By: Callegari H.B. No. 3249
A BILL TO BE ENTITLED
AN ACT
relating to recycling, reclamation, handling, and/or treatment of
oil and gas waste, water, and related materials and clarifying the
Railroad Commission's jurisdiction.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 91.101, Natural Resources Code, is
amended to read as follows:
91.101. Text of section effective until delegation of RCRA
[Resource Conservation and Recovery Act] authority to Railroad
Commission of Texas.
(a) To prevent pollution of surface water or subsurface
water in the state, the commission shall adopt and enforce rules and
orders and may issue permits relating to:
(1) the drilling of exploratory wells and oil and gas
wells or any purpose in connection with them;
(2) the production of oil and gas, including:
(A) activities associated with the drilling of
injection water source wells which penetrate the base of useable
quality water;
(B) activities associated with the drilling of
cathodic protection holes associated with the cathodic protection
of wells and pipelines subject to the jurisdiction of the
commission;
(C) activities associated with gasoline plants,
natural gas or natural gas liquids processing plants, pressure
maintenance plants, or repressurizing plants;
(D) activities associated with any underground
natural gas storage facility, provided the terms "natural gas" and
"storage facility" shall have the meanings set out in Section
91.173, Natural Resources Code;
(E) activities associated with any underground
hydrocarbon storage facility, provided the terms "hydrocarbons"
and "underground hydrocarbon storage facility" shall have the
meanings set out in Section 91.201, Natural Resources Code; and
(F) activities associated with the storage,
handling, reclamation, gathering, transportation, or distribution
of oil or gas prior to the refining of such oil or prior to the use
of such gas in any manufacturing process or as a residential or
industrial fuel;
(3) the operation, abandonment, and proper plugging of
wells subject to the jurisdiction of the commission; and
(4) the discharge, storage, handling, transportation,
reclamation, recycling, or disposal of oil and gas waste as defined
in Section 91.1011 of this subchapter, or of any other substance or
material associated with any operation or activity regulated by the
commission under Subdivisions (1), (2), and (3) of this subsection.
(b) Notwithstanding the provisions of Subsection (a) of
this section, the authority granted to the commission by this
section does not include the authority to adopt and enforce rules
and orders or issue permits regarding the collection, storage,
handling, transportation, processing, recycling, or disposal of
waste arising out of or incidental to activities associated with
gasoline plants, natural gas or natural gas liquids processing
plants, pressure maintenance plants, or repressurizing plants if
that waste is a hazardous waste as defined by the administrator of
the United States Environmental Protection Agency pursuant to the
federal Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act, 42 U.S.C. 6901 et seq., as amended.
91.101. Text of section effective upon delegation of RCRA
[Resource Conservation and Recovery Acts] authority to Railroad
Commission of Texas.
To prevent pollution of surface water or subsurface water in
the state, the commission shall adopt and enforce rules and orders
and may issue permits relating to:
(1) the drilling of exploratory wells and oil and gas
wells or any purpose in connection with them;
(2) the production of oil and gas, including:
(A) activities associated with the drilling of
injection water source wells which penetrate the base of useable
quality water;
(B) activities associated with the drilling of
cathodic protection holes associated with the cathodic protection
of wells and pipelines subject to the jurisdiction of the
commission;
(C) activities associated with gasoline plants,
natural gas or natural gas liquids processing plants, pressure
maintenance plants, or repressurizing plants;
(D) activities associated with any underground
natural gas storage facility, provided the terms "natural gas" and
"storage facility" shall have the meanings set out in Section
91.173, Natural Resources Code;
(E) activities associated with any underground
hydrocarbon storage facility, provided the terms "hydrocarbons"
and "underground hydrocarbon storage facility" shall have the
meanings set out in Section 91.201, Natural Resources Code; and
(F) activities associated with the storage,
handling, reclamation, gathering, transportation, or distribution
of oil or gas prior to the refining of such oil or prior to the use
of such gas in any manufacturing process or as a residential or
industrial fuel;
(3) the operation, abandonment, and proper plugging of
wells subject to the jurisdiction of the commission; and
(4) the discharge, storage, handling, transportation,
reclamation, recycling, or disposal of oil and gas waste as defined
in Section 91.1011 of this subchapter, or of any other substance or
material associated with any operation or activity regulated by the
commission under Subdivisions (1), (2), and (3) of this section.
SECTION 2. Section 91.1011, Natural Resources Code, is
amended to read as follows:
Sec. 91.1011. Text of section effective until delegation of RCRA
authority to Railroad Commission of Texas
(a) In this subchapter, "oil and gas waste" means waste that
arises out of or incidental to the drilling for or producing of oil
or gas, including waste arising out of or incidental to:
(1) activities associated with the drilling of
injection water source wells which penetrate the base of useable
quality water;
(2) activities associated with the drilling of
cathodic protection holes associated with the cathodic protection
of wells and pipelines subject to the jurisdiction of the
commission;
(3) activities associated with gasoline plants,
natural gas or natural gas liquids processing plants, pressure
maintenance plants, or repressurizing plants;
(4) activities associated with any underground
natural gas storage facility, provided the terms "natural gas" and
"storage facility" shall have the meanings set out in Section
91.173, Natural Resources Code;
(5) activities associated with any underground
hydrocarbon storage facility, provided the terms "hydrocarbons"
and "underground hydrocarbon storage facility" shall have the
meanings set out in Section 91.201, Natural Resources Code; and
(6) activities associated with the storage, handling,
reclamation, gathering, transportation, or distribution of oil or
gas prior to the refining of such oil or prior to the use of such gas
in any manufacturing process or as a residential or industrial
fuel.
