AN ACT

 1-1     relating to the use of money in the oil-field cleanup fund to

 1-2     conduct a site investigation or environmental assessment and to the

 1-3     recovery of costs incurred for that purpose.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Sections 91.112 and 91.113, Natural Resources

 1-6     Code, are amended to read as follows:

 1-7           Sec. 91.112.  PURPOSE OF THE FUND.  (a)  Money in the fund

 1-8     may be used by the commission or its employees or agents for:

 1-9                 (1)  conducting a site investigation or environmental

1-10     assessment to determine:

1-11                       (A)  the nature and extent of contamination

1-12     caused by oil and gas wastes or other substances or materials

1-13     regulated by the commission under Section 91.101; and

1-14                       (B)  the measures that should be taken to control

1-15     or clean up the wastes, substances, or materials described in

1-16     Paragraph (A);

1-17                 (2)  controlling or cleaning up oil and gas wastes or

1-18     other substances or materials regulated by the commission under

1-19     Section 91.101 [of this code] that are causing or are likely to

1-20     cause the pollution of surface or subsurface water, consistent with

1-21     Section 91.113 [of this code];

1-22                 (3) [(2)]  plugging abandoned wells and administering

1-23     or enforcing permits, orders, and rules relating to the

 2-1     commission's authority to prevent pollution under this chapter,

 2-2     Chapter 89 [of this code], or any other law administered or

 2-3     enforced by the commission under Title 3 [of this code];

 2-4                 (4) [(3)]  implementing Subchapter N [of this chapter]

 2-5     and enforcing rules, orders, and permits adopted or issued under

 2-6     that subchapter; and

 2-7                 (5) [(4)]  preparing the report required under

 2-8     Subsection (b) [of this section].

 2-9           (b)  The commission shall submit to the legislature,

2-10     annually, a report that reviews the extent to which money [the

2-11     funds] provided under Section 91.111 has [of this code have]

2-12     enabled the commission to better protect the environment and

2-13     enhance the income of the oil-field cleanup fund.  The report shall

2-14     include:

2-15                 (1)  the number of wells plugged;

2-16                 (2)  the number of wells abandoned;

2-17                 (3)  the number of inactive wells not currently in

2-18     compliance with commission rules;

2-19                 (4)  the status of enforcement proceedings for all

2-20     wells in violation of commission rules and the time period during

2-21     which the wells have been in violation;

2-22                 (5)  the method by which the commission sets priorities

2-23     by which it determines the order in which abandoned wells are

2-24     plugged;

2-25                 (6)  a projection of the amount of money [oil-field

 3-1     cleanup funds] needed for the next biennium for conducting site

 3-2     investigations and environmental assessments, plugging [of]

 3-3     abandoned wells, and remediating surface locations; and

 3-4                 (7)  the status of implementation of the provisions of

 3-5     Section 89.085 [of this code] relating to possession and sale of

 3-6     equipment to recover plugging costs.

 3-7           Sec. 91.113.  INVESTIGATION, ASSESSMENT, OR CLEANUP BY

 3-8     COMMISSION.  (a)  If oil and gas wastes or other substances or

 3-9     materials regulated by the commission under Section 91.101 [of this

3-10     subchapter] are causing or are likely to cause the pollution of

3-11     surface or subsurface water, the commission, through its employees

3-12     or agents, may use money in the oil-field cleanup fund to conduct a

3-13     site investigation or environmental assessment or control or clean

3-14     up the oil and gas wastes or other substances or materials if:

3-15                 (1)  the responsible person has failed or refused to

3-16     control or clean up the oil and gas wastes or other substances or

3-17     materials after notice and opportunity for hearing;

3-18                 (2)  the responsible person is unknown, cannot be

3-19     found, or has no assets with which to control or clean up the oil

3-20     and gas wastes or other substances or materials; or

3-21                 (3)  the oil and gas wastes or other substances or

3-22     materials are causing the pollution of surface or subsurface water.

3-23           (b)  For purposes of this section, "responsible person" means

3-24     any operator or other person required by law, rules adopted by the

3-25     commission, or a valid order of the commission to control or clean

 4-1     up the oil and gas wastes or other substances or materials.

 4-2           (c)  The commission or its employees or agents, on proper

 4-3     identification, may enter the land of another for the purpose of

 4-4     conducting a site investigation or environmental assessment or

 4-5     controlling or cleaning up oil and gas wastes or other substances

 4-6     or materials under this section.

 4-7           (d)  The conducting of a site investigation or environmental

 4-8     assessment or the control or cleanup of oil and gas wastes or other

 4-9     substances or materials by the commission under this section does

4-10     not prevent the commission from seeking penalties or other relief

4-11     provided by law from any person who is required by law, rules

4-12     adopted by the commission, or a valid order of the commission to

4-13     control or clean up the oil and gas wastes or other substances or

4-14     materials.

4-15           (e)  The commission and its employees are not liable for any

4-16     damages arising from an act or omission if the act or omission is

4-17     part of a good-faith effort to carry out this section.

4-18           (f)  If the commission conducts a site investigation or

4-19     environmental assessment or controls or cleans up oil and gas

4-20     wastes or other substances or materials under this section, the

4-21     commission may recover all costs incurred by the commission from

4-22     any person who was required by law, rules adopted by the

4-23     commission, or a valid order of the commission to control or clean

4-24     up the oil and gas wastes or other substances or materials.  The

4-25     commission may request the attorney general to file suit in any

 5-1     court of competent jurisdiction in Travis County to recover these

 5-2     costs.  Costs recovered under this subsection shall be deposited to

 5-3     the oil-field cleanup fund.

 5-4           SECTION 2.  The importance of this legislation and the

 5-5     crowded condition of the calendars in both houses create an

 5-6     emergency and an imperative public necessity that the

 5-7     constitutional rule requiring bills to be read on three several

 5-8     days in each house be suspended, and this rule is hereby suspended,

 5-9     and that this Act take effect and be in force from and after its

5-10     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 635 passed the Senate on

         March 13, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 635 passed the House on

         May 2, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor