By: Hegar S.B. No. 1296
A BILL TO BE ENTITLED
AN ACT
relating to the use of proceeds of bonds and other financial
security filed with the Railroad Commission of Texas by certain
persons under the jurisdiction of the commission and deposited in
the oil-field cleanup fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 91.108, Natural Resources Code, is
amended to read as follows:
Sec. 91.108. DEPOSIT AND USE OF FUNDS. Subject to the
refund provisions of Section 91.1091, if applicable, proceeds from
bonds and other financial security required pursuant to this
chapter and benefits under well-specific plugging insurance
policies described by Section 91.104(c) that are paid to the state
as contingent beneficiary of the policies shall be deposited in the
oil-field cleanup fund and, notwithstanding Sections 91.112 and
91.113, may be used only for actual well plugging and surface
remediation or to pay an administrative penalty imposed by the
commission under this title that a person has failed to pay before
the penalty is due.
SECTION 2. This Act takes effect September 1, 2011.