79R4702 RMB-F

By:  Farabee                                                      H.B. No. 1564


A BILL TO BE ENTITLED
AN ACT
relating to the use of money in the oil-field cleanup fund. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 91.001, Natural Resources Code, is amended by adding Subdivision (4) to read as follows: (4) "Well-site" means the area associated with a well regulated by the commission, including the drillpad on which the well is located and any pits associated with the well, together with any equipment associated with the well that is necessary for the exploration, production, and sale of hydrocarbons, including tank batteries, meters, casing, tubing, and rods. SECTION 2. Section 91.112, Natural Resources Code, is amended to read as follows: Sec. 91.112. PURPOSE OF THE FUND. (a) Money in the fund may be used by the commission or its employees or agents for: (1) conducting a site investigation or environmental assessment of a well or well-site to determine: (A) the nature and extent of contamination caused by oil and gas wastes, [or] other substances or materials, or equipment associated with wells regulated by the commission under Section 91.101; and (B) the measures that should be taken to control or clean up the wastes, substances, [or] materials, or equipment described in Paragraph (A); (2) controlling or cleaning up oil and gas wastes, [or] other substances or materials, or equipment associated with wells regulated by the commission under Section 91.101 that is [are] causing or is [are] likely to cause the pollution of surface or subsurface water, consistent with Section 91.113; (3) plugging abandoned wells and administering or enforcing permits, orders, and rules relating to the commission's authority to prevent pollution from wells and well-sites [under this chapter, Chapter 89, or any other law administered or enforced by the commission under Title 3]; (4) implementing Subchapter N and enforcing rules, orders, and permits adopted or issued under that subchapter; (5) implementing the voluntary cleanup program under Subchapter O; and (6) preparing the report required under Subsection (b). (b) The commission shall submit to the legislature and make available to the public, annually, a report that reviews the extent to which money provided under Section 91.111 has enabled the commission to better protect the environment and enhance the income of the oil-field cleanup fund. The report shall include: (1) the number of wells plugged, by region; (2) the number of wells abandoned, by region; (3) the number of inactive wells not currently in compliance with commission rules, by region; (4) the status of enforcement proceedings for all wells in violation of commission rules and the time period during which the wells have been in violation, by region in which the wells are located; (5) the number of wells and well-sites [surface locations] remediated, by region; (6) a detailed accounting of expenditures of money in the fund, including expenditures for site investigations and environmental assessments, plugging of abandoned wells, remediation of wells and well-sites [surface locations], and staff salaries and other administrative expenses; (7) the method by which the commission sets priorities by which it determines the order in which abandoned wells are plugged; (8) a projection of the amount of money needed for the next biennium for conducting site investigations and environmental assessments, plugging abandoned wells, and remediating wells and well-sites [surface locations]; (9) the status of implementation of the provisions of Section 89.085 relating to possession and sale of equipment to recover plugging costs; and (10) the number of wells and well-sites [sites] successfully remediated under the voluntary cleanup program under Subchapter O, by region. SECTION 3. Sections 91.113(a), (b), (c), (d), and (f), Natural Resources Code, are amended to read as follows: (a) If oil and gas wastes, [or] other substances or materials, or equipment associated with wells regulated by the commission under Section 91.101 is [are] causing or is [are] likely to cause the pollution of surface or subsurface water, the commission, through its employees or agents, may use money in the oil-field cleanup fund to conduct a site investigation or environmental assessment or control or clean up the oil and gas wastes, [or] other substances or materials, or equipment if: (1) the responsible person has failed or refused to control or clean up the oil and gas wastes, [or] other substances or materials, or equipment after notice and opportunity for hearing; (2) the responsible person is unknown, cannot be found, or has no assets with which to control or clean up the oil and gas wastes, [or] other substances or materials, or equipment; or (3) the oil and gas wastes, [or] other substances or materials, or equipment is [are] causing the pollution of surface or subsurface water. (b) For purposes of this section, "responsible person" means any operator or other person required by law, rules adopted by the commission, or a valid order of the commission to control or clean up the oil and gas wastes, [or] other substances or materials, or equipment. (c) The commission or its employees or agents, on proper identification, may enter the land of another for the purpose of conducting a site investigation or environmental assessment or controlling or cleaning up oil and gas wastes, [or] other substances or materials, or equipment under this section. (d) The conducting of a site investigation or environmental assessment or the control or cleanup of oil and gas wastes, [or] other substances or materials, or equipment by the commission under this section does not prevent the commission from seeking penalties or other relief provided by law from any person who is required by law, rules adopted by the commission, or a valid order of the commission to control or clean up the oil and gas wastes, [or] other substances or materials, or equipment. (f) If the commission conducts a site investigation or environmental assessment or controls or cleans up oil and gas wastes, [or] other substances or materials, or equipment under this section, the commission may recover all costs incurred by the commission from any person who was required by law, rules adopted by the commission, or a valid order of the commission to control or clean up the oil and gas wastes, [or] other substances or materials, or equipment. The commission by order may require the person to reimburse the commission for those costs or may request the attorney general to file suit against the person to recover those costs. At the request of the commission, the attorney general may file suit to enforce an order issued by the commission under this subsection. A suit under this subsection may be filed in any court of competent jurisdiction in Travis County. Costs recovered under this subsection shall be deposited to the oil-field cleanup fund. SECTION 4. Section 91.1131(a), Natural Resources Code, is amended to read as follows: (a) The commission by rule shall [may] establish risk assessment as the guide for: (1) conducting site investigations and environmental assessments; and (2) controlling and cleaning up oil and gas wastes, [and] other substances and materials, and equipment associated with wells regulated by the commission. SECTION 5. This Act takes effect September 1, 2005.