Texas 2009 - 81st Regular

Texas House Bill HB2669 Compare Versions

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1	1	81R21118 SMH-F
2	2	By: Crownover H.B. No. 2669
3	3	Substitute the following for H.B. No. 2669:
4	4	By: Hancock C.S.H.B. No. 2669
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the implementation of projects involving the capture,
10	10	injection, sequestration, or geologic storage of carbon dioxide.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 27.002, Water Code, is amended by adding
13	13	Subdivisions (19), (20), (21), (22), (23), (24), and (25) to read as
14	14	follows:
15	15	(19) "Anthropogenic carbon dioxide":
16	16	(A) means:
17	17	(i) carbon dioxide that would otherwise
18	18	have been released into the atmosphere that has been:
19	19	(a) stripped, segregated, or divided
20	20	from any other fluid stream; or
21	21	(b) captured from an emissions
22	22	source, including:
23	23	(1) an advanced clean energy
24	24	project as defined by Section 382.003, Health and Safety Code, or
25	25	another type of electric generation facility; or
26	26	(2) an industrial source of
27	27	emissions;
28	28	(ii) any incidental associated substance
29	29	derived from the source material for, or from the process of
30	30	capturing, carbon dioxide described by Subparagraph (i); and
31	31	(iii) any substance added to carbon dioxide
32	32	described by Subparagraph (i) to enable or improve the process of
33	33	injecting the carbon dioxide; and
34	34	(B) does not include naturally occurring carbon
35	35	dioxide that is recaptured, recycled, and reinjected as part of
36	36	enhanced recovery operations.
37	37	(20) "Anthropogenic carbon dioxide injection well"
38	38	means an injection well used to inject or transmit anthropogenic
39	39	carbon dioxide into a reservoir.
40	40	(21) "Enhanced recovery operation" means the use of
41	41	any process for the displacement of hydrocarbons from a reservoir
42	42	other than primary recovery and includes the use of any physical,
43	43	chemical, thermal, or biological process and any co-production
44	44	project.
45	45	(22) "Geologic storage" means the underground storage
46	46	of anthropogenic carbon dioxide in a reservoir.
47	47	(23) "Geologic storage facility" means the
48	48	underground reservoir, underground equipment, injection wells, and
49	49	surface buildings and equipment used or to be used for the geologic
50	50	storage of anthropogenic carbon dioxide and all surface and
51	51	subsurface rights and appurtenances necessary to the operation of a
52	52	facility for the geologic storage of anthropogenic carbon dioxide.
53	53	The term includes any reasonable and necessary areal buffer and
54	54	subsurface monitoring zones, pressure fronts, and other areas as
55	55	may be necessary for this state to receive delegation of any federal
56	56	underground injection control program relating to the storage of
57	57	carbon dioxide. The term does not include a pipeline used to
58	58	transport carbon dioxide from the facility at which the carbon
59	59	dioxide is captured to the geologic storage facility. The storage
60	60	of carbon dioxide incidental to or as part of enhanced recovery
61	61	operations does not in itself automatically render a facility a
62	62	geologic storage facility.
63	63	(24) "Oil or gas" means oil, natural gas, or gas
64	64	condensate.
65	65	(25) "Reservoir" means a natural or artificially
66	66	created subsurface sedimentary stratum, formation, aquifer,
67	67	cavity, void, or coal seam.
68	68	SECTION 2. Chapter 27, Water Code, is amended by adding
69	69	Subchapter C-1 to read as follows:
70	70	SUBCHAPTER C-1. GEOLOGIC STORAGE AND ASSOCIATED INJECTION OF
71	71	ANTHROPOGENIC CARBON DIOXIDE
72	72	Sec. 27.041. JURISDICTION. (a) Except as provided by
73	73	Subsection (b), the railroad commission has jurisdiction over the
74	74	geologic storage of carbon dioxide in, and the injection of carbon
75	75	dioxide into, a reservoir that is initially or may be productive of
76	76	oil, gas, or geothermal resources or a saline formation directly
77	77	above or below that reservoir.
