By: Brown S.B. No. 1538
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the remediation of, and recovery of damages for,
1-2 environmental harm to real property arising from oil and gas
1-3 exploration and production activities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 15, Civil Practice and
1-6 Remedies Code, is amended to add Section 15.018 to read as follows:
1-7 Sec. 15.018 INJURY TO REAL PROPERTY FROM OIL AND GAS
1-8 EXPLORATION AND PRODUCTION ACTIVITIES. Actions for recovery of
1-9 damages to real property resulting from oil and gas exploration or
1-10 production activities shall be brought in the county in which all
1-11 or a part of the property is located.
1-12 SECTION 2. Subchapter D, Chapter 91, Natural Resources Code,
1-13 is amended by adding a new Section 91.116 to read as follows:
1-14 Sec. 91.116 JURISDICTION OVER REMEDIATION. (a) The
1-15 commission shall have exclusive jurisdiction to determine whether
1-16 environmental harm to real property has resulted from oil and gas
1-17 exploration or production activities, including surface and
1-18 subsurface water pollution, whether the harm requires remediation,
1-19 the type and level of remediation required, and which parties are
1-20 responsible for funding the remediation program. The commission
1-21 may prescribe a containment program instead of or in addition to
1-22 other forms of remediation when containment would not result in
1-23 unacceptable risks to human health or to the environment. Any
2-1 remediation program ordered by the commission shall be subject to
2-2 the sole oversight and direction of the commission.
2-3 (b) Prior to filing an action in the courts of this state
2-4 seeking recovery of damages for environmental harm to real property
2-5 arising from oil and gas exploration and production activities,
2-6 including surface or subsurface water pollution, a person must:
2-7 (1) file a complaint with the commission seeking
2-8 remediation of the harm; or
2-9 (2) be a party to a proceeding at the commission
2-10 concerning a complaint seeking remediation of this harm; and
2-11 the commission's decision on the complaint must be final and
2-12 judicial review of the decision, if any, must be completed.
2-13 (c) The filing of a complaint seeking remediation under this
2-14 section suspends the running of the applicable statute of
2-15 limitations for any claim arising from the activities that are the
2-16 subject of the complaint for all parties to the complaint
2-17 proceeding until the decision of the commission on the complaint
2-18 becomes final and judicial review of the decision, if any, is
2-19 completed.
2-20 (d) This section does not preempt the right of a person who
2-21 owns an interest in real property that may suffer environmental
2-22 harm arising from oil and gas exploration or production activities
2-23 to bring an action in the courts of this state to seek any common
2-24 law remedies for the harm, but any such action may be brought only
2-25 after the person has:
3-1 (1) filed a complaint with the commission seeking
3-2 remediation of the harm; or
3-3 (2) been a party to a proceeding at the commission
3-4 concerning a complaint seeking remediation of this harm; and
3-5 the commission's decision on the complaint becomes final and
3-6 judicial review of the decision, if any, is completed.
3-7 (e) In an action brought in the courts of this state for
3-8 recovery of damages for alleged environmental harm to real property
3-9 arising from oil and gas exploration and production activities:
3-10 (1) the following items shall be admissible into
3-11 evidence:
3-12 (A) the nature and scope of any proceeding at
3-13 the commission related to the alleged environmental harm to the
3-14 real property;
3-15 (B) all findings of the commission in the
3-16 proceeding; and
3-17 (C) a description of any containment or other
3-18 remediation program or other action ordered by the commission in
3-19 the proceeding;
3-20 (2) the commission's findings in the proceeding at the
3-21 commission related to the alleged environmental harm to the real
3-22 property on the following issues shall be presumed to be correct:
3-23 (A) whether the environmental harm to the real
3-24 property, including surface and subsurface water pollution, has
3-25 resulted from oil and gas exploration or production activities;
4-1 (B) the nature and extent of the environmental
4-2 harm;
4-3 (C) the endangerment of the environmental harm
4-4 to human health;
4-5 (D) the specific activities that contributed to
4-6 the environmental harm and the proportion of the environmental harm
4-7 attributable to each person;
4-8 (E) whether other parties contributed to or
4-9 exacerbated the environmental harm or its effects;
4-10 (F) whether the environmental harm requires
4-11 remediation;
4-12 (G) the type and level of remediation required;
4-13 and
4-14 (H) which parties are responsible for funding
4-15 the remediation program; and
4-16 (3) any containment or other remediation plan ordered
4-17 by the commission for the real property shall be presumed to
4-18 adequately remediate the environmental harm arising from the oil
4-19 and gas exploration or production activities.
4-20 (f) The commission shall adopt and enforce rules and orders
4-21 implementing the provisions of this section.
4-22 SECTION 3. This Act takes effect September 1, 1995, and
4-23 applies only to a suit that is commenced on or after that date. A
4-24 suit that is commenced before the effective date of this Act is
4-25 governed by the law in effect immediately before the effective date
5-1 of this Act, and that law is continued in effect for that purpose.
5-2 SECTION 4. The importance of this legislation and the
5-3 crowded condition of the calendars in both houses create an
5-4 emergency and an imperative public necessity that the
5-5 constitutional rule requiring bills to be read on three several
5-6 days in each house be suspended, and this rule is hereby suspended.