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A BILL TO BE ENTITLED
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AN ACT
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relating to restrictions on the release into the air of natural gas |
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and associated vapors from a gas well. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 86.185, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 86.185. RESTRICTIONS ON RELEASE OF [PROHIBITION
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AGAINST] GAS IN AIR: GAS WELLS IN GENERAL. (a) This section does |
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not apply to a gas well to which Section 86.186 applies. |
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(b) No gas from a gas well may be permitted to escape into |
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the air after the expiration of 10 days from the time the gas is |
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encountered in the gas well, or from the time of perforating the |
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casing opposite a gas-bearing zone if casing is set through the |
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zone, whichever is later, but the commission may permit the escape |
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of gas into the air for an additional time if the operator of a well |
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or other facility presents information to show the necessity for |
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the escape; provided that the amount of gas which is flared under |
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that authority is charged to the operator's allowable production. |
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A necessity includes but is not limited to the following |
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situations: |
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(1) cleaning a well of sand or acid or both following |
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stimulation treatment of a well; and |
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(2) repairing or modifying a gas-gathering system. |
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SECTION 2. Subchapter F, Chapter 86, Natural Resources |
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Code, is amended by adding Section 86.186 to read as follows: |
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Sec. 86.186. RESTRICTIONS ON RELEASE OF GAS IN AIR: GAS |
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WELLS IN CERTAIN POPULOUS COUNTIES. (a) This section applies only |
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to a gas well located in a county that is located wholly or partly |
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above a hydrocarbon-producing geological formation that underlies |
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all or part of two counties: |
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(1) that are adjacent to one another; and |
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(2) each of which has a population of more than 1.4 |
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million. |
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(b) After fracturing or refracturing a gas well that the |
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operator anticipates completing or recompleting, the operator |
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shall employ appropriate processes to minimize the release into the |
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air of gas and associated vapors from the well. |
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(c) The operator of a gas well shall: |
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(1) deliver all salable gas to a sales line as soon as |
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the pressure of the gas at the wellhead is sufficient to permit the |
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gas to flow into the line; or |
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(2) shut in the well and conserve the gas. |
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(d) The operator of a gas well that has access to a sales |
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line shall employ means or methods that minimize the release into |
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the air of gas and associated vapors from the well when gas from the |
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well is permitted to flow during the completion or recompletion of |
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the well, except that the commission may authorize the release if |
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the operator of the well or of another facility presents |
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information to the commission showing the necessity for the |
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release. The amount of gas flared or vented under the commission's |
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authority shall be charged to the operator's allowable production. |
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A necessity includes the following situations: |
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(1) to avoid endangering the safety of persons |
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performing work on the well or of the public; |
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(2) to comply with an oil or gas lease entered into |
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before September 1, 2011; |
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(3) to repair or modify a gas-gathering system; |
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(4) the composition of the gas does not meet the |
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minimum quality standards of the gatherer of the gas; |
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(5) the pressure of the gas at the wellhead is |
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insufficient to permit the gas to flow into the sales line or |
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another circumstance occurs that is beyond the control of the |
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operator of the well; or |
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(6) other circumstances or conditions determined by |
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the commission to be relevant to the goal of preventing waste or |
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protecting the public interest. |
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(e) The commission shall adopt rules to implement this |
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section. Rules adopted under this subsection: |
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(1) must require an operator to provide a statement on |
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a form prescribed by the commission evidencing compliance with this |
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section; |
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(2) must prescribe a procedure for obtaining |
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commission authorization of the release into the air of gas and |
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associated vapors from a gas well; and |
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(3) may limit the period for which gas and associated |
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vapors from a gas well may be released into the air with commission |
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authorization. |
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(f) The municipality in which a gas well is located may |
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monitor the operator's compliance with this section. A |
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municipality may adopt an ordinance to implement this subsection. |
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SECTION 3. Section 86.012(a), Natural Resources Code, is |
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amended to read as follows: |
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(a) The term "waste" includes: |
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(1) the operation of an oil well or wells with an |
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inefficient gas-oil ratio; |
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(2) the drowning with water of a stratum or part of a |
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stratum capable of producing gas in paying quantities; |
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(3) permitting a gas well to burn wastefully; |
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(4) the creation of unnecessary fire hazards; |
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(5) physical waste or loss incident to or resulting |
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from so drilling, equipping, or operating a well or wells as to |
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reduce or tend to reduce the ultimate recovery of gas from any pool; |
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(6) the escape of gas from a well producing both oil |
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and gas into the open air in excess of the amount that is necessary |
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in the efficient drilling or operation of the well; |
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(7) the production of gas in excess of transportation |
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or market facilities or reasonable market demand for the type of gas |
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produced; |
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(8) the use of gas for the manufacture of carbon black |
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without first having extracted the natural gasoline content from |
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the gas, except it shall not be necessary to first extract the |
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natural gasoline content from the gas where it is utilized in a |
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plant producing an average recovery of not less than five pounds of |
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carbon black to each 1,000 cubic feet of gas; |
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(9) the use of sweet gas produced from a gas well for |
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the manufacture of carbon black unless it is used in a plant |
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producing an average recovery of not less than five pounds of carbon |
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black to each 1,000 cubic feet and unless the sweet gas is produced |
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from a well located in a common reservoir producing both sweet and |
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sour gas; |
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(10) permitting gas produced from a gas well to escape |
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into the air before or after the gas has been processed for its |
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gasoline content, unless authorized as provided in Section 86.185 |
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or 86.186 [of this code]; |
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(11) the production of natural gas from a well |
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producing oil from a stratum other than that in which the oil is |
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found unless the gas is produced in a separate string of casing from |
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that in which the oil is produced; |
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(12) the production of more than 100,000 cubic feet of |
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gas to each barrel of crude petroleum oil unless the gas is put to |
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one or more of the uses authorized for the type of gas so produced |
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under allocations made by the commission or unless authorized as |
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provided in Section 86.185 or 86.186 [of this code]; and |
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(13) underground waste or loss however caused and |
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whether or not defined in other subdivisions of this section. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |