Texas 2011 - 82nd Regular

Texas Senate Bill SB1584 Latest Draft

Bill / Senate Committee Report Version Filed 02/01/2025

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                            By: Ogden S.B. No. 1584
 (In the Senate - Filed March 11, 2011; March 23, 2011, read
 first time and referred to Committee on Finance; April 26, 2011,
 reported adversely, with favorable Committee Substitute by the
 following vote:  Yeas 14, Nays 0; April 26, 2011, sent to printer.)
 COMMITTEE SUBSTITUTE FOR S.B. No. 1584 By:  Ogden


 A BILL TO BE ENTITLED
 AN ACT
 relating to state fiscal matters related to natural resources and
 the environment.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1.  REDUCTION OF EXPENDITURES AND IMPOSITION OF CHARGES
 GENERALLY
 SECTION 1.01.  This article applies to any state agency that
 receives an appropriation under Article VI of the General
 Appropriations Act.
 SECTION 1.02.  Notwithstanding any other statute of this
 state, each state agency to which this article applies is
 authorized to reduce or recover expenditures by:
 (1)  consolidating any reports or publications the
 agency is required to make and filing or delivering any of those
 reports or publications exclusively by electronic means;
 (2)  extending the effective period of any license,
 permit, or registration the agency grants or administers;
 (3)  entering into a contract with another governmental
 entity or with a private vendor to carry out any of the agency's
 duties;
 (4)  adopting additional eligibility requirements for
 persons who receive benefits under any law the agency administers
 to ensure that those benefits are received by the most deserving
 persons consistent with the purposes for which the benefits are
 provided;
 (5)  providing that any communication between the
 agency and another person and any document required to be delivered
 to or by the agency, including any application, notice, billing
 statement, receipt, or certificate, may be made or delivered by
 e-mail or through the Internet; and
 (6)  adopting and collecting fees or charges to cover
 any costs the agency incurs in performing its lawful functions.
 ARTICLE 2.  FISCAL MATTERS CONCERNING ANIMAL HEALTH REGULATION
 SECTION 2.01.  Section 161.060, Agriculture Code, is amended
 to read as follows:
 Sec. 161.060.  AUTHORITY TO SET AND COLLECT [INSPECTION]
 FEES. The commission by rule may set and collect a fee for any
 service provided [charge a fee, as provided by commission rule, for
 an inspection made] by the commission, including:
 (1)  the inspection of animals or facilities;
 (2)  the testing of animals for disease;
 (3)  obtaining samples from animals for disease
 testing;
 (4)  disease eradication and treatment efforts;
 (5)  services related to the transport of livestock;
 (6)  control and eradication of ticks and other pests;
 and
 (7)  any other service for which the commission incurs
 a cost.
 ARTICLE 3.  FISCAL MATTERS REGARDING PETROLEUM INDUSTRY REGULATION
 SECTION 3.01.  Subsection (b), Section 26.3574, Water Code,
 is amended to read as follows:
 (b)  A fee is imposed on the delivery of a petroleum product
 on withdrawal from bulk of that product as provided by this
 subsection.  Each operator of a bulk facility on withdrawal from
 bulk of a petroleum product shall collect from the person who orders
 the withdrawal a fee in an amount determined as follows:
 (1)  $3.75 for each delivery into a cargo tank having a
 capacity of less than 2,500 gallons [for the state fiscal year
 beginning September 1, 2007, through the state fiscal year ending
 August 31, 2011];
 (2)  $7.50 for each delivery into a cargo tank having a
 capacity of 2,500 gallons or more but less than 5,000 gallons [for
 the state fiscal year beginning September 1, 2007, through the
 state fiscal year ending August 31, 2011];
 (3)  $11.75 for each delivery into a cargo tank having a
 capacity of 5,000 gallons or more but less than 8,000 gallons [for
 the state fiscal year beginning September 1, 2007, through the
 state fiscal year ending August 31, 2011];
 (4)  $15.00 for each delivery into a cargo tank having a
 capacity of 8,000 gallons or more but less than 10,000 gallons [for
 the state fiscal year beginning September 1, 2007, through the
 state fiscal year ending August 31, 2011]; and
 (5)  $7.50 for each increment of 5,000 gallons or any
 part thereof delivered into a cargo tank having a capacity of 10,000
 gallons or more [for the state fiscal year beginning September 1,
 2007, through the state fiscal year ending August 31, 2011].
 ARTICLE 4.  FISCAL MATTERS REGARDING FUNDING FOR STATE SITES
 SECTION 4.01.  Chapter 11, Parks and Wildlife Code, is
 amended by adding Subchapter J-1 to read as follows:
 SUBCHAPTER J-1.  FOR-PROFIT PARTNERSHIPS
 Sec. 11.221.  DEFINITIONS. In this subchapter:
 (1)  "Official corporate partner" means a for-profit
 entity that:
 (A)  is designated an official corporate partner
 by the department;
 (B)  works with the department to raise funds for
 state site operations and maintenance; and
 (C)  is selected as provided under Section 11.222.
 (2)  "State site" means a state park, natural area, or
 historic site under the jurisdiction of the department.
 Sec. 11.222.  SELECTION; CONTRACT.  (a)  Subject to
 commission approval, the department may select a for-profit entity
 as an official corporate partner.
 (b)  The department may contract with an official corporate
 partner to raise funds for state site operations and maintenance.
 Sec. 11.223.  GIFTS AND GRANTS; FUND-RAISING.  (a)  To raise
 funds for state site operations and maintenance, an official
 corporate partner may accept contributions, gifts, grants, and
 promotional campaign proceeds on behalf of the department.  The
 department shall ensure that an official corporate partner
 transfers the contributions, gifts, grants, and promotional
 campaign proceeds to the department as soon as possible.
 (b)  The department may contract with an official corporate
 partner to conduct joint promotional campaigns or other
 fund-raising efforts conducted by the department to raise funds for
 state site operations and maintenance.
 Sec. 11.224.  USE OF FUNDS. Money received by the department
 under this subchapter, including money received under a contract or
 licensing or other agreement or as a gift or grant, may be used only
 for state site operations and maintenance.
 Sec. 11.225.  RULES. The commission shall adopt rules to
 implement this subchapter, including rules that establish
 guidelines or best practices for official corporate partners.
 SECTION 4.02.  Subchapter A, Chapter 13, Parks and Wildlife
 Code, is amended by adding Sections 13.0151 and 13.0155 to read as
 follows:
 Sec. 13.0151.  STATE PARK PASSES. (a)  The department may
 contract with any entity the department considers appropriate to
 sell state park passes in any of the entity's retail locations.
 (b)  The commission may adopt rules to implement this
 section.
 Sec. 13.0155.  USE OF PARKS AND WILDLIFE DEPARTMENT BRAND.
 (a)  The department may contract with any entity the department
 considers appropriate to use the Parks and Wildlife Department
 brand in exchange for licensing fees paid by the entity to the
 department.
 (b)  The department shall use the licensing fees received
 under Subsection (a) only for the operation and maintenance of
 state sites as defined by Section 11.221.
 (c)  The commission may adopt rules to implement this
 section.
 SECTION 4.03.  Subchapter B, Chapter 13, Parks and Wildlife
 Code, is amended by adding Section 13.103 to read as follows:
 Sec. 13.103.  ADVERTISING.  The commission by rule may
 assess and limit commercial advertising in state parks, natural
 areas, historic sites, or other sites under the jurisdiction of the
 department to preserve the integrity of the sites and to minimize
 distractions that may interfere with the enjoyment of the sites by
 visitors.
 ARTICLE 5.  FISCAL MATTERS REGARDING PARKS AND WILDLIFE DEPARTMENT
 SECTION 5.01.  Subchapter D, Chapter 502, Transportation
 Code, is amended by adding Section 502.1747 to read as follows:
 Sec. 502.1747.  VOLUNTARY CONTRIBUTION TO PARKS AND WILDLIFE
 DEPARTMENT. (a)  When a person registers or renews the
 registration of a motor vehicle under this chapter, the person may
 contribute $5 or more to the Parks and Wildlife Department.
 (b)  The county assessor-collector shall send any
 contribution made under this section to the comptroller for credit
 to the Parks and Wildlife Department. Money received by the Parks
 and Wildlife Department under this section may be used only for the
 operation and maintenance of state parks, historic sites, or
 natural areas under the jurisdiction of the Parks and Wildlife
 Department.
