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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation by the Railroad Commission of Texas of |
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the use of the surface of land in connection with certain activities |
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associated with the exploration, development, or production of oil |
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or gas, including the gathering of oil or gas by pipeline. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 91, Natural Resources Code, is amended |
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by adding Subchapter P to read as follows: |
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SUBCHAPTER P. MISCELLANEOUS PROVISIONS REGARDING USE OF SURFACE |
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OF LAND IN CONNECTION WITH OIL AND GAS-RELATED ACTIVITIES |
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Sec. 91.701. DEFINITIONS. In this subchapter: |
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(1) "Operator" and "well" have the meanings assigned |
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by Section 89.002. |
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(2) "Well-site equipment" means any |
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production-related equipment or materials specific to a well, |
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including motors, pumps, pump jacks, tanks, tank batteries, |
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separators, compressors, casing, tubing, and rods. |
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Sec. 91.702. TRANSFER OR REMOVAL OF WELL-SITE EQUIPMENT FOR |
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INACTIVE WELL. (a) This section applies only to a well that has had |
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no reported production, disposal, injection, or other permitted |
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activity for a period of more than 12 months. |
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(b) Unless the lease provides otherwise, on notice from the |
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lessor, the operator shall: |
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(1) transfer the well-site equipment to another |
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well-site on the leased premises for use in connection with another |
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well; or |
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(2) remove the well-site equipment from the leased |
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premises. |
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(c) Notwithstanding Subsection (b), the operator is not |
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required to transfer or remove the well-site equipment if the |
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operator establishes to the satisfaction of the commission that the |
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operator is reasonably likely to reactivate the well within the |
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next 12 months. |
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(d) If the operator transfers the well-site equipment to |
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another well-site on the leased premises for use in connection with |
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another well as provided by Subsection (b)(1), the operator must |
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begin using the equipment in connection with the well within the |
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next 12 months. |
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Sec. 91.703. STANDARDS FOR CONSTRUCTION, OPERATION, AND |
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MAINTENANCE OF CERTAIN GATHERING LINES. The commission shall adopt |
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rules establishing minimum standards for the construction, |
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operation, and maintenance of any gathering line on leased premises |
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that lies beneath a road. |
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Sec. 91.704. STANDARDS FOR CONSTRUCTION, OPERATION, AND |
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MAINTENANCE OF ELECTRICAL POWER LINES. The commission shall adopt |
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rules establishing minimum standards for the construction, |
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operation, and maintenance of any electrical power lines that are |
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located or to be located on leased premises and are used or to be |
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used by the operator in connection with oil and gas-related |
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activities on the leased premises. |
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Sec. 91.705. ENFORCEMENT: ACTION FOR DAMAGES OR INJUNCTION; |
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MEDIATION. (a) If an operator violates this subchapter, the lessor |
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may give notice to the operator by certified mail of the violation |
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and request that the operator remedy the violation. |
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(b) If the operator fails to remedy the violation before the |
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90th day after the date the notice is mailed under Subsection (a), |
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the lessor may bring an action against the operator for damages or |
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injunctive relief. |
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(c) Any damages awarded under Subsection (b) must be |
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determined on the basis of the cost of remedying the violation. |
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(d) A lessor who prevails in an action under Subsection (b) |
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shall be awarded the lessor's reasonable attorney's fees and court |
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costs. |
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(e) For a suit that arises from a violation of this |
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subchapter, the court shall refer the matter to mediation among all |
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parties and by order shall set the time and place of the mediation. |
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(f) The court shall appoint a mediator if the parties do not |
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agree on a mediator. |
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(g) Each party shall: |
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(1) participate in the mediation in good faith; and |
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(2) share the mediation fee equally. |
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(h) Except as provided by this section, the following apply |
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to the appointment of a mediator and the mediation process provided |
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by this section: |
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(1) Sections 154.023(a) and (b), Civil Practice and |
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Remedies Code; and |
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(2) Subchapters C and D, Chapter 154, Civil Practice |
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and Remedies Code. |
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(i) The court may proceed with the trial on the matter if the |
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parties are unable to agree after participating in the ordered |
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mediation. |
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SECTION 2. The Railroad Commission of Texas shall adopt |
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rules to implement Subchapter P, Chapter 91, Natural Resources |
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Code, as added by this Act, not later than January 1, 2008. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |