BILL ANALYSIS

Senate Research Center	H.B. 4426
	By: Darby (Zaffirini)
	Natural Resources
	5/19/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Commercial surface disposal facilities are essential to managing oil and gas waste in Texas, handling both solid and fluid waste from oil and gas operations through methods like land application. While the Railroad Commission of Texas (RRC) is responsible for permitting and regulating these facilities, current law does not clearly establish a permit term limit, leading to inconsistences in permit durations. This can result in unnecessary renewals for facilities that are operating in compliance, placing a strain on both state and industry resources.

H.B. 4426 allows RRC to consider an applicant's compliance history, based on inspections, reports, and other documentation, when determining the length of a new, amended, or renewal permit. It also requires that renewal applications be submitted at least 120 days before the permit expires and applies only to permits issued, amended, or renewed on or after the bill's effective date.

H.B. 4426 amends current law relating to permits issued by the Railroad Commission of Texas for� commercial surface disposal facilities.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter D, Chapter 91, Natural Resources Code, by adding Section 91.118, as follows:

Sec. 91.118. TERM AND RENEWAL OF COMMERCIAL SURFACE DISPOSAL FACILITY PERMIT. (a) Defines "commercial surface disposal facility."

(b) Provides that, unless otherwise provided by law, a permit for a commercial surface disposal facility is valid for a term of not more than 10 years and carries with it the right to apply for successive renewal on expiration for areas within the boundaries of the existing permit.

(c) Authorizes the Railroad Commission of Texas (RRC), on determining the proper term of a new permit for a commercial surface disposal facility, to consider the applicant's history of compliance with RRC rules and permits issued by RRC for similar waste management facilities based on previous inspections, quarterly reports, and other relevant evidence documented by RRC.

(d) Authorizes RRC, in determining the proper term of an amended or renewal permit for a commercial surface disposal facility, to consider the applicant's history of compliance with RRC rules and permits issued by RRC for the subject facility or similar waste management facilities based on previous inspections, quarterly reports, and other relevant evidence documented by RRC.

(e) Requires that an application for renewal of a permit be made not later than the 120th day before the date the existing permit expires.

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 2025.