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A BILL TO BE ENTITLED
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AN ACT
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relating to recycling, reclamation, handling, and/or treatment of |
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oil and gas waste, water, and related materials and clarifying the |
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Railroad Commission's jurisdiction. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 91.101, Natural Resources Code, is |
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amended to read as follows: |
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91.101. Text of section effective until delegation of RCRA |
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[Resource Conservation and Recovery Act] authority to Railroad |
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Commission of Texas. |
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(a) To prevent pollution of surface water or subsurface |
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water in the state, the commission shall adopt and enforce rules and |
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orders and may issue permits relating to: |
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(1) the drilling of exploratory wells and oil and gas |
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wells or any purpose in connection with them; |
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(2) the production of oil and gas, including: |
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(A) activities associated with the drilling of |
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injection water source wells which penetrate the base of useable |
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quality water; |
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(B) activities associated with the drilling of |
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cathodic protection holes associated with the cathodic protection |
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of wells and pipelines subject to the jurisdiction of the |
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commission; |
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(C) activities associated with gasoline plants, |
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natural gas or natural gas liquids processing plants, pressure |
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maintenance plants, or repressurizing plants; |
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(D) activities associated with any underground |
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natural gas storage facility, provided the terms "natural gas" and |
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"storage facility" shall have the meanings set out in Section |
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91.173, Natural Resources Code; |
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(E) activities associated with any underground |
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hydrocarbon storage facility, provided the terms "hydrocarbons" |
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and "underground hydrocarbon storage facility" shall have the |
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meanings set out in Section 91.201, Natural Resources Code; and |
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(F) activities associated with the storage, |
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handling, reclamation, gathering, transportation, or distribution |
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of oil or gas prior to the refining of such oil or prior to the use |
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of such gas in any manufacturing process or as a residential or |
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industrial fuel; |
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(3) the operation, abandonment, and proper plugging of |
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wells subject to the jurisdiction of the commission; and |
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(4) the discharge, storage, handling, transportation, |
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reclamation, recycling, or disposal of oil and gas waste as defined |
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in Section 91.1011 of this subchapter, or of any other substance or |
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material associated with any operation or activity regulated by the |
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commission under Subdivisions (1), (2), and (3) of this subsection. |
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(b) Notwithstanding the provisions of Subsection (a) of |
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this section, the authority granted to the commission by this |
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section does not include the authority to adopt and enforce rules |
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and orders or issue permits regarding the collection, storage, |
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handling, transportation, processing, recycling, or disposal of |
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waste arising out of or incidental to activities associated with |
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gasoline plants, natural gas or natural gas liquids processing |
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plants, pressure maintenance plants, or repressurizing plants if |
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that waste is a hazardous waste as defined by the administrator of |
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the United States Environmental Protection Agency pursuant to the |
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federal Solid Waste Disposal Act, as amended by the Resource |
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Conservation and Recovery Act, 42 U.S.C. 6901 et seq., as amended. |
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91.101. Text of section effective upon delegation of RCRA |
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[Resource Conservation and Recovery Acts] authority to Railroad |
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Commission of Texas. |
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To prevent pollution of surface water or subsurface water in |
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|
the state, the commission shall adopt and enforce rules and orders |
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|
and may issue permits relating to: |
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|
(1) the drilling of exploratory wells and oil and gas |
|
|
wells or any purpose in connection with them; |
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|
(2) the production of oil and gas, including: |
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|
(A) activities associated with the drilling of |
|
|
injection water source wells which penetrate the base of useable |
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|
quality water; |
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|
(B) activities associated with the drilling of |
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cathodic protection holes associated with the cathodic protection |
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of wells and pipelines subject to the jurisdiction of the |
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commission; |
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(C) activities associated with gasoline plants, |
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natural gas or natural gas liquids processing plants, pressure |
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maintenance plants, or repressurizing plants; |
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(D) activities associated with any underground |
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natural gas storage facility, provided the terms "natural gas" and |
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"storage facility" shall have the meanings set out in Section |
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91.173, Natural Resources Code; |