 ARTICLE 6.  FISCAL MATTERS CONCERNING OIL AND GAS REGULATION
 SECTION 6.01.  Subsection (c), Section 81.0521, Natural
 Resources Code, is amended to read as follows:
 (c)  Two-thirds of the proceeds from this fee, excluding
 [including] any penalties collected in connection with the fee,
 shall be deposited to the oil and gas regulation and [oil-field]
 cleanup fund as provided by Section 81.067 [91.111].
 SECTION 6.02.  Subchapter C, Chapter 81, Natural Resources
 Code, is amended by adding Sections 81.067 through 81.070 to read as
 follows:
 Sec. 81.067.  OIL AND GAS REGULATION AND CLEANUP FUND.
 (a)  The oil and gas regulation and cleanup fund is created as an
 account in the general revenue fund of the state treasury.
 (b)  The commission shall certify to the comptroller the date
 on which the balance in the fund equals or exceeds $20 million. The
 oil-field cleanup regulatory fees on oil and gas shall not be
 collected or required to be paid on or after the first day of the
 second month following the certification, except that the
 comptroller shall resume collecting the fees on receipt of a
 commission certification that the fund has fallen below $10
 million. The comptroller shall continue collecting the fees until
 collections are again suspended in the manner provided by this
 subsection.
 (c)  The fund consists of:
 (1)  proceeds from bonds and other financial security
 required by 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, subject to the
 refund provisions of Section 91.1091, if applicable;
 (2)  private contributions, including contributions
 made under Section 89.084;
 (3)  expenses collected under Section 89.083;
 (4)  fees imposed under Section 85.2021;
 (5)  costs recovered under Section 91.457 or 91.459;
 (6)  proceeds collected under Sections 89.085 and
 91.115;
 (7)  interest earned on the funds deposited in the
 fund;
 (8)  oil and gas waste hauler permit application fees
 collected under Section 29.015, Water Code;
 (9)  costs recovered under Section 91.113(f);
 (10)  hazardous oil and gas waste generation fees
 collected under Section 91.605;
 (11)  oil-field cleanup regulatory fees on oil
 collected under Section 81.116;
 (12)  oil-field cleanup regulatory fees on gas
 collected under Section 81.117;
 (13)  fees for a reissued certificate collected under
 Section 91.707;
 (14)  fees collected under Section 91.1013;
 (15)  fees collected under Section 89.088;
 (16)  fees collected under Section 91.142;
 (17)  fees collected under Section 91.654;
 (18)  costs recovered under Sections 91.656 and 91.657;
 (19)  two-thirds of the fees collected under Section
 81.0521;
 (20)  fees collected under Sections 89.024 and 89.026;
 (21)  legislative appropriations; and
 (22)  any surcharges collected under Section 81.070.
 Sec. 81.068.  PURPOSE OF OIL AND GAS REGULATION AND CLEANUP
 FUND. Money in the oil and gas regulation and cleanup fund may be
 used by the commission or its employees or agents for any purpose
 related to the regulation of oil and gas development, including oil
 and gas monitoring and inspections, oil and gas remediation, oil
 and gas well plugging, public information and services related to
 those activities, and administrative costs and state benefits for
 personnel involved in those activities.
 Sec. 81.069.  REPORTING ON PROGRESS IN MEETING PERFORMANCE
 GOALS FOR THE OIL AND GAS REGULATION AND CLEANUP FUND. (a)  The
 commission, through the legislative appropriations request
 process, shall establish specific performance goals for the oil and
 gas regulation and cleanup fund for the next biennium, including
 goals for each quarter of each state fiscal year of the biennium for
 the number of:
 (1)  orphaned wells to be plugged with state-managed
 funds;
 (2)  abandoned sites to be investigated, assessed, or
 cleaned up with state funds; and
 (3)  surface locations to be remediated.
 (b)  The commission shall provide quarterly reports to the
 Legislative Budget Board that include:
 (1)  the following information with respect to the
 period since the last report was provided as well as cumulatively:
 (A)  the amount of money deposited in the oil and
 gas regulation and cleanup fund;
 (B)  the amount of money spent from the fund for
 the purposes described by Subsection (a);
 (C)  the balance of the fund; and
 (D)  the commission's progress in meeting the
 quarterly performance goals established under Subsection (a) and,
 if the number of orphaned wells plugged with state-managed funds,
 abandoned sites investigated, assessed, or cleaned up with state
 funds, or surface locations remediated is at least five percent
 less than the number projected in the applicable goal established
 under Subsection (a), an explanation of the reason for the
 variance; and
 (2)  any additional information or data requested in
 writing by the Legislative Budget Board.
