Texas 2021 - 87th Regular

Texas House Bill HB3381 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		87R7210 JXC-D
2		-	By: Leman, Goldman, Landgraf, Darby, H.B. No. 3381
3		-	King of Uvalde
	2	+	By: Leman H.B. No. 3381
4	3
5	4
6	5		A BILL TO BE ENTITLED
7	6		AN ACT
8	7		relating to the authority of the Railroad Commission of Texas to
9	8		contract for the treatment of and sell drill cuttings.
10	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	10		SECTION 1. The heading to Section 91.115, Natural Resources
12	11		Code, is amended to read as follows:
13	12		Sec. 91.115. FIRST LIEN ON EQUIPMENT AND STORED
14	13		HYDROCARBONS OR DRILL CUTTINGS.
15	14		SECTION 2. Section 91.115, Natural Resources Code, is
16	15		amended by amending Subsections (a), (e), (f), and (g) and adding
17	16		Subsections (f-1) and (f-2) to read as follows:
18	17		(a) If a responsible person fails to clean up a site or
19	18		facility that has ceased oil and gas operations under the
20	19		commission's jurisdiction on or before the date the site or
21	20		facility is required to be cleaned up by law or by a rule adopted or
22	21		order issued by the commission, the state has a first lien, superior
23	22		to all preexisting and subsequent liens and security interests, on
24	23		the responsible person's interest in any hydrocarbons or drill
25	24		cuttings stored at the site or facility and in any equipment that
26	25		is:
27	26		(1) located at the site or facility; and
28	27		(2) used by the responsible person in connection with
29	28		the activity that generated the pollution.
30	29		(e) The lien is extinguished as to any stored hydrocarbons
31	30		or drill cuttings or items of equipment that are lawfully removed by
32	31		any person other than the operator or a nonoperator according to a
33	32		lien, lease, judgment, written contract, or security agreement
34	33		before the commission enters into a cleanup contract. An item of
35	34		equipment may not be removed from an abandoned site or facility if
36	35		the removal will cause the release of a substance that may cause
37	36		pollution unless the substance is lawfully disposed of.
38	37		(f) Equipment or stored hydrocarbons or drill cuttings
39	38		subject to a lien under this section are presumed to have been
40	39		abandoned on the date the commission enters into a contract to clean
41	40		up the site or facility on which the equipment, [or] hydrocarbons,
42	41		or drill cuttings are located.
43	42		(f-1) The commission may dispose of the abandoned equipment
44	43		or stored hydrocarbons in accordance with the provisions of
45	44		Sections 89.085, 89.086, and 89.087 [of this code] for the
46	45		disposition of well-site equipment and hydrocarbons.
47	46		(f-2) The commission may dispose of the abandoned stored
48	47		drill cuttings by contracting with a person to treat the drill
49	48		cuttings at the site or facility for a subsequent beneficial use and
50	49		selling the treated drill cuttings at a public auction or a public
51	50		or private sale. Sections 89.085(c)-(i), 89.086, and 89.087 apply
52	51		to the disposition of drill cuttings under this subsection in the
53	52		same manner as those sections apply to the disposition of
54	53		hydrocarbons.
55	54		(g) In this section:
56	55		(1) "Drill cuttings" has the meaning assigned by
57	56		Section 123.001.
58	57		(2) "Responsible ["responsible] person" has the
59	58		meaning assigned by Section 91.113 [of this code].
60	59		(3) "Treat" means to use a manufacturing, mechanical,
61	60		thermal, or chemical process other than sizing, shaping, diluting,
62	61		or sorting.
63	62		SECTION 3. This Act takes effect immediately if it receives
64	63		a vote of two-thirds of all the members elected to each house, as
65	64		provided by Section 39, Article III, Texas Constitution. If this
66	65		Act does not receive the vote necessary for immediate effect, this
67	66		Act takes effect September 1, 2021.