1 | 1 | | 87R10336 SLB-D |
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2 | 2 | | By: Reynolds H.B. No. 2482 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to oil and gas operations; increasing fees. |
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8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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9 | 9 | | SECTION 1. Section 81.067(c), Natural Resources Code, is |
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10 | 10 | | amended to read as follows: |
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11 | 11 | | (c) The fund consists of: |
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12 | 12 | | (1) proceeds from bonds and other financial security |
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13 | 13 | | required by this chapter and benefits under well-specific plugging |
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14 | 14 | | insurance policies described by Section 91.104(c) that are paid to |
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15 | 15 | | the state as contingent beneficiary of the policies, subject to the |
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16 | 16 | | refund provisions of Section 91.1091, if applicable; |
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17 | 17 | | (2) private contributions, including contributions |
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18 | 18 | | made under Section 89.084; |
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19 | 19 | | (3) expenses collected under Section 89.083; |
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20 | 20 | | (4) fees imposed under Section 85.2021; |
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21 | 21 | | (5) costs recovered under Section 91.457 or 91.459; |
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22 | 22 | | (6) proceeds collected under Sections 89.085 and |
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23 | 23 | | 91.115; |
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24 | 24 | | (7) interest earned on the funds deposited in the |
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25 | 25 | | fund; |
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26 | 26 | | (8) oil and gas waste hauler permit application fees |
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27 | 27 | | collected under Section 29.015, Water Code; |
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28 | 28 | | (9) costs recovered under Sections 89.043(c-1) and |
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29 | 29 | | [Section] 91.113(f); |
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30 | 30 | | (10) hazardous oil and gas waste generation fees |
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31 | 31 | | collected under Section 91.605; |
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32 | 32 | | (11) oil-field cleanup regulatory fees on oil |
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33 | 33 | | collected under Section 81.116; |
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34 | 34 | | (12) oil-field cleanup regulatory fees on gas |
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35 | 35 | | collected under Section 81.117; |
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36 | 36 | | (13) fees for a reissued certificate collected under |
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37 | 37 | | Section 91.707; |
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38 | 38 | | (14) fees collected under Section 91.1013; |
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39 | 39 | | (15) fees collected under Section 89.088; |
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40 | 40 | | (16) fees collected under Section 91.142; |
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41 | 41 | | (17) fees collected under Section 91.654; |
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42 | 42 | | (18) costs recovered under Sections 91.656 and 91.657; |
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43 | 43 | | (19) fees collected under Section 81.0521; |
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44 | 44 | | (20) [fees collected under Sections 89.024 and 89.026; |
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45 | 45 | | [(21)] legislative appropriations; |
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46 | 46 | | (21) [(22)] any surcharges collected under Section |
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47 | 47 | | 81.070; |
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48 | 48 | | (22) [(23)] fees collected under Section 91.0115; |
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49 | 49 | | (23) [(24)] fees collected under Subchapter E, |
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50 | 50 | | Chapter 121, Utilities Code; |
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51 | 51 | | (24) [(25)] fees collected under Section 27.0321, |
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52 | 52 | | Water Code; |
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53 | 53 | | (25) [(26)] fees collected under Section 81.071; and |
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54 | 54 | | (26) [(27)] money collected under Section 81.021. |
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55 | 55 | | SECTION 2. Section 85.2021(a), Natural Resources Code, is |
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56 | 56 | | amended to read as follows: |
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57 | 57 | | (a) With each application or materially amended application |
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58 | 58 | | for a permit to drill, deepen, plug back, or reenter a well, the |
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59 | 59 | | applicant shall submit to the commission a nonrefundable fee of: |
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60 | 60 | | (1) $2,000 [$200] if the total depth of the well is |
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61 | 61 | | 2,000 feet or less; |
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62 | 62 | | (2) $2,250 [$225] if the total depth of the well is |
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63 | 63 | | greater than 2,000 feet but less than or equal to 4,000 feet; |
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64 | 64 | | (3) $2,500 [$250] if the total depth of the well is |
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65 | 65 | | greater than 4,000 feet but less than or equal to 9,000 feet; |
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66 | 66 | | (4) $3,000 [$300] if the total depth of the well is |
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67 | 67 | | greater than 9,000 feet. |
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68 | 68 | | SECTION 3. Subchapter A, Chapter 89, Natural Resources |
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69 | 69 | | Code, is amended by adding Section 89.004 to read as follows: |
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70 | 70 | | Sec. 89.004. ACTIVE STATUS. For the purposes of this |
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71 | 71 | | chapter, an inactive well that is not permitted as a disposal or |
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72 | 72 | | injection well may not be considered to be active again until: |
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73 | 73 | | (1) the well has reported production of at least 10 |
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74 | 74 | | barrels of oil for oil wells or 100 MCF of gas for gas wells each |
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75 | 75 | | month for at least three consecutive months; or |
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76 | 76 | | (2) the well has reported production of at least one |
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77 | 77 | | barrel of oil for oil wells or at least one MCF of gas for gas wells |
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78 | 78 | | each month for 12 consecutive months. |
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79 | 79 | | SECTION 4. Subchapter B, Chapter 89, Natural Resources |
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80 | 80 | | Code, is amended by adding Section 89.013 to read as follows: |
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81 | 81 | | Sec. 89.013. DUTY OF COMMISSION. The commission shall |
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82 | 82 | | monitor wells in this state to ensure that operators and |
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83 | 83 | | nonoperators comply with the requirements of this subchapter. |
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84 | 84 | | SECTION 5. Section 89.022(a), Natural Resources Code, is |
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85 | 85 | | amended to read as follows: |
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86 | 86 | | (a) On [Except as provided by Section 89.023, on] or before |
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87 | 87 | | the date the operator is required to renew the operator's |
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88 | 88 | | organization report required by Section 91.142, an operator of an |
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89 | 89 | | inactive well must plug the well in accordance with statutes and |
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90 | 90 | | commission rules in effect at the time of plugging. |
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91 | 91 | | SECTION 6. Section 89.043, Natural Resources Code, is |
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92 | 92 | | amended by adding Subsections (c-1) and (g) to read as follows: |
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93 | 93 | | (c-1) Costs recovered under Subsection (c) shall be |
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94 | 94 | | deposited to the credit of the oil and gas regulation and cleanup |
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95 | 95 | | fund. |
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96 | 96 | | (g) The commission shall establish a goal of plugging at |
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97 | 97 | | least 1,400 wells per year under this section. |
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98 | 98 | | SECTION 7. Section 91.1013(a), Natural Resources Code, is |
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99 | 99 | | amended to read as follows: |
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100 | 100 | | (a) With each application for a fluid injection well permit, |
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101 | 101 | | the applicant shall submit to the commission a nonrefundable fee of |
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102 | 102 | | $500 [$200]. In this section, "fluid injection well" means any well |
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103 | 103 | | used to inject fluid or gas into the ground in connection with the |
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104 | 104 | | exploration or production of oil or gas other than an oil and gas |
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105 | 105 | | waste disposal well regulated by the commission pursuant to Chapter |
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106 | 106 | | 27, Water Code. |
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107 | 107 | | SECTION 8. Section 91.1041(a), Natural Resources Code, is |
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108 | 108 | | amended to read as follows: |
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109 | 109 | | (a) A person required to file a bond, letter of credit, or |
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110 | 110 | | cash deposit under Section 91.103 who operates one or more wells may |
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111 | 111 | | file a bond in an amount equal to $10 [$2] for each foot of well |
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112 | 112 | | depth for each well. The amount of the bond, letter of credit, or |
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113 | 113 | | cash deposit shall be adjusted every three years based on the |
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114 | 114 | | percentage change in the consumer price index or actual plugging |
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115 | 115 | | costs. In this subsection, "consumer price index" means the |
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116 | 116 | | consumer price index for all urban consumers for all items and for |
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117 | 117 | | all regions of the United States combined, as determined by the |
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118 | 118 | | United States Department of Labor, Bureau of Labor Statistics, or, |
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119 | 119 | | if that index is discontinued or superseded, a similar index |
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120 | 120 | | selected or calculated by the comptroller. |
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121 | 121 | | SECTION 9. Section 91.1042, Natural Resources Code, is |
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122 | 122 | | amended by amending Subsection (a) and adding Subsection (a-1) to |
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123 | 123 | | read as follows: |
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124 | 124 | | (a) A person required to file a bond, letter of credit, or |
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125 | 125 | | cash deposit under Section 91.103 may file a blanket bond in the |
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126 | 126 | | amount of $100,000 to cover all wells for which a bond, letter of |
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127 | 127 | | credit, or cash deposit is required [as follows: |
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128 | 128 | | [(1) a person who operates 10 or fewer wells shall file |
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129 | 129 | | a $25,000 blanket bond; |
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130 | 130 | | [(2) a person who operates more than 10 but fewer than |
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131 | 131 | | 100 wells shall file a $50,000 blanket bond; and |
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132 | 132 | | [(3) a person who operates 100 or more wells shall file |
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133 | 133 | | a $250,000 blanket bond]. |
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134 | 134 | | (a-1) The commission may require an additional blanket bond |
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135 | 135 | | in an amount not to exceed $10 per foot for each idle well. The |
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136 | 136 | | amount of the blanket bond shall be adjusted every three years based |
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137 | 137 | | on the percentage change in the consumer price index or actual |
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138 | 138 | | plugging costs. In this subsection: |
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139 | 139 | | (1) "Consumer price index" means the consumer price |
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140 | 140 | | index for all urban consumers for all items and for all regions of |
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141 | 141 | | the United States combined, as determined by the United States |
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142 | 142 | | Department of Labor, Bureau of Labor Statistics, or, if that index |
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143 | 143 | | is discontinued or superseded, a similar index selected or |
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144 | 144 | | calculated by the comptroller. |
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145 | 145 | | (2) "Idle well" means a well that is not producing, |
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146 | 146 | | injecting, or disposing in an economically significant manner. |
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147 | 147 | | SECTION 10. Sections 89.022(b), 89.023, 89.024, 89.025, |
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148 | 148 | | 89.026, 89.027, 89.028, and 89.029, Natural Resources Code, are |
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149 | 149 | | repealed. |
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150 | 150 | | SECTION 11. This Act takes effect September 1, 2021. |
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