Texas 2011 - 82nd Regular

Texas Senate Bill SB1584 Compare Versions

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1	1	By: Ogden S.B. No. 1584
2	2	(In the Senate - Filed March 11, 2011; March 23, 2011, read
3	3	first time and referred to Committee on Finance; April 26, 2011,
4	4	reported adversely, with favorable Committee Substitute by the
5	5	following vote: Yeas 14, Nays 0; April 26, 2011, sent to printer.)
6	6	COMMITTEE SUBSTITUTE FOR S.B. No. 1584 By: Ogden
7	7
8	8
9	9	A BILL TO BE ENTITLED
10	10	AN ACT
11	11	relating to state fiscal matters related to natural resources and
12	12	the environment.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	ARTICLE 1. REDUCTION OF EXPENDITURES AND IMPOSITION OF CHARGES
15	15	GENERALLY
16	16	SECTION 1.01. This article applies to any state agency that
17	17	receives an appropriation under Article VI of the General
18	18	Appropriations Act.
19	19	SECTION 1.02. Notwithstanding any other statute of this
20	20	state, each state agency to which this article applies is
21	21	authorized to reduce or recover expenditures by:
22	22	(1) consolidating any reports or publications the
23	23	agency is required to make and filing or delivering any of those
24	24	reports or publications exclusively by electronic means;
25	25	(2) extending the effective period of any license,
26	26	permit, or registration the agency grants or administers;
27	27	(3) entering into a contract with another governmental
28	28	entity or with a private vendor to carry out any of the agency's
29	29	duties;
30	30	(4) adopting additional eligibility requirements for
31	31	persons who receive benefits under any law the agency administers
32	32	to ensure that those benefits are received by the most deserving
33	33	persons consistent with the purposes for which the benefits are
34	34	provided;
35	35	(5) providing that any communication between the
36	36	agency and another person and any document required to be delivered
37	37	to or by the agency, including any application, notice, billing
38	38	statement, receipt, or certificate, may be made or delivered by
39	39	e-mail or through the Internet; and
40	40	(6) adopting and collecting fees or charges to cover
41	41	any costs the agency incurs in performing its lawful functions.
42	42	ARTICLE 2. FISCAL MATTERS CONCERNING ANIMAL HEALTH REGULATION
43	43	SECTION 2.01. Section 161.060, Agriculture Code, is amended
44	44	to read as follows:
45	45	Sec. 161.060. AUTHORITY TO SET AND COLLECT [INSPECTION]
46	46	FEES. The commission by rule may set and collect a fee for any
47	47	service provided [charge a fee, as provided by commission rule, for
48	48	an inspection made] by the commission, including:
49	49	(1) the inspection of animals or facilities;
50	50	(2) the testing of animals for disease;
51	51	(3) obtaining samples from animals for disease
52	52	testing;
53	53	(4) disease eradication and treatment efforts;
54	54	(5) services related to the transport of livestock;
55	55	(6) control and eradication of ticks and other pests;
56	56	and
57	57	(7) any other service for which the commission incurs
58	58	a cost.
59	59	ARTICLE 3. FISCAL MATTERS REGARDING PETROLEUM INDUSTRY REGULATION
60	60	SECTION 3.01. Subsection (b), Section 26.3574, Water Code,
61	61	is amended to read as follows:
62	62	(b) A fee is imposed on the delivery of a petroleum product
63	63	on withdrawal from bulk of that product as provided by this
64	64	subsection. Each operator of a bulk facility on withdrawal from
65	65	bulk of a petroleum product shall collect from the person who orders
66	66	the withdrawal a fee in an amount determined as follows:
67	67	(1) $3.75 for each delivery into a cargo tank having a
68	68	capacity of less than 2,500 gallons [for the state fiscal year
69	69	beginning September 1, 2007, through the state fiscal year ending
70	70	August 31, 2011];
71	71	(2) $7.50 for each delivery into a cargo tank having a
72	72	capacity of 2,500 gallons or more but less than 5,000 gallons [for
73	73	the state fiscal year beginning September 1, 2007, through the
74	74	state fiscal year ending August 31, 2011];
75	75	(3) $11.75 for each delivery into a cargo tank having a
76	76	capacity of 5,000 gallons or more but less than 8,000 gallons [for
77	77	the state fiscal year beginning September 1, 2007, through the
78	78	state fiscal year ending August 31, 2011];
79	79	(4) $15.00 for each delivery into a cargo tank having a
80	80	capacity of 8,000 gallons or more but less than 10,000 gallons [for
81	81	the state fiscal year beginning September 1, 2007, through the
82	82	state fiscal year ending August 31, 2011]; and
83	83	(5) $7.50 for each increment of 5,000 gallons or any
84	84	part thereof delivered into a cargo tank having a capacity of 10,000
85	85	gallons or more [for the state fiscal year beginning September 1,
86	86	2007, through the state fiscal year ending August 31, 2011].
87	87	ARTICLE 4. FISCAL MATTERS REGARDING FUNDING FOR STATE SITES
88	88	SECTION 4.01. Chapter 11, Parks and Wildlife Code, is
89	89	amended by adding Subchapter J-1 to read as follows:
90	90	SUBCHAPTER J-1. FOR-PROFIT PARTNERSHIPS
91	91	Sec. 11.221. DEFINITIONS. In this subchapter:
92	92	(1) "Official corporate partner" means a for-profit
93	93	entity that:
94	94	(A) is designated an official corporate partner
95	95	by the department;
96	96	(B) works with the department to raise funds for
97	97	state site operations and maintenance; and
98	98	(C) is selected as provided under Section 11.222.
99	99	(2) "State site" means a state park, natural area, or
100	100	historic site under the jurisdiction of the department.
101	101	Sec. 11.222. SELECTION; CONTRACT. (a) Subject to
102	102	commission approval, the department may select a for-profit entity
103	103	as an official corporate partner.
104	104	(b) The department may contract with an official corporate
105	105	partner to raise funds for state site operations and maintenance.
106	106	Sec. 11.223. GIFTS AND GRANTS; FUND-RAISING. (a) To raise
107	107	funds for state site operations and maintenance, an official
108	108	corporate partner may accept contributions, gifts, grants, and
109	109	promotional campaign proceeds on behalf of the department. The
110	110	department shall ensure that an official corporate partner
111	111	transfers the contributions, gifts, grants, and promotional
112	112	campaign proceeds to the department as soon as possible.
113	113	(b) The department may contract with an official corporate
114	114	partner to conduct joint promotional campaigns or other
115	115	fund-raising efforts conducted by the department to raise funds for
116	116	state site operations and maintenance.
117	117	Sec. 11.224. USE OF FUNDS. Money received by the department
118	118	under this subchapter, including money received under a contract or
119	119	licensing or other agreement or as a gift or grant, may be used only
120	120	for state site operations and maintenance.
121	121	Sec. 11.225. RULES. The commission shall adopt rules to
122	122	implement this subchapter, including rules that establish
123	123	guidelines or best practices for official corporate partners.
124	124	SECTION 4.02. Subchapter A, Chapter 13, Parks and Wildlife
125	125	Code, is amended by adding Sections 13.0151 and 13.0155 to read as
126	126	follows:
127	127	Sec. 13.0151. STATE PARK PASSES. (a) The department may
128	128	contract with any entity the department considers appropriate to
129	129	sell state park passes in any of the entity's retail locations.
130	130	(b) The commission may adopt rules to implement this
131	131	section.
132	132	Sec. 13.0155. USE OF PARKS AND WILDLIFE DEPARTMENT BRAND.
133	133	(a) The department may contract with any entity the department
134	134	considers appropriate to use the Parks and Wildlife Department
135	135	brand in exchange for licensing fees paid by the entity to the
136	136	department.
137	137	(b) The department shall use the licensing fees received
138	138	under Subsection (a) only for the operation and maintenance of
139	139	state sites as defined by Section 11.221.
140	140	(c) The commission may adopt rules to implement this
141	141	section.
142	142	SECTION 4.03. Subchapter B, Chapter 13, Parks and Wildlife
143	143	Code, is amended by adding Section 13.103 to read as follows:
144	144	Sec. 13.103. ADVERTISING. The commission by rule may
145	145	assess and limit commercial advertising in state parks, natural
146	146	areas, historic sites, or other sites under the jurisdiction of the
147	147	department to preserve the integrity of the sites and to minimize
148	148	distractions that may interfere with the enjoyment of the sites by
149	149	visitors.
150	150	ARTICLE 5. FISCAL MATTERS REGARDING PARKS AND WILDLIFE DEPARTMENT
151	151	SECTION 5.01. Subchapter D, Chapter 502, Transportation
152	152	Code, is amended by adding Section 502.1747 to read as follows:
153	153	Sec. 502.1747. VOLUNTARY CONTRIBUTION TO PARKS AND WILDLIFE
154	154	DEPARTMENT. (a) When a person registers or renews the
155	155	registration of a motor vehicle under this chapter, the person may
156	156	contribute $5 or more to the Parks and Wildlife Department.
157	157	(b) The county assessor-collector shall send any
158	158	contribution made under this section to the comptroller for credit
159	159	to the Parks and Wildlife Department. Money received by the Parks
160	160	and Wildlife Department under this section may be used only for the
161	161	operation and maintenance of state parks, historic sites, or
162	162	natural areas under the jurisdiction of the Parks and Wildlife
163	163	Department.
164	164	ARTICLE 6. FISCAL MATTERS CONCERNING OIL AND GAS REGULATION
165	165	SECTION 6.01. Subsection (c), Section 81.0521, Natural
166	166	Resources Code, is amended to read as follows:
167	167	(c) Two-thirds of the proceeds from this fee, excluding
168	168	[including] any penalties collected in connection with the fee,
169	169	shall be deposited to the oil and gas regulation and [oil-field]
170	170	cleanup fund as provided by Section 81.067 [91.111].
171	171	SECTION 6.02. Subchapter C, Chapter 81, Natural Resources
172	172	Code, is amended by adding Sections 81.067 through 81.070 to read as
173	173	follows:
174	174	Sec. 81.067. OIL AND GAS REGULATION AND CLEANUP FUND.
175	175	(a) The oil and gas regulation and cleanup fund is created as an
176	176	account in the general revenue fund of the state treasury.
177	177	(b) The commission shall certify to the comptroller the date
178	178	on which the balance in the fund equals or exceeds $20 million. The
179	179	oil-field cleanup regulatory fees on oil and gas shall not be
180	180	collected or required to be paid on or after the first day of the
181	181	second month following the certification, except that the
182	182	comptroller shall resume collecting the fees on receipt of a
183	183	commission certification that the fund has fallen below $10
184	184	million. The comptroller shall continue collecting the fees until
185	185	collections are again suspended in the manner provided by this
186	186	subsection.
187	187	(c) The fund consists of:
188	188	(1) proceeds from bonds and other financial security
189	189	required by this chapter and benefits under well-specific plugging
190	190	insurance policies described by Section 91.104(c) that are paid to
191	191	the state as contingent beneficiary of the policies, subject to the
192	192	refund provisions of Section 91.1091, if applicable;
193	193	(2) private contributions, including contributions
194	194	made under Section 89.084;
195	195	(3) expenses collected under Section 89.083;
196	196	(4) fees imposed under Section 85.2021;
197	197	(5) costs recovered under Section 91.457 or 91.459;
198	198	(6) proceeds collected under Sections 89.085 and
199	199	91.115;
200	200	(7) interest earned on the funds deposited in the
201	201	fund;
202	202	(8) oil and gas waste hauler permit application fees
203	203	collected under Section 29.015, Water Code;
204	204	(9) costs recovered under Section 91.113(f);
205	205	(10) hazardous oil and gas waste generation fees
206	206	collected under Section 91.605;
207	207	(11) oil-field cleanup regulatory fees on oil
208	208	collected under Section 81.116;
209	209	(12) oil-field cleanup regulatory fees on gas
210	210	collected under Section 81.117;
211	211	(13) fees for a reissued certificate collected under
212	212	Section 91.707;
213	213	(14) fees collected under Section 91.1013;
214	214	(15) fees collected under Section 89.088;
215	215	(16) fees collected under Section 91.142;
216	216	(17) fees collected under Section 91.654;
217	217	(18) costs recovered under Sections 91.656 and 91.657;
218	218	(19) two-thirds of the fees collected under Section
219	219	81.0521;
220	220	(20) fees collected under Sections 89.024 and 89.026;
221	221	(21) legislative appropriations; and
222	222	(22) any surcharges collected under Section 81.070.
223	223	Sec. 81.068. PURPOSE OF OIL AND GAS REGULATION AND CLEANUP
224	224	FUND. Money in the oil and gas regulation and cleanup fund may be
225	225	used by the commission or its employees or agents for any purpose
226	226	related to the regulation of oil and gas development, including oil
227	227	and gas monitoring and inspections, oil and gas remediation, oil
228	228	and gas well plugging, public information and services related to
229	229	those activities, and administrative costs and state benefits for
230	230	personnel involved in those activities.
