BILL ANALYSIS

S.B. 105

By: Davis

Energy Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties contend that there is a need to restrict the formation into which certain commercial disposal wells may inject oil and gas waste.  S.B. 105 seeks to address this issue by establishing provisions relating to a restriction on the formation into which certain commercial disposal wells permitted by the railroad commission may inject oil and gas waste.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 105 amends the Water Code to impose a restriction applicable only to a commercial disposal well, as defined by the Railroad Commission of Texas, proposed to be located wholly or partly above a hydrocarbon-producing geological formation that underlies all or part of two counties that are adjacent to one another and each of which has a population of more than 1.8 million.  The bill authorizes a permit issued by the railroad commission for such a well that authorizes the disposal of oil and gas waste to authorize the disposal of the waste in only the Ellenberger formation or a deeper formation.

S.B. 105 makes its provisions applicable only to a permit application pending before the railroad commission on or after the bill's effective date, and establishes that a permit issued before the bill's effective date is governed by the law in effect when the permit was issued and continues the former law in effect for that purpose.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2011.