H.B. No. 1331
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. The heading to Chapter 122, Natural Resources
Code, is amended to read as follows:
CHAPTER 122. TREATMENT AND RECYCLING FOR BENEFICIAL USE OF FLUID
[CERTAIN] OIL AND GAS WASTE
SECTION 2. The heading to Section 122.002, Natural
Resources Code, is amended to read as follows:
Sec. 122.002. OWNERSHIP OF FLUID [CERTAIN] OIL AND GAS
WASTE TRANSFERRED FOR TREATMENT AND SUBSEQUENT BENEFICIAL USE.
SECTION 3. Subtitle D, Title 3, Natural Resources Code, is
amended by adding Chapter 123 to read as follows:
CHAPTER 123. TREATMENT AND RECYCLING FOR BENEFICIAL USE OF DRILL
CUTTINGS
Sec. 123.001. DEFINITIONS. In this chapter:
(1) "Commission" means the Railroad Commission of
Texas.
(2) "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.
(3) "Permit holder" means a person who holds a permit
from the commission to operate a stationary commercial solid oil
and gas waste recycling facility.
Sec. 123.002. OWNERSHIP OF DRILL CUTTINGS TRANSFERRED FOR
TREATMENT AND SUBSEQUENT BENEFICIAL USE. Unless otherwise
expressly provided by a contract, bill of sale, or other legally
binding document:
(1) when drill cuttings are transferred to a permit
holder who takes possession of the cuttings for the purpose of
treating the cuttings for a subsequent beneficial use, the
transferred material is considered to be the property of the permit
holder until the permit holder transfers the cuttings or treated
cuttings to another person for disposal or use; and
(2) when a permit holder who takes possession of drill
cuttings for the purpose of treating the cuttings 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.
Sec. 123.003. RESPONSIBILITY IN TORT. A person who
generates drill cuttings and transfers the drill cuttings to a
permit holder with the contractual understanding that the drill
cuttings will be 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 permit holder or by
another person.
Sec. 123.004. PERMIT COPY REQUIRED. A permit holder who
takes possession of drill cuttings from the person who generated
the drill cuttings shall provide to the generator a copy of the
holder's permit.
Sec. 123.005. COMMISSION RULES FOR TREATMENT AND BENEFICIAL
USE. The commission shall adopt rules to govern the treatment and
beneficial use of drill cuttings.
SECTION 4. This Act takes effect September 1, 2015.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1331 was passed by the House on April
23, 2015, by the following vote: Yeas 139, Nays 0, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1331 was passed by the Senate on May
20, 2015, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor