81R31024 E

By: Crownover H.B. No. 2356

Substitute the following for H.B. No. 2356:

By: Crabb C.S.H.B. No. 2356

A BILL TO BE ENTITLED

AN ACT

relating to the filing with the state of well logs by operators of oil-related or gas-related wells; providing a penalty.

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

SECTION 1. The heading to Subchapter M, Chapter 91, Natural Resources Code, is amended to read as follows:

SUBCHAPTER M. WELL [ELECTRIC] LOGS

SECTION 2. Sections 91.551(a)(1) and (2), Natural Resources Code, are amended to read as follows:

(1) "Well" means a well drilled for any purpose related to exploration for or production or storage of oil or gas or both oil and gas, including a well drilled for injection of fluids to enhance hydrocarbon recovery, disposal of produced fluids, disposal of waste from exploration or production activity, or brine mining. The term includes a well that is completed as a dry hole.

(2) "Well [Electric] log" means a wireline-conveyed or drill pipe-conveyed survey recorded in an open borehole using electric or radioactive technologies for the purpose of obtaining geological or geophysical information or other information regarding the properties of a reservoir or of the rocks penetrated by the well. The term includes and is limited to a:

(A) spontaneous potential log;

(B) induction log;

(C) borehole compensated sonic log;

(D) dual lateral log;

(E) density log;

(F) gamma ray log; or

(G) compensated neutron log [wireline survey, except dipmeter surveys and seismic wireline surveys, run in an open hole or a cased hole of a well for purposes of obtaining geological information].

SECTION 3. Section 91.552, Natural Resources Code, is amended to read as follows:

Sec. 91.552. WELL [ELECTRIC] LOGS REQUIRED TO BE FILED; CRITERIA. (a) Except as otherwise provided by this subchapter, not later than the 90th day after the date a drilling operation is completed, the operator shall file with the commission a copy of each well log, including each borehole section of the log at all depths, [a basic electric log] run after September 1, 2009 [September 1, 1985], in conjunction with the drilling or deepening of the well that meets basic criteria established by the commission.

(b) The commission by rule shall establish criteria for well [basic electric] logs to be filed with the commission.

(c) Not later than the deadline prescribed by Subsection (a) for the filing of each well log, an operator shall file with the commission a copy of a cased hole log run after September 1, 2009, in conjunction with the drilling or deepening of a well in lieu of a well log run after that date if:

(1) a cased hole log was run; and

(2) a well log was not run.

(d) Nothing in this subchapter requires an operator to run a well log in conjunction with the drilling or deepening of a well.

SECTION 4. Section 91.553, Natural Resources Code, is amended to read as follows:

Sec. 91.553. AVAILABILITY OF WELL [ELECTRIC] LOGS. (a) Except as specifically provided by this section, each well [electric] log filed with the commission under this subchapter is not confidential and is public information under Chapter 552, Government Code.

(b) Not later than the date by which a well [an electric] log is required to be filed with the commission under Section 91.552, the operator may file a written request with the commission asking that the well [electric] log remain confidential and not be made available as public information. On filing this request, the well [electric] log or copy of the well [electric] log required to be filed with the commission may be retained by the operator, and the well [electric] log may remain in the possession of the operator for the period of confidentiality and any extensions of that period. On filing of the request for confidentiality, the well [electric] log becomes confidential and remains confidential for a period of one year after the date that the drilling operation was completed.

(c) If a well [an electric] log is made confidential under Subsection (b), the operator is entitled to have the period of confidentiality extended once for an additional period of two years. The commission shall grant the two-year extension on written request of the operator. The written request must be made to the commission before the one-year period of confidentiality under Subsection (b) expires.

(d) If a well [an electric] log is made confidential under Subsection (b) and the log was run in a well drilled on land submerged in state water, the operator is entitled to have the period of confidentiality extended for not more than two additional periods of two years each. The commission shall grant the extension or extensions on written request of the operator. The written request must be made to the commission before the expiration of the one-year period of confidentiality under Subsection (b) or the expiration of the first extension granted under this subsection.

(e) An operator required to file a well [an electric] log under this section who has held the log during a period of confidentiality or any extensions of that period shall file the log with the commission within 30 days after the conclusion of the period of confidentiality or the period of the last extension.

(f) An operator who fails to timely file with the commission a written request under Subsection (b) that a well [an electric] log remain confidential and not be made available as public information or a written request under Subsection (c) or (d) for an extension of the period of confidentiality shall file the log with the commission immediately after the conclusion of the period for filing the request.

SECTION 5. Section 91.554, Natural Resources Code, is amended to read as follows:

Sec. 91.554. AVAILABILITY OF CONFIDENTIAL WELL [ELECTRIC] LOGS. If the commission requires a well [an electric] log to be filed before the expiration of a period of confidentiality, the commission shall make that well [electric] log available for inspection during the period of confidentiality only to:

(1) a person authorized in writing by the operator; and

(2) members of the commission and its employees in the exercise of their powers and duties under this code.

SECTION 6. Section 91.555, Natural Resources Code, is amended to read as follows:

Sec. 91.555. MANAGEMENT AND STORAGE OF WELL [ELECTRIC] LOGS. The commission may contract with any person for the management and storage of the well [electric] logs filed with the commission.

SECTION 7. Section 91.556, Natural Resources Code, is amended to read as follows:

Sec. 91.556. ENFORCEMENT [DENIAL OF ALLOWABLE]. If an operator fails to file a well [an electric] log as required by this subchapter, the commission may:

(1) if the well is completed as a producing well, refuse to assign an allowable or a change in allowable for production from the well [for which the electric log is required] until the operator files the well [electric] log with the commission; or

(2) impose an administrative penalty on the operator in the manner provided by Sections 81.0531-81.0534 in an amount not to exceed $5,000 for each well for which the operator failed to file a well log.

SECTION 8. Section 552.113(a), Government Code, is amended to read as follows:

(a) Information is excepted from the requirements of Section 552.021 if it is:

(1) a well [an electric] log confidential under Subchapter M, Chapter 91, Natural Resources Code;

(2) geological or geophysical information or data, including maps concerning wells, except information filed in connection with an application or proceeding before an agency; or

(3) confidential under Subsections (c) through (f).

SECTION 9. Section 552.113(c)(2), Government Code, is amended to read as follows:

(2) "Well ["Basic electric] logs" has the same meaning as it has in Chapter 91, Natural Resources Code.

SECTION 10. Sections 552.113(d), (e), and (f), Government Code, are amended to read as follows:

(d) Confidential material, except well [basic electric] logs, filed in the General Land Office on or after September 1, 1985, is public information and is available to the public under Section 552.021 on and after the later of:

(1) five years from the filing date of the confidential material; or

(2) one year from the expiration, termination, or forfeiture of the lease in connection with which the confidential material was filed.

(e) Well [Basic electric] logs filed in the General Land Office on or after September 1, 1985, are either public information or confidential material to the same extent and for the same periods provided for the same logs by Chapter 91, Natural Resources Code. A person may request that a well [basic electric] log that has been filed in the General Land Office be made confidential by filing with the land office a copy of the written request for confidentiality made to the Railroad Commission of Texas for the same log.

(f) The following are public information:

(1) well [basic electric] logs filed in the General Land Office before September 1, 1985; and

(2) confidential material, except well [basic electric] logs, filed in the General Land Office before September 1, 1985, provided, that Subsection (d) governs the disclosure of that confidential material filed in connection with a lease that is a valid and subsisting lease on September 1, 1995.

SECTION 11. The House Committee on Energy Resources shall study methods to increase compliance with Subchapter M, Chapter 91, Natural Resources Code, as amended by this Act, and submit to the 82nd Legislature a report of its findings not later than January 1, 2011.

SECTION 12. The changes in law made by this Act apply only to a drilling operation that is completed on or after the effective date of this Act. A drilling operation that is completed before the effective date of this Act is subject to the law in effect on the date of completion, and that law is continued in effect for that purpose.

SECTION 13. This Act takes effect September 1, 2009.