89R23131 JAM-F

By: King H.B. No. 3334

Substitute the following for H.B. No. 3334:

By: Darby C.S.H.B. No. 3334

A BILL TO BE ENTITLED

AN ACT

relating to wildfire prevention, mitigation, and response at certain wells under the jurisdiction of the Railroad Commission of Texas; authorizing an administrative penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The Natural Resources Code is amended by adding Title 13 to read as follows:

TITLE 13. WILDFIRE PREVENTION, MITIGATION, AND RESPONSE

CHAPTER 231. OIL AND GAS FACILITIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 231.001. DEFINITIONS. In this chapter:

(1) "Commission" means the Railroad Commission of Texas.

(2) "Operator" means a person who assumes responsibility for the physical operation and control of a well as shown by a form the person files with the commission and the commission approves.

(3) "Well" means a hole drilled for the purpose of:

(A) producing oil or gas;

(B) injecting fluid or gas into the ground in connection with the exploration for or production of oil or gas; or

(C) obtaining geological information by taking cores or through seismic operations.

SUBCHAPTER B. WILDFIRE SAFETY INSPECTIONS OF WELLS

Sec. 231.051. INSPECTION AND CERTIFICATION REQUIRED BEFORE TRANSFER OF WELL. (a) This section applies only to a well that has been the subject of a formal complaint filed with the commission.

(b) At least 60 but not more than 150 days before the date ownership of a well or oil or gas lease on which a well is located may be transferred from one operator to another, a bonded and state-certified third-party inspector must inspect the well, well site, and related facilities to determine compliance with state laws and regulations pertaining to susceptibility to wildfires.

(c) Not later than the 30th day after the date of conducting an inspection under Subsection (b), a third-party inspector shall provide to the commission and the operator of any well or related facility inspected a written report of the results of the inspection. The inspector's report shall document any safety issue, violation, or fire risk identified during the inspection.

(d) Not later than the 30th day after the date an operator receives a report under Subsection (c), the operator shall confer with the commission and take any remedial action necessary to address a violation, safety issue, or fire risk identified in the report.

(e) On completion of all remedial actions required by the commission under Subsection (d), the third-party inspector shall:

(1) conduct a follow-up inspection to confirm that there are no remaining violations; and

(2) provide to the commission and the operator a report of the follow-up inspection.

(f) On receipt of a report issued under Subsection (e)(2) documenting that a well, well site, and associated facilities are compliant with state laws and regulations pertaining to susceptibility to wildfires, an operator may submit to the commission a certification affirming that the well is in compliance with all such state laws and regulations.

(g) The commission may not approve a proposed transfer subject to this section until the commission receives a certification under Subsection (f).

SUBCHAPTER C. INACTIVE WELLS: COMMISSION POWERS AND DUTIES;

SURFACE OWNER LIABILITY

Sec. 231.101. COMMISSION CONTROL OF WELLS OR FACILITIES WITH NO LOCATABLE OWNER OR OPERATOR. For any well and related facilities for which there is no locatable owner or operator or for which the owner or operator is not responsive, the commission shall:

(1) assume control of and responsibility for the well and related facilities; and

(2) ensure that the well and related facilities are compliant with applicable state laws and regulations pertaining to susceptibility to wildfires.

Sec. 231.102. TERMINATION OF ELECTRIC SERVICE FOR ORPHANED, INACTIVE, OR NONCOMPLIANT WELL OR FACILITY. (a) At the time the commission determines a well or related facility to be orphaned, inactive, or not in compliance with state laws and regulations pertaining to susceptibility to wildfires, the commission, in consultation with the Public Utility Commission of Texas, shall direct the electric utility or other entity that provides electric service for the well or related facility to terminate electric service for the well or related facility at the point of origin.

(b) Electric service that is terminated under this section may not be reinstated until:

(1) an approved operator assumes ownership of the well or related facility;

(2) the site of the well or related facility is confirmed by the commission to be in compliance with all applicable state laws and regulations pertaining to susceptibility to wildfires; and

(3) the electric utility or other entity receives written notice from the commission and the Public Utility Commission of Texas that the service may be reinstated.

Sec. 231.103. SURFACE OWNER LIABILITY. (a) A surface owner affected by a well or related facility that is orphaned, inactive, or not in compliance with state laws and regulations pertaining to susceptibility to wildfires is not liable for an action taken by the owner to ensure the safety of the owner's property:

(1) if the operator of the well or related facility has been unresponsive;

(2) if the owner has received notice of noncompliance from the commission under Section 231.151(a)(2); or

(3) in the event of an emergency, including the imminent threat of wildfire.

(b) A surface owner may seek reimbursement from the operator of a well or related facility located on the owner's land for any action taken by the owner to ensure the safety of the owner's property.

SUBCHAPTER D. ENFORCEMENT AND PENALTIES

Sec. 231.151. REVOCATION OF OPERATING PERMIT; NOTICE TO SURFACE OWNER. (a) If an operator fails to have an inspection conducted under Section 231.051(b) or fails to take any required remedial action under Section 231.051(d), the commission shall:

(1) suspend or revoke the permit to operate the well or related facility for which a report was not submitted or remedial action was not taken; and

(2) send to the owner of the surface of the tract of land on which the well or related facility is located notice that the operator of the well or related facility is not in compliance with this chapter.

(b) A suspension or revocation issued under this section remains in effect until the operator comes into compliance with this chapter.

Sec. 231.152. ADMINISTRATIVE PENALTY. (a) The commission may impose an administrative penalty on a person who violates this chapter or a rule adopted or order issued under this chapter.

(b) The amount of the penalty may not exceed $5,000 for each violation. Each day a violation continues or occurs is a separate violation for the purpose of imposing a penalty. The amount of the penalty shall be based on:

(1) the seriousness of the violation, including the nature, circumstances, extent, and gravity of the violation;

(2) the economic harm to property or the environment caused by the violation;

(3) the history of previous violations;

(4) the amount necessary to deter a future violation;

(5) efforts to correct the violation; and

(6) any other matter that justice may require.

(c) The enforcement of the penalty may be stayed during the time the order is under judicial review if the person pays the penalty to the clerk of the court or files a supersedeas bond with the court in the amount of the penalty. A person who cannot afford to pay the penalty or file the bond may stay the enforcement by filing an affidavit in the manner required by the Texas Rules of Civil Procedure for a party who cannot afford to file security for costs, subject to the right of the commission to contest the affidavit as provided by those rules.

(d) The attorney general may sue to collect the penalty.

(e) A proceeding to impose the penalty is considered to be a contested case under Chapter 2001, Government Code.

SECTION 2. As soon as practicable after the effective date of this Act, the Railroad Commission of Texas shall adopt rules necessary to implement the changes in law made by this Act.

SECTION 3. This Act takes effect September 1, 2025.