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(E) activities associated with any underground |
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hydrocarbon storage facility, provided the terms "hydrocarbons" |
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and "underground hydrocarbon storage facility" shall have the |
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meanings set out in Section 91.201, Natural Resources Code; and |
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(F) activities associated with the storage, |
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handling, reclamation, gathering, transportation, or distribution |
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of oil or gas prior to the refining of such oil or prior to the use |
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of such gas in any manufacturing process or as a residential or |
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industrial fuel; |
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(3) the operation, abandonment, and proper plugging of |
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wells subject to the jurisdiction of the commission; and |
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(4) the discharge, storage, handling, transportation, |
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reclamation, recycling, or disposal of oil and gas waste as defined |
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in Section 91.1011 of this subchapter, or of any other substance or |
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material associated with any operation or activity regulated by the |
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commission under Subdivisions (1), (2), and (3) of this section. |
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SECTION 2. Section 91.1011, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 91.1011. Text of section effective until delegation of RCRA |
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authority to Railroad Commission of Texas |
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(a) In this subchapter, "oil and gas waste" means waste that |
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arises out of or incidental to the drilling for or producing of oil |
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or gas, including waste arising out of or incidental to: |
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(1) activities associated with the drilling of |
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injection water source wells which penetrate the base of useable |
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quality water; |
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(2) activities associated with the drilling of |
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cathodic protection holes associated with the cathodic protection |
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of wells and pipelines subject to the jurisdiction of the |
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commission; |
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(3) activities associated with gasoline plants, |
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natural gas or natural gas liquids processing plants, pressure |
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maintenance plants, or repressurizing plants; |
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(4) activities associated with any underground |
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natural gas storage facility, provided the terms "natural gas" and |
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"storage facility" shall have the meanings set out in Section |
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91.173, Natural Resources Code; |
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(5) activities associated with any underground |
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hydrocarbon storage facility, provided the terms "hydrocarbons" |
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and "underground hydrocarbon storage facility" shall have the |
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meanings set out in Section 91.201, Natural Resources Code; and |
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(6) activities associated with the storage, handling, |
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reclamation, gathering, transportation, or distribution of oil or |
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gas prior to the refining of such oil or prior to the use of such gas |
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in any manufacturing process or as a residential or industrial |
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fuel. |
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(b) "Oil and gas waste" includes salt water, brine, sludge, |
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drilling mud, and other liquid, semiliquid, or solid waste |
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material, but does not include waste arising out of or incidental to |
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activities associated with gasoline plants, natural gas or natural |
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gas liquids processing plants, pressure maintenance plants, or |
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repressurizing plants if that waste is a hazardous waste as defined |
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by the administrator of the United States Environmental Protection |
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Agency pursuant to the federal Solid Waste Disposal Act, as amended |
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by the Resource Conservation and Recovery Act, 42 U.S.C. 6901 et |
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seq., as amended. |
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(c) "Oil and gas waste" does not include Recycled Material. |
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For purposes of this Section, "Recycled Material" means a material, |
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good, or product that consists of or includes materials derived |
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from oil and gas waste that has been recycled and/or reclaimed so |
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that it meets the applicable standards for its intended use. |
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Sec. 91.1011. Text of section effective upon delegation of RCRA |
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authority to Railroad Commission of Texas |
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(a) In this subchapter, "oil and gas waste" means waste that |
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arises out of or incidental to the drilling for or producing of oil |
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or gas, including waste arising out of or incidental to: |
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(1) activities associated with the drilling of |
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injection water source wells which penetrate the base of useable |
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quality water; |
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(2) activities associated with the drilling of |
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cathodic protection holes associated with the cathodic protection |
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of wells and pipelines subject to the jurisdiction of the |
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commission; |
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(3) activities associated with gasoline plants, |
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natural gas or natural gas liquids processing plants, pressure |
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maintenance plants, or repressurizing plants; |
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(4) activities associated with any underground |
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natural gas storage facility, provided the terms "natural gas" and |
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"storage facility" shall have the meanings set out in Section |
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91.173, Natural Resources Code; |
