84R5809 JXC-D
By: King of Parker H.B. No. 1331
A BILL TO BE ENTITLED
AN ACT
relating to the treatment and recycling for beneficial use of
certain waste arising out of or incidental to the drilling for or
production of oil or gas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 122.001, Natural Resources Code, is
amended by adding Subdivision (1-a) to read as follows:
(1-a) "Drill cuttings" means bits of rock or soil cut
from a subsurface formation by a drill bit during the process of
drilling an oil or gas well and lifted to the surface by means of the
circulation of drilling mud.
SECTION 2. Section 122.002, Natural Resources Code, is
amended to read as follows:
Sec. 122.002. OWNERSHIP OF CERTAIN OIL AND GAS WASTE
TRANSFERRED FOR TREATMENT AND SUBSEQUENT BENEFICIAL USE. (a) This
section applies only to oil and gas waste that consists of drill
cuttings or fluid oil and gas waste.
(b) Unless otherwise expressly provided by a contract, bill
of sale, or other legally binding document:
(1) when [fluid] 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 who 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; and
(2) when a person who takes possession of [fluid] oil
and gas waste for the purpose of treating the waste for a subsequent
beneficial use 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.
SECTION 3. Chapter 122, Natural Resources Code, is amended
by adding Section 122.0025 to read as follows:
Sec. 122.0025. RESPONSIBILITY IN TORT FOR DRILL CUTTINGS.
A person who generates drill cuttings and transfers the drill
cuttings to another person with the contractual understanding that
the drill cuttings will be treated and used in connection with road
building or another beneficial use is not liable in tort for a
consequence of the subsequent use of the drill cuttings by the
person to whom the drill cuttings are transferred or by another
person.
SECTION 4. The heading to Section 122.003, Natural
Resources Code, is amended to read as follows:
Sec. 122.003. RESPONSIBILITY IN TORT FOR FLUID OIL AND GAS
WASTE.
SECTION 5. This Act takes effect September 1, 2015.