Texas 2013 - 83rd Regular

Texas House Bill HB2767 Compare Versions

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1	1	By: King of Parker, Keffer, Lewis H.B. No. 2767
2	2	(Senate Sponsor - Estes)
3	3	(In the Senate - Received from the House May 10, 2013;
4	4	May 13, 2013, read first time and referred to Committee on Natural
5	5	Resources; May 17, 2013, reported favorably by the following vote:
6	6	Yeas 8, Nays 0; May 17, 2013, sent to printer.)
7	7
8	8
9	9	A BILL TO BE ENTITLED
10	10	AN ACT
11	11	relating to the treatment and recycling for beneficial use of
12	12	certain waste arising out of or incidental to the drilling for or
13	13	production of oil or gas.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Subtitle D, Title 3, Natural Resources Code, is
16	16	amended by adding Chapter 122 to read as follows:
17	17	CHAPTER 122. TREATMENT AND RECYCLING FOR BENEFICIAL USE OF CERTAIN
18	18	OIL AND GAS WASTE
19	19	Sec. 122.001. DEFINITIONS. In this chapter:
20	20	(1) "Commission" means the Railroad Commission of
21	21	Texas.
22	22	(2) "Fluid oil and gas waste" means waste containing
23	23	salt or other mineralized substances, brine, hydraulic fracturing
24	24	fluid, flowback water, produced water, or other fluid that arises
25	25	out of or is incidental to the drilling for or production of oil or
26	26	gas.
27	27	Sec. 122.002. OWNERSHIP OF CERTAIN OIL AND GAS WASTE
28	28	TRANSFERRED FOR TREATMENT AND SUBSEQUENT BENEFICIAL USE. Unless
29	29	otherwise expressly provided by a contract, bill of sale, or other
30	30	legally binding document:
31	31	(1) when fluid oil and gas waste is transferred to a
32	32	person who takes possession of that waste for the purpose of
33	33	treating the waste for a subsequent beneficial use, the transferred
34	34	material is considered to be the property of the person who takes
35	35	possession of it for the purpose of treating the waste for
36	36	subsequent beneficial use until the person transfers the waste or
37	37	treated waste to another person for disposal or use; and
38	38	(2) when a person who takes possession of fluid oil and
39	39	gas waste for the purpose of treating the waste for a subsequent
40	40	beneficial use transfers possession of the treated product or any
41	41	treatment byproduct to another person for the purpose of subsequent
42	42	disposal or beneficial use, the transferred product or byproduct is
43	43	considered to be the property of the person to whom the material is
44	44	transferred.
45	45	Sec. 122.003. RESPONSIBILITY IN TORT. (a) Except as
46	46	provided by Subsection (b), a person who takes possession of fluid
47	47	oil and gas waste, produces from that waste a treated product
48	48	generally considered in the oil and gas industry to be suitable for
49	49	use in connection with the drilling for or production of oil or gas,
50	50	and transfers the treated product to another person with the
51	51	contractual understanding that the treated product will be used in
52	52	connection with the drilling for or production of oil or gas is not
53	53	liable in tort for a consequence of the subsequent use of that
54	54	treated product by the person to whom the treated product is
55	55	transferred or by another person.
56	56	(b) This section does not affect the liability of a person
57	57	that treats fluid oil and gas waste for beneficial use in an action
58	58	brought by a person for damages for personal injury, death, or
59	59	property damage arising from exposure to fluid oil and gas waste or
60	60	a treated product.
61	61	Sec. 122.004. COMMISSION RULES FOR TREATMENT AND BENEFICIAL
62	62	USE. The commission shall adopt rules to govern the treatment and
63	63	beneficial use of oil and gas waste.
64	64	SECTION 2. This Act takes effect September 1, 2013.
65	65	* * * * *