By Brown S.B. No. 632
75R6407 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to payment of a nonrefundable annual fee in lieu of a bond
1-3 or other form of financial security required of a person applying
1-4 for or acting under a Railroad Commission permit to store, handle,
1-5 treat, reclaim, or dispose of oil and gas waste.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Section 91.111(c), Texas Natural Resources Code,
1-8 is amended to read as follows:
1-9 (c) The fund consists of:
1-10 (1) penalties imposed under Section 85.381 of this
1-11 code for violation of a law, order, or rule relating to well
1-12 plugging requirements;
1-13 (2) proceeds from bonds and other financial assurances
1-14 required by this chapter, subject to the refund provisions of
1-15 Section 91.1091 of this code;
1-16 (3) private contributions, including contributions
1-17 made under Section 89.084 of this code;
1-18 (4) expenses collected under Section 89.083 of this
1-19 code;
1-20 (5) drilling permit fees imposed under Subsections (a)
1-21 and (c) of Section 85.2021 of this code;
1-22 (6) civil penalties collected for violations of
1-23 Chapter 89 of this code or of rules or orders relating to plugging
1-24 that are adopted under this code;
2-1 (7) proceeds collected under Section 89.085 of this
2-2 code;
2-3 (8) interest earned on funds deposited in the fund;
2-4 (9) fees collected under Section 91.104 of this code;
2-5 (10) civil penalties or costs recovered under Section
2-6 91.457 or Section 91.459 of this code;
2-7 (11) oil and gas waste hauler permit application fees
2-8 collected under Section 29.015, Water Code;
2-9 (12) costs recovered under Subsection (f) of Section
2-10 91.113 of this code;
2-11 (13) hazardous oil and gas waste generation fees
2-12 collected under Section 91.605 of this code;
2-13 (14) oil-field cleanup regulatory fees on oil
2-14 collected under Section 81.116 of this code;
2-15 (15) oil-field cleanup regulatory fees on gas
2-16 collected under Section 81.117 of this code;
2-17 (16) fees for a reissued certificate collected under
2-18 Section 85.167 of this code;
2-19 (17) fees collected under Subsection (b) of Section
2-20 91.1013 of this code;
2-21 (18) fees collected under Section 89.088 of this code;
2-22 [and]
2-23 (19) legislative appropriations; and
2-24 (20) fees collected under Section 91.109 of this code.
2-25 SECTION 2. Section 91.109, Texas Natural Resources Code, is
2-26 amended to read as follows:
2-27 Sec. 91.109. Disposal Site Bond. A person applying for or
3-1 acting under a commission permit to store, handle, treat, reclaim,
3-2 or dispose of oil and gas waste may be required by the commission
3-3 to maintain a performance bond or other form of financial security
3-4 conditioned that the permittee will operate and close the storage,
3-5 handling, treatment, reclamation, or disposal site in accordance
3-6 with state law, commission rules, and the permit to operate the
3-7 site. In lieu of a bond or another form of financial security, the
3-8 commission may allow a person to pay to the commission a
3-9 nonrefundable annual fee equal to three percent of the bond that
3-10 would otherwise be required. However, this section does not
3-11 authorize the commission to require a bond or other form of
3-12 financial security for saltwater disposal pits, emergency saltwater
3-13 storage pits (including blow-down pits), collecting pits, or
3-14 skimming pits provided that such pits are used in conjunction with
3-15 the operation of an individual oil or gas lease. Subject to the
3-16 refund provisions of Section 91.1091 of this code, proceeds from
3-17 any bond or other form of financial security required by this
3-18 section shall be placed in the oil-field cleanup fund. Each bond or
3-19 other form of financial security shall be renewed and continued in
3-20 effect until the conditions have been met or release is authorized
3-21 by the commission.
3-22 SECTION 3. Section 91.1091, Texas Natural Resources Code, is
3-23 amended to read as follows:
3-24 Sec. 91.1091. Refund. The commission shall refund the
3-25 proceeds from a bond or other form of security required by this
3-26 subchapter, except fees paid to the commission in lieu of a bond,
3-27 if:
4-1 (1) the conditions that caused the proceeds to be
4-2 collected are corrected;
4-3 (2) all administrative, civil, and criminal penalties
4-4 relating to those conditions are paid; and
4-5 (3) all reimbursements of costs and expenses assessed
4-6 by the commission to be collected in relation to those conditions
4-7 are collected.
4-8 SECTION 4. The importance of this legislation and the
4-9 crowded condition of the calendars in both houses create an
4-10 emergency and an imperative public necessity that the
4-11 constitutional rule requiring bills to be read on three several
4-12 days in each house be suspended, and this rule is hereby suspended.