| 1 | | - | By: Darby, et al. (Senate Sponsor - Hughes) H.B. No. 964 |
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| 2 | | - | (In the Senate - Received from the House April 26, 2021; |
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| 3 | | - | May 4, 2021, read first time and referred to Committee on Natural |
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| 4 | | - | Resources & Economic Development; May 19, 2021, reported favorably |
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| 5 | | - | by the following vote: Yeas 7, Nays 0; May 19, 2021, sent to |
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| 6 | | - | printer.) |
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| 7 | | - | Click here to see the committee vote |
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| 1 | + | 87R16120 JXC-F |
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| 2 | + | By: Darby, Geren, King of Uvalde, Craddick, H.B. No. 964 |
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| 3 | + | Leman |
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| 8 | 4 | | |
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| 9 | 5 | | |
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| 10 | 6 | | A BILL TO BE ENTITLED |
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| 11 | 7 | | AN ACT |
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| 12 | 8 | | relating to the treatment, recycling for beneficial use, or |
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| 13 | 9 | | disposal of drill cuttings. |
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| 14 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 15 | 11 | | SECTION 1. Sections 123.001(2) and (3), Natural Resources |
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| 16 | 12 | | Code, are amended to read as follows: |
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| 17 | 13 | | (2) "Drill cuttings" means bits of rock or soil cut |
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| 18 | 14 | | from a subsurface formation by a drill bit during the process of |
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| 19 | 15 | | drilling an oil or gas well and lifted to the surface by means of the |
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| 20 | 16 | | circulation of drilling mud. The term includes any associated |
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| 21 | 17 | | sand, silt, drilling fluid, spent completion fluid, workover fluid, |
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| 22 | 18 | | debris, water, brine, oil scum, paraffin, or other material cleaned |
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| 23 | 19 | | out of the wellbore. |
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| 24 | 20 | | (3) "Permit holder" means a person who holds a permit |
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| 25 | 21 | | from the commission to operate a stationary commercial solid oil |
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| 26 | 22 | | and gas waste recycling facility or a commercial oil and gas waste |
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| 27 | 23 | | disposal facility. |
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| 28 | 24 | | SECTION 2. Section 123.003, Natural Resources Code, is |
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| 29 | 25 | | amended to read as follows: |
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| 30 | 26 | | Sec. 123.003. RESPONSIBILITY IN TORT. Unless otherwise |
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| 31 | 27 | | provided by a contract or other written agreement, a [A] person who |
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| 32 | 28 | | generates drill cuttings and transfers the drill cuttings in an |
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| 33 | 29 | | arm's length transaction to an unaffiliated third-party [a] permit |
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| 34 | 30 | | holder under a contract that requires [with the contractual |
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| 35 | 31 | | understanding] that the drill cuttings [will] be used in connection |
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| 36 | 32 | | with road building or another beneficial use or disposed of is not |
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| 37 | 33 | | liable in tort for a consequence of the subsequent use or disposal |
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| 38 | 34 | | of the drill cuttings by the permit holder or by another person if: |
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| 39 | 35 | | (1) the person who generates the drill cuttings has |
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| 40 | 36 | | the legal and contractual right to transfer the drill cuttings to |
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| 41 | 37 | | the permit holder; |
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| 42 | 38 | | (2) the method and location of the use or disposal are |
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| 43 | 39 | | not prohibited by law, contract, or other written agreement; and |
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| 44 | 40 | | (3) the consequence was caused solely by the permit |
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| 45 | 41 | | holder. |
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| 46 | 42 | | SECTION 3. The change in law made by this Act applies only |
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| 47 | 43 | | to a cause of action that accrues on or after the effective date of |
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| 48 | 44 | | this Act. A cause of action that accrues before the effective date |
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| 49 | 45 | | of this Act is governed by the law in effect immediately before that |
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| 50 | 46 | | date, and that law is continued in effect for that purpose. |
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| 51 | 47 | | SECTION 4. This Act takes effect immediately if it receives |
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| 52 | 48 | | a vote of two-thirds of all the members elected to each house, as |
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| 53 | 49 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 54 | 50 | | Act does not receive the vote necessary for immediate effect, this |
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| 55 | 51 | | Act takes effect September 1, 2021. |
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