By: Paddie H.B. No. 4044 A BILL TO BE ENTITLED AN ACT relating to the imposition of a fee on a holder of a permit for an oil and gas waste disposal well. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter C, Chapter 27, Water Code, is amended by adding Section 27.037 to read as follows: Sec. 27.037. FEE ON HOLDER OF PERMIT FOR OIL AND GAS WASTE DISPOSAL WELL. (a) A fee is imposed on a holder of a permit for an oil and gas waste disposal well. The amount of the fee is 20 cents for each barrel of 42 standard gallons of oil and gas waste delivered to the well for injection in the well if the waste was produced from a well that is not located in: (1) the disposal district in which the disposal well is located; or (2) a disposal district adjacent to the disposal district in which the disposal well is located. (b) A holder of a permit for an oil and gas waste disposal well shall collect the fee imposed under this section from the generator of the waste and remit the fee to the comptroller. (c) The comptroller shall: (1) deposit 25 percent of the proceeds from the fees collected under this section to the credit of the oil and gas regulation and cleanup fund as provided by Section 81.067, Natural Resources Code; and (2) send 75 percent of the proceeds from the fees collected under this section to the counties of this state, with each county receiving an amount determined according to the ratio of the amount of fees collected in connection with oil and gas waste delivered to disposal wells in the county to the total amount of fees collected under this section. (d) The comptroller shall send the amount due each county under Subsection (d)(2) to the county treasurer or officer performing the function of that office at least twice each state fiscal year. (e) The county treasurer or officer shall deposit amounts received under this section to the credit of the county road and bridge fund. Money deposited to the credit of that fund under this subsection may be used only for a purpose authorized by Section 256.001(a), Transportation Code. (f) The comptroller by rule shall prescribe the manner in which the fee imposed under this section is administered, collected, and enforced. (g) The railroad commission by rule may divide the state into disposal districts for purposes of administering Subsection (a). For purposes of Subsection (a), the railroad commission's oil and gas division districts are the disposal districts until the railroad commission by rule establishes disposal districts under this subsection. (h) The railroad commission by rule may provide for one or more exemptions from the fee prescribed by this section. SECTION 2. Section 81.067(c), Natural Resources Code, is amended to read as follows: (c) The fund consists of: (1) proceeds from bonds and other financial security required by this chapter and benefits under well-specific plugging insurance policies described by Section 91.104(c) that are paid to the state as contingent beneficiary of the policies, subject to the refund provisions of Section 91.1091, if applicable; (2) private contributions, including contributions made under Section 89.084; (3) expenses collected under Section 89.083; (4) fees imposed under Section 85.2021; (5) costs recovered under Section 91.457 or 91.459; (6) proceeds collected under Sections 89.085 and 91.115; (7) interest earned on the funds deposited in the fund; (8) oil and gas waste hauler permit application fees collected under Section 29.015, Water Code; (9) costs recovered under Section 91.113(f); (10) hazardous oil and gas waste generation fees collected under Section 91.605; (11) oil-field cleanup regulatory fees on oil collected under Section 81.116; (12) oil-field cleanup regulatory fees on gas collected under Section 81.117; (13) fees for a reissued certificate collected under Section 91.707; (14) fees collected under Section 91.1013; (15) fees collected under Section 89.088; (16) fees collected under Section 91.142; (17) fees collected under Section 91.654; (18) costs recovered under Sections 91.656 and 91.657; (19) two-thirds of the fees collected under Section 81.0521; (20) fees collected under Sections 89.024 and 89.026; (21) legislative appropriations; (22) any surcharges collected under Section 81.070; [and] (23) fees collected under Section 91.0115; and (24) fees collected under Section 27.037, Water Code. SECTION 3. The comptroller shall adopt rules as necessary to implement Section 27.037, Water Code, as added by this Act, not later than December 1, 2015. SECTION 4. This Act takes effect September 1, 2015.