78	78	(b) The jurisdiction of the railroad commission over the
79	79	geologic storage of carbon dioxide in, and the injection of carbon
80	80	dioxide into, a saline formation described by Subsection (a) of
81	81	this section is subject to the review of the legislature based on
82	82	the recommendations made in the preliminary report described by
83	83	Section 10 of the Act enacting this section.
84	84	(c) Except as provided by Subsection (b), the railroad
85	85	commission has jurisdiction over a well used for the purpose
86	86	provided by Subsection (a) regardless of whether the well was
87	87	initially completed for that purpose or was initially completed for
88	88	another purpose and is converted to the purpose provided by
89	89	Subsection (a).
90	90	Sec. 27.042. APPLICABILITY. This subchapter does not apply
91	91	to the injection of fluid through the use of a Class II injection
92	92	well as defined by 40 C.F.R. Section 144.6(b) for the primary
93	93	purpose of enhanced recovery operations.
94	94	Sec. 27.043. PERMIT FROM RAILROAD COMMISSION. A person may
95	95	not begin drilling or operating an anthropogenic carbon dioxide
96	96	injection well for geologic storage or constructing or operating a
97	97	geologic storage facility regulated under this subchapter without
98	98	first obtaining the necessary permits from the railroad commission.
99	99	Sec. 27.044. INFORMATION REQUIRED OF APPLICANT. The
100	100	railroad commission shall require an applicant to provide any
101	101	information the railroad commission considers necessary to
102	102	discharge its duties under this subchapter.
103	103	Sec. 27.045. FEES. (a) The railroad commission may impose
104	104	fees to cover the cost of:
105	105	(1) permitting, monitoring, and inspecting
106	106	anthropogenic carbon dioxide injection wells for geologic storage
107	107	and geologic storage facilities; and
108	108	(2) enforcing and implementing this subchapter and
109	109	rules adopted by the railroad commission under this subchapter.
110	110	(b) Fees collected by the railroad commission under this
111	111	section shall be deposited to the credit of the anthropogenic
112	112	carbon dioxide storage trust fund established under Section
113	113	120.003, Natural Resources Code.
114	114	Sec. 27.046. LETTER FROM EXECUTIVE DIRECTOR. (a) An
115	115	application to the railroad commission for a permit under rules
116	116	adopted under this subchapter must include a letter from the
117	117	executive director stating that drilling and operating the
118	118	anthropogenic carbon dioxide injection well for geologic storage or
119	119	operating the geologic storage facility will not injure any
120	120	freshwater strata in that area and that the formation or stratum to
121	121	be used for the geologic storage facility is not freshwater sand.
122	122	(b) To make the determination required by Subsection (a),
123	123	the executive director shall review:
124	124	(1) the area of review and corrective action plans;
125	125	(2) any subsurface monitoring plans required during
126	126	injection or post injection;
127	127	(3) any post-injection site care plans; and
128	128	(4) any other elements of the application reasonably
129	129	required in order for the executive director to make the
130	130	determination required by Subsection (a).
131	131	(c) The commission shall adopt rules to implement and
132	132	administer this section.
133	133	Sec. 27.047. RULES. The railroad commission shall adopt
134	134	rules and procedures reasonably required for the performance of its
135	135	powers, duties, and functions under this subchapter, including
136	136	rules for:
137	137	(1) the geologic storage and associated injection of
138	138	anthropogenic carbon dioxide, including:
139	139	(A) geologic site characterization;
140	140	(B) area of review and corrective action;
141	141	(C) well construction;
142	142	(D) operation;
143	143	(E) mechanical integrity testing;
144	144	(F) monitoring;
145	145	(G) well plugging;
146	146	(H) post-injection site care;
147	147	(I) site closure; and
148	148	(J) long-term stewardship;
149	149	(2) the enforcement of this subchapter and rules
150	150	adopted by the railroad commission under this subchapter; and
151	151	(3) the collection and administration of:
152	152	(A) fees imposed under Section 27.045; and
153	153	(B) penalties imposed for a violation of this
154	154	subchapter or rules adopted by the railroad commission under this
155	155	subchapter.
