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A BILL TO BE ENTITLED
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AN ACT
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relating to the treatment, recycling for beneficial use, or |
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disposal of drill cuttings. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 123.001(2) and (3), Natural Resources |
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Code, are amended to read as follows: |
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(2) "Drill cuttings" means bits of rock or soil cut |
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from a subsurface formation by a drill bit during the process of |
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drilling an oil or gas well and lifted to the surface by means of the |
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circulation of drilling mud. The term includes any associated |
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sand, silt, drilling fluid, spent completion fluid, workover fluid, |
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debris, water, brine, oil scum, paraffin, or other material cleaned |
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out of the wellbore. |
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(3) "Permit holder" means a person who holds a permit |
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from the commission to operate a stationary commercial solid oil |
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and gas waste recycling facility or a commercial oil and gas waste |
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disposal facility. |
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SECTION 2. Section 123.003, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 123.003. RESPONSIBILITY IN TORT. Unless otherwise |
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provided by a contract or other written agreement, a [A] person who |
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generates drill cuttings and transfers the drill cuttings in an |
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arm's length transaction to an unaffiliated third-party [a] permit |
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holder under a contract that requires [with the contractual |
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understanding] that the drill cuttings [will] be used in connection |
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with road building or another beneficial use or disposed of is not |
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liable in tort for a consequence of the subsequent use or disposal |
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of the drill cuttings by the permit holder or by another person if: |
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(1) the person who generates the drill cuttings has |
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the legal and contractual right to transfer the drill cuttings to |
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the permit holder; |
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(2) the method and location of the use or disposal are |
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not prohibited by law, contract, or other written agreement; and |
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(3) the consequence was caused solely by the permit |
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holder. |
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SECTION 3. The change in law made by this Act applies only |
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to a cause of action that accrues on or after the effective date of |
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this Act. A cause of action that accrues before the effective date |
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of this Act is governed by the law in effect immediately before that |
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date, and that law is continued in effect for that purpose. |
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SECTION 4. 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, 2023. |