MBN S.B. 635 75(R)BILL ANALYSIS


ENERGY RESOURCES
S.B. 635
By: Brown (Holzheauser)
4-22-97
Committee Report (Unamended)

BACKGROUND 

Currently, the Railroad Commission of Texas (RRC) is authorized to use the
oil-field cleanup fund (fund) to control or clean up oil and gas wastes
that are causing or are likely to cause pollution of surface and
subsurface waters.  It is unclear in the statutory language of the Natural
Resources Code whether or not the fund can be used for conducting site
investigations and assessments of contaminated areas by RRC or whether RRC
could recover such costs from the responsible party. This bill would
authorize money in the fund to be used for conducting such investigations
and assessments by RRC and provide that expenditures from the fund for
such use may be recovered by RRC from the responsible party.   
  
PURPOSE

As proposed, S.B. 635 authorizes money in the oil-field cleanup fund
(fund) to be used for conducting site investigations and assessments of
contaminated areas by the Railroad Commission of Texas (RRC).
Additionally, the bill provides that expenditures from the fund for such
site investigations and assessments may be recovered by RRC from the
responsible party.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sections 91.112 and 91.113, Natural Resources Code, as
follows: 

Sec. 91.112.  PURPOSE OF THE FUND.  Authorizes money in the oil-field
cleanup fund (fund) to be used by the Railroad Commission (RRC) or its
employees or agents for, among other items, conducting a site
investigation or environmental assessment to determine the nature and
extent of contamination caused by oil and gas wastes or other substances
or materials regulated by RRC under Section 91.101, Natural Resources
Code, that are causing or are likely to cause the pollution of surface or
subsurface water, and the measures that should be taken to control or
clean up such wastes, substances, or materials.  Requires RRC to submit to
the legislature, annually, a report that reviews the extent to which
money, rather than funds, provided under Section 91.111, has enabled RRC
to better protect the environment and enhance the income of the oil-field
cleanup fund. Requires the report to include, among other items, a
projection of the amount of money, rather than funds, needed for
conducting site investigations and environmental assessments.  Makes
conforming and nonsubstantive changes. 

Sec. 91.113.  New heading:  INVESTIGATION, ASSESSMENT, OR CLEANUP BY
COMMISSION.  Makes conforming and nonsubstantive changes.    

SECTION 2. Emergency clause.
  Effective date:  upon passage.