 (c)  The commission shall submit to the legislature and make
 available to the public, annually, a report that reviews the extent
 to which money provided under Section 81.067 has enabled the
 commission to better protect the environment through oil-field
 cleanup activities. The report must include:
 (1)  the performance goals established under
 Subsection (a) for that state fiscal year, the commission's
 progress in meeting those performance goals, and, if the number of
 orphaned wells plugged with state-managed funds, abandoned sites
 investigated, assessed, or cleaned up with state funds, or surface
 locations remediated is at least five percent less than the number
 projected in the applicable goal established under Subsection (a),
 an explanation of the reason for the variance;
 (2)  the number of orphaned wells plugged with
 state-managed funds, by region;
 (3)  the number of wells orphaned, by region;
 (4)  the number of inactive wells not currently in
 compliance with commission rules, by region;
 (5)  the status of enforcement proceedings for all
 wells in violation of commission rules and the period during which
 the wells have been in violation, by region in which the wells are
 located;
 (6)  the number of surface locations remediated, by
 region;
 (7)  a detailed accounting of expenditures of money in
 the fund for oil-field cleanup activities, including expenditures
 for plugging of orphaned wells, investigation, assessment, and
 cleaning up of abandoned sites, and remediation of surface
 locations;
 (8)  the method by which the commission sets priorities
 by which it determines the order in which orphaned wells are
 plugged;
 (9)  a projection of the amount of money needed for the
 next biennium for plugging orphaned wells, investigating,
 assessing, and cleaning up abandoned sites, and remediating surface
 locations; and
 (10)  the number of sites successfully remediated under
 the voluntary cleanup program under Subchapter O, Chapter 91, by
 region.
 Sec. 81.070.  ESTABLISHMENT OF SURCHARGES ON FEES.
 (a)  Except as provided by Subsection (b), the commission by rule
 shall provide for the imposition of reasonable surcharges as
 necessary on fees imposed by the commission that are required to be
 deposited to the credit of the oil and gas regulation and cleanup
 fund as provided by Section 81.067 in amounts sufficient to enable
 the commission to recover the costs of performing the functions
 specified by Section 81.068 from those fees and surcharges.
 (b)  The commission may not impose a surcharge on an
 oil-field cleanup regulatory fee on oil collected under Section
 81.116 or an oil-field cleanup regulatory fee on gas collected
 under Section 81.117.
 (c)  The commission by rule shall establish a methodology for
 determining the amount of a surcharge that takes into account:
 (1)  the time required for regulatory work associated
 with the activity in connection with which the surcharge is
 imposed;
 (2)  the number of individuals or entities from which
 the commission's costs may be recovered;
 (3)  the effect of the surcharge on operators of all
 sizes, as measured by the number of oil or gas wells operated;
 (4)  the balance in the oil and gas regulation and
 cleanup fund; and
 (5)  any other factors the commission determines to be
 important to the fair and equitable imposition of the surcharge.
 (d)  The commission shall collect a surcharge on a fee at the
 time the fee is collected.
 (e)  A surcharge collected under this section shall be
 deposited to the credit of the oil and gas regulation and cleanup
 fund as provided by Section 81.067.
 SECTION 6.03.  Section 81.115, Natural Resources Code, is
 amended to read as follows:
 Sec. 81.115.  APPROPRIATIONS [PAYMENTS] TO COMMISSION FOR
 OIL AND GAS REGULATION AND CLEANUP PURPOSES [DIVISION]. Money
 appropriated to the [oil and gas division of the] commission under
 the General Appropriations Act for the purposes described by
 Section 81.068 shall be paid from the oil and gas regulation and
 cleanup fund [General Revenue Fund].
 SECTION 6.04.  Subsections (d) and (e), Section 81.116,
 Natural Resources Code, are amended to read as follows:
 (d)  The comptroller shall suspend collection of the fee in
 the manner provided by Section 81.067 [91.111].  The exemptions and
 reductions set out in Sections 202.052, 202.054, 202.056, 202.057,
 202.059, and 202.060, Tax Code, do not affect the fee imposed by
 this section.
 (e)  Proceeds from the fee, excluding [including] any
 penalties collected in connection with the fee, shall be deposited
 to the oil and gas regulation and [oil-field] cleanup fund as
 provided by Section 81.067 [91.111 of this code].
 SECTION 6.05.  Subsections (d) and (e) Section 81.117,
 Natural Resources Code, are amended to read as follows:
 (d)  The comptroller shall suspend collection of the fee in
 the manner provided by Section 81.067 [91.111].  The exemptions and
 reductions set out in Sections 201.053, 201.057, 201.058, and
 202.060, Tax Code, do not affect the fee imposed by this section.
 (e)  Proceeds from the fee, excluding [including] any
 penalties collected in connection with the fee, shall be deposited
 to the oil and gas regulation and [oil-field] cleanup fund as
 provided by Section 81.067 [91.111 of this code].
 SECTION 6.06.  Subsection (d), Section 85.2021, Natural
 Resources Code, is amended to read as follows:
 (d)  All fees collected under this section shall be deposited
 in the oil and gas regulation and [state oil-field] cleanup fund.
 SECTION 6.07.  Subsection (d), Section 89.024, Natural
 Resources Code, is amended to read as follows:
 (d)  An operator who files an abeyance of plugging report
 must pay an annual fee of $100 for each well covered by the report.
 A fee collected under this section shall be deposited in the oil and
 gas regulation and [oil-field] cleanup fund.
 SECTION 6.08.  Subsection (d), Section 89.026, Natural
 Resources Code, is amended to read as follows:
 (d)  An operator who files documentation described by
 Subsection (a) must pay an annual fee of $50 for each well covered
 by the documentation.  A fee collected under this section shall be
 deposited in the oil and gas regulation and [oil-field] cleanup
 fund.
 SECTION 6.09.  Subsection (d), Section 89.048, Natural
 Resources Code, is amended to read as follows:
 (d)  On successful plugging of the well by the well plugger,
 the surface estate owner may submit documentation to the commission
 of the cost of the well-plugging operation.  The commission shall
 reimburse the surface estate owner from money in the oil and gas
 regulation and [oil-field] cleanup fund in an amount not to exceed
 50 percent of the lesser of:
 (1)  the documented well-plugging costs; or
 (2)  the average cost incurred by the commission in the
 preceding 24 months in plugging similar wells located in the same
 general area.
 SECTION 6.10.  Subsection (j), Section 89.083, Natural
 Resources Code, is amended to read as follows:
 (j)  Money collected in a suit under this section shall be
 deposited in the oil and gas regulation and [state oil-field]
 cleanup fund.
 SECTION 6.11.  Subsection (d), Section 89.085, Natural
 Resources Code, is amended to read as follows:
 (d)  The commission shall deposit money received from the
 sale of well-site equipment or hydrocarbons under this section to
 the credit of the oil and gas regulation and [oil-field] cleanup
 fund. The commission shall separately account for money and credit
 received for each well.
 SECTION 6.12.  The heading to Section 89.086, Natural
 Resources Code, is amended to read as follows:
 Sec. 89.086.  CLAIMS AGAINST OIL AND GAS REGULATION AND [THE
 OIL-FIELD] CLEANUP FUND.
 SECTION 6.13.  Subsections (a) and (h) through (k), Section
 89.086, Natural Resources Code, are amended to read as follows:
 (a)  A person with a legal or equitable ownership or security
 interest in well-site equipment or hydrocarbons disposed of under
 Section 89.085 [of this code] may make a claim against the oil and
 gas regulation and [oil-field] cleanup fund unless an element of
 the transaction giving rise to the interest occurs after the
 commission forecloses its statutory lien under Section 89.083.
 (h)  The commission shall suspend an amount of money in the
 oil and gas regulation and [oil-field] cleanup fund equal to the
 amount of the claim until the claim is finally resolved. If the
 provisions of Subsection (k) [of this section] prevent suspension
 of the full amount of the claim, the commission shall treat the
 claim as two consecutively filed claims, one in the amount of funds
 available for suspension and the other in the remaining amount of
 the claim.
