Texas Senate Bill SB1296

Texas 2011 - 82nd Regular

• Out of Senate Committee: 4/13/11
• Introduced: 3/8/11
• Voted on by Senate: 4/26/11
• Refer: 3/16/11
• Out of House Committee: 5/21/11
• Report Pass: 4/13/11
• Engrossed: 4/26/11
• Refer: 5/2/11
• Report Pass: 5/19/11

Caption

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.

Impact

The enactment of SB1296 would directly affect the management of financial resources related to the oil industry within Texas. By limiting the use of the proceeds strictly to activities associated with environmental restoration and compliance penalties, this bill reinforces the legislative intent to prioritize ecological safety and effective responses to oil field disruptions. This funding guideline could enhance accountability and lead to improved environmental conditions in oil-impacted regions.

Summary

SB1296 introduces modifications to the usage of proceeds from bonds and other financial securities filed with the Railroad Commission of Texas. The bill specifies that these funds will be deposited into the oil-field cleanup fund and outlines permissible uses for these proceeds. Notably, the funds can only be utilized for well plugging and surface remediation processes, or to pay administrative penalties imposed by the commission in situations where a person fails to meet their financial obligations. The amendment aims to ensure that the funds are specifically allocated to environmental cleanup activities in the state.

Contention

While the bill emphasizes environmental protection through careful financial management, potential areas of contention may arise regarding its implications on small operators and the oil industry. Critics may argue that restricting the use of these funds could hinder companies from managing their finances flexibly. Additionally, stakeholders might debate whether the punitive measures for failing to pay administrative penalties are sufficient, or if further considerations are necessary for ensuring compliance without overly burdening smaller entities in the industry.