1-1 By: Cook (Senate Sponsor - Sims) H.B. No. 2705
1-2 (In the Senate - Received from the House May 3, 1993;
1-3 May 4, 1993, read first time and referred to Committee on Natural
1-4 Resources; May 11, 1993, reported favorably by the following vote:
1-5 Yeas 8, Nays 0; May 11, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Sims x
1-9 Truan x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Brown x
1-14 Carriker x
1-15 Lucio x
1-16 Montford x
1-17 Ratliff x
1-18 Shelley x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to the salvage and disposition of oil and gas well-site or
1-22 other facility equipment or hydrocarbons on plugging or cleanup by
1-23 the state and to the oil-field cleanup fund.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Section 89.002(a), Natural Resources Code, is
1-26 amended by adding Subdivisions (5), (6), (7), and (8) to read as
1-27 follows:
1-28 (5) "Well-site equipment" means any production-related
1-29 equipment or materials specific to the well being plugged,
1-30 including motors, pumps, pump jacks, tanks, tank batteries,
1-31 separators, compressors, casing, tubing, and rods.
1-32 (6) "Lease" means the lease on which a well made the
1-33 subject of a plugging contract is located.
1-34 (7) "Delinquent inactive well" means an unplugged well
1-35 that has had no reported production, disposal, injection, or other
1-36 permitted activity for a period of greater than 12 months and for
1-37 which, after notice and opportunity for a hearing, the commission
1-38 has not extended the plugging deadline.
1-39 (8) "Plugging" includes replugging.
1-40 SECTION 2. Section 89.043, Natural Resources Code, is
1-41 amended by amending Subsection (b) and adding Subsections (c), (d),
1-42 and (e) to read as follows:
1-43 (b) If a well is leaking salt water, oil, or gas or is
1-44 likely to leak salt water, oil, or gas, and the leakage will cause
1-45 or is likely to cause a serious threat of pollution or injury to
1-46 the public health, the commission, through its employees or agents,
1-47 may direct the operator to take remedial action or to plug the well
1-48 or may plug or replug the well without holding a hearing under
1-49 Section 89.041 of this code or giving notice under Subsection (c)
1-50 of this section.
1-51 (c) On or before the 30th day before the date the commission
1-52 enters into a contract to plug a delinquent inactive well, the
1-53 commission shall send a notice by certified mail to the operator of
1-54 the well at the address last reported to the commission as required
1-55 by Section 91.142 of this code and commission rules. The notice
1-56 shall direct the operator to plug the well and shall state that:
1-57 (1) the commission may plug the well unless the
1-58 operator requests a hearing not later than the 10th day after the
1-59 date the operator receives the notice;
1-60 (2) if the commission plugs the well, all well-site
1-61 equipment will be presumed to have been abandoned and the
1-62 commission may dispose of the equipment and hydrocarbons from the
1-63 well as provided by Section 89.085 of this code; and
1-64 (3) the attorney general may file suit against the
1-65 operator to recover the plugging costs if the commission plugs the
1-66 well and the operator fails to reimburse the commission for the
1-67 plugging costs.
1-68 (d) The operator of a well made the subject of a prior
2-1 commission final order directing that it be plugged is not entitled
2-2 to a second hearing under this section.
2-3 (e) The commission shall file for record a copy of the
2-4 notice in the office of the county clerk of the county in which the
2-5 well is located. The copy of the notice filed in the office of the
2-6 county clerk must contain the section, block, survey, and abstract
2-7 number, when available to the commission, of the land on which the
2-8 well is located. The clerk shall record the notice in the real
2-9 property records of the county. The commission shall furnish a
2-10 copy of the notice to a holder of a lien on the well or a
2-11 nonoperator on that person's request. For purposes of title
2-12 insurance policies issued under authority of Chapter 9, Insurance
2-13 Code, this notice is not a notice of enforcement or violation of
2-14 law, ordinance, or governmental regulation unless the notice
2-15 contains a legally sufficient description of the specific land on
2-16 which the well is located.
