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AN ACT
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relating to the treatment and recycling for beneficial use of |
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certain waste arising out of or incidental to the drilling for or |
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production of oil or gas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle D, Title 3, Natural Resources Code, is |
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amended by adding Chapter 122 to read as follows: |
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CHAPTER 122. TREATMENT AND RECYCLING FOR BENEFICIAL USE OF CERTAIN |
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OIL AND GAS WASTE |
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Sec. 122.001. DEFINITIONS. In this chapter: |
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(1) "Commission" means the Railroad Commission of |
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Texas. |
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(2) "Fluid oil and gas waste" means waste containing |
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salt or other mineralized substances, brine, hydraulic fracturing |
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fluid, flowback water, produced water, or other fluid that arises |
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out of or is incidental to the drilling for or production of oil or |
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gas. |
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Sec. 122.002. OWNERSHIP OF CERTAIN OIL AND GAS WASTE |
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TRANSFERRED FOR TREATMENT AND SUBSEQUENT BENEFICIAL USE. Unless |
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otherwise expressly provided by a contract, bill of sale, or other |
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legally binding document: |
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(1) when fluid oil and gas waste is transferred to a |
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person who takes possession of that waste for the purpose of |
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treating the waste for a subsequent beneficial use, the transferred |
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material is considered to be the property of the person who takes |
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possession of it for the purpose of treating the waste for |
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subsequent beneficial use until the person transfers the waste or |
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treated waste to another person for disposal or use; and |
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(2) when a person who takes possession of fluid oil and |
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gas waste for the purpose of treating the waste for a subsequent |
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beneficial use transfers possession of the treated product or any |
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treatment byproduct to another person for the purpose of subsequent |
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disposal or beneficial use, the transferred product or byproduct is |
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considered to be the property of the person to whom the material is |
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transferred. |
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Sec. 122.003. RESPONSIBILITY IN TORT. (a) Except as |
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provided by Subsection (b), a person who takes possession of fluid |
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oil and gas waste, produces from that waste a treated product |
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generally considered in the oil and gas industry to be suitable for |
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use in connection with the drilling for or production of oil or gas, |
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and transfers the treated product to another person with the |
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contractual understanding that the treated product will be used in |
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connection with the drilling for or production of oil or gas is not |
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liable in tort for a consequence of the subsequent use of that |
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treated product by the person to whom the treated product is |
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transferred or by another person. |
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(b) This section does not affect the liability of a person |
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that treats fluid oil and gas waste for beneficial use in an action |
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brought by a person for damages for personal injury, death, or |
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property damage arising from exposure to fluid oil and gas waste or |
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a treated product. |
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Sec. 122.004. COMMISSION RULES FOR TREATMENT AND BENEFICIAL |
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USE. The commission shall adopt rules to govern the treatment and |
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beneficial use of oil and gas waste. |
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SECTION 2. This Act takes effect September 1, 2013. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2767 was passed by the House on May 9, |
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2013, by the following vote: Yeas 137, Nays 0, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2767 was passed by the Senate on May |
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22, 2013, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |