81R10283 TRH-F
By: Crownover H.B. No. 2356
A BILL TO BE ENTITLED
AN ACT
relating to the filing with the state of well logs by operators of
oil-related or gas-related wells; providing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter M, Chapter 91, Natural
Resources Code, is amended to read as follows:
SUBCHAPTER M. WELL [ELECTRIC] LOGS
SECTION 2. Section 91.551(a), Natural Resources Code, is
amended by amending Subdivisions (1) and (2) and adding Subdivision
(5) to read as follows:
(1) "Well" means a well drilled for any purpose
related to exploration for or production or storage of oil or gas or
both oil and gas, including a well drilled for injection of fluids
to enhance hydrocarbon recovery, disposal of produced fluids,
disposal of waste from exploration or production activity, or brine
mining. The term includes a well that is completed as a dry hole.
(2) "Well [Electric] log" means a wireline-conveyed or
drill pipe-conveyed survey recorded in an open borehole using
electric or radioactive technologies for the purpose of obtaining
geological or geophysical information or other information
regarding the properties of a reservoir or of the rocks penetrated
by the well. The term includes a:
(A) spontaneous potential log;
(B) induction log;
(C) laterolog;
(D) density log;
(E) gamma ray log;
(F) neutron log; or
(G) mud log [wireline survey, except dipmeter
surveys and seismic wireline surveys, run in an open hole or a cased
hole of a well for purposes of obtaining geological information].
(5) "Mud log" means a graphical representation
generated while drilling a well of:
(A) the rate of penetration of the well;
(B) the lithology, hydrocarbon content, or other
properties of the rocks penetrated by the well; or
(C) other properties of the drilling of the well
or of the mud used in the drilling of the well.
SECTION 3. Section 91.552, Natural Resources Code, is
amended to read as follows:
Sec. 91.552. WELL [ELECTRIC] LOGS REQUIRED TO BE FILED;
CRITERIA. (a) Except as otherwise provided by this subchapter,
not later than the 60th [90th] day after the date a drilling
operation is completed, the operator shall file with the commission
a copy of each well log, including each borehole section of the log,
[a basic electric log] run after January 1, 2009 [September 1,
1985], in conjunction with the drilling or deepening of the well
that meets basic criteria established by the commission.
(b) The commission by rule shall establish criteria for well
[basic electric] logs to be filed with the commission.
SECTION 4. The heading to Section 91.553, Natural Resources
Code, is amended to read as follows:
Sec. 91.553. AVAILABILITY OF WELL [ELECTRIC] LOGS.
SECTION 5. Sections 91.553(a), (b), (c), (e), and (f),
Natural Resources Code, are amended to read as follows:
(a) Except as specifically provided by this section, each
well [electric] log filed with the commission under this subchapter
is not confidential and is public information under Chapter 552,
Government Code.
(b) Not later than the date by which a well [an electric] log
is required to be filed with the commission under Section 91.552,
the operator may file a written request with the commission asking
that the well [electric] log remain confidential and not be made
available as public information. On filing this request, the well
[electric] log or copy of the well [electric] log required to be
filed with the commission may be retained by the operator, and the
well [electric] log may remain in the possession of the operator for
the period of confidentiality and any extension [extensions] of
that period. On filing of the request for confidentiality, the
well [electric] log becomes confidential and remains confidential
for a period of six months [one year] after the date that the
drilling operation was completed.
(c) If a well [an electric] log is made confidential under
Subsection (b), the operator is entitled to have the period of
confidentiality extended once for an additional period of six
months [two years]. The commission shall grant the six-month
[two-year] extension on written request of the operator. The
written request must be made to the commission before the six-month
[one-year] period of confidentiality under Subsection (b) expires.
(e) An operator required to file a well [an electric] log
under this section who has held the log during a period of
confidentiality or any extension [extensions] of that period shall
file the log with the commission within 30 days after the conclusion
of the period of confidentiality or the period of the [last]
extension.
(f) An operator who fails to timely file with the commission
a written request under Subsection (b) that a well [an electric] log
remain confidential and not be made available as public information
or a written request under Subsection (c) [or (d)] for an extension
of the period of confidentiality shall file the log with the
commission immediately after the conclusion of the period for
filing the request.
SECTION 6. Section 91.554, Natural Resources Code, is
amended to read as follows:
Sec. 91.554. AVAILABILITY OF CONFIDENTIAL WELL [ELECTRIC]
LOGS. If the commission requires a well [an electric] log to be
filed before the expiration of a period of confidentiality, the
commission shall make that well [electric] log available for
inspection during the period of confidentiality only to:
(1) a person authorized in writing by the operator;
and
(2) members of the commission and its employees in the
exercise of their powers and duties under this code.
SECTION 7. Section 91.555, Natural Resources Code, is
amended to read as follows:
Sec. 91.555. MANAGEMENT AND STORAGE OF WELL [ELECTRIC]
LOGS. The commission may contract with any person for the
management and storage of the well [electric] logs filed with the
commission.
SECTION 8. Section 91.556, Natural Resources Code, is
amended to read as follows:
Sec. 91.556. ENFORCEMENT [DENIAL OF ALLOWABLE]. If an
operator fails to file a well [an electric] log as required by this
subchapter, the commission may:
(1) if the well is completed as a producing well,
refuse to assign an allowable or a change in allowable for
production from the well [for which the electric log is required]
until the operator files the well [electric] log with the
commission;
(2) if the well is completed as a dry hole, refuse to
approve the plugging of the well until the operator files the well
log with the commission;
(3) refuse to release the operator's financial
security filed under Subchapter D until the operator files the well
log with the commission;
(4) require the operator to reenter the well, run a
well log, and file the log with the commission; or
(5) impose an administrative penalty on the operator
in the manner provided by Sections 81.0531-81.0534 in the amount of
$15,000 for each well for which the operator failed to file a well
log.
SECTION 9. Section 91.553(d), Natural Resources Code, is
repealed.
SECTION 10. Section 552.113(a), Government Code, is amended
to read as follows:
(a) Information is excepted from the requirements of
Section 552.021 if it is:
(1) a well [an electric] log confidential under
Subchapter M, Chapter 91, Natural Resources Code;
(2) geological or geophysical information or data,
including maps concerning wells, except information filed in
connection with an application or proceeding before an agency; or
(3) confidential under Subsections (c) through (f).
SECTION 11. Section 552.113(c)(2), Government Code, is
amended to read as follows:
(2) "Well ["Basic electric] logs" has the same meaning
as it has in Chapter 91, Natural Resources Code.
SECTION 12. Sections 552.113(d), (e), and (f), Government
Code, are amended to read as follows:
(d) Confidential material, except well [basic electric]
logs, filed in the General Land Office on or after September 1,
1985, is public information and is available to the public under
Section 552.021 on and after the later of:
(1) five years from the filing date of the
confidential material; or
(2) one year from the expiration, termination, or
forfeiture of the lease in connection with which the confidential
material was filed.
(e) Well [Basic electric] logs filed in the General Land
Office on or after September 1, 1985, are either public information
or confidential material to the same extent and for the same periods
provided for the same logs by Chapter 91, Natural Resources Code. A
person may request that a well [basic electric] log that has been
filed in the General Land Office be made confidential by filing with
the land office a copy of the written request for confidentiality
made to the Railroad Commission of Texas for the same log.
(f) The following are public information:
(1) well [basic electric] logs filed in the General
Land Office before September 1, 1985; and
(2) confidential material, except well [basic
electric] logs, filed in the General Land Office before September
1, 1985, provided, that Subsection (d) governs the disclosure of
that confidential material filed in connection with a lease that is
a valid and subsisting lease on September 1, 1995.
SECTION 13. The changes in law made by this Act apply only
to a drilling operation that is completed on or after the effective
date of this Act. A drilling operation that is completed before the
effective date of this Act is subject to the law in effect on the
date of completion, and that law is continued in effect for that
purpose.
SECTION 14. This Act takes effect September 1, 2009.