BILL ANALYSIS

C.S.S.B. 1759

By: Birdwell

Energy Resources

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill sponsor has informed the committee that the state is a national leader in oil and gas production and that while the state benefits economically from this production, it also faces operational risks from underground injection wells used to dispose of oil and gas wastewater, which in some cases can re-emerge through old or abandoned wells and pose environmental hazards that require rapid response and cleanup efforts. The bill sponsor has also informed the committee that in many of these cases, nearby oil and gas companies with relevant infrastructure and expertise may be in a position to help with plugging wells or managing surface impacts, but that due to concerns over legal liability, especially when the incident occurs on land they do not own, these companies are hesitant to provide the assistance, which can delay response efforts or limit the resources available to the Railroad Commission of Texas (RRC) during an emergency. C.S.S.B. 1759 seeks to address this issue by providing for the declaration of an oil or gas emergency by the RRC executive director and for certain immunity from civil liability with regard to assistance provided in such an emergency in order to introduce a "Good Samaritan" provision into state oil and gas law and remove a key barrier to industry cooperation.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.S.B. 1759 amends the Natural Resources Code to authorize the executive director of the Railroad Commission of Texas (RRC) by proclamation to declare an oil or gas emergency if the executive director finds that such an emergency has occurred. The bill defines "oil or gas emergency" as an emergency related to an oil and gas operation, defined by reference to provisions making such an operation subject to the exclusive jurisdiction of the state, including the uncontrolled release of oil, gas, or produced water from an oil or gas well or other type of well regulated by the RRC. The bill requires the proclamation to be in writing, to be authorized by the executive director, and to include a description of the nature of the emergency and a designation of the area threatened by the emergency.

C.S.S.B. 1759 prohibits an oil or gas emergency proclamation from continuing for more than 30 days unless renewed as follows:

· the executive director may renew a proclamation in the same manner as the executive director is authorized to issue the proclamation for an additional 30 days; and

· if the RRC determines that the emergency is likely to continue beyond the 60th day after the date the emergency was declared, the RRC may renew the proclamation for additional 60-day periods as necessary for public health and safety until the emergency no longer exists.

The bill authorizes the RRC, if it determines that an oil or gas emergency no longer exists, to terminate the proclamation or allow the proclamation to expire.

C.S.S.B. 1759 grants a person, except in the case of gross negligence, recklessness, or intentional misconduct, immunity from civil liability for an act or omission that occurs in giving assistance, advice, or resources, including the use of the person's assets, employees, or contractors, with respect to the response to an oil or gas emergency that is declared under the bill's provisions and in which the assistance, advice, or resources are provided at the request of an authorized representative of a state, local, or federal agency. The bill establishes that these immunities are in addition to any other immunity or limitations of liability provided by law.

C.S.S.B. 1759 does not apply to a cause of action that accrued before the bill's effective date.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF SENATE ENGROSSED AND SUBSTITUTE

While C.S.S.B. 1759 may differ from the engrossed in minor or nonsubstantive ways, the following summarizes the substantial differences between the engrossed and committee substitute versions of the bill.

Whereas the engrossed required an oil and gas emergency proclamation to be signed by the RRC executive director, the substitute instead requires the proclamation to be authorized by the executive director.