2-17 SECTION 3. Section 89.083, Natural Resources Code, is
2-18 amended to read as follows:
2-19 Sec. 89.083. FIRST LIEN ON EQUIPMENT; CAUSE OF ACTION IF
2-20 COMMISSION PLUGS. (a) If a well has not been plugged by the
2-21 deadline for plugging established by commission rules, the state
2-22 has a first lien, superior to all other preexisting and subsequent
2-23 liens and security interests, on the operator's and nonoperator's
2-24 interests in well-site equipment, in the amount of the total costs
2-25 of removing well-site equipment from the well, plugging the well,
2-26 and transporting, storing, and disposing of the well-site
2-27 equipment.
2-28 (b) The lien arises on the date by which the well is
2-29 required to be plugged under commission rules.
2-30 (c) The commission may foreclose on the lien by entering
2-31 into a plugging contract. The commission is not required to give
2-32 notice or an opportunity for a hearing to subordinate lienholders
2-33 or nonoperators before entering into a plugging contract.
2-34 (d) The lien is extinguished if the well is plugged or
2-35 otherwise brought into compliance in accordance with commission
2-36 rules by any person authorized to do so before the commission
2-37 enters into a plugging contract.
2-38 (e) The lien is extinguished as to any item of well-site
2-39 equipment that is lawfully removed by any person other than the
2-40 operator or a nonoperator pursuant to a lien, lease, judgment,
2-41 written contract, or security agreement before the commission
2-42 enters into a plugging contract. Equipment necessary to prevent
2-43 the well from serving as a conduit for the passage of oil, gas,
2-44 saltwater, oil and gas wastes, or freshwater from one stratum or
2-45 formation to another or to the surface or from the surface downward
2-46 may not be removed from an inactive well site except in the course
2-47 of plugging in accordance with commission rules.
2-48 (f) If the commission plugs a well under Sections 89.043
2-49 through 89.044 of this code, the state has a cause of action for
2-50 all reasonable expenses incurred in plugging or replugging the well
2-51 and not recovered under Section 89.085 of this code or through
2-52 reimbursement to the commission <according to the rules of the
2-53 commission in effect at the time the well is plugged or replugged>.
2-54 (g) <(b)> The cause of action is:
2-55 (1) first, against the operator, to be secured by a
2-56 first lien, superior to all preexisting and subsequent liens and
2-57 security interests, on the operator's <his> interest in the oil and
2-58 gas in the land and the <his> fixtures, machinery, and equipment
2-59 found or used on the land where the well is located; and
2-60 (2) second, against a <the> nonoperator at the time
2-61 the well should have been plugged, to be secured by a lien on the
2-62 nonoperator's <his> interest in the oil and gas in the land. A
2-63 nonoperator may be made a party defendant in the suit against the
2-64 operator.
2-65 (h) <(c)> The commission shall seek reimbursement for all
2-66 reasonable expenses incurred in plugging any well through an action
2-67 instituted by the attorney general.
2-68 (i) <(d)> Money collected in a suit under this section shall
2-69 be deposited in the state oil-field cleanup fund.
2-70 (j) <(e)> A civil action for reimbursement under this
3-1 section may be brought in Travis County, the county in which the
3-2 plugged well is located, or the county in which any defendant
3-3 resides.
3-4 SECTION 4. Section 89.085, Natural Resources Code, is
3-5 amended to read as follows:
3-6 Sec. 89.085. POSSESSION AND SALE OF EQUIPMENT TO COVER
3-7 PLUGGING COSTS<; CRIMINAL PENALTY>. (a) When the commission
3-8 enters into a contract to plug a delinquent inactive well,
3-9 well-site equipment and any amount of hydrocarbons from the well
3-10 that is stored on the lease are presumed to have been abandoned and
3-11 may be disposed of by the commission in a commercially reasonable
3-12 manner by either or both of the following methods:
3-13 (1) a plugging contract may provide that the person
3-14 plugging or cleaning up pollution, or both, will take title to
3-15 well-site equipment, hydrocarbons from the well that are stored on
3-16 the lease, or hydrocarbons recovered during the plugging operation
3-17 in exchange for a sum of money deducted as a credit from the
3-18 contract price; or
3-19 (2) the well-site equipment, hydrocarbons from the
3-20 well that are stored on the lease, or hydrocarbons recovered during
3-21 the plugging operation may be sold at a public auction or a public
3-22 or private sale.
