Texas 2021 - 87th Regular

Texas House Bill HB4442 Compare Versions

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Version 2 (New)

Old	New		Differences
1		-	87R19763 JXC-F
2		-	By: Raymond, Ellzey, Guillen, Longoria, H.B. No. 4442
3		-	Reynolds, et al.
4		-	Substitute the following for H.B. No. 4442:
5		-	By: Reynolds C.S.H.B. No. 4442
	1	+	2021S0169-1 03/08/21
	2	+	By: Raymond H.B. No. 4442
6	3
7	4
8	5		A BILL TO BE ENTITLED
9	6		AN ACT
10		-	relating to the regulation of oil and gas waste; imposing a fee.
	7	+	relating to the regulation of oil and gas waste; creating a tax
	8	+	exemption; imposing a fee.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		SECTION 1. Section 85.2021, Natural Resources Code, is
13	11		amended by adding Subsection (b-1) to read as follows:
14	12		(b-1) An applicant shall submit an additional nonrefundable
15		-	fee of $200 for a permit to drill, deepen, plug back, or reenter a
16		-	well for which the applicant proposes to use a reserve pit located
17		-	at the well site to dispose of oil and gas waste, as defined by
18		-	Section 91.1011, from the well.
	13	+	fee of $200 for any well utilizing a reserve pit for disposal of oil
	14	+	field wastes on the well site.
19	15		SECTION 2. Section 91.110, Natural Resources Code, is
20	16		amended to read as follows:
21	17		Sec. 91.110. OIL AND GAS WASTE REDUCTION AND MINIMIZATION.
22	18		To encourage the reduction and minimization of oil and gas waste,
23	19		the commission shall implement a program to:
24	20		(1) provide operators with training and technical
25	21		assistance on oil and gas waste reduction and minimization;
26	22		(2) assist operators in developing oil and gas waste
27	23		reduction and minimization plans; and
28		-	(3) by rule establish and offer well operators
29		-	incentives for oil and gas waste reduction and minimization through
30		-	the use of solids control equipment and closed-loop drilling
31		-	systems at well sites.
32		-	SECTION 3. Section 91.113, Natural Resources Code, is
33		-	amended by adding Subsection (a-1) to read as follows:
34		-	(a-1) Subsection (a) includes oil and gas waste or other
35		-	substances or materials regulated by the commission under Section
36		-	91.101 that are disposed of or stored at a well site using a reserve
37		-	pit, an aboveground tank, or other means.
	24	+	(3) by rule establish and offer operators of oil and
	25	+	gas wells incentives for oil and gas waste reduction and
	26	+	minimization through the use of solids control equipment and
	27	+	closed-loop drilling systems at the well site.
	28	+	SECTION 3. Section 91.113(a), Natural Resources Code, is
	29	+	amended to read as follows:
	30	+	(a) For any [If] oil and gas wastes or other substances or
	31	+	materials regulated by the commission under Section 91.101,
	32	+	including those that are disposed of or stored on a well site using
	33	+	a reserve pit, an aboveground tank, or other means, that are causing
	34	+	or are likely to cause the pollution of surface or subsurface water,
	35	+	the commission, through its employees or agents, may use money in
	36	+	the oil and gas regulation and cleanup fund to conduct a site
	37	+	investigation or environmental assessment or control or clean up
	38	+	the oil and gas wastes or other substances or materials if:
	39	+	(1) the responsible person has failed or refused to
	40	+	control or clean up the oil and gas wastes or other substances or
	41	+	materials after notice and opportunity for hearing;
	42	+	(2) the responsible person is unknown, cannot be
	43	+	found, or has no assets with which to control or clean up the oil and
	44	+	gas wastes or other substances or materials; or
	45	+	(3) the oil and gas wastes or other substances or
	46	+	materials are causing the pollution of surface or subsurface water.
