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AN ACT
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relating to the exclusive jurisdiction of this state to regulate |
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oil and gas operations in this state and the express preemption of |
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local regulation of those operations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The legislature finds that the laws and policy of |
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this state have fostered successful development of oil and gas |
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resources in concert with the growth of healthy and economically |
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vibrant communities for over 100 years. The legislature |
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acknowledges this cooperative progress and that mutual benefit is |
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derived from the statutes already in effect, which provide |
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effective and environmentally sound regulation of oil and gas |
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operations that is so comprehensive and pervasive that the |
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regulation occupies the field, while facilitating the overriding |
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policy objective of this state of fully and effectively exploiting |
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oil and gas resources while protecting the environment and the |
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public's health and safety. The legislature recognizes that in |
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order to continue this prosperity and the efficient management of a |
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key industry in this state, it is in the interest of this state to |
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explicitly confirm the authority to regulate oil and gas operations |
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in this state. The legislature intends that this Act expressly |
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preempt the regulation of oil and gas operations by municipalities |
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and other political subdivisions, which is impliedly preempted by |
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the statutes already in effect. |
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SECTION 2. Subchapter C, Chapter 81, Natural Resources |
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Code, is amended by adding Section 81.0523 to read as follows: |
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Sec. 81.0523. EXCLUSIVE JURISDICTION AND EXPRESS |
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PREEMPTION. (a) In this section: |
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(1) "Commercially reasonable" means a condition that |
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would allow a reasonably prudent operator to fully, effectively, |
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and economically exploit, develop, produce, process, and transport |
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oil and gas, as determined based on the objective standard of a |
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reasonably prudent operator and not on an individualized assessment |
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of an actual operator's capacity to act. |
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(2) "Oil and gas operation" means an activity |
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associated with the exploration, development, production, |
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processing, and transportation of oil and gas, including drilling, |
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hydraulic fracture stimulation, completion, maintenance, |
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reworking, recompletion, disposal, plugging and abandonment, |
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secondary and tertiary recovery, and remediation activities. |
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(b) An oil and gas operation is subject to the exclusive |
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jurisdiction of this state. Except as provided by Subsection (c), a |
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municipality or other political subdivision may not enact or |
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enforce an ordinance or other measure, or an amendment or revision |
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of an ordinance or other measure, that bans, limits, or otherwise |
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regulates an oil and gas operation within the boundaries or |
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extraterritorial jurisdiction of the municipality or political |
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subdivision. |
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(c) The authority of a municipality or other political |
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subdivision to regulate an oil and gas operation is expressly |
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preempted, except that a municipality may enact, amend, or enforce |
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an ordinance or other measure that: |
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(1) regulates only aboveground activity related to an |
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oil and gas operation that occurs at or above the surface of the |
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ground, including a regulation governing fire and emergency |
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response, traffic, lights, or noise, or imposing notice or |
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reasonable setback requirements; |
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(2) is commercially reasonable; |
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(3) does not effectively prohibit an oil and gas |
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operation conducted by a reasonably prudent operator; and |
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(4) is not otherwise preempted by state or federal |
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law. |
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(d) An ordinance or other measure is considered prima facie |
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to be commercially reasonable if the ordinance or other measure has |
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been in effect for at least five years and has allowed the oil and |
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gas operations at issue to continue during that period. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |
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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. 40 was passed by the House on April |
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20, 2015, by the following vote: Yeas 125, Nays 20, 1 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. 40 was passed by the Senate on May 4, |
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2015, by the following vote: Yeas 24, Nays 7. |
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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 |