83R10420 SLB-D

By: Burnam H.B. No. 3601

A BILL TO BE ENTITLED

AN ACT

relating to notice to a surface owner regarding certain oil or gas transactions or operations; providing an administrative penalty.

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

SECTION 1. The heading to Subchapter Q, Chapter 91, Natural Resources Code, is amended to read as follows:

SUBCHAPTER Q. NOTICE OF [PERMIT FOR] CERTAIN OIL AND GAS

TRANSACTIONS OR OPERATIONS

SECTION 2. Sections 91.752, 91.753, and 91.754, Natural Resources Code, are amended to read as follows:

Sec. 91.752. APPLICABILITY. The provisions of this subchapter that relate to the drilling or reentry of an oil or gas well apply [This subchapter applies] only to the drilling of a new oil or gas well or the reentry of a plugged and abandoned oil or gas well. This subchapter does not apply to:

(1) the plugging back, reworking, sidetracking, or deepening of an existing oil or gas well that has not been plugged and abandoned; or

(2) the use of a surface location that is the site of an existing oil or gas well that has not been plugged and abandoned to drill a horizontal oil or gas well.

Sec. 91.753. NOTICE REQUIRED. (a) Not later than the 10th day after the date the mineral estate of a tract of land is sold or leased, the purchaser or lessee shall give written notice of the sale or lease to the surface owner of the tract of land.

(b) Not later than the 15th business day after the date the commission issues an oil or gas well operator a permit to drill a new oil or gas well or to reenter a plugged and abandoned oil or gas well, the operator shall give written notice of the issuance of the permit to the surface owner of the tract of land on which the well is located or is proposed to be located.

(c) An oil or gas well operator shall give written notice to the surface owner of a tract of land not later than the 15th day before the date the operator begins conducting the following operations on the tract of land:

(1) seismic tests;

(2) the exploration for or production of oil or gas; or

(3) the construction of access roads or pipelines or other facilities, including well sites or gathering systems.

(d) A notice under Subsection (c)(3) must include the location of the roads or pipelines or other facilities to be constructed.

(e) [(b)] An oil or gas well operator is not required to give notice under Subsection (b) or (c) [this subchapter] to a surface owner if:

(1) the operator and the surface owner have entered into an agreement that contains alternative provisions regarding the operator's obligation to give notice of oil and gas operations; or

(2) the surface owner has waived in writing the owner's right to notice under those subsections [this subchapter].

Sec. 91.754. ADDRESS FOR NOTICE. Notice under this subchapter [The notice] must be given to the surface owner at the surface owner's address as shown by the records of the county tax assessor-collector at the time the notice is given.

SECTION 3. Subchapter Q, Chapter 91, Natural Resources Code, is amended by adding Section 91.756 to read as follows:

Sec. 91.756. ADMINISTRATIVE PENALTY. (a) The commission may impose an administrative penalty in the manner provided by Sections 81.0531-81.0534 on a person who violates this subchapter. The amount of the penalty is equal to $10,000 for each violation.

(b) A penalty collected under this section shall be deposited to the credit of the oil and gas regulation and cleanup fund.

SECTION 4. Section 91.756, Natural Resources Code, as added by this Act, applies only to a violation of Subchapter Q, Chapter 91, Natural Resources Code, that occurs on or after the effective date of this Act. A violation of Subchapter Q, Chapter 91, Natural Resources Code, that occurs before the effective date of this Act is governed by the law in effect on the date the violation occurred, and the former law is continued in effect for that purpose.

SECTION 5. This Act takes effect September 1, 2013.