38	47		SECTION 4. Section 91.1132, Natural Resources Code, is
39	48		amended to read as follows:
40	49		Sec. 91.1132. PRIORITIZATION OF HIGH-RISK WELLS. The
41	50		commission by rule shall develop a system for:
42	51		(1) identifying abandoned wells that pose a high risk
43	52		of contaminating surface water or groundwater, including those with
44		-	reserve pits ~~at the well site~~;
	53	+	on-site reserve pits;
45	54		(2) periodically testing high-risk wells by
46	55		conducting a fluid level test or, if necessary, a pressure test; and
47	56		(3) giving priority to plugging high-risk wells with
48	57		compromised casings.
49	58		SECTION 5. Subchapter D, Chapter 91, Natural Resources
50	59		Code, is amended by adding Section 91.118 to read as follows:
51	60		Sec. 91.118. DISCLOSURE OF LOCATION OF NONCOMMERCIAL
52	61		SURFACE DISPOSAL. (a) In this section, "noncommercial surface
53	62		disposal" means the disposal of oil field fluids or oil and gas
54		-	waste at a facility:
55		-	(1) for which the disposal is not a primary business
56		-	purpose; or
57		-	(2) at which the disposal is performed without
58		-	compensation.
59		-	(b) The commission by rule shall require the owner or
60		-	operator of a facility that performs noncommercial surface disposal
61		-	to file with the county clerk of the county where the disposal
62		-	occurs a notice of noncommercial surface disposal that includes a
63		-	legal description of the exact location of the noncommercial
64		-	surface disposal.
65		-	SECTION 6. Sections 91.141(a) and (b), Natural Resources
66		-	Code, are amended to read as follows:
	63	+	waste at a facility for which such disposal is:
	64	+	(1) not a primary business purpose; or
	65	+	(2) performed without compensation.
	66	+	(b) The commission by rule shall require that a notice of
	67	+	noncommercial surface disposal, including a legal description of
	68	+	the exact location of the noncommercial surface disposal, be filed
	69	+	with the county clerk in the county where the disposal occurs.
	70	+	SECTION 6. Section 91.141(a), Natural Resources Code, is
	71	+	amended to read as follows:
67	72		(a) Owners and operators of oil and gas wells shall keep
68	73		books and records that show accurately:
69	74		(1) the amount of sold and unsold stock;
70	75		(2) the amount of promotion money paid;
71	76		(3) the amount of oil and gas produced and disposed of
72	77		and the price for which the oil and gas was sold;
73		-	(4) the volume and ~~types~~ of oil and gas ~~waste~~ generated
74		-	at ~~each~~ well site and the primary method of disposal ~~of the waste~~,
75		-	~~including waste that is~~ managed:
76		-	(A) ~~at the well~~ site;
	78	+	(4) the volume and type of oil and gas wastes generated
	79	+	at the well site and the primary method of disposal for such wastes,
	80	+	whether managed:
	81	+	(A) on-site;
77	82		(B) by a third-party commercial surface disposal
78	83		facility, as defined by Section 91.116; or
79	84		(C) by a recycling facility;
80	85		(5) the receipts from the sale or transfer of leases or
81	86		other property; and
82	87		(6) [(5)] disbursements made in connection with or for
83	88		the benefit of the business.
84		-	(b) The books and records shall be kept open for the
85		-	inspection of the commission or any accredited representative of
86		-	the commission and any stockholder or shareholder or royalty owner
87		-	in the business.
88	89		SECTION 7. Section 91.753, Natural Resources Code, is
89	90		amended to read as follows:
90	91		Sec. 91.753. NOTICE REQUIRED. (a) Not later than the 15th
91	92		business day after the date the commission issues an oil or gas well
92	93		operator a permit to drill a new oil or gas well or to reenter a
93	94		plugged and abandoned oil or gas well, the operator shall give
94	95		[written notice of the issuance of the permit to] the surface owner
95	96		of the tract of land on which the well is located or is proposed to
96	97		be located written notice of:
97	98		(1) the issuance of the permit; and
98		-	(2) whether a reserve ~~pit~~ will be used to ~~permanently~~
99		-	dispose of oil and gas waste on the surface owner's ~~property,~~
100		-	including the estimated volume and types of waste to be ~~disposed of~~
101		-	at the well site, if any.
