1-1 By: Brown S.B. No. 632
1-2 (In the Senate - Filed February 18, 1997; February 20, 1997,
1-3 read first time and referred to Committee on Natural Resources;
1-4 March 6, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 8, Nays 0; March 6, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 632 By: Brown
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to payment of a nonrefundable annual fee in lieu of a bond
1-11 or other form of financial security required of a person applying
1-12 for or acting under a railroad commission permit to store, handle,
1-13 treat, reclaim, or dispose of oil and gas waste.
1-14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15 SECTION 1. Section 91.109, Natural Resources Code, is
1-16 amended to read as follows:
1-17 Sec. 91.109. DISPOSAL SITE BOND. A person applying for or
1-18 acting under a commission permit to store, handle, treat, reclaim,
1-19 or dispose of oil and gas waste may be required by the commission
1-20 to maintain a performance bond or other form of financial security
1-21 conditioned that the permittee will operate and close the storage,
1-22 handling, treatment, reclamation, or disposal site in accordance
1-23 with state law, commission rules, and the permit to operate the
1-24 site. In lieu of a bond or another form of financial security, the
1-25 commission may allow a person to pay to the commission a
1-26 nonrefundable annual fee in an amount determined by the commission
1-27 not to exceed five percent of the bond that would otherwise be
1-28 required. However, this section does not authorize the commission
1-29 to require a bond or other form of financial security for saltwater
1-30 disposal pits, emergency saltwater storage pits (including
1-31 blow-down pits), collecting pits, or skimming pits provided that
1-32 such pits are used in conjunction with the operation of an
1-33 individual oil or gas lease. Subject to the refund provisions of
1-34 Section 91.1091 of this code, proceeds from any bond or other form
1-35 of financial security required by this section shall be placed in
1-36 the oil-field cleanup fund. Each bond or other form of financial
1-37 security shall be renewed and continued in effect until the
1-38 conditions have been met or release is authorized by the
1-39 commission.
1-40 SECTION 2. Section 91.1091, Natural Resources Code, is
1-41 amended to read as follows:
1-42 Sec. 91.1091. REFUND. (a) Except as provided by Subsection
1-43 (b), the [The] commission shall refund the proceeds from a bond or
1-44 other form of security required by [under] this subchapter if:
1-45 (1) the conditions that caused the proceeds to be
1-46 collected are corrected;
1-47 (2) all administrative, civil, and criminal penalties
1-48 relating to those conditions are paid; and
1-49 (3) all reimbursements of costs and expenses assessed
1-50 by the commission to be collected in relation to those conditions
1-51 are collected.
1-52 (b) The commission may not refund fees paid to the
1-53 commission in lieu of a bond under this subchapter.
1-54 SECTION 3. Subsection (c), Section 91.111, Natural Resources
1-55 Code, is amended to read as follows:
1-56 (c) The fund consists of:
1-57 (1) penalties imposed under Section 85.381 of this
1-58 code for violation of a law, order, or rule relating to well
1-59 plugging requirements;
1-60 (2) proceeds from bonds and other financial assurances
1-61 required by this chapter, subject to the refund provisions of
1-62 Section 91.1091 of this code;
1-63 (3) private contributions, including contributions
1-64 made under Section 89.084 of this code;
2-1 (4) expenses collected under Section 89.083 of this
2-2 code;
2-3 (5) drilling permit fees imposed under Subsections (a)
2-4 and (c) of Section 85.2021 of this code;
2-5 (6) civil penalties collected for violations of
2-6 Chapter 89 of this code or of rules or orders relating to plugging
2-7 that are adopted under this code;
2-8 (7) proceeds collected under Sections 89.085 and
2-9 91.115 of this code;
2-10 (8) interest earned on the funds deposited in the
2-11 fund;
2-12 (9) fees collected under Section 91.104 of this code;
2-13 (10) civil penalties or costs recovered under Section
2-14 91.457 or Section 91.459 of this code;
2-15 (11) oil and gas waste hauler permit application fees
2-16 collected under Section 29.015, Water Code;
2-17 (12) costs recovered under Subsection (f) of Section
2-18 91.113 of this code;
2-19 (13) hazardous oil and gas waste generation fees
2-20 collected under Section 91.605 of this code;
2-21 (14) oil-field cleanup regulatory fees on oil
2-22 collected under Section 81.116 of this code;
2-23 (15) oil-field cleanup regulatory fees on gas
2-24 collected under Section 81.117 of this code;
2-25 (16) fees for a reissued certificate collected under
2-26 Section 85.167 of this code;
2-27 (17) fees collected under Subsection (b) of Section
2-28 91.1013 of this code;
2-29 (18) fees collected under Section 89.088 of this code;
2-30 [and]
2-31 (19) legislative appropriations; and
2-32 (20) fees collected under Section 91.109 of this code.
2-33 SECTION 4. (a) This Act takes effect September 1, 1997.
2-34 (b) The change in law made by this Act applies to:
2-35 (1) a permit issued by the Railroad Commission of
2-36 Texas before September 1, 1997;
2-37 (2) a permit application that is pending before the
2-38 Railroad Commission of Texas on September 1, 1997; or
2-39 (3) a permit issued by the Railroad Commission of
2-40 Texas on or after September 1, 1997.
2-41 SECTION 5. The importance of this legislation and the
2-42 crowded condition of the calendars in both houses create an
2-43 emergency and an imperative public necessity that the
2-44 constitutional rule requiring bills to be read on three several
2-45 days in each house be suspended, and this rule is hereby suspended.
2-46 * * * * *