By:  Keffer of Dallas (Senate Sponsor - Armbrister)               H.B. No. 2613
	(In the Senate - Received from the House May 1, 2003; 
May 7, 2003, read first time and referred to Committee on Natural 
Resources; May 22, 2003, reported favorably by the following vote:  
Yeas 10, Nays 0; May 22, 2003, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to liens on stored hydrocarbons at sites and facilities 
that have not been timely cleaned up.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The heading to Section 91.115, Natural Resources 
Code, is amended to read as follows:
	Sec. 91.115.  FIRST LIEN ON EQUIPMENT AND STORED 
HYDROCARBONS.        
	SECTION 2.  Section 91.115, Natural Resources Code, is 
amended by amending Subsections (a), (e), and (f) and adding 
Subsection (h) to read as follows:
	(a)  If a responsible person fails to clean up a site or 
facility that has ceased oil and gas operations under the 
commission's jurisdiction on or before the date the site or 
facility is required to be cleaned up by law or by a rule adopted or 
order issued by the commission, the state has a first lien, superior 
to all preexisting and subsequent liens and security interests, on 
the responsible person's interest in any hydrocarbons stored at the 
site or facility and in any equipment that is:
		(1)  located at the site or facility; and                                     
		(2)  used by the responsible person in connection with 
the activity that generated the pollution.
	(e)  The lien is extinguished as to any stored hydrocarbons 
or items [item] of equipment that are [is] lawfully removed by any 
person other than the operator or a nonoperator according to a lien, 
lease, judgment, written contract, or security agreement before the 
commission enters into a cleanup contract.  An item of equipment may 
not be removed from an abandoned site or facility if the removal 
will cause the release of a substance that may cause pollution 
unless the substance is lawfully disposed of.
	(f)  Equipment or stored hydrocarbons subject to a lien under 
this section are [is] presumed to have been abandoned on the date 
the commission enters into a contract to clean up the site or 
facility on which the equipment or hydrocarbons are [is] located.  
The commission may dispose of the equipment or stored hydrocarbons
in accordance with the provisions of Sections 89.085, 89.086, and 
89.087 of this code for the disposition of well-site equipment and 
hydrocarbons.
	(h)  The lien provided by this section, as it relates to 
stored hydrocarbons, shall be subject to and inferior to any lien in 
favor of the State of Texas to secure royalty payments.
	SECTION 3.  (a)  This Act takes effect September 1, 2003.                      
	(b)  The changes in law made by Section 91.115, Natural 
Resources Code, as amended by this Act, apply only to an interest in 
hydrocarbons stored at a site or facility the date for cleanup of 
which required by law or rule or order adopted by the Railroad 
Commission of Texas is September 1, 2003, or later.



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