By Brown                                               S.B. No. 812
         76R6335 SMH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the recovery by the Railroad Commission of Texas of
 1-3     well plugging and oil field cleanup costs incurred by the
 1-4     commission.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 89.043(c), Natural Resources Code, is
 1-7     amended to read as follows:
 1-8           (c)  On or before the 30th day before the date the commission
 1-9     enters into a contract to plug a delinquent inactive well, the
1-10     commission shall send a notice by certified mail to the operator of
1-11     the well at the address last reported to the commission as required
1-12     by Section 91.142 [of this code] and commission rules.  The notice
1-13     shall direct the operator to plug the well and shall state that:
1-14                 (1)  the commission may plug the well unless the
1-15     operator requests a hearing not later than the 10th day after the
1-16     date the operator receives the notice;
1-17                 (2)  if the commission plugs the well, all well-site
1-18     equipment will be presumed to have been abandoned and the
1-19     commission may dispose of the equipment and hydrocarbons from the
1-20     well as provided by Section 89.085 [of this code]; [and]
1-21                 (3)  if the commission plugs the well, the commission
1-22     by order may require the operator to reimburse the commission for
1-23     the plugging costs; and
1-24                 (4)  the attorney general may file suit against the
 2-1     operator to recover the plugging costs if the commission plugs the
 2-2     well and the operator  fails to reimburse the commission for the
 2-3     plugging costs.
 2-4           SECTION 2.  Sections 89.083(h)-(j), Natural Resources Code,
 2-5     are amended to read as follows:
 2-6           (h)  The commission by order may require the operator and any
 2-7     nonoperator to reimburse the commission for all reasonable expenses
 2-8     incurred in plugging a well.
 2-9           (i)  The commission shall seek reimbursement for all
2-10     reasonable expenses incurred in plugging any well through an action
2-11     instituted by the attorney general against a person who violates an
2-12     order issued under Subsection (h).
2-13           (j) [(i)]  Money collected in a suit under this section shall
2-14     be deposited in the state oil-field cleanup fund.
2-15           (k) [(j)]  A civil action for reimbursement under this
2-16     section may be brought in Travis County, the county in which the
2-17     plugged well is located, or the county in which any defendant
2-18     resides.
2-19           SECTION 3.  Section 91.113(f), Natural Resources Code, is
2-20     amended to read as follows:
2-21           (f)  If the commission conducts a site investigation or
2-22     environmental assessment or controls or cleans up oil and gas
2-23     wastes or other substances or materials under this section, the
2-24     commission may recover all costs incurred by the commission from
2-25     any person who was required by law, rules adopted by the
2-26     commission, or a valid order of the commission to control or clean
2-27     up the oil and gas wastes or other substances or materials.  The
 3-1     commission by order may require the person to reimburse the
 3-2     commission for those costs.  The commission may request the
 3-3     attorney general to file suit against the person in any court of
 3-4     competent jurisdiction in Travis County to recover those [these]
 3-5     costs if the person violates the order.  Costs recovered under this
 3-6     subsection shall be deposited to the oil-field cleanup fund.
 3-7           SECTION 4.  The importance of this legislation and the
 3-8     crowded condition of the calendars in both houses create an
 3-9     emergency and an imperative public necessity that the
3-10     constitutional rule requiring bills to be read on three several
3-11     days in each house be suspended, and this rule is hereby suspended,
3-12     and that this Act take effect and be in force from and after its
3-13     passage, and it is so enacted.