156	156	Sec. 27.048. CONSISTENCY WITH AND IMPLEMENTATION OF FEDERAL
157	157	REQUIREMENTS. (a) Rules adopted by the commission or the railroad
158	158	commission under this subchapter must be consistent with applicable
159	159	rules or regulations adopted by the United States Environmental
160	160	Protection Agency or another federal agency governing the injection
161	161	and geologic storage of anthropogenic carbon dioxide.
162	162	(b) If rules or regulations adopted to govern the geologic
163	163	storage and associated injection of anthropogenic carbon dioxide
164	164	under the federal Safe Drinking Water Act (42 U.S.C. Section 300f et
165	165	seq.) or another federal statute allow this state to seek primary
166	166	enforcement authority under the underground injection control
167	167	program:
168	168	(1) the commission and the railroad commission shall
169	169	seek primacy to administer and enforce the program subject to the
170	170	jurisdiction granted under this subchapter; and
171	171	(2) this state shall seek primacy to administer and
172	172	enforce the program for the geologic storage of carbon dioxide in,
173	173	and the injection of carbon dioxide into, a saline formation.
174	174	Sec. 27.049. MEMORANDUM OF UNDERSTANDING. The commission
175	175	and the railroad commission, as necessary to comply with this
176	176	subchapter, by rule shall:
177	177	(1) amend the memorandum of understanding recorded in
178	178	16 T.A.C. Section 3.30; or
179	179	(2) enter into a new memorandum of understanding.
180	180	Sec. 27.050. FINANCIAL RESPONSIBILITY. (a) A person to
181	181	whom a permit is issued under this subchapter must provide to the
182	182	railroad commission annually evidence of financial responsibility
183	183	that is satisfactory to the railroad commission.
184	184	(b) In determining whether the person is financially
185	185	responsible, the railroad commission shall rely on:
186	186	(1) the person's most recent quarterly report filed
187	187	with the United States Securities and Exchange Commission under
188	188	Section 13 or 15(d), Securities Exchange Act of 1934 (15 U.S.C.
189	189	Section 78m or 78o(d)); or
190	190	(2) if the person is not required to file with the
191	191	United States Securities and Exchange Commission a report described
192	192	by Subdivision (1) of this subsection, the person's most recent
193	193	audited financial statement.
194	194	SECTION 3. Section 27.051, Water Code, is amended by
195	195	amending Subsection (b) and adding Subsection (b-1) to read as
196	196	follows:
197	197	(b) The railroad commission may grant an application for a
198	198	permit under Subchapter C in whole or part and may issue the permit
199	199	if it finds:
200	200	(1) that the use or installation of the injection well
201	201	is in the public interest;
202	202	(2) that the use or installation of the injection well
203	203	will not endanger or injure any oil, gas, or other mineral
204	204	formation;
205	205	(3) that, with proper safeguards, both ground and
206	206	surface fresh water can be adequately protected from pollution; and
207	207	(4) that the applicant has made a satisfactory showing
208	208	of financial responsibility if required by Section 27.073 [of this
209	209	code].
210	210	(b-1) The railroad commission may issue a permit under
211	211	Subchapter C-1 if it finds:
212	212	(1) that the injection and geologic storage of
213	213	anthropogenic carbon dioxide will not endanger or injure any oil,
214	214	gas, or other mineral formation;
215	215	(2) that, with proper safeguards, both ground and
216	216	surface freshwater can be adequately protected from carbon dioxide
217	217	migration or displaced formation fluids;
218	218	(3) that the injection of anthropogenic carbon dioxide
219	219	will not endanger or injure human health and safety;
220	220	(4) that the reservoir into which the anthropogenic
221	221	carbon dioxide is injected is suitable for or capable of being made
222	222	suitable for protecting against the escape or migration of
223	223	anthropogenic carbon dioxide from the reservoir; and
224	224	(5) that the applicant for the permit meets all of the
225	225	other statutory and regulatory requirements for the issuance of the
226	226	permit.
227	227	SECTION 4. Sections 27.071 and 27.072, Water Code, are
228	228	amended to read as follows:
229	229	Sec. 27.071. POWER TO ENTER PROPERTY. Members of the
230	230	commission and the railroad commission and employees of the
231	231	commission and the railroad commission may enter public or private
232	232	property to inspect and investigate conditions relating to
233	233	injection well, monitoring well, disposal well, [or] production
234	234	well, or geologic storage activities within their respective
235	235	jurisdictions or to monitor compliance with a rule, permit, or
236	236	other order of the commission or railroad commission. Members or
237	237	employees acting under the authority of this section who enter an
238	238	establishment on public or private property shall observe the
239	239	establishment's safety, internal security, and fire protection
240	240	rules.
241	241	Sec. 27.072. POWER TO EXAMINE RECORDS. Members of the
242	242	commission and the railroad commission and employees of the
243	243	commission and railroad commission may examine and copy those
244	244	records or memoranda of a business they are investigating as
245	245	provided by Section 27.071 [of this code] that relate to the
246	246	operation of an injection well, monitoring well, disposal well,
247	247	[or] production well, or geologic storage facility, or any other
248	248	records required to be maintained by law.
249	249	SECTION 5. Section 27.073, Water Code, is amended by
250	250	amending Subsection (a) and adding Subsection (b-1) to read as
251	251	follows:
252	252	(a) A person to whom an injection well permit is issued may
253	253	be required by the commission or railroad commission to maintain a
254	254	performance bond or other form of financial security to ensure
255	255	that:
256	256	(1) an abandoned injection well is properly plugged;
257	257	or
258	258	(2) funds are available for plugging, post-injection
259	259	site care, and closure of an anthropogenic carbon dioxide injection
260	260	well subject to Subchapter C-1.
261	261	(b-1) The railroad commission is authorized to receive
262	262	funds as the beneficiary of a financial responsibility mechanism
263	263	established under this chapter for the proper management of an
264	264	anthropogenic carbon dioxide injection well or geologic storage
265	265	facility.
266	266	SECTION 6. Chapter 91, Natural Resources Code, is amended
267	267	by adding Subchapter R to read as follows:
268	268	SUBCHAPTER R. AUTHORIZATION FOR MULTIPLE OR ALTERNATIVE USES OF
269	269	WELLS
270	270	Sec. 91.801. RULES AUTHORIZING MULTIPLE OR ALTERNATIVE USES
271	271	OF WELLS. The commission shall adopt rules allowing:
272	272	(1) a person to obtain a permit for a well from the
273	273	commission that authorizes the well to be used for multiple
274	274	purposes; and
275	275	(2) an operator of a well authorized by a permit issued
276	276	by the commission to convert the well from its authorized purpose to
277	277	a new or additional purpose.
278	278	Sec. 91.802. LAW APPLICABLE TO GEOLOGIC STORAGE FACILITIES
279	279	AND ASSOCIATED INJECTION WELLS. (a) In this section,
280	280	"anthropogenic carbon dioxide injection well" has the meaning
281	281	assigned by Section 27.002, Water Code.
282	282	(b) If a well is authorized as or converted to an
283	283	anthropogenic carbon dioxide injection well for geologic storage,
284	284	Subchapter C-1, Chapter 27, Water Code, applies to the well.
285	285	(c) A conversion of an anthropogenic carbon dioxide
286	286	injection well from use for enhanced recovery operations to use for
287	287	geologic storage is not considered to be a change in the purpose of
288	288	the well.
289	289	SECTION 7. Subtitle D, Title 3, Natural Resources Code, is
290	290	amended by adding Chapter 120 to read as follows:
291	291	CHAPTER 120. OWNERSHIP AND STEWARDSHIP OF ANTHROPOGENIC CARBON
292	292	DIOXIDE
293	293	Sec. 120.001. DEFINITIONS. In this chapter:
294	294	(1) "Anthropogenic carbon dioxide," "anthropogenic
295	295	carbon dioxide injection well," and "geologic storage facility"
296	296	have the meanings assigned by Section 27.002, Water Code.
297	297	(2) "Commission" means the Railroad Commission of
298	298	Texas.
299	299	(3) "Storage operator" means a person authorized by
300	300	the commission to operate a geologic storage facility.
301	301	Sec. 120.002. OWNERSHIP OF ANTHROPOGENIC CARBON DIOXIDE.
302	302	(a) This section does not apply to anthropogenic carbon dioxide
303	303	injected for the primary purpose of enhanced recovery operations.
304	304	(b) Unless otherwise expressly provided by a contract, bill
305	305	of sale, deed, mortgage, deed of trust, or other legally binding
306	306	document or by other law, anthropogenic carbon dioxide stored in a
307	307	geologic storage facility is considered to be the property of the
308	308	storage operator or the storage operator's heirs, successors, or
309	309	assigns.
310	310	(c) Absent a final judgment of wilful abandonment rendered
311	311	by a court or a regulatory determination of closure or abandonment,
312	312	anthropogenic carbon dioxide stored in a geologic storage facility
313	313	is not considered to be the property of the owner of the surface or
314	314	mineral estate in the land in which the anthropogenic carbon
315	315	dioxide is stored or of a person claiming under the owner of the
316	316	surface or mineral estate.
317	317	(d) The owner, as designated by Subsection (b) or (c), of
318	318	the anthropogenic carbon dioxide stored in a geologic storage
319	319	facility, or the owner's heirs, successors, or assigns, may
320	320	produce, take, extract, or otherwise possess anthropogenic carbon
321	321	dioxide stored in the facility.
322	322	Sec. 120.003. ANTHROPOGENIC CARBON DIOXIDE STORAGE TRUST
323	323	FUND. (a) The anthropogenic carbon dioxide storage trust fund is
324	324	created as a special fund in the state treasury.
325	325	(b) The anthropogenic carbon dioxide storage trust fund is
326	326	an interest-bearing fund. Interest earned on money in the fund
327	327	shall be deposited to the credit of the fund.
328	328	(c) Fees collected by the commission under Subchapter C-1,
329	329	Chapter 27, Water Code, and penalties imposed for violations of
330	330	that subchapter or rules adopted under that subchapter shall be
331	331	deposited to the credit of the anthropogenic carbon dioxide storage
332	332	trust fund.
333	333	(d) The anthropogenic carbon dioxide storage trust fund may
334	334	be used by the commission only for:
335	335	(1) inspecting, monitoring, investigating, recording,
336	336	and reporting on geologic storage facilities and associated
337	337	anthropogenic carbon dioxide injection wells;
338	338	(2) long-term monitoring of geologic storage
339	339	facilities and associated anthropogenic carbon dioxide injection
340	340	wells;
341	341	(3) remediation of mechanical problems associated
342	342	with geologic storage facilities and associated anthropogenic
343	343	carbon dioxide injection wells;
344	344	(4) repairing mechanical leaks at geologic storage
345	345	facilities;
346	346	(5) plugging abandoned anthropogenic carbon dioxide
347	347	injection wells used for geologic storage;
348	348	(6) training and technology transfer related to
349	349	anthropogenic carbon dioxide injection and geologic storage; and
350	350	(7) compliance and enforcement activities related to
351	351	geologic storage and associated anthropogenic carbon dioxide
352	352	injection wells.
353	353	Sec. 120.004. EXTRACTION OF STORED ANTHROPOGENIC CARBON
354	354	DIOXIDE. (a) The commission shall adopt rules allowing
355	355	anthropogenic carbon dioxide stored in a geologic storage facility
356	356	to be extracted for a commercial or industrial use.
357	357	(b) The commission has jurisdiction over the extraction of
358	358	anthropogenic carbon dioxide stored in a geologic storage facility.
359	359	SECTION 8. Section 27.038, Water Code, is repealed.
360	360	SECTION 9. (a) In this section:
361	361	(1) "Anthropogenic carbon dioxide," "geologic
362	362	storage," and "geologic storage facility" have the meanings
363	363	assigned by Section 27.002, Water Code, as amended by this Act.
364	364	(2) "State-owned land" includes state-owned submerged
365	365	land.
366	366	(b) Not later than December 1, 2010, the commissioner of the
367	367	General Land Office shall prepare and file with the legislature a
368	368	preliminary report on a recommended framework for managing
369	369	activities related to geologic storage on state-owned land. The
370	370	report shall include:
371	371	(1) recommended criteria for identifying candidate
372	372	geologic storage sites in each of the following types of onshore and
373	373	offshore geological settings:
374	374	(A) operating oil and gas fields;
375	375	(B) depleted oil and gas fields;
376	376	(C) unmineable coal seams;
377	377	(D) saline formations;
378	378	(E) geological systems that may be used as
379	379	engineered reservoirs to extract economical quantities of heat from
380	380	geothermal resources of low permeability or porosity;
381	381	(F) geological systems containing igneous
382	382	formations; and
383	383	(G) coalbeds being used for methane recovery;
384	384	(2) a proposed regulatory framework for leasing
385	385	state-owned land for geologic storage, including an assessment of
386	386	options to ensure that the state receives fair market value for
387	387	using state-owned property for geologic storage;
388	388	(3) a proposed procedure for:
389	389	(A) providing an opportunity for public review
390	390	of, and the presentation of comments by interested persons
391	391	regarding, any activities related to geologic storage on
392	392	state-owned land; and
393	393	(B) ensuring that the quality of the natural and
394	394	cultural resources of state-owned land overlying the site of a
395	395	geologic storage facility are protected from any geologic storage
396	396	activities at the site;
397	397	(4) a description of the status of leasehold or
398	398	mineral estate liability issues related to the geological
399	399	subsurface trespass of, or caused by, anthropogenic carbon dioxide
400	400	stored in state-owned land, including any relevant experience from
401	401	enhanced oil recovery using carbon dioxide on state-owned land;
402	402	(5) recommendations for additional legislation that
403	403	may be required to ensure that public land management and leasing
404	404	laws are adequate to accommodate geologic storage;
405	405	(6) an identification of the legal and regulatory
406	406	issues specific to geologic storage in cases in which title to the
407	407	mineral estate is held by the state but title to the surface estate
408	408	is not held by the state; and
409	409	(7) recommendations for additional legislation that
410	410	may be required to clarify the appropriate framework for issuing
411	411	rights-of-way for anthropogenic carbon dioxide pipelines on
412	412	state-owned land.
413	413	(c) In preparing the preliminary report under Subsection
414	414	(b) of this section, the commissioner of the General Land Office
415	415	shall coordinate with:
416	416	(1) the Bureau of Economic Geology of The University
417	417	of Texas at Austin;
418	418	(2) the Railroad Commission of Texas;
419	419	(3) the Texas Commission on Environmental Quality; and
420	420	(4) the heads of other appropriate agencies.
421	421	(d) This section expires December 31, 2010.
422	422	SECTION 10. (a) In this section, "anthropogenic carbon
423	423	dioxide," "geologic storage," and "geologic storage facility" have
424	424	the meanings assigned by Section 27.002, Water Code, as amended by
425	425	this Act.
426	426	(b) Not later than December 1, 2010, the Texas Commission on
427	427	Environmental Quality and the Railroad Commission of Texas, in
428	428	consultation with the Bureau of Economic Geology of The University
429	429	of Texas at Austin, shall prepare and file with the legislature a
430	430	joint preliminary report that:
431	431	(1) analyzes the requirements for the injection and
432	432	geologic storage of anthropogenic carbon dioxide into saline
433	433	formations that are not productive of oil, gas, or geothermal
434	434	resources;
435	435	(2) recommends a permitting process for anthropogenic
436	436	carbon dioxide injection wells and geologic storage facilities that
437	437	are used for the injection and storage of anthropogenic carbon
438	438	dioxide in saline formations not productive of oil, gas, or
439	439	geothermal resources;
440	440	(3) recommends the agency or agencies that should have
441	441	jurisdiction over permitting described by Subdivision (2) of this
442	442	subsection or any other permitting of geologic storage facilities
443	443	not subject to Subchapter C-1, Chapter 27, Water Code; and
444	444	(4) assesses the status of compliance with any federal
445	445	rules regulating the geologic storage and associated injection of
446	446	anthropogenic carbon dioxide.
