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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation by the Railroad Commission of Texas of |
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certain commercial facilities that dispose of oil and gas waste; |
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imposing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 91.109, Natural Resources Code, is |
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amended by amending Subsections (a) and (b) and adding Subsections |
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(a-1), (a-2), and (a-3) to read as follows: |
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(a) In this section, "stationary commercial surface |
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disposal facility" has the meaning assigned by Section 91.116. |
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(a-1) A person applying for or acting under a commission |
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permit to operate a stationary commercial surface disposal facility |
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for oil and gas waste shall maintain a performance bond or other |
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form of financial security conditioned that the permittee will |
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operate and close the facility in accordance with state law, |
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commission rules, and the permit to operate the facility. |
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(a-2) A person applying for or acting under a commission |
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permit to store, handle, treat, reclaim, or dispose of oil and gas |
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waste may be required by the commission to maintain a performance |
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bond or other form of financial security conditioned that the |
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permittee will operate and close the storage, handling, treatment, |
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reclamation, or disposal site in accordance with state law, |
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commission rules, and the permit to operate the site. However, this |
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section does not authorize the commission to require a bond or other |
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form of financial security for saltwater disposal pits, emergency |
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saltwater storage pits (including blow-down pits), collecting |
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pits, or skimming pits provided that such pits are used in |
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conjunction with the operation of an individual oil or gas lease. |
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(a-3) Subject to the refund provisions of Section 91.1091, |
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proceeds from any bond or other form of financial security required |
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by this section shall be placed in the oil and gas regulation and |
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cleanup fund. Each bond or other form of financial security shall |
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be renewed and continued in effect until the conditions have been |
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met or release is authorized by the commission. |
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(b) In addition to the financial security requirements of |
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Subsections (a-1) and (a-2) [Subsection (a)], a person required to |
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file a bond, letter of credit, or cash deposit under Section 91.103 |
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who is involved in activities other than the ownership or operation |
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of wells must file the bond, letter of credit, or cash deposit at |
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the time of filing or renewing an organization report required by |
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Section 91.142 according to the following schedule: |
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(1) no bond, letter of credit, or cash deposit if the |
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person is a: |
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(A) local distribution company; |
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(B) gas marketer; |
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(C) crude oil nominator; |
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(D) first purchaser; |
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(E) well servicing company; |
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(F) survey company; |
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(G) salt water hauler; |
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(H) gas nominator; |
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(I) gas purchaser; or |
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(J) well plugger; or |
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(2) a bond, letter of credit, or cash deposit in an |
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amount not to exceed $25,000 if the person is involved in an |
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activity that is not associated with the ownership or operation of |
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wells and is not listed in Subdivision (1). |
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SECTION 2. The heading to Section 91.116, Natural Resources |
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Code, is amended to read as follows: |
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Sec. 91.116. NOTICE OF STATIONARY COMMERCIAL SURFACE |
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DISPOSAL FACILITY PERMIT APPLICATION. |
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SECTION 3. Sections 91.116(a) and (b), Natural Resources |
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Code, are amended to read as follows: |
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(a) In this section, "stationary commercial surface |
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disposal facility" means a facility whose primary business purpose |
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is to provide, for compensation: |
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(1)[,] surface disposal of oil field fluids or oil and |
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gas wastes, including land application for treatment and disposal; |
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or |
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(2) the surface disposal of drill cuttings, drilling |
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mud, or other solid or semi-solid oil using a stationary commercial |
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oil and gas treatment facility. |
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(b) A person who files an application for a permit for a |
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stationary commercial surface disposal facility shall publish |
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notice of the application in accordance with this section. |
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SECTION 4. The heading to Section 91.117, Natural Resources |
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Code, is amended to read as follows: |
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Sec. 91.117. PUBLIC INFORMATION HEARING ON APPLICATION FOR |
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STATIONARY COMMERCIAL SURFACE DISPOSAL FACILITY PERMIT. |
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SECTION 5. Sections 91.117(a) and (b), Natural Resources |
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Code, are amended to read as follows: |
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(a) In this section, "stationary commercial surface |
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disposal facility" has the meaning assigned by Section 91.116. |
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(b) The commission may hold a public meeting to receive |
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public comment on an application for a stationary commercial |
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surface disposal facility if the commission determines a public |
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meeting is in the public interest. |
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SECTION 6. Subchapter D, Chapter 91, Natural Resources |
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Code, is amended by adding Sections 91.118 and 91.119 to read as |
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follows: |
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Sec. 91.118. DEMONSTRATION OF NECESSITY REQUIRED FOR |
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CERTAIN STATIONARY COMMERCIAL SURFACE DISPOSAL FACILITY PERMITS. |
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(a) In this section, "stationary commercial surface disposal |
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facility" has the meaning assigned by Section 91.116. |
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(b) The commission may not approve an application for a |
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permit for a stationary commercial surface disposal facility unless |
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the person applying for the permit demonstrates the necessity for |
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an additional stationary commercial surface disposal facility in |
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the primary market area, as established by the commission, in which |
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the facility will be located. |
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(c) To demonstrate the necessity for an additional |
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stationary commercial surface disposal facility, the applicant |
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must include with the applicant's permit application for the |
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stationary commercial surface disposal facility: |
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(1) a map and list of all permitted stationary |
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commercial surface disposal facilities located within a 30-mile |
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radius of the location of the site for which the applicant is |
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applying for the permit; and |
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(2) the number of oil and gas wells located within a |
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30-mile radius of the location of the site for which the applicant |
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is applying for a permit in the year preceding the date on which the |
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applicant submitted the application for the permit. |
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(d) In addition to the information required under |
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Subsection (c), the applicant shall submit to the commission other |
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relevant economic, environmental, and feasibility information to |
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demonstrate the necessity of the stationary commercial surface |
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disposal facility. |
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Sec. 91.119. APPLICATION FEE FOR CERTAIN STATIONARY |
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COMMERCIAL SURFACE DISPOSAL FACILITIES. (a) In this section, |
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"stationary commercial surface disposal facility" has the meaning |
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assigned by Section 91.116. |
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(b) With each application for a stationary commercial |
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surface disposal facility permit, the applicant shall submit to the |
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commission a nonrefundable fee of $100,000. |
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(c) The application fee under Subsection (b) is not |
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applicable to stationary commercial surface disposal facility |
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permit holders seeking the renewal or modification of a permit in |
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effect before September 1, 2025. |
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SECTION 7. This Act takes effect September 1, 2025. |