3-23 (b) The commission shall assign separate costs to:
3-24 (1) removing well-site equipment;
3-25 (2) plugging the well; and
3-26 (3) transporting, storing, and disposing of the
3-27 well-site equipment.
3-28 (c) The commission shall dispose of well-site equipment or
3-29 hydrocarbons under this section at a price or value that reflects
3-30 the generally recognized market value of the equipment or
3-31 hydrocarbons, with allowances for physical condition.
3-32 (d) The commission shall deposit money received from the
3-33 sale of well-site equipment or hydrocarbons under this section to
3-34 the credit of the oil-field cleanup fund. The commission shall
3-35 separately account for money and credit received for each well.
3-36 (e) A person who acquires well-site equipment or
3-37 hydrocarbons under this section by sale or contract receives a
3-38 clear title, free of all prior legal or equitable claims of
3-39 whatever nature, whether perfected or inchoate.
3-40 (f) Not later than the 30th day after the date well-site
3-41 equipment or hydrocarbons are disposed of under this section, the
3-42 commission shall mail a notice by first class mail to the operator
3-43 of the well at the address last reported to the commission as
3-44 required by Section 91.142 of this code and commission rules and,
3-45 on request, to any lienholder or nonoperator.
3-46 (g) The notice required by Subsection (f) of this section
3-47 shall state:
3-48 (1) the lease name;
3-49 (2) the well number;
3-50 (3) the county in which the well is located;
3-51 (4) the abstract number of the property on which the
3-52 lease is situated;
3-53 (5) the commission lease or gas well identification
3-54 number or drilling permit number;
3-55 (6) a list of the property disposed of under this
3-56 section; and
3-57 (7) a statement that any person who has a legal or
3-58 equitable ownership or security interest in the equipment or
3-59 hydrocarbons that was in existence on the date the commission
3-60 entered into a contract to plug or clean up the well may file a
3-61 claim with the commission.
3-62 (h) Not later than the 180th day after the date the
3-63 well-site equipment or hydrocarbons are disposed of under this
3-64 section, the commission shall publish a notice that states:
3-65 (1) the lease name;
3-66 (2) the well number;
3-67 (3) the county in which the well is located;
3-68 (4) the commission lease or gas well identification
3-69 number or drilling permit number; and
3-70 (5) that equipment or hydrocarbons if applicable from
4-1 the well and lease were disposed of under this section and that any
4-2 person who has a legal or equitable ownership or security interest
4-3 in the equipment or hydrocarbons that was in existence on the date
4-4 the commission entered into a contract to plug or clean up the well
4-5 may file a claim with the commission.
4-6 (i) The commission shall publish the notice required under
4-7 Subsection (h) of this section in a newspaper of general
4-8 circulation in the county in which the lease is located. A single
4-9 notice may contain the information required for more than one well
4-10 and lease. A notice given under this section following the
4-11 plugging of a well may be combined with a notice given under
4-12 Section 91.115 of this code following the cleanup of a site or
4-13 facility. <Well-site equipment is presumed abandoned if, for
4-14 longer than one year, the well has shown no activity in terms of
4-15 production, injection, disposal, testing, allowables, and has not
4-16 otherwise been maintained in compliance with plugging rules and
4-17 regulations.>
4-18 <(b) Before state funds are expended to plug or replug a
4-19 well that is not actively polluting but that is likely to pollute
4-20 fresh water above or below the ground, the attorney general shall
4-21 bring a suit within 30 days of the request of the commission
4-22 seeking a declaratory judgment that well-site equipment is
4-23 abandoned and that the commission has the right to possession of
4-24 the equipment and the authority to sell it or otherwise dispose of
4-25 it for the purpose of wholly or partially compensating the person
4-26 acting as agent for the commission for plugging or replugging the
4-27 well if the commission has determined that the equipment has a
4-28 salvageable value greater than the cost of suit.>
4-29 <(c) After state funds have been expended to plug or replug
4-30 a polluting well, the attorney general shall bring a suit within 30
4-31 days of the request of the commission seeking a declaratory
4-32 judgment that well-site equipment is abandoned and that the
4-33 commission has the right to possession of the equipment and the
4-34 authority to sell it or otherwise dispose of it for the purpose of
4-35 wholly or partially reimbursing the commission for plugging or
4-36 replugging the well if the commission has determined that the
4-37 equipment has a salvageable value greater than the cost of suit.>
4-38 <(d) Before a suit is filed as provided for in Subsections
4-39 (b) and (c) of this section, the commission shall give notice as
4-40 provided by the rules of civil procedure to the operator, lessor,
4-41 landowner, lienholders who have recorded a security interest in the
4-42 county in which the property is situated, or any other known
4-43 interested party that the commission intends to seek a court order
4-44 authorizing the reduction to possession and sale or disposal of the
4-45 well-site equipment. The notice shall provide a description of the
4-46 equipment and a statement that any claim thereto shall be made in
4-47 writing to the commission within 30 days after the date that notice
4-48 is given. Failure of the operator, lessor, landowner, lienholders,
4-49 or other known interested party to make such claim to the equipment
4-50 within the time provided shall be presumed a waiver of all right,
4-51 title, and interest in the well-site equipment and their consent to
4-52 entry of a judgment for possession and sale or disposal of the
4-53 equipment.>
4-54 <(e) If the court enters the declaratory judgment, the
4-55 commission may authorize its agent to take possession of the
4-56 equipment recovered following completion of plugging operations as
4-57 whole or partial compensation.>
4-58 <(f) Hydrocarbons contained in storage facilities located at
4-59 the abandoned well site or recovered during plugging operations are
4-60 presumed abandoned, and the commission's right to possession and
4-61 authority to sell the hydrocarbons shall be included in the suit
4-62 for declaratory judgment provided for in Subsections (b) and (c) of
4-63 this section.>
4-64 <(g) A suit for declaratory judgment under this section
4-65 shall be brought in Travis County, Texas. Upon request of the
4-66 attorney general, the court may appoint an attorney ad litem to
4-67 represent any interests not otherwise represented before the court.>
4-68 <(h) A suit under this section has priority on the court
4-69 calendar as provided by Section 23.101(a), Government Code.>
4-70 <(i) A person not authorized by the commission or its
5-1 authorized agent who knowingly removes well-site equipment after a
5-2 declaratory judgment has been obtained granting the commission
5-3 possession of the equipment commits a felony of the third degree.>
5-4 SECTION 5. Subchapter D, Chapter 89, Natural Resources Code,
5-5 is amended by adding Sections 89.086, 89.087, and 89.088 to read as
5-6 follows:
5-7 Sec. 89.086. CLAIMS AGAINST THE OIL-FIELD CLEANUP FUND.
5-8 (a) A person with a legal or equitable ownership or security
5-9 interest in well-site equipment or hydrocarbons disposed of under
5-10 Section 89.085 of this code may make a claim against the oil-field
5-11 cleanup fund unless an element of the transaction giving rise to
5-12 the interest occurs after the commission enters into a plugging
5-13 contract.
5-14 (b) The commission shall adopt a form on which a person may
5-15 file a sworn claim with the commission.
5-16 (c) A claimant must identify the well-site equipment or
5-17 hydrocarbons in which the claimant has an interest and state the
5-18 amount of the property interest as of the date the commission
5-19 entered into the plugging contract.
5-20 (d) The commission may require a person to include with a
5-21 claim documentation that substantiates the claim or to disclose
5-22 whether the claimant was an operator or nonoperator of the well.
5-23 (e) The commission may set a hearing to receive evidence on
5-24 a claim filed under this section. The commission shall notify the
5-25 claimant of the date, time, and place of a hearing.
5-26 (f) If the commission holds a hearing, the commission shall
5-27 issue:
5-28 (1) a decision on the claim;
5-29 (2) a statement of findings of fact that includes the
5-30 substance of the evidence heard; and
5-31 (3) the conclusions of law that support the decision.
5-32 (g) The commission shall consider the validity of claims in
5-33 the order in which the claims are filed.
5-34 (h) The commission shall suspend an amount of money in the
5-35 oil-field cleanup fund equal to the amount of the claim until the
5-36 claim is finally resolved. If the provisions of Subsection (k) of
5-37 this section prevent suspension of the full amount of the claim,
5-38 the commission shall treat the claim as two consecutively filed
5-39 claims, one in the amount of funds available for suspension and the
5-40 other in the remaining amount of the claim.
5-41 (i) A claim made by or on behalf of the operator or a
5-42 nonoperator of a well or a successor to the rights of the operator
5-43 or nonoperator is subject to a ratable deduction from the proceeds
5-44 or credit received for the well-site equipment to cover the costs
5-45 incurred by the commission in removing the equipment or
5-46 hydrocarbons from the well or in transporting, storing, or
5-47 disposing of the equipment or hydrocarbons. A claim made by a
5-48 person who is not an operator or nonoperator is subject to a
5-49 ratable deduction for the costs incurred by the commission in
5-50 removing the equipment from the well. If a claimant is a person
5-51 who is responsible under law or commission rules for plugging the
5-52 well or cleaning up pollution originating on the lease or if the
5-53 claimant owes a penalty assessed by the commission or a court for a
5-54 violation of a commission rule or order, the commission may recoup
5-55 from or offset against a valid claim an expense incurred by the
5-56 oil-field cleanup fund that is not otherwise reimbursed or any
5-57 penalties owed. An amount recouped from, deducted from, or offset
5-58 against a claim under this subsection shall be treated as an
5-59 invalid portion of the claim and shall remain suspended in the
5-60 oil-field cleanup fund in the manner provided by Subsection (j) of
5-61 this section.
5-62 (j) If the commission finds that a claim is valid in whole
5-63 or in part, the commission shall pay the valid portion of the claim
5-64 from the suspended amount in the oil-field cleanup fund not later
5-65 than the 30th day after the date of the commission's decision. If
5-66 the commission finds that a claim is invalid in whole or in part,
5-67 the commission shall continue to suspend in the oil-field cleanup
5-68 fund an amount equal to the invalid portion of the claim until the
5-69 period during which the commission's decision may be appealed has
5-70 expired or, if appealed, during the period the case is under
6-1 judicial review. If on appeal the district court finds the claim
6-2 valid in whole or in part, the commission shall pay the valid
6-3 portion of the claim from the suspended amount in the oil-field
6-4 cleanup fund not later than 30 days after the date the court's
6-5 judgment becomes unappealable. On the date the commission's
6-6 decision is not subject to judicial review, the commission shall
6-7 release from the suspended amount in the oil-field cleanup fund the
6-8 amount of the claim held to be invalid.
6-9 (k) If the aggregate of claims paid and money suspended that
6-10 relates to well-site equipment or hydrocarbons from a particular
6-11 well equals the total of the actual proceeds and credit realized
6-12 from the disposition of that equipment or those hydrocarbons, the
6-13 oil-field cleanup fund is not liable for any subsequently filed
6-14 claims that relate to the same equipment or hydrocarbons unless and
6-15 until the commission releases from the suspended amount money
6-16 derived from the disposition of that equipment or those
6-17 hydrocarbons. If the commission releases money, then the
6-18 commission shall suspend money in the amount of subsequently filed
6-19 claims in the order of filing.
6-20 (l) A person who informs a potential claimant that the
6-21 potential claimant may be entitled to file a claim under this
6-22 section or who files a claim on behalf of a claimant may not
6-23 contract for or receive from the claimant for services an amount
6-24 greater than 10 percent of the paid claim.
6-25 Sec. 89.087. JUDICIAL REVIEW OF COMMISSION DECISIONS;
6-26 IMMUNITY FROM SUIT AND LIABILITY. (a) A claimant aggrieved by the
6-27 commission's decision on a claim may appeal the decision in a
6-28 district court of Travis County on or before the 60th day after the
6-29 date the decision was issued. If the commission does not decide a
6-30 claim by the 90th day after the date it was filed, the claimant may
6-31 appeal within the 60-day period beginning on the 91st day after the
6-32 date of filing.
6-33 (b) Judicial review under this section is by trial de novo.