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(5) activities associated with any underground |
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hydrocarbon storage facility, provided the terms "hydrocarbons" |
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and "underground hydrocarbon storage facility" shall have the |
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meanings set out in Section 91.201, Natural Resources Code; and |
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(6) activities associated with the storage, handling, |
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reclamation, gathering, transportation, or distribution of oil or |
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gas prior to the refining of such oil or prior to the use of such gas |
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in any manufacturing process or as a residential or industrial |
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fuel. |
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(b) "Oil and gas waste" includes salt water, brine, sludge, |
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drilling mud, and other liquid, semiliquid, or solid waste |
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material. |
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(c) "Oil and gas waste" does not include Recycled Material. |
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For purposes of this Section, "Recycled Material" means a material, |
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good, or product that consists of or includes materials derived |
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from oil and gas waste that has been recycled and/or reclaimed so |
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that it meets the applicable standards for its intended use. |
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SECTION 3. Section 91.109, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 91.109. FINANCIAL SECURITY FOR PERSONS INVOLVED IN |
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ACTIVITIES OTHER THAN OPERATION OF WELLS. (a) A person applying |
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for or acting under a commission permit to store, handle, treat, |
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reclaim, or dispose of oil and gas waste may be required by the |
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commission to maintain a performance bond or other form of |
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financial security conditioned that the permittee will operate and |
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close the storage, handling, treatment, reclamation, or disposal |
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site in accordance with state law, commission rules, and the permit |
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to operate the site. However, this section does not authorize the |
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commission to require a bond or other form of financial security for |
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saltwater disposal pits, emergency saltwater storage pits |
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(including blow-down pits), collecting pits, or skimming pits |
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provided that such pits are used in conjunction with the operation |
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of an individual oil or gas lease. Subject to the refund provisions |
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of Section 91.1091, proceeds from any bond or other form of |
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financial security required by this section shall be placed in the |
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oil and gas regulation and cleanup fund. Each bond or other form of |
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financial security shall be renewed and continued in effect until |
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the conditions have been met or release is authorized by the |
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commission. |
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(b) In addition to the financial security requirements of |
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Subsection (a), a person required to file a bond, letter of credit, |
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or cash deposit under Section 91.103 who is involved in activities |
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other than the ownership or operation of wells must file the bond, |
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letter of credit, or cash deposit at the time of filing or renewing |
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an organization report required by Section 91.142 according to the |
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following schedule: |
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(1) no bond, letter of credit, or cash deposit if the |
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person is a: |
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(A) local distribution company; |
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(B) gas marketer; |
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(C) crude oil nominator; |
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(D) first purchaser; |
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(E) well servicing company; |
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(F) survey company; |
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(G) salt water hauler; |
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(H) gas nominator; |
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(I) gas purchaser; or |
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(J) well plugger; or |
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(2) a bond, letter of credit, or cash deposit in an |
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amount not to exceed $25,000 if the person is involved in an |
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activity that is not associated with the ownership or operation of |
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wells and is not listed in Subdivision (1). |
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(c) A person who engages in more than one activity or |
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operation, including well operation, for which a bond, letter of |
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credit, or cash deposit is required under this subchapter is not |
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required to file a separate bond, letter of credit, or cash deposit |
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for each activity or operation in which the person is engaged. The |
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person is required to file a bond, letter of credit, or cash deposit |
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only in the amount required for the activity or operation in which |
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the person engages for which a bond, letter of credit, or cash |
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deposit in the greatest amount is required. The bond, letter of |
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credit, or cash deposit filed covers all of the activities and |
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operations for which a bond, letter of credit, or cash deposit is |
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required under this subchapter. |
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(d) In calculating the bond requirement for recycling |
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operations, the Commission shall not include the cost or |
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anticipated cost of removal, reclamation, disposal, or remediation |
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of Recycled Material. "Recycled Material" shall have the meaning |
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specified in Section 91.1011(c) of this Chapter. |
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SECTION 4. This Act takes effect September 1, 2013. |