By: Brown S.B. No. 632
A BILL TO BE ENTITLED
AN ACT
1-1 relating to payment of a nonrefundable annual fee in lieu of a bond
1-2 or other form of financial security required of a person applying
1-3 for or acting under a railroad commission permit to store, handle,
1-4 treat, reclaim, or dispose of oil and gas waste.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 91.109, Natural Resources Code, is
1-7 amended to read as follows:
1-8 Sec. 91.109. DISPOSAL SITE BOND. A person applying for or
1-9 acting under a commission permit to store, handle, treat, reclaim,
1-10 or dispose of oil and gas waste may be required by the commission
1-11 to maintain a performance bond or other form of financial security
1-12 conditioned that the permittee will operate and close the storage,
1-13 handling, treatment, reclamation, or disposal site in accordance
1-14 with state law, commission rules, and the permit to operate the
1-15 site. In lieu of a bond or another form of financial security, the
1-16 commission may allow a person to pay to the commission a
1-17 nonrefundable annual fee in an amount determined by the commission
1-18 not to exceed five percent of the bond that would otherwise be
1-19 required. However, this section does not authorize the commission
1-20 to require a bond or other form of financial security for saltwater
1-21 disposal pits, emergency saltwater storage pits (including
1-22 blow-down pits), collecting pits, or skimming pits provided that
1-23 such pits are used in conjunction with the operation of an
2-1 individual oil or gas lease. Subject to the refund provisions of
2-2 Section 91.1091 of this code, proceeds from any bond or other form
2-3 of financial security required by this section shall be placed in
2-4 the oil-field cleanup fund. Each bond or other form of financial
2-5 security shall be renewed and continued in effect until the
2-6 conditions have been met or release is authorized by the
2-7 commission.
2-8 SECTION 2. Section 91.1091, Natural Resources Code, is
2-9 amended to read as follows:
2-10 Sec. 91.1091. REFUND. (a) Except as provided by Subsection
2-11 (b), the [The] commission shall refund the proceeds from a bond or
2-12 other form of security required by [under] this subchapter if:
2-13 (1) the conditions that caused the proceeds to be
2-14 collected are corrected;
2-15 (2) all administrative, civil, and criminal penalties
2-16 relating to those conditions are paid; and
2-17 (3) all reimbursements of costs and expenses assessed
2-18 by the commission to be collected in relation to those conditions
2-19 are collected.
2-20 (b) The commission may not refund fees paid to the
2-21 commission in lieu of a bond under this subchapter.
2-22 SECTION 3. Subsection (c), Section 91.111, Natural Resources
2-23 Code, is amended to read as follows:
2-24 (c) The fund consists of:
2-25 (1) penalties imposed under Section 85.381 of this
3-1 code for violation of a law, order, or rule relating to well
3-2 plugging requirements;
3-3 (2) proceeds from bonds and other financial assurances
3-4 required by this chapter, subject to the refund provisions of
3-5 Section 91.1091 of this code;
3-6 (3) private contributions, including contributions
3-7 made under Section 89.084 of this code;
3-8 (4) expenses collected under Section 89.083 of this
3-9 code;
3-10 (5) drilling permit fees imposed under Subsections (a)
3-11 and (c) of Section 85.2021 of this code;
3-12 (6) civil penalties collected for violations of
3-13 Chapter 89 of this code or of rules or orders relating to plugging
3-14 that are adopted under this code;
3-15 (7) proceeds collected under Sections 89.085 and
3-16 91.115 of this code;
3-17 (8) interest earned on the funds deposited in the
3-18 fund;
3-19 (9) fees collected under Section 91.104 of this code;
3-20 (10) civil penalties or costs recovered under Section
3-21 91.457 or Section 91.459 of this code;
3-22 (11) oil and gas waste hauler permit application fees
3-23 collected under Section 29.015, Water Code;
3-24 (12) costs recovered under Subsection (f) of Section
3-25 91.113 of this code;
4-1 (13) hazardous oil and gas waste generation fees
4-2 collected under Section 91.605 of this code;
4-3 (14) oil-field cleanup regulatory fees on oil
4-4 collected under Section 81.116 of this code;
4-5 (15) oil-field cleanup regulatory fees on gas
4-6 collected under Section 81.117 of this code;
4-7 (16) fees for a reissued certificate collected under
4-8 Section 85.167 of this code;
4-9 (17) fees collected under Subsection (b) of Section
4-10 91.1013 of this code;
4-11 (18) fees collected under Section 89.088 of this code;
4-12 [and]
4-13 (19) legislative appropriations; and
4-14 (20) fees collected under Section 91.109 of this code.
4-15 SECTION 4. (a) This Act takes effect September 1, 1997.
4-16 (b) The change in law made by this Act applies to:
4-17 (1) a permit issued by the Railroad Commission of
4-18 Texas before September 1, 1997;
4-19 (2) a permit application that is pending before the
4-20 Railroad Commission of Texas on September 1, 1997; or
4-21 (3) a permit issued by the Railroad Commission of
4-22 Texas on or after September 1, 1997.
4-23 SECTION 5. The importance of this legislation and the
4-24 crowded condition of the calendars in both houses create an
4-25 emergency and an imperative public necessity that the
5-1 constitutional rule requiring bills to be read on three several
5-2 days in each house be suspended, and this rule is hereby suspended.