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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, "commercial disposal facility" has the |
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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 commercial disposal facility shall maintain a |
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performance bond or other form of financial security conditioned |
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that the permittee will operate and close the facility in |
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accordance with state law, commission rules, and the permit to |
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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, other than a permit to operate a commercial disposal |
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facility, may be required by the commission to maintain a |
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performance bond or other form of financial security conditioned |
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that the permittee will operate and close the storage, handling, |
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treatment, reclamation, or disposal site in accordance with state |
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law, commission rules, and the permit to operate the site. However, |
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this section does not authorize the commission to require a bond or |
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other form of financial security for saltwater disposal pits, |
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emergency saltwater storage pits (including blow-down pits), |
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collecting pits, or skimming pits provided that such pits are used |
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in 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 COMMERCIAL [SURFACE] DISPOSAL |
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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, "commercial [surface] disposal |
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facility" means a facility whose primary business purpose is to |
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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 injection of drill cuttings, drilling mud, or |
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other solid or semi-solid oil using a Commercial oil and gas waste |
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stationary treatment facilities. |
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(b) A person who files an application for a permit for a |
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commercial [surface] disposal facility shall publish notice of the |
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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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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, "commercial [surface] disposal |
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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 commercial [surface] |
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disposal facility if the commission determines a public meeting is |
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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 COMMERCIAL DISPOSAL FACILITY PERMITS. (a) In this |
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section, "commercial disposal facility" has the meaning assigned by |
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Section 91.116. |
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(b) The commission may not approve an application for a |
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permit for a commercial disposal facility unless the person |
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applying for the permit demonstrates the necessity for an |
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additional commercial disposal facility in the primary market area, |
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as established by the commission, in which the facility will be |
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located. |
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(c) To demonstrate the necessity for an additional |
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commercial disposal facility, the applicant must include with the |
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applicant's permit application for the commercial disposal |
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facility: |
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(1) a map and list of all permitted commercial |
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disposal facilities located within a 30-mile radius of the location |
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of the site for which the applicant is 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 may 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 commercial disposal facility. |
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Sec. 91.119. APPLICATION FEE FOR CERTAIN COMMERCIAL |
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DISPOSAL FACILITIES. (a) In this section, "commercial disposal |
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facility" has the meaning assigned by Section 91.116. |
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(b) With each application for a commercial disposal |
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facility permit, the applicant shall submit to the commission a |
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nonrefundable fee of $100,000. |
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(c) The application fee under Subsection (b) is not |
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applicable to commercial disposal facility permit holders seeking |
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the renewal or modification of a permit in effect before September |
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1, 2025. |
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SECTION 7. Section 27.073(a), Water Code, is amended to |
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read as follows: |
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(a) A person to whom an injection well permit is issued, |
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other than a permit for a well subject to Section 91.109(a-1), |
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Natural Resources Code, may be required by the commission or |
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railroad commission to maintain a performance bond or other form of |
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financial security to ensure that: |
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(1) an abandoned injection well is properly plugged; |
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or |
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(2) funds are available for plugging, postinjection |
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site care, and closure of an anthropogenic carbon dioxide injection |
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well subject to Subchapter C-1. |
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SECTION 8. This Act takes effect September 1, 2025. |