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A BILL TO BE ENTITLED
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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 person who takes |
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possession of fluid oil and gas waste, produces from that waste a |
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treated product generally considered in the oil and gas industry to |
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be suitable for use in connection with the drilling for or |
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production of oil or gas, and transfers the treated product to |
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another person with the contractual understanding that the treated |
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product will be used in connection with the drilling for or |
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production of oil or gas is not liable in tort for a consequence of |
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the subsequent use of that treated product by the person to whom the |
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treated product is transferred or by another person. |
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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. |