Texas 2021 - 87th Regular

Texas House Bill HB2482 Compare Versions

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11 87R10336 SLB-D
22 By: Reynolds H.B. No. 2482
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to oil and gas operations; increasing fees.
88 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
99 SECTION 1. Section 81.067(c), Natural Resources Code, is
1010 amended to read as follows:
1111 (c) The fund consists of:
1212 (1) proceeds from bonds and other financial security
1313 required by this chapter and benefits under well-specific plugging
1414 insurance policies described by Section 91.104(c) that are paid to
1515 the state as contingent beneficiary of the policies, subject to the
1616 refund provisions of Section 91.1091, if applicable;
1717 (2) private contributions, including contributions
1818 made under Section 89.084;
1919 (3) expenses collected under Section 89.083;
2020 (4) fees imposed under Section 85.2021;
2121 (5) costs recovered under Section 91.457 or 91.459;
2222 (6) proceeds collected under Sections 89.085 and
2323 91.115;
2424 (7) interest earned on the funds deposited in the
2525 fund;
2626 (8) oil and gas waste hauler permit application fees
2727 collected under Section 29.015, Water Code;
2828 (9) costs recovered under Sections 89.043(c-1) and
2929 [Section] 91.113(f);
3030 (10) hazardous oil and gas waste generation fees
3131 collected under Section 91.605;
3232 (11) oil-field cleanup regulatory fees on oil
3333 collected under Section 81.116;
3434 (12) oil-field cleanup regulatory fees on gas
3535 collected under Section 81.117;
3636 (13) fees for a reissued certificate collected under
3737 Section 91.707;
3838 (14) fees collected under Section 91.1013;
3939 (15) fees collected under Section 89.088;
4040 (16) fees collected under Section 91.142;
4141 (17) fees collected under Section 91.654;
4242 (18) costs recovered under Sections 91.656 and 91.657;
4343 (19) fees collected under Section 81.0521;
4444 (20) [fees collected under Sections 89.024 and 89.026;
4545 [(21)] legislative appropriations;
4646 (21) [(22)] any surcharges collected under Section
4747 81.070;
4848 (22) [(23)] fees collected under Section 91.0115;
4949 (23) [(24)] fees collected under Subchapter E,
5050 Chapter 121, Utilities Code;
5151 (24) [(25)] fees collected under Section 27.0321,
5252 Water Code;
5353 (25) [(26)] fees collected under Section 81.071; and
5454 (26) [(27)] money collected under Section 81.021.
5555 SECTION 2. Section 85.2021(a), Natural Resources Code, is
5656 amended to read as follows:
5757 (a) With each application or materially amended application
5858 for a permit to drill, deepen, plug back, or reenter a well, the
5959 applicant shall submit to the commission a nonrefundable fee of:
6060 (1) $2,000 [$200] if the total depth of the well is
6161 2,000 feet or less;
6262 (2) $2,250 [$225] if the total depth of the well is
6363 greater than 2,000 feet but less than or equal to 4,000 feet;
6464 (3) $2,500 [$250] if the total depth of the well is
6565 greater than 4,000 feet but less than or equal to 9,000 feet;
6666 (4) $3,000 [$300] if the total depth of the well is
6767 greater than 9,000 feet.
6868 SECTION 3. Subchapter A, Chapter 89, Natural Resources
6969 Code, is amended by adding Section 89.004 to read as follows:
7070 Sec. 89.004. ACTIVE STATUS. For the purposes of this
7171 chapter, an inactive well that is not permitted as a disposal or
7272 injection well may not be considered to be active again until:
7373 (1) the well has reported production of at least 10
7474 barrels of oil for oil wells or 100 MCF of gas for gas wells each
7575 month for at least three consecutive months; or
7676 (2) the well has reported production of at least one
7777 barrel of oil for oil wells or at least one MCF of gas for gas wells
7878 each month for 12 consecutive months.