 (i)  A claim made by or on behalf of the operator or a
 nonoperator of a well or a successor to the rights of the operator
 or nonoperator is subject to a ratable deduction from the proceeds
 or credit received for the well-site equipment to cover the costs
 incurred by the commission in removing the equipment or
 hydrocarbons from the well or in transporting, storing, or
 disposing of the equipment or hydrocarbons. A claim made by a
 person who is not an operator or nonoperator is subject to a ratable
 deduction for the costs incurred by the commission in removing the
 equipment from the well. If a claimant is a person who is
 responsible under law or commission rules for plugging the well or
 cleaning up pollution originating on the lease or if the claimant
 owes a penalty assessed by the commission or a court for a violation
 of a commission rule or order, the commission may recoup from or
 offset against a valid claim an expense incurred by the oil and gas
 regulation and [oil-field] cleanup fund that is not otherwise
 reimbursed or any penalties owed. An amount recouped from,
 deducted from, or offset against a claim under this subsection
 shall be treated as an invalid portion of the claim and shall remain
 suspended in the oil and gas regulation and [oil-field] cleanup
 fund in the manner provided by Subsection (j) [of this section].
 (j)  If the commission finds that a claim is valid in whole or
 in part, the commission shall pay the valid portion of the claim
 from the suspended amount in the oil and gas regulation and
 [oil-field] cleanup fund not later than the 30th day after the date
 of the commission's decision. If the commission finds that a claim
 is invalid in whole or in part, the commission shall continue to
 suspend in the oil and gas regulation and [oil-field] cleanup fund
 an amount equal to the invalid portion of the claim until the period
 during which the commission's decision may be appealed has expired
 or, if appealed, during the period the case is under judicial
 review. If on appeal the district court finds the claim valid in
 whole or in part, the commission shall pay the valid portion of the
 claim from the suspended amount in the oil and gas regulation and
 [oil-field] cleanup fund not later than 30 days after the date the
 court's judgment becomes unappealable. On the date the
 commission's decision is not subject to judicial review, the
 commission shall release from the suspended amount in the oil and
 gas regulation and [oil-field] cleanup fund the amount of the claim
 held to be invalid.
 (k)  If the aggregate of claims paid and money suspended that
 relates to well-site equipment or hydrocarbons from a particular
 well equals the total of the actual proceeds and credit realized
 from the disposition of that equipment or those hydrocarbons, the
 oil and gas regulation and [oil-field] cleanup fund is not liable
 for any subsequently filed claims that relate to the same equipment
 or hydrocarbons unless and until the commission releases from the
 suspended amount money derived from the disposition of that
 equipment or those hydrocarbons. If the commission releases money,
 then the commission shall suspend money in the amount of
 subsequently filed claims in the order of filing.
 SECTION 6.14.  Subsection (b), Section 89.121, Natural
 Resources Code, is amended to read as follows:
 (b)  Civil penalties collected for violations of this
 chapter or of rules relating to plugging that are adopted under this
 code shall be deposited in the general revenue [state oil-field
 cleanup] fund.
 SECTION 6.15.  Subsection (c), Section 91.1013, Natural
 Resources Code, is amended to read as follows:
 (c)  Fees collected under this section shall be deposited in
 the oil and gas regulation and [state oil-field] cleanup fund.
 SECTION 6.16.  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 and gas regulation and [oil-field] cleanup fund and,
 notwithstanding Sections 81.068 [91.112] and 91.113, may be used
 only for actual well plugging and surface remediation.
 SECTION 6.17.  Subsection (a), Section 91.109, Natural
 Resources Code, is amended to read as follows:
 (a)  A person applying for or acting under a commission
 permit to store, handle, treat, reclaim, or dispose of oil and gas
 waste may be required by the commission to maintain a performance
 bond or other form of financial security conditioned that the
 permittee will operate and close the storage, handling, treatment,
 reclamation, or disposal site in accordance with state law,
 commission rules, and the permit to operate the site. However, this
 section does not authorize the commission to require a bond or other
 form of financial security for saltwater disposal pits, emergency
 saltwater storage pits (including blow-down pits), collecting
 pits, or skimming pits provided that such pits are used in
 conjunction with the operation of an individual oil or gas lease.
 Subject to the refund provisions of Section 91.1091 [of this code],
 proceeds from any bond or other form of financial security required
 by this section shall be placed in the oil and gas regulation and
 [oil-field] cleanup fund. Each bond or other form of financial
 security shall be renewed and continued in effect until the
 conditions have been met or release is authorized by the
 commission.
