80R17350 SMH-F

By: Hinojosa S.B. No. 1592

Substitute the following for S.B. No. 1592:

By: Kuempel C.S.S.B. No. 1592

A BILL TO BE ENTITLED

AN ACT

relating to the requirements regarding reporting by a common carrier or pipeline owner or operator of contamination and to the composition of the oil-field cleanup fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 81.056(a)(2), Natural Resources Code, is amended to read as follows:

(2) "Owner of the land" [or "landowner"] means a [the first] person who owns [is shown on the appraisal roll of the appraisal district established for the county in which a tract of land is located as owning] an interest in the surface estate of a tract of [the] land at the time a contamination report is required to be made under this section.

SECTION 2. Section 81.056, Natural Resources Code, is amended by adding Subsections (a-1), (a-2), (c-1), and (c-2) and amending Subsections (b) and (d) to read as follows:

(a-1) This section does not apply to contamination that is in proximity to:

(1) a gathering line; or

(2) a pipeline that is located entirely within a tract that is subject to an oil or gas lease.

(a-2) A common carrier or an owner or operator of a pipeline is required to report contamination under Subsection (b) unless the common carrier or pipeline owner or operator is required to report the contamination under another statute or under a commission rule adopted under another statute. If the common carrier or pipeline owner or operator is required to report the contamination under another statute or under a commission rule adopted under another statute, the common carrier or pipeline owner or operator is not required to report the contamination under Subsection (b).

(b) If in the process of placing, repairing, replacing, or maintaining a pipeline a common carrier or an owner or operator of a pipeline observes or detects any subsurface petroleum-based contamination of soil or water in proximity to the pipeline, the common carrier or pipeline owner or operator shall report the contamination to the commission and to an [the] owner of the land on which the pipeline is located or an occupant of the land. If the common carrier or pipeline owner or operator does not know the identity of an owner of the land, the common carrier or pipeline owner or operator may satisfy the requirement to report the contamination to an owner of the land or an occupant of the land by reporting the contamination to the first person who is shown on the appraisal roll of the appraisal district established for the county in which the land is located as owning an interest in the surface estate of the land at the time the report is required to be made. Petroleum-based contamination of soil or water that is observed or detected is required to be reported under this subsection if:

(1) hydrocarbons are present on the surface of the water;

(2) at least five linear yards of soil have been affected by hydrocarbons; or

(3) soil affected by hydrocarbons extends beyond the face of the excavation in which the contamination is observed or detected.

(c-1) Notwithstanding Subsection (c)(1), if the deadline for making the contamination report falls on a Saturday, Sunday, legal holiday, or day on which the appraisal roll of the appraisal district established for the county in which the tract of land is located is not available to the public, the deadline for making the report is extended to the same time on the first day that is not such a day.

(c-2) Notwithstanding Subsection (c), the contamination report to an owner of the land or an occupant of the land may be made by first class mail if the common carrier or pipeline owner or operator does not know the telephone number, facsimile number, or electronic mail address of the owner or occupant. The notice must be postmarked not later than the date required by Subsection (c)(1), as extended by Subsection (c-1), if applicable.

(d) Not later than the third business day after the date the commission receives the contamination report, a person who has entered into an agreement with the commission to collect samples on behalf of [authorized by] the commission shall withdraw a soil sample from the contaminated land. The person is entitled to enter the land for the purpose of withdrawing the sample.

SECTION 3. Section 81.056(e), Natural Resources Code, as added by Chapter 339, Acts of the 79th Legislature, Regular Session, 2005, is reenacted to read as follows:

(e) A common carrier or pipeline owner or operator that makes a contamination report under this section is released from all liability for the contamination or the cleanup of the contamination covered by the report, except for any contamination caused by the common carrier or pipeline owner or operator.

SECTION 4. Section 91.111(c), Natural Resources Code, is 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 security required by this chapter and benefits under well-specific plugging insurance policies described by Section 91.104(c) that are paid to the state as contingent beneficiary of the policies, subject to the refund provisions of Section 91.1091, if applicable;

(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) civil penalties or costs recovered under Section 91.457 or 91.459;

(10) oil and gas waste hauler permit application fees collected under Section 29.015, Water Code;

(11) costs recovered under Section 91.113(f);

(12) hazardous oil and gas waste generation fees collected under Section 91.605;

(13) oil-field cleanup regulatory fees on oil collected under Section 81.116;

(14) oil-field cleanup regulatory fees on gas collected under Section 81.117;

(15) fees for a reissued certificate collected under Section 85.167;

(16) fees collected under Section 91.1013;

(17) fees collected under Section 89.088;

(18) penalties collected under Section 81.0531;

(19) fees collected under Section 91.142;

(20) fees collected under Section 91.654;

(21) costs recovered under Sections 91.656 and 91.657;

(22) two-thirds of the fees collected under Section 81.0521; [and]

(23) administrative penalties collected under Subchapter E, Chapter 121, Utilities Code; and

(24) legislative appropriations.

SECTION 5. Subchapter E, Chapter 121, Utilities Code, is amended by adding Section 121.2105 to read as follows:

Sec. 121.2105. DEPOSIT OF PENALTY. An administrative penalty collected under this subchapter shall be deposited to the credit of the oil-field cleanup fund.

SECTION 6. Section 81.056(g), Natural Resources Code, is repealed.

SECTION 7. The changes in law made by this Act to Section 81.056, Natural Resources Code, apply only to contamination that a common carrier or an owner or operator of a pipeline observes or detects on or after the effective date of this Act. Contamination that a common carrier or an owner or operator of a pipeline observes or detects before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 8. Section 81.056(e), Natural Resources Code, as reenacted by this Act, is an exercise of authority under Section 66(c), Article III, Texas Constitution, and takes effect only if this Act receives a vote of three-fifths of all the members elected to each house, as provided by Subsection (e) of that section.

SECTION 9. This Act takes effect September 1, 2007.