231	231	Sec. 81.069. REPORTING ON PROGRESS IN MEETING PERFORMANCE
232	232	GOALS FOR THE OIL AND GAS REGULATION AND CLEANUP FUND. (a) The
233	233	commission, through the legislative appropriations request
234	234	process, shall establish specific performance goals for the oil and
235	235	gas regulation and cleanup fund for the next biennium, including
236	236	goals for each quarter of each state fiscal year of the biennium for
237	237	the number of:
238	238	(1) orphaned wells to be plugged with state-managed
239	239	funds;
240	240	(2) abandoned sites to be investigated, assessed, or
241	241	cleaned up with state funds; and
242	242	(3) surface locations to be remediated.
243	243	(b) The commission shall provide quarterly reports to the
244	244	Legislative Budget Board that include:
245	245	(1) the following information with respect to the
246	246	period since the last report was provided as well as cumulatively:
247	247	(A) the amount of money deposited in the oil and
248	248	gas regulation and cleanup fund;
249	249	(B) the amount of money spent from the fund for
250	250	the purposes described by Subsection (a);
251	251	(C) the balance of the fund; and
252	252	(D) the commission's progress in meeting the
253	253	quarterly performance goals established under Subsection (a) and,
254	254	if the number of orphaned wells plugged with state-managed funds,
255	255	abandoned sites investigated, assessed, or cleaned up with state
256	256	funds, or surface locations remediated is at least five percent
257	257	less than the number projected in the applicable goal established
258	258	under Subsection (a), an explanation of the reason for the
259	259	variance; and
260	260	(2) any additional information or data requested in
261	261	writing by the Legislative Budget Board.
262	262	(c) The commission shall submit to the legislature and make
263	263	available to the public, annually, a report that reviews the extent
264	264	to which money provided under Section 81.067 has enabled the
265	265	commission to better protect the environment through oil-field
266	266	cleanup activities. The report must include:
267	267	(1) the performance goals established under
268	268	Subsection (a) for that state fiscal year, the commission's
269	269	progress in meeting those performance goals, and, if the number of
270	270	orphaned wells plugged with state-managed funds, abandoned sites
271	271	investigated, assessed, or cleaned up with state funds, or surface
272	272	locations remediated is at least five percent less than the number
273	273	projected in the applicable goal established under Subsection (a),
274	274	an explanation of the reason for the variance;
275	275	(2) the number of orphaned wells plugged with
276	276	state-managed funds, by region;
277	277	(3) the number of wells orphaned, by region;
278	278	(4) the number of inactive wells not currently in
279	279	compliance with commission rules, by region;
280	280	(5) the status of enforcement proceedings for all
281	281	wells in violation of commission rules and the period during which
282	282	the wells have been in violation, by region in which the wells are
283	283	located;
284	284	(6) the number of surface locations remediated, by
285	285	region;
286	286	(7) a detailed accounting of expenditures of money in
287	287	the fund for oil-field cleanup activities, including expenditures
288	288	for plugging of orphaned wells, investigation, assessment, and
289	289	cleaning up of abandoned sites, and remediation of surface
290	290	locations;
291	291	(8) the method by which the commission sets priorities
292	292	by which it determines the order in which orphaned wells are
293	293	plugged;
294	294	(9) a projection of the amount of money needed for the
295	295	next biennium for plugging orphaned wells, investigating,
296	296	assessing, and cleaning up abandoned sites, and remediating surface
297	297	locations; and
298	298	(10) the number of sites successfully remediated under
299	299	the voluntary cleanup program under Subchapter O, Chapter 91, by
300	300	region.
301	301	Sec. 81.070. ESTABLISHMENT OF SURCHARGES ON FEES.
302	302	(a) Except as provided by Subsection (b), the commission by rule
303	303	shall provide for the imposition of reasonable surcharges as
304	304	necessary on fees imposed by the commission that are required to be
305	305	deposited to the credit of the oil and gas regulation and cleanup
306	306	fund as provided by Section 81.067 in amounts sufficient to enable
307	307	the commission to recover the costs of performing the functions
308	308	specified by Section 81.068 from those fees and surcharges.
309	309	(b) The commission may not impose a surcharge on an
310	310	oil-field cleanup regulatory fee on oil collected under Section
311	311	81.116 or an oil-field cleanup regulatory fee on gas collected
312	312	under Section 81.117.
313	313	(c) The commission by rule shall establish a methodology for
314	314	determining the amount of a surcharge that takes into account:
315	315	(1) the time required for regulatory work associated
316	316	with the activity in connection with which the surcharge is
317	317	imposed;
318	318	(2) the number of individuals or entities from which
319	319	the commission's costs may be recovered;
320	320	(3) the effect of the surcharge on operators of all
321	321	sizes, as measured by the number of oil or gas wells operated;
322	322	(4) the balance in the oil and gas regulation and
323	323	cleanup fund; and
324	324	(5) any other factors the commission determines to be
325	325	important to the fair and equitable imposition of the surcharge.
326	326	(d) The commission shall collect a surcharge on a fee at the
327	327	time the fee is collected.
328	328	(e) A surcharge collected under this section shall be
329	329	deposited to the credit of the oil and gas regulation and cleanup
330	330	fund as provided by Section 81.067.
331	331	SECTION 6.03. Section 81.115, Natural Resources Code, is
332	332	amended to read as follows:
333	333	Sec. 81.115. APPROPRIATIONS [PAYMENTS] TO COMMISSION FOR
334	334	OIL AND GAS REGULATION AND CLEANUP PURPOSES [DIVISION]. Money
335	335	appropriated to the [oil and gas division of the] commission under
336	336	the General Appropriations Act for the purposes described by
337	337	Section 81.068 shall be paid from the oil and gas regulation and
338	338	cleanup fund [General Revenue Fund].
339	339	SECTION 6.04. Subsections (d) and (e), Section 81.116,
340	340	Natural Resources Code, are amended to read as follows:
341	341	(d) The comptroller shall suspend collection of the fee in
342	342	the manner provided by Section 81.067 [91.111]. The exemptions and
343	343	reductions set out in Sections 202.052, 202.054, 202.056, 202.057,
344	344	202.059, and 202.060, Tax Code, do not affect the fee imposed by
345	345	this section.
346	346	(e) Proceeds from the fee, excluding [including] any
347	347	penalties collected in connection with the fee, shall be deposited
348	348	to the oil and gas regulation and [oil-field] cleanup fund as
349	349	provided by Section 81.067 [91.111 of this code].
350	350	SECTION 6.05. Subsections (d) and (e) Section 81.117,
351	351	Natural Resources Code, are amended to read as follows:
352	352	(d) The comptroller shall suspend collection of the fee in
353	353	the manner provided by Section 81.067 [91.111]. The exemptions and
354	354	reductions set out in Sections 201.053, 201.057, 201.058, and
355	355	202.060, Tax Code, do not affect the fee imposed by this section.
356	356	(e) Proceeds from the fee, excluding [including] any
357	357	penalties collected in connection with the fee, shall be deposited
358	358	to the oil and gas regulation and [oil-field] cleanup fund as
359	359	provided by Section 81.067 [91.111 of this code].
360	360	SECTION 6.06. Subsection (d), Section 85.2021, Natural
361	361	Resources Code, is amended to read as follows:
362	362	(d) All fees collected under this section shall be deposited
363	363	in the oil and gas regulation and [state oil-field] cleanup fund.
364	364	SECTION 6.07. Subsection (d), Section 89.024, Natural
365	365	Resources Code, is amended to read as follows:
366	366	(d) An operator who files an abeyance of plugging report
367	367	must pay an annual fee of $100 for each well covered by the report.
368	368	A fee collected under this section shall be deposited in the oil and
369	369	gas regulation and [oil-field] cleanup fund.
370	370	SECTION 6.08. Subsection (d), Section 89.026, Natural
371	371	Resources Code, is amended to read as follows:
372	372	(d) An operator who files documentation described by
373	373	Subsection (a) must pay an annual fee of $50 for each well covered
374	374	by the documentation. A fee collected under this section shall be
375	375	deposited in the oil and gas regulation and [oil-field] cleanup
376	376	fund.
377	377	SECTION 6.09. Subsection (d), Section 89.048, Natural
378	378	Resources Code, is amended to read as follows:
379	379	(d) On successful plugging of the well by the well plugger,
380	380	the surface estate owner may submit documentation to the commission
381	381	of the cost of the well-plugging operation. The commission shall
382	382	reimburse the surface estate owner from money in the oil and gas
383	383	regulation and [oil-field] cleanup fund in an amount not to exceed
384	384	50 percent of the lesser of:
385	385	(1) the documented well-plugging costs; or
386	386	(2) the average cost incurred by the commission in the
387	387	preceding 24 months in plugging similar wells located in the same
388	388	general area.