6-34 (c) No interest accrues on a claim before an appeal is filed
6-35 under this section.
6-36 (d) Except to the extent permitted by this chapter, and
6-37 notwithstanding any other provision of law, the commission, its
6-38 employees or agents, and the State of Texas are immune from suit
6-39 and from liability based on the disposition of well-site equipment
6-40 or hydrocarbons in accordance with this chapter.
6-41 Sec. 89.088. RECORD OF REQUEST FOR NOTICE BY LIENHOLDER OR
6-42 NONOPERATOR; FORM; FEE. (a) The commission shall maintain a
6-43 record of a request for notice by a lienholder or nonoperator under
6-44 Section 89.043(e) or 89.085(f) of this code for five years after
6-45 the date on which the commission receives the request.
6-46 (b) The commission shall prepare a form for a request for
6-47 notice. The commission shall require a person who requests notice
6-48 to include on the form information that identifies the lease
6-49 covered by the request.
6-50 (c) The commission may charge a filing fee for a request for
6-51 notice not to exceed $10 for each lease covered by the request.
6-52 SECTION 6. Section 91.111, Natural Resources Code, is
6-53 amended by amending Subsection (c) and adding Subsection (d) to
6-54 read as follows:
6-55 (c) The fund consists of:
6-56 (1) penalties imposed under Section 85.381 of this
6-57 code for violation of a law, order, or rule relating to well
6-58 plugging requirements;
6-59 (2) proceeds from bonds and other financial assurances
6-60 required by this chapter, subject to the refund provisions of
6-61 Section 91.1091 of this code;
6-62 (3) private contributions, including contributions
6-63 made under Section 89.084 of this code;
6-64 (4) expenses collected under Section 89.083 of this
6-65 code;
6-66 (5) drilling permit fees imposed under Subsections (a)
6-67 and (c) of Section 85.2021 of this code;
6-68 (6) civil penalties collected for violations of
6-69 Chapter 89 of this code or of rules or orders relating to plugging
6-70 that are adopted under this code;
7-1 (7) proceeds collected under Sections <Section> 89.085
7-2 and 91.115 of this code;
7-3 (8) interest earned on the funds deposited in the
7-4 fund;
7-5 (9) fees collected under Section 91.104 of this code;
7-6 (10) civil penalties or costs recovered under Section
7-7 91.457 or Section 91.459 of this code;
7-8 (11) oil and gas waste hauler permit application fees
7-9 collected under Section 29.015, Water Code;
7-10 (12) costs recovered under Subsection (f) of Section
7-11 91.113 of this code;
7-12 (13) hazardous oil and gas waste generation fees
7-13 collected under Section 91.605 of this code;
7-14 (14) oil-field cleanup regulatory fees on oil
7-15 collected under Section 81.116 of this code;
7-16 (15) oil-field cleanup regulatory fees on gas
7-17 collected under Section 81.117 of this code;
7-18 (16) fees for a reissued certificate collected under
7-19 Section 85.167 of this code;
7-20 (17) fees collected under Subsection (b) of Section
7-21 91.1013 of this code; <and>
7-22 (18) fees collected under Section 89.088 of this code;
7-23 and
7-24 (19) legislative appropriations.
7-25 (d) All revenues and balances in the oil-field cleanup fund
7-26 created in this section are exempt from Section 403.094(h) and
7-27 Section 403.095(b), Government Code.
7-28 SECTION 7. Subchapter D, Chapter 91, Natural Resources Code,
7-29 is amended by adding Section 91.115 to read as follows:
7-30 Sec. 91.115. FIRST LIEN ON EQUIPMENT. (a) If a responsible
7-31 person fails to clean up a site or facility that has ceased oil and
7-32 gas operations under the commission's jurisdiction on or before the
7-33 date the site or facility is required to be cleaned up by law or by
7-34 a rule adopted or order issued by the commission, the state has a
7-35 first lien, superior to all preexisting and subsequent liens and
7-36 security interests, on the responsible person's interest in
7-37 equipment that is:
7-38 (1) located at the site or facility; and
7-39 (2) used by the responsible person in connection with
7-40 the activity that generated the pollution.
