H.B. No. 49
 
 
 
 
AN ACT
  relating to the treatment and beneficial use of fluid oil and gas
  waste and related material, including a limitation on liability for
  that treatment or use.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 122.003, Natural Resources Code, is
  amended to read as follows:
         Sec. 122.003.  RESPONSIBILITY IN TORT.  (a) Except as
  provided by Subsections [Subsection] (b) and (b-1), a person,
  including an owner of the surface estate of real property, who takes
  possession of fluid oil and gas waste for treatment, produces from
  that waste [a] treated waste [product generally considered in the
  oil and gas industry to be suitable for use in connection with the
  drilling for or production of oil or gas], and either puts the
  treated waste to a beneficial use or transfers the treated waste 
  [product] to another person with the contractual understanding that
  the treated waste [product] will be put to a beneficial use [used in
  connection with the drilling for or production of oil or gas] is not
  liable in tort for a consequence of the subsequent use of that
  treated waste [product] by any [the person to whom the treated
  product is transferred or by another] person.
         (a-1)  Except as provided by Subsections (b) and (b-1), a
  person, including an owner of the surface estate of real property,
  who produces fluid oil and gas waste or who supplies or conveys
  fluid oil and gas waste to a treatment facility for the purpose of
  generating treated waste is not liable in tort for:
               (1)  a consequence of the subsequent treatment of that
  fluid oil and gas waste to generate treated waste;
               (2)  the subsequent use of that treated waste by any
  person; or
               (3)  exposure to any component of the waste or any
  byproduct of the process used to generate treated waste.
         (a-2)  An owner of the surface estate of real property on or
  under which fluid oil and gas waste is produced, conveyed,
  transported, or treated by others is not liable in an action for
  damages for personal injury, death, or property damage arising from
  exposure to fluid oil and gas waste, treated waste, or a byproduct
  of a process used to generate treated waste.
         (b)  This section does not affect the liability of a person
  [that treats fluid oil and gas waste for beneficial use] in an
  action brought by a claimant [person] for damages for personal
  injury, death, or property damage arising from exposure to fluid
  oil and gas waste, treated waste, or a byproduct of a process used
  to generate treated waste if that exposure occurred as a result of
  the person's:
               (1)  gross negligence or intentional, wrongful act or
  omission; or
               (2)  negligence and the person did not treat, generate,
  use, or dispose of the fluid oil and gas waste, treated waste, or
  byproduct in conformity with:
                     (A)  rules adopted under Section 122.004;
                     (B)  a Texas Pollutant Discharge Elimination
  System program permit issued by the Texas Commission on
  Environmental Quality under Section 26.027 or 26.131, Water Code;
  or
                     (C)  a permit issued by the commission for the
  hauling or handling of fluid oil and gas waste, treated waste, or
  byproduct [product].
         (b-1)  This section does not affect the liability under
  common, statutory, regulatory, or other law of a producer or
  subsequent transferee of fluid oil and gas waste to the owner of the
  surface estate of real property, and any owner of an interest in the
  surface estate of real property, on or under which fluid oil and gas
  waste is produced, transported, or treated.
         (c)  A claimant awarded damages for a tort premised solely on
  the person's negligence and regulatory nonconformity under
  Subsection (b)(2) may not be awarded exemplary damages.
         SECTION 2.  Section 122.004(a), Natural Resources Code, is
  amended to read as follows:
         (a)  The commission shall adopt rules to govern the treatment
  and beneficial use of fluid oil and gas waste, treated waste, and
  any byproduct of a process used to generate treated waste.
         SECTION 3.  Chapter 122, Natural Resources Code, as amended
  by this Act, applies only to a cause of action that accrues on or
  after the effective date of this Act.  A cause of action that
  accrues before the effective date of this Act is governed by the law
  as it existed immediately before the effective date of this Act, and
  that law is continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2025.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 49 was passed by the House on May 10,
  2025, by the following vote:  Yeas 109, Nays 21, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 49 was passed by the Senate on May 25,
  2025, by the following vote:  Yeas 29, Nays 2.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor