82R1012 SMH-F
By: Davis S.B. No. 104
A BILL TO BE ENTITLED
AN ACT
relating to restrictions on the release into the air of natural gas
and associated vapors from a gas well.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 86.185, Natural Resources Code, is
amended to read as follows:
Sec. 86.185. RESTRICTIONS ON RELEASE OF [PROHIBITION
AGAINST] GAS IN AIR: GAS WELLS IN GENERAL. (a) This section does
not apply to a gas well to which Section 86.186 applies.
(b) No gas from a gas well may be permitted to escape into
the air after the expiration of 10 days from the time the gas is
encountered in the gas well, or from the time of perforating the
casing opposite a gas-bearing zone if casing is set through the
zone, whichever is later, but the commission may permit the escape
of gas into the air for an additional time if the operator of a well
or other facility presents information to show the necessity for
the escape; provided that the amount of gas which is flared under
that authority is charged to the operator's allowable production.
A necessity includes but is not limited to the following
situations:
(1) cleaning a well of sand or acid or both following
stimulation treatment of a well; and
(2) repairing or modifying a gas-gathering system.
SECTION 2. Subchapter F, Chapter 86, Natural Resources
Code, is amended by adding Section 86.186 to read as follows:
Sec. 86.186. RESTRICTIONS ON RELEASE OF GAS IN AIR: GAS
WELLS IN CERTAIN POPULOUS COUNTIES. (a) This section applies only
to a gas well located in a county that is located wholly or partly
above a hydrocarbon-producing geological formation that underlies
all or part of two counties:
(1) that are adjacent to one another; and
(2) each of which has a population of more than 1.4
million.
(b) After fracturing or refracturing a gas well that the
operator anticipates completing or recompleting, the operator
shall employ appropriate processes to minimize the release into the
air of gas and associated vapors from the well.
(c) The operator of a gas well shall:
(1) deliver all salable gas to a sales line as soon as
the pressure of the gas at the wellhead is sufficient to permit the
gas to flow into the line; or
(2) shut in the well and conserve the gas.
(d) The operator of a gas well that has access to a sales
line shall employ means or methods that minimize the release into
the air of gas and associated vapors from the well when gas from the
well is permitted to flow during the completion or recompletion of
the well, except that the commission may authorize the release if
the operator of the well or of another facility presents
information to the commission showing the necessity for the
release. The amount of gas flared or vented under the commission's
authority shall be charged to the operator's allowable production.
A necessity includes the following situations:
(1) to avoid endangering the safety of persons
performing work on the well or of the public;
(2) to comply with an oil or gas lease entered into
before September 1, 2011;
(3) to repair or modify a gas-gathering system;
(4) the composition of the gas does not meet the
minimum quality standards of the gatherer of the gas;
(5) the pressure of the gas at the wellhead is
insufficient to permit the gas to flow into the sales line or
another circumstance occurs that is beyond the control of the
operator of the well; or
(6) other circumstances or conditions determined by
the commission to be relevant to the goal of preventing waste or
protecting the public interest.
(e) The commission shall adopt rules to implement this
section. Rules adopted under this subsection:
(1) must require an operator to provide a statement on
a form prescribed by the commission evidencing compliance with this
section;
(2) must prescribe a procedure for obtaining
commission authorization of the release into the air of gas and
associated vapors from a gas well; and
(3) may limit the period for which gas and associated
vapors from a gas well may be released into the air with commission
authorization.
(f) The municipality in which a gas well is located may
monitor the operator's compliance with this section. A
municipality may adopt an ordinance to implement this subsection.
SECTION 3. Section 86.012(a), Natural Resources Code, is
amended to read as follows:
(a) The term "waste" includes:
(1) the operation of an oil well or wells with an
inefficient gas-oil ratio;
(2) the drowning with water of a stratum or part of a
stratum capable of producing gas in paying quantities;
(3) permitting a gas well to burn wastefully;
(4) the creation of unnecessary fire hazards;
(5) physical waste or loss incident to or resulting
from so drilling, equipping, or operating a well or wells as to
reduce or tend to reduce the ultimate recovery of gas from any pool;
(6) the escape of gas from a well producing both oil
and gas into the open air in excess of the amount that is necessary
in the efficient drilling or operation of the well;
(7) the production of gas in excess of transportation
or market facilities or reasonable market demand for the type of gas
produced;
(8) the use of gas for the manufacture of carbon black
without first having extracted the natural gasoline content from
the gas, except it shall not be necessary to first extract the
natural gasoline content from the gas where it is utilized in a
plant producing an average recovery of not less than five pounds of
carbon black to each 1,000 cubic feet of gas;
(9) the use of sweet gas produced from a gas well for
the manufacture of carbon black unless it is used in a plant
producing an average recovery of not less than five pounds of carbon
black to each 1,000 cubic feet and unless the sweet gas is produced
from a well located in a common reservoir producing both sweet and
sour gas;
(10) permitting gas produced from a gas well to escape
into the air before or after the gas has been processed for its
gasoline content, unless authorized as provided in Section 86.185
or 86.186 [of this code];
(11) the production of natural gas from a well
producing oil from a stratum other than that in which the oil is
found unless the gas is produced in a separate string of casing from
that in which the oil is produced;
(12) the production of more than 100,000 cubic feet of
gas to each barrel of crude petroleum oil unless the gas is put to
one or more of the uses authorized for the type of gas so produced
under allocations made by the commission or unless authorized as
provided in Section 86.185 or 86.186 [of this code]; and
(13) underground waste or loss however caused and
whether or not defined in other subdivisions of this section.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.