 SECTION 6.18.  Subsections (a) and (f), Section 91.113,
 Natural Resources Code, are amended to read as follows:
 (a)  If oil and gas wastes or other substances or materials
 regulated by the commission under Section 91.101 are causing or are
 likely to cause the pollution of surface or subsurface water, the
 commission, through its employees or agents, may use money in the
 oil and gas regulation and [oil-field] cleanup fund to conduct a
 site investigation or environmental assessment or control or clean
 up the oil and gas wastes or other substances or materials if:
 (1)  the responsible person has failed or refused to
 control or clean up the oil and gas wastes or other substances or
 materials after notice and opportunity for hearing;
 (2)  the responsible person is unknown, cannot be
 found, or has no assets with which to control or clean up the oil and
 gas wastes or other substances or materials; or
 (3)  the oil and gas wastes or other substances or
 materials are causing the pollution of surface or subsurface water.
 (f)  If the commission conducts a site investigation or
 environmental assessment or controls or cleans up oil and gas
 wastes or other substances or materials under this section, the
 commission may recover all costs incurred by the commission from
 any person who was required by law, rules adopted by the commission,
 or a valid order of the commission to control or clean up the oil and
 gas wastes or other substances or materials. The commission by
 order may require the person to reimburse the commission for those
 costs or may request the attorney general to file suit against the
 person to recover those costs. At the request of the commission,
 the attorney general may file suit to enforce an order issued by the
 commission under this subsection. A suit under this subsection may
 be filed in any court of competent jurisdiction in Travis County.
 Costs recovered under this subsection shall be deposited to the oil
 and gas regulation and [oil-field] cleanup fund.
 SECTION 6.19.  Subsection (c), Section 91.264, Natural
 Resources Code, is amended to read as follows:
 (c)  A penalty collected under this section shall be
 deposited to the credit of the general revenue [oil-field cleanup]
 fund [account].
 SECTION 6.20.  Subsection (b), Section 91.457, Natural
 Resources Code, is amended to read as follows:
 (b)  If a person ordered to close a saltwater disposal pit
 under Subsection (a) [of this section] fails or refuses to close the
 pit in compliance with the commission's order and rules, the
 commission may close the pit using money from the oil and gas
 regulation and [oil-field] cleanup fund and may direct the attorney
 general to file suits in any courts of competent jurisdiction in
 Travis County to recover applicable penalties and the costs
 incurred by the commission in closing the saltwater disposal pit.
 SECTION 6.21.  Subsection (c), Section 91.459, Natural
 Resources Code, is amended to read as follows:
 (c)  Any [penalties or] costs recovered by the attorney
 general under this subchapter shall be deposited in the oil and gas
 regulation and [oil-field] cleanup fund.
 SECTION 6.22.  Subsection (e), Section 91.605, Natural
 Resources Code, is amended to read as follows:
 (e)  The fees collected under this section shall be deposited
 in the oil and gas regulation and [oil-field] cleanup fund.
 SECTION 6.23.  Subsection (e), Section 91.654, Natural
 Resources Code, is amended to read as follows:
 (e)  Fees collected under this section shall be deposited to
 the credit of the oil and gas regulation and [oil-field] cleanup
 fund under Section 81.067 [91.111].
 SECTION 6.24.  Subsection (b), Section 91.707, Natural
 Resources Code, is amended to read as follows:
 (b)  Fees collected under this section shall be deposited to
 the oil and gas regulation and [oil-field] cleanup fund.
 SECTION 6.25.  Section 29.015, Water Code, is amended to
 read as follows:
 Sec. 29.015.  APPLICATION FEE. With each application for
 issuance, renewal, or material amendment of a permit, the applicant
 shall submit to the railroad commission a nonrefundable fee of
 $100.  Fees collected under this section shall be deposited in the
 oil and gas regulation and [oil-field] cleanup fund.
 SECTION 6.26.  The following provisions of the Natural
 Resources Code are repealed:
 (1)  Section 91.111; and
 (2)  Section 91.112.
 SECTION 6.27.  On the effective date of this article:
 (1)  the oil-field cleanup fund is abolished;
 (2)  any money remaining in the oil-field cleanup fund
 is transferred to the oil and gas regulation and cleanup fund;
 (3)  any claim against the oil-field cleanup fund is
 transferred to the oil and gas regulation and cleanup fund; and
 (4)  any amount required to be deposited to the credit
 of the oil-field cleanup fund shall be deposited to the credit of
 the oil and gas regulation and cleanup fund.
 ARTICLE 7.  EFFECTIVE DATE
 SECTION  7.01.  This Act takes effect September 1, 2011.
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