By: Miller of Erath, et al. H.B. No. 849

A BILL TO BE ENTITLED

AN ACT

relating to notice of an application for a permit to dispose of oil and gas waste in a commercial disposal well; creating an offense.

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

SECTION 1. Section 27.034, Water Code, is amended by adding Subsections (a-1), (a-2), and (a-3) to read as follows:

(a-1) In connection with an application for a permit to dispose of oil and gas waste in a commercial disposal well, as defined by the railroad commission, the rules adopted under Subsection (a) must, at a minimum:

(1) require the applicant to give notice of the application to:

(A) each owner of record of each surface tract that adjoins the tract on which the well is proposed to be located;

(B) the commissioners court of the county in which the well is proposed to be located; and

(C) any groundwater conservation district in which the well is proposed to be located;

(2) require each owner of record of a surface tract who receives notice of the application under Subdivision (1)(A) to give notice of the application to each surface lessee or purchaser under a contract for deed, executory contract, or other executory conveyance of the tract who occupies a residence located on the tract;

(3) require the applicant to publish notice of the application in each newspaper of general circulation in the county in which the well is proposed to be located that satisfies the requirements of Section 2051.044, Government Code; and

(4) provide each person who receives notice of the application under Subdivision (1)(A) or (B) an opportunity to request a public hearing on the application.

(a-2) The failure of a person who receives notice of an application under Subsection (a-1)(1)(A) to give notice of the application to any person to whom the person is required to give notice under Subsection (a-1)(2) does not invalidate any permit issued by the railroad commission and may not be considered by the railroad commission with respect to any pending permit application.

(a-3) The railroad commission is not required to hold more than one public hearing on an application regardless of the number of persons who request a hearing.

SECTION 2. Section 27.105(a), Water Code, is amended to read as follows:

(a) A person who knowingly or intentionally violates a provision of this chapter under the jurisdiction of the railroad commission, a rule of the railroad commission other than a rule adopted under Section 27.034(a-1)(2), or a term, condition, or provision of a permit issued by the railroad commission under this chapter is subject to a fine of not more than $5,000 for each violation and for each day of violation. A violation under the jurisdiction of the commission is enforceable under Section 7.157.

SECTION 3. Section 27.034(a-1), Water Code, as added by this Act, applies only to an application for a permit to dispose of oil and gas waste in a commercial disposal well, as defined by the Railroad Commission of Texas.

SECTION 4. This Act takes effect September 1, 2011.