389	389	SECTION 6.10. Subsection (j), Section 89.083, Natural
390	390	Resources Code, is amended to read as follows:
391	391	(j) Money collected in a suit under this section shall be
392	392	deposited in the oil and gas regulation and [state oil-field]
393	393	cleanup fund.
394	394	SECTION 6.11. Subsection (d), Section 89.085, Natural
395	395	Resources Code, is amended to read as follows:
396	396	(d) The commission shall deposit money received from the
397	397	sale of well-site equipment or hydrocarbons under this section to
398	398	the credit of the oil and gas regulation and [oil-field] cleanup
399	399	fund. The commission shall separately account for money and credit
400	400	received for each well.
401	401	SECTION 6.12. The heading to Section 89.086, Natural
402	402	Resources Code, is amended to read as follows:
403	403	Sec. 89.086. CLAIMS AGAINST OIL AND GAS REGULATION AND [THE
404	404	OIL-FIELD] CLEANUP FUND.
405	405	SECTION 6.13. Subsections (a) and (h) through (k), Section
406	406	89.086, Natural Resources Code, are amended to read as follows:
407	407	(a) A person with a legal or equitable ownership or security
408	408	interest in well-site equipment or hydrocarbons disposed of under
409	409	Section 89.085 [of this code] may make a claim against the oil and
410	410	gas regulation and [oil-field] cleanup fund unless an element of
411	411	the transaction giving rise to the interest occurs after the
412	412	commission forecloses its statutory lien under Section 89.083.
413	413	(h) The commission shall suspend an amount of money in the
414	414	oil and gas regulation and [oil-field] cleanup fund equal to the
415	415	amount of the claim until the claim is finally resolved. If the
416	416	provisions of Subsection (k) [of this section] prevent suspension
417	417	of the full amount of the claim, the commission shall treat the
418	418	claim as two consecutively filed claims, one in the amount of funds
419	419	available for suspension and the other in the remaining amount of
420	420	the claim.
421	421	(i) A claim made by or on behalf of the operator or a
422	422	nonoperator of a well or a successor to the rights of the operator
423	423	or nonoperator is subject to a ratable deduction from the proceeds
424	424	or credit received for the well-site equipment to cover the costs
425	425	incurred by the commission in removing the equipment or
426	426	hydrocarbons from the well or in transporting, storing, or
427	427	disposing of the equipment or hydrocarbons. A claim made by a
428	428	person who is not an operator or nonoperator is subject to a ratable
429	429	deduction for the costs incurred by the commission in removing the
430	430	equipment from the well. If a claimant is a person who is
431	431	responsible under law or commission rules for plugging the well or
432	432	cleaning up pollution originating on the lease or if the claimant
433	433	owes a penalty assessed by the commission or a court for a violation
434	434	of a commission rule or order, the commission may recoup from or
435	435	offset against a valid claim an expense incurred by the oil and gas
436	436	regulation and [oil-field] cleanup fund that is not otherwise
437	437	reimbursed or any penalties owed. An amount recouped from,
438	438	deducted from, or offset against a claim under this subsection
439	439	shall be treated as an invalid portion of the claim and shall remain
440	440	suspended in the oil and gas regulation and [oil-field] cleanup
441	441	fund in the manner provided by Subsection (j) [of this section].
442	442	(j) If the commission finds that a claim is valid in whole or
443	443	in part, the commission shall pay the valid portion of the claim
444	444	from the suspended amount in the oil and gas regulation and
445	445	[oil-field] cleanup fund not later than the 30th day after the date
446	446	of the commission's decision. If the commission finds that a claim
447	447	is invalid in whole or in part, the commission shall continue to
448	448	suspend in the oil and gas regulation and [oil-field] cleanup fund
449	449	an amount equal to the invalid portion of the claim until the period
450	450	during which the commission's decision may be appealed has expired
451	451	or, if appealed, during the period the case is under judicial
452	452	review. If on appeal the district court finds the claim valid in
453	453	whole or in part, the commission shall pay the valid portion of the
454	454	claim from the suspended amount in the oil and gas regulation and
455	455	[oil-field] cleanup fund not later than 30 days after the date the
456	456	court's judgment becomes unappealable. On the date the
457	457	commission's decision is not subject to judicial review, the
458	458	commission shall release from the suspended amount in the oil and
459	459	gas regulation and [oil-field] cleanup fund the amount of the claim
460	460	held to be invalid.
461	461	(k) If the aggregate of claims paid and money suspended that
462	462	relates to well-site equipment or hydrocarbons from a particular
463	463	well equals the total of the actual proceeds and credit realized
464	464	from the disposition of that equipment or those hydrocarbons, the
465	465	oil and gas regulation and [oil-field] cleanup fund is not liable
466	466	for any subsequently filed claims that relate to the same equipment
467	467	or hydrocarbons unless and until the commission releases from the
468	468	suspended amount money derived from the disposition of that
469	469	equipment or those hydrocarbons. If the commission releases money,
470	470	then the commission shall suspend money in the amount of
471	471	subsequently filed claims in the order of filing.
472	472	SECTION 6.14. Subsection (b), Section 89.121, Natural
473	473	Resources Code, is amended to read as follows:
474	474	(b) Civil penalties collected for violations of this
475	475	chapter or of rules relating to plugging that are adopted under this
476	476	code shall be deposited in the general revenue [state oil-field
477	477	cleanup] fund.
478	478	SECTION 6.15. Subsection (c), Section 91.1013, Natural
479	479	Resources Code, is amended to read as follows:
480	480	(c) Fees collected under this section shall be deposited in
481	481	the oil and gas regulation and [state oil-field] cleanup fund.
482	482	SECTION 6.16. Section 91.108, Natural Resources Code, is
483	483	amended to read as follows:
484	484	Sec. 91.108. DEPOSIT AND USE OF FUNDS. Subject to the
485	485	refund provisions of Section 91.1091, if applicable, proceeds from
486	486	bonds and other financial security required pursuant to this
487	487	chapter and benefits under well-specific plugging insurance
488	488	policies described by Section 91.104(c) that are paid to the state
489	489	as contingent beneficiary of the policies shall be deposited in the
490	490	oil and gas regulation and [oil-field] cleanup fund and,
491	491	notwithstanding Sections 81.068 [91.112] and 91.113, may be used
492	492	only for actual well plugging and surface remediation.
493	493	SECTION 6.17. Subsection (a), Section 91.109, Natural
494	494	Resources Code, is amended to read as follows:
495	495	(a) A person applying for or acting under a commission
496	496	permit to store, handle, treat, reclaim, or dispose of oil and gas
497	497	waste may be required by the commission to maintain a performance
498	498	bond or other form of financial security conditioned that the
499	499	permittee will operate and close the storage, handling, treatment,
500	500	reclamation, or disposal site in accordance with state law,
501	501	commission rules, and the permit to operate the site. However, this
502	502	section does not authorize the commission to require a bond or other
503	503	form of financial security for saltwater disposal pits, emergency
504	504	saltwater storage pits (including blow-down pits), collecting
505	505	pits, or skimming pits provided that such pits are used in
506	506	conjunction with the operation of an individual oil or gas lease.
507	507	Subject to the refund provisions of Section 91.1091 [of this code],
508	508	proceeds from any bond or other form of financial security required
509	509	by this section shall be placed in the oil and gas regulation and
510	510	[oil-field] cleanup fund. Each bond or other form of financial
511	511	security shall be renewed and continued in effect until the
512	512	conditions have been met or release is authorized by the
513	513	commission.
514	514	SECTION 6.18. Subsections (a) and (f), Section 91.113,
515	515	Natural Resources Code, are amended to read as follows:
516	516	(a) If oil and gas wastes or other substances or materials
517	517	regulated by the commission under Section 91.101 are causing or are
518	518	likely to cause the pollution of surface or subsurface water, the
519	519	commission, through its employees or agents, may use money in the
520	520	oil and gas regulation and [oil-field] cleanup fund to conduct a
521	521	site investigation or environmental assessment or control or clean
522	522	up the oil and gas wastes or other substances or materials if:
523	523	(1) the responsible person has failed or refused to
524	524	control or clean up the oil and gas wastes or other substances or
525	525	materials after notice and opportunity for hearing;
526	526	(2) the responsible person is unknown, cannot be
527	527	found, or has no assets with which to control or clean up the oil and
528	528	gas wastes or other substances or materials; or
529	529	(3) the oil and gas wastes or other substances or
530	530	materials are causing the pollution of surface or subsurface water.
