By: Hegar S.B. No. 1296

(In the Senate - Filed March 8, 2011; March 16, 2011, read first time and referred to Committee on Natural Resources; April 13, 2011, reported favorably by the following vote: Yeas 10, Nays 0; April 13, 2011, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to the use of proceeds of bonds and other financial security filed with the Railroad Commission of Texas by certain persons under the jurisdiction of the commission and deposited in the oil-field cleanup fund.

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

SECTION 1. Section 91.108, Natural Resources Code, is amended to read as follows:

Sec. 91.108. DEPOSIT AND USE OF FUNDS. Subject to the refund provisions of Section 91.1091, if applicable, proceeds from bonds and other financial security required pursuant to this chapter and benefits under well-specific plugging insurance policies described by Section 91.104(c) that are paid to the state as contingent beneficiary of the policies shall be deposited in the oil-field cleanup fund and, notwithstanding Sections 91.112 and 91.113, may be used only for actual well plugging and surface remediation or to pay an administrative penalty imposed by the commission under this title that a person has failed to pay before the penalty is due.

SECTION 2. This Act takes effect September 1, 2011.

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