By: King of Parker H.B. No. 2767
A BILL TO BE ENTITLED
AN ACT
relating to treating and recycling for beneficial use certain
liquid or semiliquid waste arising out of or incidental to drilling
for or producing oil or gas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle D, Title 3, Natural Resources Code, is
amended by adding Chapter 122 to read as follows:
CHAPTER 122. RECYCLING CERTAIN OIL AND GAS WASTE FOR BENEFICIAL USE
Sec. 122.001. FINDINGS AND POLICY. (a) The legislature
finds that it is necessary to both:
(1) conserve the water resources of this state; and
(2) reduce and minimize the amount of liquid and
semiliquid waste arising out of or incidental to the drilling for or
production of oil and gas that must then be safely discharged or
disposed of.
(b) Accordingly, it is the policy of this state to encourage
the treatment of liquid and semiliquid oil and gas waste so that the
treated product may be recycled for beneficial use.
Sec. 122.002. DEFINITIONS. In this chapter:
(1) "Commission" means the Railroad Commission of
Texas.
(2) "Liquid or semiliquid oil and gas waste" means
water containing salt or other mineralized substances, brine,
drilling mud, hydraulic fracturing fluid, flow-back water,
produced water, and other liquid or semiliquid material that arises
out of or incidental to the drilling for or producing of oil or gas.
Sec. 122.003. OWNERSHIP OF CERTAIN OIL AND GAS WASTE
TRANSFERRED FOR TREATMENT AND SUBSEQUENT BENEFICIAL USE. (a)
Unless otherwise expressly provided by a contract, bill of sale, or
other legally binding document, when liquid or semiliquid oil and
gas waste is transferred to a person who takes possession of that
waste for the purpose of treating the waste for a subsequent
beneficial use, the transferred material is considered to be the
property of the person that takes possession of it for the purpose
of treating the waste for subsequent beneficial use until the
person transfers the waste or treated waste to another person for
disposal or use.
(b) Unless otherwise expressly provided by a contract, bill
of sale, or other legally binding document, when, as described by
Subsection (a), the person who takes possession of oil and gas waste
for purposes of treating the waste transfers possession of the
treated product or any treatment byproduct to another person for
the purpose of subsequent disposal or beneficial use, the
transferred product or byproduct is considered to be the property
of the person to whom the material is transferred.
Sec. 122.004. RESPONSIBILITY IN TORT. (a) This section
applies only in relation to the production from liquid or
semiliquid oil and gas waste of a treated product generally
considered in the oil and gas industry to be suitable for use in
connection with the drilling for or producing of oil or gas.
(b) A person who takes possession of liquid or semiliquid
oil and gas waste, produces from that waste a treated product
described by Subsection (a), and sells or transfers the treated
product to another with the contractual understanding that the
treated product will be used in connection with the drilling for or
producing of oil or gas is not liable in tort for a consequence of
the subsequent use of that treated product by the person to whom
the treated product is transferred or by another person.
Sec. 122.005. OFF-LEASE PERMITTING. The commission shall
establish a procedure under which a person who holds in good
standing a commission permit for on-lease operation to store,
handle, treat, or reclaim oil and gas waste and who treats liquid
or semiliquid oil and gas waste for a subsequent beneficial use may
expeditiously receive an off-lease commercial permit under which
the person may treat liquid or semiliquid oil and gas waste
off-lease for a subsequent beneficial use if the permit holder
demonstrates to the commission that the permit holder can and will:
(1) safely store the waste and treated waste
off-lease; and
(2) for each site at which the waste is treated,
provide the commission with the information about the composition
of the treated oil and gas waste at that site in the form and manner
that the commission reasonably requires to perform its duties.
SECTION 2. This Act takes effect September 1, 2013.