	99	+	(2) whether any on-site reserve pits will be used to
	100	+	permanently dispose of oil and gas waste on the surface owner's
	101	+	property, including the estimated volume and types of waste to be
	102	+	disposed of at the well site, if any.
102	103		(b) An oil or gas well operator is not required to give
103	104		notice under this subchapter to a surface owner if:
104	105		(1) the operator and the surface owner have entered
105	106		into a written [an] agreement that contains alternative provisions
106	107		regarding the operator's obligation to give notice of oil and gas
107	108		operations; or
108	109		(2) the surface owner has waived in writing the owner's
109	110		right to notice under this subchapter.
110		-	SECTION 8. Section 85.2021(b-1), Natural Resources Code, as
	111	+	SECTION 8. Section 151.355, Tax Code, is amended to read as
	112	+	follows:
	113	+	Sec. 151.355. WATER-RELATED EXEMPTIONS. The following are
	114	+	exempted from taxes imposed by this chapter:
	115	+	(1) rainwater harvesting equipment or supplies, water
	116	+	recycling and reuse equipment or supplies, or other equipment,
	117	+	services, or supplies used solely to reduce or eliminate water use;
	118	+	(2) equipment, services, or supplies used solely for
	119	+	desalination of surface water or groundwater;
	120	+	(3) equipment, services, or supplies used solely for
	121	+	brush control designed to enhance the availability of water;
	122	+	(4) equipment, services, or supplies used solely for
	123	+	precipitation enhancement;
	124	+	(5) equipment, services, or supplies used solely to
	125	+	construct or operate a water or wastewater system certified by the
	126	+	Texas Commission on Environmental Quality as a regional system;
	127	+	(6) equipment, services, or supplies used solely to
	128	+	construct or operate a water supply or wastewater system by a
	129	+	private entity as a public-private partnership as certified by the
	130	+	political subdivision that is a party to the project; [and]
	131	+	(7) tangible personal property specifically used to
	132	+	process, reuse, or recycle wastewater that will be used in
	133	+	fracturing work performed at an oil or gas well; and
	134	+	(8) tangible personal property or equipment used to
	135	+	process, reuse, or recycle oil and gas wastes, including solids
	136	+	control equipment and closed-loop drilling systems.
	137	+	SECTION 9. Section 85.2021(b-1), Natural Resources Code, as
111	138		added by this Act, applies only to an application or materially
112	139		amended application that is submitted to the Railroad Commission of
113	140		Texas on or after the effective date of this Act. An application or
114	141		materially amended application submitted to the commission before
115	142		the effective date of this Act is governed by the law in effect when
116	143		the application or materially amended application was submitted,
117	144		and the former law is continued in effect for that purpose.
118		-	SECTION 9. Section 91.753, Natural Resources Code, as
119		-	amended by this Act, applies only to a permit issued by the Railroad
120		-	Commission of Texas on or after the effective date of this Act. A
121		-	permit issued by the commission before the effective date of this
122		-	Act is governed by the law in effect when the permit was issued, and
123		-	the former law is continued in effect for that purpose.
124		-	SECTION 10. This Act takes effect September 1, 2021.
	145	+	SECTION 10. The changes in law made by this Act to Section
	146	+	91.753, Natural Resources Code, apply only to a permit issued by the
	147	+	Railroad Commission of Texas on or after the effective date of this
	148	+	Act. A permit issued by the commission before the effective date of
	149	+	this Act is governed by the law in effect when the permit was
	150	+	issued, and the former law is continued in effect for that purpose.
	151	+	SECTION 11. The change in law made by this Act to Section
	152	+	151.355, Tax Code, does not affect taxes imposed before the
	153	+	effective date of this Act, and the law in effect before the
	154	+	effective date of this Act is continued in effect for purposes of
	155	+	the liability for and collection of those taxes.
	156	+	SECTION 12. This Act takes effect September 1, 2021.