86R22947 JXC-F
 
  By: Darby, Geren, Larson H.B. No. 3246
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the treatment and recycling for beneficial use of
  certain waste arising out of or incidental to the drilling for or
  production of oil or gas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 122.002, Natural Resources Code, is
  amended to read as follows:
         Sec. 122.002.  OWNERSHIP OF FLUID OIL AND GAS WASTE
  TRANSFERRED FOR TREATMENT AND SUBSEQUENT BENEFICIAL USE. Unless
  otherwise expressly provided by an oil or gas lease, a surface use
  agreement, a contract, a bill of sale, or another [other] legally
  binding document:
               (1)  when fluid oil and gas waste is produced and used
  by or transferred to a person who takes possession of that waste for
  the purpose of treating the waste for a subsequent beneficial use,
  the waste [transferred material] is considered to be the property
  of the person who takes possession of it for the purpose of treating
  the waste for subsequent beneficial use until the person transfers
  the waste or treated waste to another person for disposal or use;
  and
               (2)  when a person who takes possession of fluid oil and
  gas waste for the purpose of treating the waste for a subsequent
  beneficial use transfers possession of the treated product or any
  treatment byproduct to another person for the purpose of subsequent
  disposal or beneficial use, the transferred product or byproduct is
  considered to be the property of the person to whom the material is
  transferred.
         SECTION 2.  This Act takes effect September 1, 2019.