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A BILL TO BE ENTITLED
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AN ACT
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relating to the treatment and beneficial use of fluid oil and gas |
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waste and related material, including a limitation on liability for |
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that treatment or use. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 122.003, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 122.003. RESPONSIBILITY IN TORT. (a) Except as |
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provided by Subsection (b), a person who takes possession of fluid |
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oil and gas waste for treatment, produces from that waste [a] |
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treated waste [product generally considered in the oil and gas |
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industry to be suitable for use in connection with the drilling for |
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or production of oil or gas], and either puts the treated waste to a |
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beneficial use or transfers the treated waste [product] to another |
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person with the contractual understanding that the treated waste |
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[product] will be put to a beneficial use [used in connection with |
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the drilling for or production of oil or gas] is not liable in tort |
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for a consequence of the subsequent use of that treated waste |
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[product] by any [the person to whom the treated product is |
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transferred or by another] person. |
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(a-1) Except as provided by Subsection (b), a person, |
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including an owner of the surface estate of real property, who |
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produces fluid oil and gas waste or who supplies or conveys fluid |
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oil and gas waste to a treatment facility for the purpose of |
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generating treated waste is not liable in tort for: |
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(1) a consequence of the subsequent treatment of that |
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fluid oil and gas waste to generate treated waste; |
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(2) the subsequent use of that treated waste by any |
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person; or |
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(3) exposure to any component of the waste or any |
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byproduct of the process used to generate treated waste. |
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(a-2) Except as provided by Subsection (b), an owner of the |
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surface estate of real property on or under which fluid oil and gas |
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waste is produced, conveyed, or transported is not liable in an |
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action for damages for personal injury, death, or property damage |
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arising from exposure to fluid oil and gas waste, treated waste, or |
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a byproduct of a process used to generate treated waste. |
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(b) This section does not affect the liability of a person |
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[that treats fluid oil and gas waste for beneficial use] in an |
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action brought by a claimant [person] for damages for personal |
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injury, death, or property damage arising from exposure to fluid |
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oil and gas waste, treated waste, or a byproduct of a process used |
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to generate treated waste if that exposure occurred as a result of |
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the person's: |
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(1) gross negligence or intentional, wrongful act or |
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omission; or |
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(2) negligence and the person did not treat, generate, |
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use, or dispose of the fluid oil and gas waste, treated waste, or |
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byproduct in conformity with: |
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(A) rules adopted under Section 122.004; or |
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(B) a Texas Pollutant Discharge Elimination |
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System program permit issued by the Texas Commission on |
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Environmental Quality under Section 26.027 or 26.131, Water Code |
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[product]. |
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(c) A claimant awarded damages for a tort premised solely on |
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the person's negligence and regulatory nonconformity under |
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Subsection (b)(2) may not be awarded exemplary damages. |
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SECTION 2. Section 122.004(a), Natural Resources Code, is |
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amended to read as follows: |
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(a) The commission shall adopt rules to govern the treatment |
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and beneficial use of fluid oil and gas waste, treated waste, and |
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any byproduct of a process used to generate treated waste. |
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SECTION 3. Chapter 122, Natural Resources Code, as amended |
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by this Act, applies only to a cause of action that accrues on or |
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after the effective date of this Act. A cause of action that |
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accrues before the effective date of this Act is governed by the law |
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as it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2025. |