| 1 | 1 | | By: Fraser, et al. S.B. No. 1165 |
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| 2 | 2 | | (In the Senate - Filed March 10, 2015; March 17, 2015, read |
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| 3 | 3 | | first time and referred to Committee on Natural Resources and |
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| 4 | 4 | | Economic Development; March 25, 2015, reported favorably by the |
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| 5 | 5 | | following vote: Yeas 9, Nays 0; March 25, 2015, sent to printer.) |
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| 6 | 6 | | Click here to see the committee vote |
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| 7 | 7 | | |
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| 8 | 8 | | |
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| 9 | 9 | | A BILL TO BE ENTITLED |
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| 10 | 10 | | AN ACT |
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| 11 | 11 | | relating to the express preemption of regulation of oil and gas |
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| 12 | 12 | | operations and the exclusive jurisdiction of those operations by |
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| 13 | 13 | | the state. |
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| 14 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 15 | 15 | | SECTION 1. The legislature finds that the laws and policy of |
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| 16 | 16 | | this state have fostered successful development of oil and gas |
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| 17 | 17 | | resources in concert with the growth of healthy and economically |
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| 18 | 18 | | vibrant communities for over 100 years. The legislature |
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| 19 | 19 | | acknowledges this cooperative progress and mutual benefit is |
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| 20 | 20 | | derived from current statutes that provide effective and |
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| 21 | 21 | | environmentally sound regulation of oil and gas operations that is |
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| 22 | 22 | | so comprehensive and pervasive that it occupies the field, while |
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| 23 | 23 | | facilitating the overriding policy objective to fully and |
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| 24 | 24 | | effectively exploit oil and gas resources and protecting the |
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| 25 | 25 | | environment and public's health and safety. The legislature |
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| 26 | 26 | | recognizes that in order to continue this prosperity and the |
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| 27 | 27 | | efficient management of a key industry in this state it is in the |
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| 28 | 28 | | state's interest to explicitly confirm the authority for regulation |
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| 29 | 29 | | of oil and gas activities within the state. The legislature intends |
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| 30 | 30 | | that this Act expressly preempts regulation of oil and gas |
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| 31 | 31 | | operations by municipalities and other political subdivisions that |
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| 32 | 32 | | is already impliedly preempted by state law. |
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| 33 | 33 | | SECTION 2. Subchapter C, Chapter 81, Natural Resources |
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| 34 | 34 | | Code, is amended by adding Section 81.071 to read as follows: |
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| 35 | 35 | | Sec. 81.071. EXPRESS PREEMPTION. (a) In this section: |
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| 36 | 36 | | (1) "Commercially reasonable" is defined as a |
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| 37 | 37 | | condition that permits a reasonably prudent operator to fully, |
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| 38 | 38 | | effectively, and economically exploit, develop, produce, process, |
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| 39 | 39 | | and transport oil and gas. |
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| 40 | 40 | | (2) "Oil and gas operation" is defined as an activity |
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| 41 | 41 | | associated with the exploration, development, production, |
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| 42 | 42 | | processing, and transportation of oil and gas, including drilling, |
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| 43 | 43 | | hydraulic fracture stimulation, completion, maintenance, |
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| 44 | 44 | | reworking, recompletion, disposal, plugging and abandonment, |
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| 45 | 45 | | secondary and tertiary recovery techniques, and remediation |
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| 46 | 46 | | activities. |
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| 47 | 47 | | (b) The authority of a municipality or other political |
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| 48 | 48 | | subdivision to regulate an oil and gas operation is expressly |
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| 49 | 49 | | preempted, except that a municipality is authorized to enact, |
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| 50 | 50 | | amend, or enforce an ordinance or other measure that regulates only |
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| 51 | 51 | | surface activity that is incident to an oil and gas operation, is |
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| 52 | 52 | | commercially reasonable, does not effectively prohibit an oil and |
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| 53 | 53 | | gas operation, and is not otherwise preempted by state or federal |
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| 54 | 54 | | law. |
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| 55 | 55 | | (c) Except as to the authority recognized in Subsection (b), |
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| 56 | 56 | | a municipality or other political subdivision may not enact or |
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| 57 | 57 | | enforce an ordinance or other measure, or an amendment or revision |
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| 58 | 58 | | of an existing ordinance or other measure, that bans, limits, or |
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| 59 | 59 | | otherwise regulates an oil and gas operation within its boundaries |
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| 60 | 60 | | or extraterritorial jurisdiction. An oil and gas operation is |
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| 61 | 61 | | subject to the exclusive jurisdiction of the state. |
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| 62 | 62 | | SECTION 3. This Act takes effect immediately if it receives |
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| 63 | 63 | | a vote of two-thirds of all the members elected to each house, as |
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| 64 | 64 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 65 | 65 | | Act does not receive the vote necessary for immediate effect, this |
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| 66 | 66 | | Act takes effect September 1, 2015. |
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| 67 | 67 | | * * * * * |
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