1-1 By: Sims S.B. No. 1205
1-2 (In the Senate - Filed March 12, 1993; March 16, 1993, read
1-3 first time and referred to Committee on Natural Resources;
1-4 April 29, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 8, Nays 0; April 29, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Sims x
1-10 Truan x
1-11 Armbrister x
1-12 Barrientos x
1-13 Bivins x
1-14 Brown x
1-15 Carriker x
1-16 Lucio x
1-17 Montford x
1-18 Ratliff x
1-19 Shelley x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 1205 By: Sims
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the salvage and disposition of oil and gas well-site or
1-24 other facility equipment or hydrocarbons on plugging or cleanup by
1-25 the state.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. Subsection (a), Section 89.002, Natural Resources
1-28 Code, is amended by adding Subdivisions (5), (6), (7), and (8) to
1-29 read as follows:
1-30 (5) "Well-site equipment" means any production-related
1-31 equipment or materials specific to the well being plugged,
1-32 including motors, pumps, pump jacks, tanks, tank batteries,
1-33 separators, compressors, casing, tubing, and rods.
1-34 (6) "Lease" means the lease on which a well made the
1-35 subject of a plugging contract is located.
1-36 (7) "Delinquent inactive well" means an unplugged well
1-37 that has had no reported production, disposal, injection, or other
1-38 permitted activity for a period of greater than 12 months and for
1-39 which, after notice and opportunity for a hearing, the commission
1-40 has not extended the plugging deadline.
1-41 (8) "Plugging" includes replugging.
1-42 SECTION 2. Section 89.043, Natural Resources Code, is
1-43 amended by amending Subsection (b) and adding Subsections (c), (d),
1-44 and (e) to read as follows:
1-45 (b) If a well is leaking salt water, oil, or gas or is
1-46 likely to leak salt water, oil, or gas, and the leakage will cause
1-47 or is likely to cause a serious threat of pollution or injury to
1-48 the public health, the commission, through its employees or agents,
1-49 may direct the operator to take remedial action or to plug the well
1-50 or may plug or replug the well without holding a hearing under
1-51 Section 89.041 of this code or giving notice under Subsection (c)
1-52 of this section.
1-53 (c) On or before the 30th day before the date the commission
1-54 enters into a contract to plug a delinquent inactive well, the
1-55 commission shall send a notice by certified mail to the operator of
1-56 the well at the address last reported to the commission as required
1-57 by Section 91.142 of this code and commission rules. The notice
1-58 shall direct the operator to plug the well and shall state that:
1-59 (1) the commission may plug the well unless the
1-60 operator requests a hearing not later than the 10th day after the
1-61 date the operator receives the notice;
1-62 (2) if the commission plugs the well, all well-site
1-63 equipment will be presumed to have been abandoned and the
1-64 commission may dispose of the equipment and hydrocarbons from the
1-65 well as provided by Section 89.085 of this code; and
1-66 (3) the attorney general may file suit against the
1-67 operator to recover the plugging costs if the commission plugs the
1-68 well and the operator fails to reimburse the commission for the
2-1 plugging costs.
2-2 (d) The operator of a well made the subject of a prior
2-3 commission final order directing that it be plugged is not entitled
2-4 to a second hearing under this section.
2-5 (e) The commission shall file for record a copy of the
2-6 notice in the office of the county clerk of the county in which the
2-7 well is located. The copy of the notice filed in the office of the
2-8 county clerk must contain the section, block, survey, and abstract
2-9 number, when available to the commission, of the land on which the
2-10 well is located. The clerk shall record the notice in the real
2-11 property records of the county. The commission shall furnish a
2-12 copy of the notice to a holder of a lien on the well or a
2-13 nonoperator on that person's request. For purposes of title
2-14 insurance policies issued under authority of Chapter 9, Insurance
2-15 Code, this notice is not a notice of enforcement or violation of
2-16 law, ordinance, or governmental regulation unless the notice
2-17 contains a legally sufficient description of the specific land on
2-18 which the well is located.
