1-1           By:  Brown                                       S.B. No. 635

 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     February 27, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 7, Nays 0;

 1-6     February 27, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 635                    By:  Brown

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the use of money in the oil-field cleanup fund to

1-11     conduct a site investigation or environmental assessment and to the

1-12     recovery of costs incurred for that purpose.

1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-14           SECTION 1.  Sections 91.112 and 91.113, Natural Resources

1-15     Code, are amended to read as follows:

1-16           Sec. 91.112.  PURPOSE OF THE FUND.  (a)  Money in the fund

1-17     may be used by the commission or its employees or agents for:

1-18                 (1)  conducting a site investigation or environmental

1-19     assessment to determine:

1-20                       (A)  the nature and extent of contamination

1-21     caused by oil and gas wastes or other substances or materials

1-22     regulated by the commission under Section 91.101 that are causing

1-23     or are likely to cause the pollution of surface or subsurface

1-24     water; and

1-25                       (B)  the measures that should be taken to control

1-26     or clean up the wastes, substances, or materials described in

1-27     Paragraph (A);

1-28                 (2)  controlling or cleaning up oil and gas wastes or

1-29     other substances or materials regulated by the commission under

1-30     Section 91.101 [of this code] that are causing or are likely to

1-31     cause the pollution of surface or subsurface water, consistent with

1-32     Section 91.113 [of this code];

1-33                 (3) [(2)]  plugging abandoned wells and administering

1-34     or enforcing permits, orders, and rules relating to the

1-35     commission's authority to prevent pollution under this chapter,

1-36     Chapter 89 [of this code], or any other law administered or

1-37     enforced by the commission under Title 3 [of this code];

1-38                 (4) [(3)]  implementing Subchapter N [of this chapter]

1-39     and enforcing rules, orders, and permits adopted or issued under

1-40     that subchapter; and

1-41                 (5) [(4)]  preparing the report required under

1-42     Subsection (b) [of this section].

1-43           (b)  The commission shall submit to the legislature,

1-44     annually, a report that reviews the extent to which money [the

1-45     funds] provided under Section 91.111 has [of this code have]

1-46     enabled the commission to better protect the environment and

1-47     enhance the income of the oil-field cleanup fund.  The report shall

1-48     include:

1-49                 (1)  the number of wells plugged;

1-50                 (2)  the number of wells abandoned;

1-51                 (3)  the number of inactive wells not currently in

1-52     compliance with commission rules;

1-53                 (4)  the status of enforcement proceedings for all

1-54     wells in violation of commission rules and the time period during

1-55     which the wells have been in violation;

1-56                 (5)  the method by which the commission sets priorities

1-57     by which it determines the order in which abandoned wells are

1-58     plugged;

1-59                 (6)  a projection of the amount of money [oil-field

1-60     cleanup funds] needed for the next biennium for conducting site

1-61     investigations and environmental assessments, plugging [of]

1-62     abandoned wells, and remediating surface locations; and

1-63                 (7)  the status of implementation of the provisions of

1-64     Section 89.085 [of this code] relating to possession and sale of

 2-1     equipment to recover plugging costs.

 2-2           Sec. 91.113.  INVESTIGATION, ASSESSMENT, OR CLEANUP BY

 2-3     COMMISSION.  (a)  If oil and gas wastes or other substances or

 2-4     materials regulated by the commission under Section 91.101 [of this

 2-5     subchapter] are causing or are likely to cause the pollution of

 2-6     surface or subsurface water, the commission, through its employees

 2-7     or agents, may use money in the oil-field cleanup fund to conduct a

 2-8     site investigation or environmental assessment or control or clean

 2-9     up the oil and gas wastes or other substances or materials if:

2-10                 (1)  the responsible person has failed or refused to

2-11     control or clean up the oil and gas wastes or other substances or

2-12     materials after notice and opportunity for hearing;

2-13                 (2)  the responsible person is unknown, cannot be

2-14     found, or has no assets with which to control or clean up the oil

2-15     and gas wastes or other substances or materials; or

2-16                 (3)  the oil and gas wastes or other substances or

2-17     materials are causing the pollution of surface or subsurface water.

2-18           (b)  For purposes of this section, "responsible person" means

2-19     any operator or other person required by law, rules adopted by the

2-20     commission, or a valid order of the commission to control or clean

2-21     up the oil and gas wastes or other substances or materials.

2-22           (c)  The commission or its employees or agents, on proper

2-23     identification, may enter the land of another for the purpose of

2-24     conducting a site investigation or environmental assessment or

2-25     controlling or cleaning up oil and gas wastes or other substances

2-26     or materials under this section.

2-27           (d)  The conducting of a site investigation or environmental

2-28     assessment or the control or cleanup of oil and gas wastes or other

2-29     substances or materials by the commission under this section does

2-30     not prevent the commission from seeking penalties or other relief

2-31     provided by law from any person who is required by law, rules

2-32     adopted by the commission, or a valid order of the commission to

2-33     control or clean up the oil and gas wastes or other substances or

2-34     materials.

2-35           (e)  The commission and its employees are not liable for any

2-36     damages arising from an act or omission if the act or omission is

2-37     part of a good-faith effort to carry out this section.

2-38           (f)  If the commission conducts a site investigation or

2-39     environmental assessment or controls or cleans up oil and gas

2-40     wastes or other substances or materials under this section, the

2-41     commission may recover all costs incurred by the commission from

2-42     any person who was required by law, rules adopted by the

2-43     commission, or a valid order of the commission to control or clean

2-44     up the oil and gas wastes or other substances or materials.  The

2-45     commission may request the attorney general to file suit in any

2-46     court of competent jurisdiction in Travis County to recover these

2-47     costs.  Costs recovered under this subsection shall be deposited to

2-48     the oil-field cleanup fund.

2-49           SECTION 2.  The importance of this legislation and the

2-50     crowded condition of the calendars in both houses create an

2-51     emergency and an imperative public necessity that the

2-52     constitutional rule requiring bills to be read on three several

2-53     days in each house be suspended, and this rule is hereby suspended,

2-54     and that this Act take effect and be in force from and after its

2-55     passage, and it is so enacted.