7979 SECTION 4. Subchapter B, Chapter 89, Natural Resources
8080 Code, is amended by adding Section 89.013 to read as follows:
8181 Sec. 89.013. DUTY OF COMMISSION. The commission shall
8282 monitor wells in this state to ensure that operators and
8383 nonoperators comply with the requirements of this subchapter.
8484 SECTION 5. Section 89.022(a), Natural Resources Code, is
8585 amended to read as follows:
8686 (a) On [Except as provided by Section 89.023, on] or before
8787 the date the operator is required to renew the operator's
8888 organization report required by Section 91.142, an operator of an
8989 inactive well must plug the well in accordance with statutes and
9090 commission rules in effect at the time of plugging.
9191 SECTION 6. Section 89.043, Natural Resources Code, is
9292 amended by adding Subsections (c-1) and (g) to read as follows:
9393 (c-1) Costs recovered under Subsection (c) shall be
9494 deposited to the credit of the oil and gas regulation and cleanup
9595 fund.
9696 (g) The commission shall establish a goal of plugging at
9797 least 1,400 wells per year under this section.
9898 SECTION 7. Section 91.1013(a), Natural Resources Code, is
9999 amended to read as follows:
100100 (a) With each application for a fluid injection well permit,
101101 the applicant shall submit to the commission a nonrefundable fee of
102102 $500 [$200]. In this section, "fluid injection well" means any well
103103 used to inject fluid or gas into the ground in connection with the
104104 exploration or production of oil or gas other than an oil and gas
105105 waste disposal well regulated by the commission pursuant to Chapter
106106 27, Water Code.
107107 SECTION 8. Section 91.1041(a), Natural Resources Code, is
108108 amended to read as follows:
109109 (a) A person required to file a bond, letter of credit, or
110110 cash deposit under Section 91.103 who operates one or more wells may
111111 file a bond in an amount equal to $10 [$2] for each foot of well
112112 depth for each well. The amount of the bond, letter of credit, or
113113 cash deposit shall be adjusted every three years based on the
114114 percentage change in the consumer price index or actual plugging
115115 costs. In this subsection, "consumer price index" means the
116116 consumer price index for all urban consumers for all items and for
117117 all regions of the United States combined, as determined by the
118118 United States Department of Labor, Bureau of Labor Statistics, or,
119119 if that index is discontinued or superseded, a similar index
120120 selected or calculated by the comptroller.
121121 SECTION 9. Section 91.1042, Natural Resources Code, is
122122 amended by amending Subsection (a) and adding Subsection (a-1) to
123123 read as follows:
124124 (a) A person required to file a bond, letter of credit, or
125125 cash deposit under Section 91.103 may file a blanket bond in the
126126 amount of $100,000 to cover all wells for which a bond, letter of
127127 credit, or cash deposit is required [as follows:
128128 [(1) a person who operates 10 or fewer wells shall file
129129 a $25,000 blanket bond;
130130 [(2) a person who operates more than 10 but fewer than
131131 100 wells shall file a $50,000 blanket bond; and
132132 [(3) a person who operates 100 or more wells shall file
133133 a $250,000 blanket bond].
134134 (a-1) The commission may require an additional blanket bond
135135 in an amount not to exceed $10 per foot for each idle well. The
136136 amount of the blanket bond shall be adjusted every three years based
137137 on the percentage change in the consumer price index or actual
138138 plugging costs. In this subsection:
139139 (1) "Consumer price index" means the consumer price
140140 index for all urban consumers for all items and for all regions of
141141 the United States combined, as determined by the United States
142142 Department of Labor, Bureau of Labor Statistics, or, if that index
143143 is discontinued or superseded, a similar index selected or
144144 calculated by the comptroller.
145145 (2) "Idle well" means a well that is not producing,
146146 injecting, or disposing in an economically significant manner.
147147 SECTION 10. Sections 89.022(b), 89.023, 89.024, 89.025,
148148 89.026, 89.027, 89.028, and 89.029, Natural Resources Code, are
149149 repealed.
150150 SECTION 11. This Act takes effect September 1, 2021.