Relating to responsibility in tort for the treatment of fluid oil and gas waste for beneficial use.
Impact
The proposed changes under HB 5410 are significant as they potentially limit tort liability for producers of fluid oil and gas waste. Specifically, producers who supply waste to treatment facilities or take possession of such waste are not held liable for consequences arising from the beneficial use of the treated product. This could encourage the treatment and repurposing of waste, facilitating advancements in waste management practices in the oil and gas sector.
Summary
House Bill 5410 focuses on establishing guidelines regarding the responsibility in tort for the treatment of fluid oil and gas waste intended for beneficial use. It amends existing provisions in the Natural Resources Code to clarify the ownership of such waste when it is transferred for treatment. The bill stipulates that ownership of the waste is retained by the party taking possession for the purpose of treatment until it is transferred again, which establishes a clear chain of custody and responsibility.
Contention
While proponents of the bill argue that it will promote better management of oil and gas waste by incentivizing beneficial use, critics may raise concerns about the implications for environmental safety and accountability. There might be opposition from environmental groups or residents living near treatment facilities, who could argue that reducing liability undermines necessary protections and could lead to negative environmental impacts if treated waste is mishandled.
Texas Constitutional Statutes Affected
Natural Resources Code
Chapter 122. Treatment And Recycling For Beneficial Use Of Fluid Oil And Gas Waste
Relating to the ownership of the pore space underlying the surface of land and to the use of that space for the geologic storage of carbon dioxide; authorizing a fee.