447	447	(c) The preliminary report shall include:
448	448	(1) recommended criteria for identifying candidate
449	449	geologic storage sites in each of the following types of geological
450	450	settings:
451	451	(A) operating oil and gas fields;
452	452	(B) depleted oil and gas fields;
453	453	(C) unmineable coal seams;
454	454	(D) saline formations;
455	455	(E) geological systems that may be used as
456	456	engineered reservoirs to extract economical quantities of heat from
457	457	geothermal resources of low permeability or porosity;
458	458	(F) geological systems containing igneous
459	459	formations; and
460	460	(G) coalbeds being used for methane recovery;
461	461	(2) a proposed procedure for:
462	462	(A) providing an opportunity for public review
463	463	of, and the presentation of comments by interested persons
464	464	regarding, any activities related to geologic storage; and
465	465	(B) ensuring that the quality of the natural and
466	466	cultural resources of land overlying the site of a geologic storage
467	467	facility are protected from any geologic storage activities at the
468	468	site;
469	469	(3) a description of the status of leasehold or
470	470	mineral estate liability issues related to the geological
471	471	subsurface trespass of, or caused by, anthropogenic carbon dioxide
472	472	stored in private or state-owned land, including any relevant
473	473	experience from enhanced recovery operations using carbon dioxide;
474	474	(4) an analysis of and recommendations to address:
475	475	(A) the attributes of the subsurface area of
476	476	operations for geologic storage facilities; and
477	477	(B) the methods of financial assurance and the
478	478	allocation of long-term liability for the post-operational phases
479	479	of geologic storage projects;
480	480	(5) the status of any applications for permits that
481	481	have been received before the report is prepared;
482	482	(6) an update on the exchange of information between
483	483	the Texas Commission on Environmental Quality and the Railroad
484	484	Commission of Texas as required by the memorandum of understanding
485	485	described by Section 27.049, Water Code, as added by this Act, and
486	486	as required by Section 27.046, Water Code, as added by this Act;
487	487	(7) the status of any request for primary enforcement
488	488	authority for the underground injection and geologic storage of
489	489	anthropogenic carbon dioxide under the underground injection
490	490	control program; and
491	491	(8) any recommendations for additional legislation,
492	492	modifications to the memorandum of understanding, or new rules for
493	493	regulating geologic storage facilities and associated
494	494	anthropogenic carbon dioxide injection wells.
495	495	(d) This section expires December 31, 2010.
496	496	SECTION 11. (a) The Texas Commission on Environmental
497	497	Quality shall adopt rules under Section 27.046, Water Code, as
498	498	added by this Act, as soon as practicable after the effective date
499	499	of this Act.
500	500	(b) Not later than March 1, 2010, the Railroad Commission of
501	501	Texas shall adopt rules under Section 27.047, Water Code, as added
502	502	by this Act, for the geologic storage and associated injection of
503	503	carbon dioxide in connection with enhanced recovery operations,
504	504	excluding enhanced recovery operations for which:
505	505	(1) there is a reasonable expectation of more than
506	506	insignificant future production volumes or rates as a result of the
507	507	injection of anthropogenic carbon dioxide; and
508	508	(2) operating pressures are not higher than reasonably
509	509	necessary to produce the production volumes or rates described by
510	510	Subdivision (1) of this subsection.
511	511	(c) Not later than September 1, 2010, the Railroad
512	512	Commission of Texas shall adopt rules under Section 27.047, Water
513	513	Code, as added by this Act, for the geologic storage of carbon
514	514	dioxide in, and the injection of carbon dioxide into, a reservoir
515	515	that is initially or may be productive of oil, gas, or geothermal
516	516	resources.
517	517	(d) The Texas Commission on Environmental Quality and the
518	518	Railroad Commission of Texas shall adopt rules under Section
519	519	27.049, Water Code, as added by this Act, as soon as practicable
520	520	after the effective date of this Act.
521	521	(e) The Railroad Commission of Texas shall adopt rules under
522	522	Sections 91.801 and 120.004, Natural Resources Code, as added by
523	523	this Act, as soon as practicable after the effective date of this
524	524	Act.
525	525	SECTION 12. This Act takes effect September 1, 2009.