82R9865 TRH-F By: Duncan S.B. No. 1689 A BILL TO BE ENTITLED AN ACT relating to the process for refusing to renew an organization report for an operator that fails to plug an inactive oil or gas well. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 89.022, Natural Resources Code, is amended by adding Subsections (d), (e), (f), and (g) to read as follows: (d) Before the commission issues an order refusing to renew an operator's organization report under Subsection (c), an authorized commission employee or a person designated by the commission for that purpose must determine whether the operator has failed to comply with the requirements of this subchapter. If the authorized commission employee or designated person determines that the organization report does not qualify for renewal on that ground, the authorized commission employee or designated person must: (1) notify the operator of the determination; (2) provide the operator with a written statement of the reasons the organization report does not qualify for renewal; and (3) notify the operator that the operator has 90 days to comply with the requirements of this subchapter. (e) The authorized commission employee or designated person may grant the operator an additional 45 days to comply with the requirements of this subchapter for good cause shown. (f) After the expiration of the period specified by Subsection (d)(3) as extended under Subsection (e), if applicable, the authorized commission employee or designated person shall determine whether the organization report qualifies for renewal and notify the operator of the determination. If the authorized commission employee or designated person determines that the organization report does not qualify for renewal because the operator has continued to fail to comply with the requirements of this subchapter, the operator, not later than the 30th day after the date of the determination, may request a hearing regarding the determination. (g) If the commission determines following the hearing that the operator has failed to comply with the requirements of this subchapter or the operator fails to file a timely request for a hearing, the commission by order shall refuse to renew the organization report. The organization report remains in effect until the commission's order becomes final. SECTION 2. The changes in law made by this Act apply only to the renewal of an organization report on or after the effective date of this Act. The renewal of an organization report before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2011.