7-41 (b) The lien is in the amount of the total costs of cleaning
7-42 up the oil and gas wastes or other substances from the site or
7-43 facility and arises on the date the site or facility is required by
7-44 law or by a rule or order of the commission to be cleaned up.
7-45 (c) The commission may foreclose on the lien by entering
7-46 into a contract to clean up the site or facility. The commission
7-47 is not required to give notice or an opportunity for a hearing to
7-48 subordinate lienholders before entering into a contract to clean up
7-49 the site or facility.
7-50 (d) The lien is extinguished if the site or facility is
7-51 cleaned up in accordance with commission rules by any person before
7-52 the commission enters into a contract to clean up the site or
7-53 facility.
7-54 (e) The lien is extinguished as to any item of equipment
7-55 that is lawfully removed by any person other than the operator or a
7-56 nonoperator according to a lien, lease, judgment, written contract,
7-57 or security agreement before the commission enters into a cleanup
7-58 contract. An item of equipment may not be removed from an
7-59 abandoned site or facility if the removal will cause the release of
7-60 a substance that may cause pollution unless the substance is
7-61 lawfully disposed of.
7-62 (f) Equipment subject to a lien under this section is
7-63 presumed to have been abandoned on the date the commission enters
7-64 into a contract to clean up the site or facility on which the
7-65 equipment is located. The commission may dispose of the equipment
7-66 in accordance with the provisions of Sections 89.085, 89.086, and
7-67 89.087 of this code for the disposition of well-site equipment.
7-68 (g) In this section "responsible person" has the meaning
7-69 assigned by Section 91.113 of this code.
7-70 SECTION 8. (a) This Act does not apply to a suit filed or
8-1 an administrative proceeding begun before the effective date of
8-2 this Act. A suit filed or an administrative proceeding begun
8-3 before the effective date of this Act is governed by the law in
8-4 effect at the time the suit was filed or the administrative
8-5 proceeding was begun, and the former law is continued in effect for
8-6 that purpose.
8-7 (b) The lien provided by Section 89.083, Natural Resources
8-8 Code, as amended by this Act, arises on the later of the effective
8-9 date of this Act or the date by which the well is required to be
8-10 plugged under the rules of the Railroad Commission of Texas.
8-11 (c) The lien provided by Section 91.115, Natural Resources
8-12 Code, as added by this Act, arises on the later of the effective
8-13 date of this Act or the date the site or facility is required by
8-14 law or by a rule or order of the commission to be cleaned up after
8-15 oil and gas operations under the jurisdiction of the commission
8-16 have ceased.
8-17 SECTION 9. This Act takes effect January 1, 1994.
8-18 SECTION 10. The importance of this legislation and the
8-19 crowded condition of the calendars in both houses create an
8-20 emergency and an imperative public necessity that the
8-21 constitutional rule requiring bills to be read on three several
8-22 days in each house be suspended, and this rule is hereby suspended.
8-23 * * * * *
8-24 Austin,
8-25 Texas
8-26 May 11, 1993
8-27 Hon. Bob Bullock
8-28 President of the Senate
8-29 Sir:
8-30 We, your Committee on Natural Resources to which was referred H.B.
8-31 No. 2705, have had the same under consideration, and I am
8-32 instructed to report it back to the Senate with the recommendation
8-33 that it do pass and be printed.
8-34 Sims,
8-35 Chairman
8-36 * * * * *
8-37 WITNESSES
8-38 FOR AGAINST ON
8-39 ___________________________________________________________________
8-40 Name: Floyd Bowen, Jr. x
8-41 Representing: Exxon Corporation
8-42 City: Austin
8-43 -------------------------------------------------------------------
8-44 Name: Steve Perry x
8-45 Representing: Texaco
8-46 City: Austin
8-47 -------------------------------------------------------------------
8-48 Name: Eileen Campbell x
8-49 Representing: Marathon Oil Company
8-50 City: Houston
8-51 -------------------------------------------------------------------
8-52 Name: Brenda Loudermilk x
8-53 Representing: Railroad Commission
8-54 City: Austin
8-55 -------------------------------------------------------------------