79R12318 RMB-D
By: West H.B. No. 2984
Substitute the following for H.B. No. 2984:
By: Gonzalez Toureilles C.S.H.B. No. 2984
A BILL TO BE ENTITLED
AN ACT
relating to the composition of and 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 Subdivisions (4) and (5) to read as follows:
(4) "Orphaned site" means a surface location on which
is located a facility:
(A) that has been inactive for at least 12
months; and
(B) the operator of which as shown in the records
of the commission has not had a commission-approved organization
report on file as required by Section 91.142 for at least 12 months.
(5) "Orphaned well" means an oil or gas well:
(A) that has been inactive for at least 12
months; and
(B) the operator of which as shown in the records
of the commission has not had a commission-approved organization
report on file as required by Section 91.142 for at least 12 months.
SECTION 2. Section 91.013(a), Natural Resources Code, is
amended to read as follows:
(a) If the owner of a well described in Subsection (a) of
Section 91.012 of this code neglects or refuses to have the well
plugged or shut in for more than 20 days after written notice is
given to the owner [him], the owner or operator of adjacent or
neighboring land may enter the premises on which the well is located
and have the well plugged if it is an orphaned [abandoned] well or
shut in if it is not an orphaned well [abandoned], in the manner
provided by law.
SECTION 3. Sections 91.111(c) and (e), Natural Resources
Code, are amended to read as follows:
(c) The fund consists of:
(1) penalties imposed under Section 85.381 for
violation of a law, order, or rule relating to well plugging
requirements;
(2) proceeds from bonds and other financial assurances
required by this chapter, subject to the refund provisions of
Section 91.1091;
(3) private contributions, including contributions
made under Section 89.084;
(4) expenses collected under Section 89.083;
(5) fees imposed under Section 85.2021;
(6) civil penalties collected for violations of
Chapter 89 or of rules or orders relating to plugging that are
adopted under this code;
(7) proceeds collected under Sections 89.085 and
91.115;
(8) interest earned on the funds deposited in the
fund;
(9) fees collected under Section 91.104;
(10) civil penalties or costs recovered under Section
91.457 or 91.459;
(11) oil and gas waste hauler permit application fees
collected under Section 29.015, Water Code;
(12) costs recovered under Section 91.113(f);
(13) [hazardous oil and gas waste generation fees
collected under Section 91.605;
[(14)] oil-field cleanup regulatory fees on oil
collected under Section 81.116;
(14) [(15)] oil-field cleanup regulatory fees on gas
collected under Section 81.117;
(15) [(16)] fees for a reissued certificate collected
under Section 85.167;
(16) [(17)] fees collected under Section 91.1013;
(17) [(18)] fees collected under Section 89.088;
(18) [(19)] penalties collected under Section
81.0531;
(19) [(20)] fees collected under Section 91.142;
(20) [(21) fees collected under Section 91.654;
[(22)] costs recovered under Sections 91.656 and
91.657;
(21) [(23)] two-thirds of the fees collected under
Section 81.0521; and
(22) [(24)] legislative appropriations.
(e) The commission, through the legislative appropriations
request process, shall establish specific performance goals for the
oil-field cleanup fund for the next biennium, including goals for
the number of:
(1) site investigations and environmental assessments
to be conducted;
(2) orphaned [abandoned] wells to be plugged; and
(3) surface locations to be remediated.
SECTION 4. 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 orphaned wells and orphaned sites to determine:
(A) the nature and extent of contamination caused
by oil and gas wastes or other substances or materials 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 described in
Paragraph (A);
(2) controlling or cleaning up oil and gas wastes or
other substances or materials regulated by the commission under
Section 91.101 that are causing or are likely to cause the pollution
of surface or subsurface water at orphaned wells and orphaned
sites, consistent with Section 91.113;
(3) plugging orphaned [abandoned] wells [and
administering or enforcing permits, orders, and rules relating to
the commission's authority to prevent pollution under this chapter,
Chapter 89, or any other law administered or enforced by the
commission under Title 3]; and
(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 orphaned 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 surface locations remediated, by
region;
(5) [(6)] a detailed accounting of expenditures of
money in the fund, including expenditures for site investigations
and environmental assessments, plugging of orphaned [abandoned]
wells, remediation of surface locations, and staff salaries and
other administrative expenses;
(6) [(7)] the method by which the commission sets
priorities by which it determines the order in which orphaned
[abandoned] wells are plugged;
(7) [(8)] a projection of the amount of money needed
for the next biennium for conducting site investigations and
environmental assessments, plugging orphaned [abandoned] wells,
and remediating surface locations; and
(8) [(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 sites successfully remediated
under the voluntary cleanup program under Subchapter O, by region].
(c) The commission may not use for a purpose other than
paying agents of the commission to plug orphaned wells or remediate
surface locations more than 25 percent of the total amount of money
in the fund spent by the commission in a state fiscal year.
(d) Of the money in the fund spent by the commission in a
state fiscal year for the purposes of Subsections (a)(2) and (3),
the commission shall spend:
(1) not more than 20 percent for the purposes of
Subsection (a)(2); and
(2) not less than 80 percent for the purposes of
Subsection (a)(3).
(e) Notwithstanding Subsection (d), if the commission
determines that the allocation of spending between Subsections
(a)(2) and (3) required by Subsection (d) in a state fiscal year is
insufficient to prevent or remediate the pollution of surface or
subsurface water, the commission may allocate:
(1) for the purposes of Subsection (a)(2) a greater
amount than the amount authorized by Subsection (d)(1); and
(2) for the purposes of Subsection (a)(3) a lesser
amount than the amount required by Subsection (d)(2).
SECTION 5. Section 91.1132, Natural Resources Code, is
amended to read as follows:
Sec. 91.1132. PRIORITIZATION OF HIGH-RISK WELLS. The
commission by rule shall develop a system for:
(1) identifying orphaned [abandoned] wells that pose a
high risk of contaminating surface water or groundwater;
(2) periodically testing high-risk wells by
conducting a fluid level test or, if necessary, a pressure test;
and
(3) giving priority to plugging high-risk wells with
compromised casings.
SECTION 6. Section 91.605(e), Natural Resources Code, is
amended to read as follows:
(e) The fees collected under this section shall be deposited
in the general revenue fund [oil-field cleanup fund].
SECTION 7. Section 91.654(e), Natural Resources Code, is
amended to read as follows:
(e) Fees collected under this section shall be deposited in
the general revenue fund [to the credit of the oil-field cleanup
fund under Section 91.111].
SECTION 8. This Act takes effect September 1, 2005.