Texas 2009 - 81st Regular

Texas House Bill HB2356 Compare Versions

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11 81R31024 E
22 By: Crownover H.B. No. 2356
33 Substitute the following for H.B. No. 2356:
44 By: Crabb C.S.H.B. No. 2356
55
66
77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to the filing with the state of well logs by operators of
1010 oil-related or gas-related wells; providing a penalty.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 SECTION 1. The heading to Subchapter M, Chapter 91, Natural
1313 Resources Code, is amended to read as follows:
1414 SUBCHAPTER M. WELL [ELECTRIC] LOGS
1515 SECTION 2. Sections 91.551(a)(1) and (2), Natural Resources
1616 Code, are amended to read as follows:
1717 (1) "Well" means a well drilled for any purpose
1818 related to exploration for or production or storage of oil or gas or
1919 both oil and gas, including a well drilled for injection of fluids
2020 to enhance hydrocarbon recovery, disposal of produced fluids,
2121 disposal of waste from exploration or production activity, or brine
2222 mining. The term includes a well that is completed as a dry hole.
2323 (2) "Well [Electric] log" means a wireline-conveyed or
2424 drill pipe-conveyed survey recorded in an open borehole using
2525 electric or radioactive technologies for the purpose of obtaining
2626 geological or geophysical information or other information
2727 regarding the properties of a reservoir or of the rocks penetrated
2828 by the well. The term includes and is limited to a:
2929 (A) spontaneous potential log;
3030 (B) induction log;
3131 (C) borehole compensated sonic log;
3232 (D) dual lateral log;
3333 (E) density log;
3434 (F) gamma ray log; or
3535 (G) compensated neutron log [wireline survey,
3636 except dipmeter surveys and seismic wireline surveys, run in an
3737 open hole or a cased hole of a well for purposes of obtaining
3838 geological information].
3939 SECTION 3. Section 91.552, Natural Resources Code, is
4040 amended to read as follows:
4141 Sec. 91.552. WELL [ELECTRIC] LOGS REQUIRED TO BE FILED;
4242 CRITERIA. (a) Except as otherwise provided by this subchapter, not
4343 later than the 90th day after the date a drilling operation is
4444 completed, the operator shall file with the commission a copy of
4545 each well log, including each borehole section of the log at all
4646 depths, [a basic electric log] run after September 1, 2009
4747 [September 1, 1985], in conjunction with the drilling or deepening
4848 of the well that meets basic criteria established by the
4949 commission.
5050 (b) The commission by rule shall establish criteria for well
5151 [basic electric] logs to be filed with the commission.
5252 (c) Not later than the deadline prescribed by Subsection (a)
5353 for the filing of each well log, an operator shall file with the
5454 commission a copy of a cased hole log run after September 1, 2009,
5555 in conjunction with the drilling or deepening of a well in lieu of a
5656 well log run after that date if:
5757 (1) a cased hole log was run; and
5858 (2) a well log was not run.
5959 (d) Nothing in this subchapter requires an operator to run a
6060 well log in conjunction with the drilling or deepening of a well.
6161 SECTION 4. Section 91.553, Natural Resources Code, is
6262 amended to read as follows:
6363 Sec. 91.553. AVAILABILITY OF WELL [ELECTRIC] LOGS. (a)
6464 Except as specifically provided by this section, each well
6565 [electric] log filed with the commission under this subchapter is
6666 not confidential and is public information under Chapter 552,
6767 Government Code.
6868 (b) Not later than the date by which a well [an electric] log
6969 is required to be filed with the commission under Section 91.552,
7070 the operator may file a written request with the commission asking
7171 that the well [electric] log remain confidential and not be made
7272 available as public information. On filing this request, the well
7373 [electric] log or copy of the well [electric] log required to be
7474 filed with the commission may be retained by the operator, and the
7575 well [electric] log may remain in the possession of the operator for
7676 the period of confidentiality and any extensions of that period. On
7777 filing of the request for confidentiality, the well [electric] log
7878 becomes confidential and remains confidential for a period of one
7979 year after the date that the drilling operation was completed.
8080 (c) If a well [an electric] log is made confidential under
8181 Subsection (b), the operator is entitled to have the period of
8282 confidentiality extended once for an additional period of two
8383 years. The commission shall grant the two-year extension on
8484 written request of the operator. The written request must be made
8585 to the commission before the one-year period of confidentiality
8686 under Subsection (b) expires.
8787 (d) If a well [an electric] log is made confidential under
8888 Subsection (b) and the log was run in a well drilled on land
8989 submerged in state water, the operator is entitled to have the
9090 period of confidentiality extended for not more than two additional
9191 periods of two years each. The commission shall grant the
9292 extension or extensions on written request of the operator. The
9393 written request must be made to the commission before the
9494 expiration of the one-year period of confidentiality under
9595 Subsection (b) or the expiration of the first extension granted
9696 under this subsection.
