113 of this code.
   17-6        SECTION 8.  (a)  This Act does not apply to a suit filed or
   17-7  an administrative proceeding begun before the effective date of
   17-8  this Act.  A suit filed or an administrative proceeding begun
   17-9  before the effective date of this Act is governed by the law in
  17-10  effect at the time the suit was filed or the administrative
  17-11  proceeding was begun, and the former law is continued in effect for
  17-12  that purpose.
  17-13        (b)  The lien provided by Section 89.083, Natural Resources
  17-14  Code, as amended by this Act, arises on the later of the effective
  17-15  date of this Act or the date by which the well is required to be
  17-16  plugged under the rules of the Railroad Commission of Texas.
  17-17        (c)  The lien provided by Section 91.114, Natural Resources
  17-18  Code, as added by this Act, arises on the later of the effective
  17-19  date of this Act or the date the site or facility is required by
  17-20  law or by a rule or order of the commission to be cleaned up after
  17-21  oil and gas operations under the jurisdiction of the commission
  17-22  have ceased.
  17-23        SECTION 9.  This Act takes effect January 1, 1994.
  17-24        SECTION 10.  The importance of this legislation and the
  17-25  crowded condition of the calendars in both houses create an
  17-26  emergency and an imperative public necessity that the
  17-27  constitutional rule requiring bills to be read on three several
   18-1  days in each house be suspended, and this rule is hereby suspended.