531	531	(f) If the commission conducts a site investigation or
532	532	environmental assessment or controls or cleans up oil and gas
533	533	wastes or other substances or materials under this section, the
534	534	commission may recover all costs incurred by the commission from
535	535	any person who was required by law, rules adopted by the commission,
536	536	or a valid order of the commission to control or clean up the oil and
537	537	gas wastes or other substances or materials. The commission by
538	538	order may require the person to reimburse the commission for those
539	539	costs or may request the attorney general to file suit against the
540	540	person to recover those costs. At the request of the commission,
541	541	the attorney general may file suit to enforce an order issued by the
542	542	commission under this subsection. A suit under this subsection may
543	543	be filed in any court of competent jurisdiction in Travis County.
544	544	Costs recovered under this subsection shall be deposited to the oil
545	545	and gas regulation and [oil-field] cleanup fund.
546	546	SECTION 6.19. Subsection (c), Section 91.264, Natural
547	547	Resources Code, is amended to read as follows:
548	548	(c) A penalty collected under this section shall be
549	549	deposited to the credit of the general revenue [oil-field cleanup]
550	550	fund [account].
551	551	SECTION 6.20. Subsection (b), Section 91.457, Natural
552	552	Resources Code, is amended to read as follows:
553	553	(b) If a person ordered to close a saltwater disposal pit
554	554	under Subsection (a) [of this section] fails or refuses to close the
555	555	pit in compliance with the commission's order and rules, the
556	556	commission may close the pit using money from the oil and gas
557	557	regulation and [oil-field] cleanup fund and may direct the attorney
558	558	general to file suits in any courts of competent jurisdiction in
559	559	Travis County to recover applicable penalties and the costs
560	560	incurred by the commission in closing the saltwater disposal pit.
561	561	SECTION 6.21. Subsection (c), Section 91.459, Natural
562	562	Resources Code, is amended to read as follows:
563	563	(c) Any [penalties or] costs recovered by the attorney
564	564	general under this subchapter shall be deposited in the oil and gas
565	565	regulation and [oil-field] cleanup fund.
566	566	SECTION 6.22. Subsection (e), Section 91.605, Natural
567	567	Resources Code, is amended to read as follows:
568	568	(e) The fees collected under this section shall be deposited
569	569	in the oil and gas regulation and [oil-field] cleanup fund.
570	570	SECTION 6.23. Subsection (e), Section 91.654, Natural
571	571	Resources Code, is amended to read as follows:
572	572	(e) Fees collected under this section shall be deposited to
573	573	the credit of the oil and gas regulation and [oil-field] cleanup
574	574	fund under Section 81.067 [91.111].
575	575	SECTION 6.24. Subsection (b), Section 91.707, Natural
576	576	Resources Code, is amended to read as follows:
577	577	(b) Fees collected under this section shall be deposited to
578	578	the oil and gas regulation and [oil-field] cleanup fund.
579	579	SECTION 6.25. Section 29.015, Water Code, is amended to
580	580	read as follows:
581	581	Sec. 29.015. APPLICATION FEE. With each application for
582	582	issuance, renewal, or material amendment of a permit, the applicant
583	583	shall submit to the railroad commission a nonrefundable fee of
584	584	$100. Fees collected under this section shall be deposited in the
585	585	oil and gas regulation and [oil-field] cleanup fund.
586	586	SECTION 6.26. The following provisions of the Natural
587	587	Resources Code are repealed:
588	588	(1) Section 91.111; and
589	589	(2) Section 91.112.
590	590	SECTION 6.27. On the effective date of this article:
591	591	(1) the oil-field cleanup fund is abolished;
592	592	(2) any money remaining in the oil-field cleanup fund
593	593	is transferred to the oil and gas regulation and cleanup fund;
594	594	(3) any claim against the oil-field cleanup fund is
595	595	transferred to the oil and gas regulation and cleanup fund; and
596	596	(4) any amount required to be deposited to the credit
597	597	of the oil-field cleanup fund shall be deposited to the credit of
598	598	the oil and gas regulation and cleanup fund.
599	599	ARTICLE 7. EFFECTIVE DATE
600	600	SECTION 7.01. This Act takes effect September 1, 2011.
601	601	* * * * *