Texas House Bill HB3313

Texas 2015 - 84th Regular

Caption

Relating to unit operations for oil, gas, or oil and gas production from depleting reservoirs or carbon dioxide storage; authorizing a fee.

Impact

The impact of HB3313 on Texas state laws revolves around the governance of natural resources, particularly in facilitating cooperative extraction methods for oil and gas. The bill delineates the roles and responsibilities of both working interest owners and royalty owners, allowing for shared operations intended to yield higher production levels. Moreover, provisions for the regulation of carbon dioxide storage reflect an increasing recognition of geologic storage as a necessary measure for environmental management and climate change mitigation. This legislative response reaffirms the state's commitment to environmentally responsible management of fossil resources.

Summary

House Bill 3313, known as the Oil and Gas Majority Rights Protection Act for Secondary and Tertiary Recovery Operations, introduces a framework for unit operations relating to the production of oil, gas, and carbon dioxide storage in Texas. The bill aims to enhance the recovery of hydrocarbons from depleting reservoirs through a collaborative approach among working interest and royalty owners. By formalizing unitization processes, the bill seeks to maximize extraction efficiencies while ensuring the equitable distribution of resources among stakeholders. It establishes rules for the Railroad Commission of Texas regarding unit agreements, production allocation, and expense management during unit operations.

Contention

Notable points of contention may arise from the bill's environmental implications, especially concerning the introduction of carbon dioxide storage alongside oil and gas production. Stakeholders supportive of enhanced recovery methods may clash with environmental advocacy groups concerned about the potential risks associated with underground carbon storage, such as contamination of groundwater and lack of adequate oversight. Additionally, while aiming to unify interests for better resource management, the bill's regulatory framework might attract criticism regarding perceived overreach on private property rights and local governance in energy production practices.