2-19 SECTION 3. Section 89.083, Natural Resources Code, is
2-20 amended to read as follows:
2-21 Sec. 89.083. FIRST LIEN ON EQUIPMENT; CAUSE OF ACTION IF
2-22 COMMISSION PLUGS. (a) If a well has not been plugged by the
2-23 deadline for plugging established by commission rules, the state
2-24 has a first lien, superior to all other preexisting and subsequent
2-25 liens and security interests, on the operator's and nonoperators'
2-26 interests in well-site equipment, in the amount of the total costs
2-27 of removing well-site equipment from the well, plugging the well,
2-28 and transporting, storing, and disposing of the well-site
2-29 equipment.
2-30 (b) The lien arises on the date by which the well is
2-31 required to be plugged under commission rules.
2-32 (c) The commission may foreclose on the lien by entering
2-33 into a plugging contract. The commission is not required to give
2-34 notice or an opportunity for a hearing to subordinate lienholders
2-35 or nonoperators before entering into a plugging contract.
2-36 (d) The lien is extinguished if the well is plugged or
2-37 otherwise brought into compliance in accordance with commission
2-38 rules by any person authorized to do so before the commission
2-39 enters into a plugging contract.
2-40 (e) The lien is extinguished as to any item of well-site
2-41 equipment that is lawfully removed by any person other than the
2-42 operator or a nonoperator pursuant to a lien, lease, judgment,
2-43 written contract, or security agreement before the commission
2-44 enters into a plugging contract. Equipment necessary to prevent
2-45 the well from serving as a conduit for the passage of oil, gas,
2-46 saltwater, oil and gas wastes, or freshwater from one stratum or
2-47 formation to another or to the surface or from the surface downward
2-48 may not be removed from an inactive well site except in the course
2-49 of plugging in accordance with commission rules.
2-50 (f) If the commission plugs a well under Sections 89.043
2-51 through 89.044 of this code, the state has a cause of action for
2-52 all reasonable expenses incurred in plugging or replugging the well
2-53 and not recovered under Section 89.085 of this code or through
2-54 reimbursement to the commission <according to the rules of the
2-55 commission in effect at the time the well is plugged or replugged>.
2-56 (g) <(b)> The cause of action is:
2-57 (1) first, against the operator, to be secured by a
2-58 first lien, superior to all preexisting and subsequent liens and
2-59 security interests, on the operator's <his> interest in the oil and
2-60 gas in the land and the <his> fixtures, machinery, and equipment
2-61 found or used on the land where the well is located; and
2-62 (2) second, against a <the> nonoperator at the time
2-63 the well should have been plugged, to be secured by a lien on the
2-64 nonoperator's <his> interest in the oil and gas in the land. A
2-65 nonoperator may be made a party defendant in the suit against the
2-66 operator.
2-67 (h) <(c)> The commission shall seek reimbursement for all
2-68 reasonable expenses incurred in plugging any well through an action
2-69 instituted by the attorney general.
2-70 (i) <(d)> Money collected in a suit under this section shall
3-1 be deposited in the state oil-field cleanup fund.
3-2 (j) <(e)> A civil action for reimbursement under this
3-3 section may be brought in Travis County, the county in which the
3-4 plugged well is located, or the county in which any defendant
3-5 resides.
3-6 SECTION 4. Section 89.085, Natural Resources Code, is
3-7 amended to read as follows:
3-8 Sec. 89.085. POSSESSION AND SALE OF EQUIPMENT TO COVER
3-9 PLUGGING COSTS<; CRIMINAL PENALTY>. (a) When the commission
3-10 enters into a contract to plug a delinquent inactive well,
3-11 well-site equipment and any amount of hydrocarbons from the well
3-12 that is stored on the lease are presumed to have been abandoned and
3-13 may be disposed of by the commission in a commercially reasonable
3-14 manner by either or both of the following methods:
3-15 (1) a plugging contract may provide that the person
3-16 plugging or cleaning up pollution, or both, will take title to
3-17 well-site equipment, hydrocarbons from the well that are stored on
3-18 the lease, or hydrocarbons recovered during the plugging operation
3-19 in exchange for a sum of money deducted as a credit from the
3-20 contract price; or
3-21 (2) the well-site equipment, hydrocarbons from the
3-22 well that are stored on the lease, or hydrocarbons recovered during
3-23 the plugging operation may be sold at a public auction or a public
3-24 or private sale.
3-25 (b) The commission shall assign separate costs to:
3-26 (1) removing well-site equipment;
3-27 (2) plugging the well; and
3-28 (3) transporting, storing, and disposing of the
3-29 well-site equipment.
3-30 (c) The commission shall dispose of well-site equipment or
3-31 hydrocarbons under this section at a price or value that reflects
3-32 the generally recognized market value of the equipment or
3-33 hydrocarbons, with allowances for physical condition.
3-34 (d) The commission shall deposit money received from the
3-35 sale of well-site equipment or hydrocarbons under this section to
3-36 the credit of the oil-field cleanup fund. The commission shall
3-37 separately account for money and credit received for each well.
3-38 (e) A person who acquires well-site equipment or
3-39 hydrocarbons under this section by sale or contract receives a
3-40 clear title, free of all prior legal or equitable claims of
3-41 whatever nature, whether perfected or inchoate.
3-42 (f) Not later than the 30th day after the date well-site
3-43 equipment or hydrocarbons are disposed of under this section, the
3-44 commission shall mail a notice by first class mail to the operator
3-45 of the well at the address last reported to the commission as
3-46 required by Section 91.142 of this code and commission rules and,
3-47 on request, to any lienholder or nonoperator.
3-48 (g) The notice required by Subsection (f) of this section
3-49 shall state:
3-50 (1) the lease name;
3-51 (2) the well number;
3-52 (3) the county in which the well is located;
3-53 (4) the abstract number of the property on which the
3-54 lease is situated;
3-55 (5) the commission lease or gas well identification
3-56 number or drilling permit number;
3-57 (6) a list of the property disposed of under this
3-58 section; and
3-59 (7) a statement that any person who has a legal or
3-60 equitable ownership or security interest in the equipment or
3-61 hydrocarbons that was in existence on the date the commission
3-62 entered into a contract to plug or clean up the well may file a
3-63 claim with the commission.
3-64 (h) Not later than the 180th day after the date the
3-65 well-site equipment or hydrocarbons are disposed of under this
3-66 section, the commission shall publish a notice that states:
3-67 (1) the lease name;
3-68 (2) the well number;
3-69 (3) the county in which the well is located;
3-70 (4) the commission lease or gas well identification
4-1 number or drilling permit number; and
4-2 (5) that equipment or hydrocarbons if applicable from
4-3 the well and lease were disposed of under this section and that any
4-4 person who has a legal or equitable ownership or security interest
4-5 in the equipment or hydrocarbons that was in existence on the date
4-6 the commission entered into a contract to plug or clean up the well
4-7 may file a claim with the commission.
4-8 (i) The commission shall publish the notice required under
4-9 Subsection (h) of this section in a newspaper of general
4-10 circulation in the county in which the lease is located. A single
4-11 notice may contain the information required for more than one well
4-12 and lease. A notice given under this section following the
4-13 plugging of a well may be combined with a notice given under
4-14 Section 91.114 of this code following the cleanup of a site or
4-15 facility. <Well-site equipment is presumed abandoned if, for
4-16 longer than one year, the well has shown no activity in terms of
4-17 production, injection, disposal, testing, allowables, and has not
4-18 otherwise been maintained in compliance with plugging rules and
4-19 regulations.>
4-20 <(b) Before state funds are expended to plug or replug a
4-21 well that is not actively polluting but that is likely to pollute
4-22 fresh water above or below the ground, the attorney general shall
4-23 bring a suit within 30 days of the request of the commission
4-24 seeking a declaratory judgment that well-site equipment is
4-25 abandoned and that the commission has the right to possession of
4-26 the equipment and the authority to sell it or otherwise dispose of
4-27 it for the purpose of wholly or partially compensating the person
4-28 acting as agent for the commission for plugging or replugging the
4-29 well if the commission has determined that the equipment has a
4-30 salvageable value greater than the cost of suit.>
4-31 <(c) After state funds have been expended to plug or replug