(b) "Oil and gas waste" includes salt water, brine, sludge,
drilling mud, and other liquid, semiliquid, or solid waste
material, but does not include waste arising out of or incidental to
activities associated with gasoline plants, natural gas or natural
gas liquids processing plants, pressure maintenance plants, or
repressurizing plants if that waste is a hazardous waste as defined
by the administrator of the United States Environmental Protection
Agency pursuant to the federal Solid Waste Disposal Act, as amended
by the Resource Conservation and Recovery Act, 42 U.S.C. 6901 et
seq., as amended.
(c) "Oil and gas waste" does not include Recycled Material.
For purposes of this Section, "Recycled Material" means a material,
good, or product that consists of or includes materials derived
from oil and gas waste that has been recycled and/or reclaimed so
that it meets the applicable standards for its intended use.
Sec. 91.1011. Text of section effective upon delegation of RCRA
authority to Railroad Commission of Texas
(a) In this subchapter, "oil and gas waste" means waste that
arises out of or incidental to the drilling for or producing of oil
or gas, including waste arising out of or incidental to:
(1) activities associated with the drilling of
injection water source wells which penetrate the base of useable
quality water;
(2) activities associated with the drilling of
cathodic protection holes associated with the cathodic protection
of wells and pipelines subject to the jurisdiction of the
commission;
(3) activities associated with gasoline plants,
natural gas or natural gas liquids processing plants, pressure
maintenance plants, or repressurizing plants;
(4) activities associated with any underground
natural gas storage facility, provided the terms "natural gas" and
"storage facility" shall have the meanings set out in Section
91.173, Natural Resources Code;
(5) activities associated with any underground
hydrocarbon storage facility, provided the terms "hydrocarbons"
and "underground hydrocarbon storage facility" shall have the
meanings set out in Section 91.201, Natural Resources Code; and
(6) activities associated with the storage, handling,
reclamation, gathering, transportation, or distribution of oil or
gas prior to the refining of such oil or prior to the use of such gas
in any manufacturing process or as a residential or industrial
fuel.
(b) "Oil and gas waste" includes salt water, brine, sludge,
drilling mud, and other liquid, semiliquid, or solid waste
material.
(c) "Oil and gas waste" does not include Recycled Material.
For purposes of this Section, "Recycled Material" means a material,
good, or product that consists of or includes materials derived
from oil and gas waste that has been recycled and/or reclaimed so
that it meets the applicable standards for its intended use.
SECTION 3. Section 91.109, Natural Resources Code, is
amended to read as follows:
Sec. 91.109. FINANCIAL SECURITY FOR PERSONS INVOLVED IN
ACTIVITIES OTHER THAN OPERATION OF WELLS. (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, proceeds from any bond or other form of
financial security required by this section shall be placed in the
oil and gas regulation and 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.
(b) In addition to the financial security requirements of
Subsection (a), a person required to file a bond, letter of credit,
or cash deposit under Section 91.103 who is involved in activities
other than the ownership or operation of wells must file the bond,
letter of credit, or cash deposit at the time of filing or renewing
an organization report required by Section 91.142 according to the
following schedule:
(1) no bond, letter of credit, or cash deposit if the
person is a:
(A) local distribution company;
(B) gas marketer;
(C) crude oil nominator;
(D) first purchaser;
(E) well servicing company;
(F) survey company;
(G) salt water hauler;
(H) gas nominator;
(I) gas purchaser; or
(J) well plugger; or
(2) a bond, letter of credit, or cash deposit in an
amount not to exceed $25,000 if the person is involved in an
activity that is not associated with the ownership or operation of
wells and is not listed in Subdivision (1).
(c) A person who engages in more than one activity or
operation, including well operation, for which a bond, letter of
credit, or cash deposit is required under this subchapter is not
required to file a separate bond, letter of credit, or cash deposit
for each activity or operation in which the person is engaged. The
person is required to file a bond, letter of credit, or cash deposit
only in the amount required for the activity or operation in which
the person engages for which a bond, letter of credit, or cash
deposit in the greatest amount is required. The bond, letter of
credit, or cash deposit filed covers all of the activities and
operations for which a bond, letter of credit, or cash deposit is
required under this subchapter.
(d) In calculating the bond requirement for recycling
operations, the Commission shall not include the cost or
anticipated cost of removal, reclamation, disposal, or remediation
of Recycled Material. "Recycled Material" shall have the meaning
specified in Section 91.1011(c) of this Chapter.
SECTION 4. This Act takes effect September 1, 2013.