81R31024 E
By: Crownover H.B. No. 2356
Substitute the following for H.B. No. 2356:
By: Crabb C.S.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. Sections 91.551(a)(1) and (2), Natural Resources
Code, are amended 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 and is limited to a:
(A) spontaneous potential log;
(B) induction log;
(C) borehole compensated sonic log;
(D) dual lateral log;
(E) density log;
(F) gamma ray log; or
(G) compensated neutron 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].
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 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 at all
depths, [a basic electric log] run after September 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.
(c) Not later than the deadline prescribed by Subsection (a)
for the filing of each well log, an operator shall file with the
commission a copy of a cased hole log run after September 1, 2009,
in conjunction with the drilling or deepening of a well in lieu of a
well log run after that date if:
(1) a cased hole log was run; and
(2) a well log was not run.
(d) Nothing in this subchapter requires an operator to run a
well log in conjunction with the drilling or deepening of a well.
SECTION 4. Section 91.553, Natural Resources Code, is
amended to read as follows:
Sec. 91.553. AVAILABILITY OF WELL [ELECTRIC] LOGS. (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 extensions of that period. On
filing of the request for confidentiality, the well [electric] log
becomes confidential and remains confidential for a period of 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 two
years. The commission shall grant the two-year extension on
written request of the operator. The written request must be made
to the commission before the one-year period of confidentiality
under Subsection (b) expires.
(d) If a well [an electric] log is made confidential under
Subsection (b) and the log was run in a well drilled on land
submerged in state water, the operator is entitled to have the
period of confidentiality extended for not more than two additional
periods of two years each. The commission shall grant the
extension or extensions on written request of the operator. The
written request must be made to the commission before the
expiration of the one-year period of confidentiality under
Subsection (b) or the expiration of the first extension granted
under this subsection.
(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 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 5. 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 6. 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 7. 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; or
(2) impose an administrative penalty on the operator
in the manner provided by Sections 81.0531-81.0534 in an amount not
to exceed $5,000 for each well for which the operator failed to file
a well log.
SECTION 8. 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 9. 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 10. 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 11. The House Committee on Energy Resources shall
study methods to increase compliance with Subchapter M, Chapter 91,
Natural Resources Code, as amended by this Act, and submit to the
82nd Legislature a report of its findings not later than January 1,
2011.
SECTION 12. 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 13. This Act takes effect September 1, 2009.