4-32 a polluting well, the attorney general shall bring a suit within 30
4-33 days of the request of the commission seeking a declaratory
4-34 judgment that well-site equipment is abandoned and that the
4-35 commission has the right to possession of the equipment and the
4-36 authority to sell it or otherwise dispose of it for the purpose of
4-37 wholly or partially reimbursing the commission for plugging or
4-38 replugging the well if the commission has determined that the
4-39 equipment has a salvageable value greater than the cost of suit.>
4-40 <(d) Before a suit is filed as provided for in Subsections
4-41 (b) and (c) of this section, the commission shall give notice as
4-42 provided by the rules of civil procedure to the operator, lessor,
4-43 landowner, lienholders who have recorded a security interest in the
4-44 county in which the property is situated, or any other known
4-45 interested party that the commission intends to seek a court order
4-46 authorizing the reduction to possession and sale or disposal of the
4-47 well-site equipment. The notice shall provide a description of the
4-48 equipment and a statement that any claim thereto shall be made in
4-49 writing to the commission within 30 days after the date that notice
4-50 is given. Failure of the operator, lessor, landowner, lienholders,
4-51 or other known interested party to make such claim to the equipment
4-52 within the time provided shall be presumed a waiver of all right,
4-53 title, and interest in the well-site equipment and their consent to
4-54 entry of a judgment for possession and sale or disposal of the
4-55 equipment.>
4-56 <(e) If the court enters the declaratory judgment, the
4-57 commission may authorize its agent to take possession of the
4-58 equipment recovered following completion of plugging operations as
4-59 whole or partial compensation.>
4-60 <(f) Hydrocarbons contained in storage facilities located at
4-61 the abandoned well site or recovered during plugging operations are
4-62 presumed abandoned, and the commission's right to possession and
4-63 authority to sell the hydrocarbons shall be included in the suit
4-64 for declaratory judgment provided for in Subsections (b) and (c) of
4-65 this section.>
4-66 <(g) A suit for declaratory judgment under this section
4-67 shall be brought in Travis County, Texas. Upon request of the
4-68 attorney general, the court may appoint an attorney ad litem to
4-69 represent any interests not otherwise represented before the court.>
4-70 <(h) A suit under this section has priority on the court
5-1 calendar as provided by Section 23.101(a), Government Code.>
5-2 <(i) A person not authorized by the commission or its
5-3 authorized agent who knowingly removes well-site equipment after a
5-4 declaratory judgment has been obtained granting the commission
5-5 possession of the equipment commits a felony of the third degree.>
5-6 SECTION 5. Subchapter D, Chapter 89, Natural Resources Code,
5-7 is amended by adding Sections 89.086, 89.087, and 89.088 to read as
5-8 follows:
5-9 Sec. 89.086. CLAIMS AGAINST THE OIL-FIELD CLEANUP FUND.
5-10 (a) A person with a legal or equitable ownership or security
5-11 interest in well-site equipment or hydrocarbons disposed of under
5-12 Section 89.085 of this code may make a claim against the oil-field
5-13 cleanup fund unless an element of the transaction giving rise to
5-14 the interest occurs after the commission enters into a plugging
5-15 contract.
5-16 (b) The commission shall adopt a form on which a person may
5-17 file a sworn claim with the commission.
5-18 (c) A claimant must identify the well-site equipment or
5-19 hydrocarbons in which the claimant has an interest and state the
5-20 amount of the property interest as of the date the commission
5-21 entered into the plugging contract.
5-22 (d) The commission may require a person to include with a
5-23 claim documentation that substantiates the claim or to disclose
5-24 whether the claimant was an operator or nonoperator of the well.
5-25 (e) The commission may set a hearing to receive evidence on
5-26 a claim filed under this section. The commission shall notify the
5-27 claimant of the date, time, and place of a hearing.
5-28 (f) If the commission holds a hearing, the commission shall
5-29 issue:
5-30 (1) a decision on the claim;
5-31 (2) a statement of findings of fact that includes the
5-32 substance of the evidence heard; and
5-33 (3) the conclusions of law that support the decision.