9797 (e) An operator required to file a well [an electric] log
9898 under this section who has held the log during a period of
9999 confidentiality or any extensions of that period shall file the log
100100 with the commission within 30 days after the conclusion of the
101101 period of confidentiality or the period of the last extension.
102102 (f) An operator who fails to timely file with the commission
103103 a written request under Subsection (b) that a well [an electric] log
104104 remain confidential and not be made available as public information
105105 or a written request under Subsection (c) or (d) for an extension of
106106 the period of confidentiality shall file the log with the
107107 commission immediately after the conclusion of the period for
108108 filing the request.
109109 SECTION 5. Section 91.554, Natural Resources Code, is
110110 amended to read as follows:
111111 Sec. 91.554. AVAILABILITY OF CONFIDENTIAL WELL [ELECTRIC]
112112 LOGS. If the commission requires a well [an electric] log to be
113113 filed before the expiration of a period of confidentiality, the
114114 commission shall make that well [electric] log available for
115115 inspection during the period of confidentiality only to:
116116 (1) a person authorized in writing by the operator;
117117 and
118118 (2) members of the commission and its employees in the
119119 exercise of their powers and duties under this code.
120120 SECTION 6. Section 91.555, Natural Resources Code, is
121121 amended to read as follows:
122122 Sec. 91.555. MANAGEMENT AND STORAGE OF WELL [ELECTRIC]
123123 LOGS. The commission may contract with any person for the
124124 management and storage of the well [electric] logs filed with the
125125 commission.
126126 SECTION 7. Section 91.556, Natural Resources Code, is
127127 amended to read as follows:
128128 Sec. 91.556. ENFORCEMENT [DENIAL OF ALLOWABLE]. If an
129129 operator fails to file a well [an electric] log as required by this
130130 subchapter, the commission may:
131131 (1) if the well is completed as a producing well,
132132 refuse to assign an allowable or a change in allowable for
133133 production from the well [for which the electric log is required]
134134 until the operator files the well [electric] log with the
135135 commission; or
136136 (2) impose an administrative penalty on the operator
137137 in the manner provided by Sections 81.0531-81.0534 in an amount not
138138 to exceed $5,000 for each well for which the operator failed to file
139139 a well log.
140140 SECTION 8. Section 552.113(a), Government Code, is amended
141141 to read as follows:
142142 (a) Information is excepted from the requirements of
143143 Section 552.021 if it is:
144144 (1) a well [an electric] log confidential under
145145 Subchapter M, Chapter 91, Natural Resources Code;
146146 (2) geological or geophysical information or data,
147147 including maps concerning wells, except information filed in
148148 connection with an application or proceeding before an agency; or
149149 (3) confidential under Subsections (c) through (f).
150150 SECTION 9. Section 552.113(c)(2), Government Code, is
151151 amended to read as follows:
152152 (2) "Well ["Basic electric] logs" has the same meaning
153153 as it has in Chapter 91, Natural Resources Code.
154154 SECTION 10. Sections 552.113(d), (e), and (f), Government
155155 Code, are amended to read as follows:
156156 (d) Confidential material, except well [basic electric]
157157 logs, filed in the General Land Office on or after September 1,
158158 1985, is public information and is available to the public under
159159 Section 552.021 on and after the later of:
160160 (1) five years from the filing date of the
161161 confidential material; or
162162 (2) one year from the expiration, termination, or
163163 forfeiture of the lease in connection with which the confidential
164164 material was filed.
165165 (e) Well [Basic electric] logs filed in the General Land
166166 Office on or after September 1, 1985, are either public information
167167 or confidential material to the same extent and for the same periods
168168 provided for the same logs by Chapter 91, Natural Resources Code. A
169169 person may request that a well [basic electric] log that has been
170170 filed in the General Land Office be made confidential by filing with
171171 the land office a copy of the written request for confidentiality
172172 made to the Railroad Commission of Texas for the same log.
173173 (f) The following are public information:
174174 (1) well [basic electric] logs filed in the General
175175 Land Office before September 1, 1985; and
176176 (2) confidential material, except well [basic
177177 electric] logs, filed in the General Land Office before September
178178 1, 1985, provided, that Subsection (d) governs the disclosure of
179179 that confidential material filed in connection with a lease that is
180180 a valid and subsisting lease on September 1, 1995.
181181 SECTION 11. The House Committee on Energy Resources shall
182182 study methods to increase compliance with Subchapter M, Chapter 91,
183183 Natural Resources Code, as amended by this Act, and submit to the
184184 82nd Legislature a report of its findings not later than January 1,
185185 2011.
186186 SECTION 12. The changes in law made by this Act apply only
187187 to a drilling operation that is completed on or after the effective
188188 date of this Act. A drilling operation that is completed before the
189189 effective date of this Act is subject to the law in effect on the
190190 date of completion, and that law is continued in effect for that
191191 purpose.
192192 SECTION 13. This Act takes effect September 1, 2009.