81R10283 TRH-F

By: Crownover 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. Section 91.551(a), Natural Resources Code, is amended by amending Subdivisions (1) and (2) and adding Subdivision (5) 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 a:

(A) spontaneous potential log;

(B) induction log;

(C) laterolog;

(D) density log;

(E) gamma ray log;

(F) neutron log; or

(G) mud 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].

(5) "Mud log" means a graphical representation generated while drilling a well of:

(A) the rate of penetration of the well;

(B) the lithology, hydrocarbon content, or other properties of the rocks penetrated by the well; or

(C) other properties of the drilling of the well or of the mud used in the drilling of the well.

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 60th [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, [a basic electric log] run after January 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.

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

Sec. 91.553. AVAILABILITY OF WELL [ELECTRIC] LOGS.

SECTION 5. Sections 91.553(a), (b), (c), (e), and (f), Natural Resources Code, are amended to read as follows:

(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 extension [extensions] of that period. On filing of the request for confidentiality, the well [electric] log becomes confidential and remains confidential for a period of six months [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 six months [two years]. The commission shall grant the six-month [two-year] extension on written request of the operator. The written request must be made to the commission before the six-month [one-year] period of confidentiality under Subsection (b) expires.

(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 extension [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 6. 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 7. 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 8. 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;

(2) if the well is completed as a dry hole, refuse to approve the plugging of the well until the operator files the well log with the commission;

(3) refuse to release the operator's financial security filed under Subchapter D until the operator files the well log with the commission;

(4) require the operator to reenter the well, run a well log, and file the log with the commission; or

(5) impose an administrative penalty on the operator in the manner provided by Sections 81.0531-81.0534 in the amount of $15,000 for each well for which the operator failed to file a well log.

SECTION 9. Section 91.553(d), Natural Resources Code, is repealed.

SECTION 10. 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 11. 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 12. 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 13. 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 14. This Act takes effect September 1, 2009.