5-34 (g) The commission shall consider the validity of claims in
5-35 the order in which the claims are filed.
5-36 (h) The commission shall suspend an amount of money in the
5-37 oil-field cleanup fund equal to the amount of the claim until the
5-38 claim is finally resolved. If the provisions of Subsection (k) of
5-39 this section prevent suspension of the full amount of the claim,
5-40 the commission shall treat the claim as two consecutively filed
5-41 claims, one in the amount of funds available for suspension and the
5-42 other in the remaining amount of the claim.
5-43 (i) A claim made by or on behalf of the operator or a
5-44 nonoperator of a well or a successor to the rights of the operator
5-45 or nonoperator is subject to a ratable deduction from the proceeds
5-46 or credit received for the well-site equipment to cover the costs
5-47 incurred by the commission in removing the equipment or
5-48 hydrocarbons from the well or in transporting, storing, or
5-49 disposing of the equipment or hydrocarbons. A claim made by a
5-50 person who is not an operator or nonoperator is subject to a
5-51 ratable deduction for the costs incurred by the commission in
5-52 removing the equipment from the well. If a claimant is a person
5-53 who is responsible under law or commission rules for plugging the
5-54 well or cleaning up pollution originating on the lease or if the
5-55 claimant owes a penalty assessed by the commission or a court for a
5-56 violation of a commission rule or order, the commission may recoup
5-57 from or offset against a valid claim an expense incurred by the
5-58 oil-field cleanup fund that is not otherwise reimbursed or any
5-59 penalties owed. An amount recouped from, deducted from, or offset
5-60 against a claim under this subsection shall be treated as an
5-61 invalid portion of the claim and shall remain suspended in the
5-62 oil-field cleanup fund in the manner provided by Subsection (j) of
5-63 this section.
5-64 (j) If the commission finds that a claim is valid in whole
5-65 or in part, the commission shall pay the valid portion of the claim
5-66 from the suspended amount in the oil-field cleanup fund not later
5-67 than the 30th day after the date of the commission's decision. If
5-68 the commission finds that a claim is invalid in whole or in part,
5-69 the commission shall continue to suspend in the oil-field cleanup
5-70 fund an amount equal to the invalid portion of the claim until the
6-1 period during which the commission's decision may be appealed has
6-2 expired or, if appealed, during the period the case is under
6-3 judicial review. If on appeal the district court finds the claim
6-4 valid in whole or in part, the commission shall pay the valid
6-5 portion of the claim from the suspended amount in the oil-field
6-6 cleanup fund not later than 30 days after the date the court's
6-7 judgment becomes unappealable. On the date the commission's
6-8 decision is not subject to judicial review, the commission shall
6-9 release from the suspended amount in the oil-field cleanup fund the
6-10 amount of the claim held to be invalid.
6-11 (k) If the aggregate of claims paid and money suspended that
6-12 relates to well-site equipment or hydrocarbons from a particular
6-13 well equals the total of the actual proceeds and credit realized
6-14 from the disposition of that equipment or those hydrocarbons, the
6-15 oil-field cleanup fund is not liable for any subsequently filed
6-16 claims that relate to the same equipment or hydrocarbons unless and
6-17 until the commission releases from the suspended amount money
6-18 derived from the disposition of that equipment or those
6-19 hydrocarbons. If the commission releases money, then the
6-20 commission shall suspend money in the amount of subsequently filed
6-21 claims in the order of filing.
6-22 (l) A person who informs a potential claimant that the
6-23 potential claimant may be entitled to file a claim under this
6-24 section or who files a claim on behalf of a claimant may not
6-25 contract for or receive from the claimant for services an amount
6-26 greater than 10 percent of the paid claim.
6-27 Sec. 89.087. JUDICIAL REVIEW OF COMMISSION DECISIONS;
6-28 IMMUNITY FROM SUIT AND LIABILITY. (a) A claimant aggrieved by the
6-29 commission's decision on a claim may appeal the decision in a
6-30 district court of Travis County on or before the 60th day after the
6-31 date the decision was issued. If the commission does not decide a
6-32 claim by the 90th day after the date it was filed, the claimant may
6-33 appeal within the 60-day period beginning on the 91st day after the
6-34 date of filing.
6-35 (b) Judicial review under this section is by trial de novo.
6-36 (c) No interest accrues on a claim before an appeal is filed
6-37 under this section.
6-38 (d) Except to the extent permitted by this chapter and
6-39 notwithstanding any other provision of law, the commission, its
6-40 employees or agents, and the State of Texas are immune from suit
6-41 and from liability based on the disposition of well-site equipment
6-42 or hydrocarbons in accordance with this chapter.
6-43 Sec. 89.088. RECORD OF REQUEST FOR NOTICE BY LIENHOLDER OR
6-44 NONOPERATOR; FORM; FEE. (a) The commission shall maintain a
6-45 record of a request for notice by a lienholder or nonoperator under
6-46 Section 89.043(e) or 89.085(f) of this code for five years after
6-47 the date on which the commission receives the request.
6-48 (b) The commission shall prepare a form for a request for
6-49 notice. The commission shall require a person who requests notice
6-50 to include on the form information that identifies the lease
6-51 covered by the request.
6-52 (c) The commission may charge a filing fee for a request for
6-53 notice not to exceed $10 for each lease covered by the request.
6-54 SECTION 6. Subsection (c), Section 91.111, Natural Resources
6-55 Code, is amended to read as follows:
6-56 (c) The fund consists of:
6-57 (1) penalties imposed under Section 85.381 of this
6-58 code for violation of a law, order, or rule relating to well
6-59 plugging requirements;
6-60 (2) proceeds from bonds and other financial assurances
6-61 required by this chapter, subject to the refund provisions of
6-62 Section 91.1091 of this code;
6-63 (3) private contributions, including contributions
6-64 made under Section 89.084 of this code;
6-65 (4) expenses collected under Section 89.083 of this
6-66 code;
6-67 (5) drilling permit fees imposed under Subsections (a)
6-68 and (c) of Section 85.2021 of this code;
6-69 (6) civil penalties collected for violations of
6-70 Chapter 89 of this code or of rules or orders relating to plugging
7-1 that are adopted under this code;
7-2 (7) proceeds collected under Sections <Section> 89.085
7-3 and 91.114 of this code;
7-4 (8) interest earned on the funds deposited in the
7-5 fund;
7-6 (9) fees collected under Section 91.104 of this code;
7-7 (10) civil penalties or costs recovered under Section
7-8 91.457 or Section 91.459 of this code;
7-9 (11) oil and gas waste hauler permit application fees
7-10 collected under Section 29.015, Water Code;
7-11 (12) costs recovered under Subsection (f) of Section
7-12 91.113 of this code;
7-13 (13) hazardous oil and gas waste generation fees
7-14 collected under Section 91.605 of this code;
7-15 (14) oil-field cleanup regulatory fees on oil
7-16 collected under Section 81.116 of this code;
7-17 (15) oil-field cleanup regulatory fees on gas
7-18 collected under Section 81.117 of this code;
7-19 (16) fees for a reissued certificate collected under
7-20 Section 85.167 of this code;
7-21 (17) fees collected under Subsection (b) of Section
7-22 91.1013 of this code; <and>
7-23 (18) fees collected under Section 89.088 of this code;
7-24 and
7-25 (19) legislative appropriations.
7-26 SECTION 7. Subchapter D, Chapter 91, Natural Resources Code,
7-27 is amended by adding Section 91.114 to read as follows:
7-28 Sec. 91.114. FIRST LIEN ON EQUIPMENT. (a) If a responsible
7-29 person fails to clean up a site or facility that has ceased oil and
7-30 gas operations under the commission's jurisdiction on or before the
7-31 date the site or facility is required to be cleaned up by law or by
7-32 a rule adopted or order issued by the commission, the state has a
7-33 first lien, superior to all preexisting and subsequent liens and
7-34 security interests, on the responsible person's interest in
7-35 equipment that is:
7-36 (1) located at the site or facility; and
7-37 (2) used by the responsible person in connection with
7-38 the activity that generated the pollution.
7-39 (b) The lien is in the amount of the total costs of cleaning
7-40 up the oil and gas wastes or other substances from the site or
7-41 facility and arises on the date the site or facility is required by
7-42 law or by a rule or order of the commission to be cleaned up.
7-43 (c) The commission may foreclose on the lien by entering
7-44 into a contract to clean up the site or facility. The commission
7-45 is not required to give notice or an opportunity for a hearing to
7-46 subordinate lienholders before entering into a contract to clean up
7-47 the site or facility.
7-48 (d) The lien is extinguished if the site or facility is
7-49 cleaned up in accordance with commission rules by any person before
7-50 the commission enters into a contract to clean up the site or
7-51 facility.
7-52 (e) The lien is extinguished as to any item of equipment
7-53 that is lawfully removed by any person other than the operator or a
7-54 nonoperator according to a lien, lease, judgment, written contract,
7-55 or security agreement before the commission enters into a cleanup
7-56 contract. An item of equipment may not be removed from an
7-57 abandoned site or facility if the removal will cause the release of
7-58 a substance that may cause pollution unless the substance is
7-59 lawfully disposed of.
7-60 (f) Equipment subject to a lien under this section is
7-61 presumed to have been abandoned on the date the commission enters
7-62 into a contract to clean up the site or facility on which the
7-63 equipment is located. The commission may dispose of the equipment
7-64 in accordance with the provisions of Sections 89.085, 89.086, and
7-65 89.087 of this code for the disposition of well-site equipment.
7-66 (g) In this section "responsible person" has the meaning
7-67 assigned by Section 91.113 of this code.
7-68 SECTION 8. (a) This Act does not apply to a suit filed or
7-69 an administrative proceeding begun before the effective date of
7-70 this Act. A suit filed or an administrative proceeding begun
8-1 before the effective date of this Act is governed by the law in
8-2 effect at the time the suit was filed or the administrative
8-3 proceeding was begun, and the former law is continued in effect for
8-4 that purpose.
8-5 (b) The lien provided by Section 89.083, Natural Resources
8-6 Code, as amended by this Act, arises on the later of the effective
8-7 date of this Act or the date by which the well is required to be
8-8 plugged under the rules of the Railroad Commission of Texas.
8-9 (c) The lien provided by Section 91.114, Natural Resources
8-10 Code, as added by this Act, arises on the later of the effective
8-11 date of this Act or the date the site or facility is required by
8-12 law or by a rule or order of the commission to be cleaned up after
8-13 oil and gas operations under the jurisdiction of the commission
8-14 have ceased.
8-15 SECTION 9. This Act takes effect January 1, 1994.
8-16 SECTION 10. The importance of this legislation and the
8-17 crowded condition of the calendars in both houses create an
8-18 emergency and an imperative public necessity that the
8-19 constitutional rule requiring bills to be read on three several
8-20 days in each house be suspended, and this rule is hereby suspended.
8-21 * * * * *
8-22 Austin,
8-23 Texas
8-24 April 29, 1993
8-25 Hon. Bob Bullock
8-26 President of the Senate
8-27 Sir:
8-28 We, your Committee on Natural Resources to which was referred S.B.
8-29 No. 1205, have had the same under consideration, and I am
8-30 instructed to report it back to the Senate with the recommendation
8-31 that it do not pass, but that the Committee Substitute adopted in
8-32 lieu thereof do pass and be printed.
8-33 Sims,
8-34 Chairman
8-35 * * * * *
8-36 WITNESSES
8-37 FOR AGAINST ON
8-38 ___________________________________________________________________
8-39 Name: Robert C. Sneed x
8-40 Representing: Texas Land Title Association
8-41 City: Austin
8-42 -------------------------------------------------------------------
8-43 Name: Eileen M. Campbell x
8-44 Representing: Marathon Oil Company
8-45 City: Houston
8-46 -------------------------------------------------------------------
8-47 Name: Joe Mayorga x
8-48 Representing: RRC
8-49 City: Austin
8-50 -------------------------------------------------------------------
8-51 Name: Jamie A. Nielson x
8-52 Representing: RRC
8-53 City: Austin
8-54 -------------------------------------------------------------------