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A BILL TO BE ENTITLED
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AN ACT
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relating to treating and recycling for beneficial use certain |
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liquid or semiliquid waste arising out of or incidental to drilling |
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for or producing 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. RECYCLING CERTAIN OIL AND GAS WASTE FOR BENEFICIAL USE |
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Sec. 122.001. FINDINGS AND POLICY. (a) The legislature |
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finds that it is necessary to both: |
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(1) conserve the water resources of this state; and |
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(2) reduce and minimize the amount of liquid and |
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semiliquid waste arising out of or incidental to the drilling for or |
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production of oil and gas that must then be safely discharged or |
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disposed of. |
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(b) Accordingly, it is the policy of this state to encourage |
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the treatment of liquid and semiliquid oil and gas waste so that the |
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treated product may be recycled for beneficial use. |
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Sec. 122.002. 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) "Liquid or semiliquid oil and gas waste" means |
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water containing salt or other mineralized substances, brine, |
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drilling mud, hydraulic fracturing fluid, flow-back water, |
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produced water, and other liquid or semiliquid material that arises |
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out of or incidental to the drilling for or producing of oil or gas. |
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Sec. 122.003. OWNERSHIP OF CERTAIN OIL AND GAS WASTE |
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TRANSFERRED FOR TREATMENT AND SUBSEQUENT BENEFICIAL USE. (a) |
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Unless otherwise expressly provided by a contract, bill of sale, or |
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other legally binding document, when liquid or semiliquid oil and |
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gas waste is transferred to a person who takes possession of that |
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waste for the purpose of treating the waste for a subsequent |
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beneficial use, the transferred material is considered to be the |
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property of the person that takes possession of it for the purpose |
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of treating the waste for subsequent beneficial use until the |
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person transfers the waste or treated waste to another person for |
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disposal or use. |
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(b) Unless otherwise expressly provided by a contract, bill |
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of sale, or other legally binding document, when, as described by |
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Subsection (a), the person who takes possession of oil and gas waste |
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for purposes of treating the waste transfers possession of the |
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treated product or any treatment byproduct to another person for |
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the purpose of subsequent disposal or beneficial use, the |
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transferred product or byproduct is considered to be the property |
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of the person to whom the material is transferred. |
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Sec. 122.004. RESPONSIBILITY IN TORT. (a) This section |
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applies only in relation to the production from liquid or |
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semiliquid oil and gas waste of a treated product generally |
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considered in the oil and gas industry to be suitable for use in |
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connection with the drilling for or producing of oil or gas. |
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(b) A person who takes possession of liquid or semiliquid |
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oil and gas waste, produces from that waste a treated product |
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described by Subsection (a), and sells or transfers the treated |
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product to another with the contractual understanding that the |
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treated product will be used in connection with the drilling for or |
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producing 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 |
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the treated product is transferred or by another person. |
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Sec. 122.005. OFF-LEASE PERMITTING. The commission shall |
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establish a procedure under which a person who holds in good |
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standing a commission permit for on-lease operation to store, |
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handle, treat, or reclaim oil and gas waste and who treats liquid |
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or semiliquid oil and gas waste for a subsequent beneficial use may |
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expeditiously receive an off-lease commercial permit under which |
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the person may treat liquid or semiliquid oil and gas waste |
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off-lease for a subsequent beneficial use if the permit holder |
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demonstrates to the commission that the permit holder can and will: |
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(1) safely store the waste and treated waste |
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off-lease; and |
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(2) for each site at which the waste is treated, |
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provide the commission with the information about the composition |
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of the treated oil and gas waste at that site in the form and manner |
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that the commission reasonably requires to perform its duties. |
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SECTION 2. This Act takes effect September 1, 2013. |