Texas 2023 - 88th Regular

Texas House Bill HB1721 Compare Versions

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1	1	88R2667 JAM-F
2	2	By: Raymond H.B. No. 1721
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of oil and gas waste; imposing a fee.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 85.2021, Natural Resources Code, is
10	10	amended by adding Subsection (b-1) to read as follows:
11	11	(b-1) An applicant shall submit an additional nonrefundable
12	12	fee of $200 for a permit to drill, deepen, plug back, or reenter a
13	13	well for which the applicant proposes to use a reserve pit located
14	14	at the well site to dispose of oil and gas waste, as defined by
15	15	Section 91.1011, from the well.
16	16	SECTION 2. Section 91.110, Natural Resources Code, is
17	17	amended to read as follows:
18	18	Sec. 91.110. OIL AND GAS WASTE REDUCTION AND MINIMIZATION.
19	19	To encourage the reduction and minimization of oil and gas waste,
20	20	the commission shall implement a program to:
21	21	(1) provide operators with training and technical
22	22	assistance on oil and gas waste reduction and minimization;
23	23	(2) assist operators in developing oil and gas waste
24	24	reduction and minimization plans; and
25	25	(3) by rule establish and offer well operators
26	26	incentives for oil and gas waste reduction and minimization through
27	27	the use of solids control equipment and closed-loop drilling
28	28	systems at well sites.
29	29	SECTION 3. Section 91.113, Natural Resources Code, is
30	30	amended by adding Subsection (a-1) to read as follows:
31	31	(a-1) Subsection (a) includes oil and gas waste or other
32	32	substances or materials regulated by the commission under Section
33	33	91.101 that are disposed of or stored at a well site using a reserve
34	34	pit, an aboveground tank, or other means.
35	35	SECTION 4. Section 91.1132, Natural Resources Code, is
36	36	amended to read as follows:
37	37	Sec. 91.1132. PRIORITIZATION OF HIGH-RISK WELLS. The
38	38	commission by rule shall develop a system for:
39	39	(1) identifying abandoned wells that pose a high risk
40	40	of contaminating surface water or groundwater, including those with
41	41	reserve pits at the well site;
42	42	(2) periodically testing high-risk wells by
43	43	conducting a fluid level test or, if necessary, a pressure test; and
44	44	(3) giving priority to plugging high-risk wells with
45	45	compromised casings.
46	46	SECTION 5. Subchapter D, Chapter 91, Natural Resources
47	47	Code, is amended by adding Section 91.118 to read as follows:
48	48	Sec. 91.118. DISCLOSURE OF LOCATION OF NONCOMMERCIAL
49	49	SURFACE DISPOSAL. (a) In this section, "noncommercial surface
50	50	disposal" means the disposal of oil field fluids or oil and gas
51	51	waste at a facility:
52	52	(1) for which the disposal is not a primary business
53	53	purpose; or
54	54	(2) at which the disposal is performed without
55	55	compensation.
56	56	(b) The commission by rule shall require the owner or
57	57	operator of a facility that performs noncommercial surface disposal
58	58	to file with the county clerk of the county where the disposal
59	59	occurs a notice of noncommercial surface disposal that includes a
60	60	legal description of the exact location of the noncommercial
61	61	surface disposal.
62	62	SECTION 6. Sections 91.141(a) and (b), Natural Resources
63	63	Code, are amended to read as follows:
64	64	(a) Owners and operators of oil and gas wells shall keep
65	65	books and records that show accurately:
66	66	(1) the amount of sold and unsold stock;
67	67	(2) the amount of promotion money paid;
68	68	(3) the amount of oil and gas produced and disposed of
69	69	and the price for which the oil and gas was sold;
70	70	(4) the volume and types of oil and gas waste generated
71	71	at each well site and the primary method of disposal of the waste,
72	72	including waste that is managed:
73	73	(A) at the well site;
74	74	(B) by a third-party commercial surface disposal
75	75	facility, as defined by Section 91.116; or
76	76	(C) by a recycling facility;
77	77	(5) the receipts from the sale or transfer of leases or
78	78	other property; and
79	79	(6) [(5)] disbursements made in connection with or for
80	80	the benefit of the business.
81	81	(b) The books and records shall be kept open for the
82	82	inspection of the commission or any accredited representative of
83	83	the commission and any stockholder or shareholder or royalty owner
84	84	in the business.
85	85	SECTION 7. Section 91.753, Natural Resources Code, is
86	86	amended to read as follows:
87	87	Sec. 91.753. NOTICE REQUIRED. (a) Not later than the 15th
88	88	business day after the date the commission issues an oil or gas well
89	89	operator a permit to drill a new oil or gas well or to reenter a
90	90	plugged and abandoned oil or gas well, the operator shall give
91	91	[written notice of the issuance of the permit to] the surface owner
92	92	of the tract of land on which the well is located or is proposed to
93	93	be located written notice of:
94	94	(1) the issuance of the permit; and
95	95	(2) whether a reserve pit will be used to permanently
96	96	dispose of oil and gas waste on the surface owner's property,
97	97	including the estimated volume and types of waste to be disposed of
98	98	at the well site, if any.
99	99	(b) An oil or gas well operator is not required to give
100	100	notice under this subchapter to a surface owner if:
101	101	(1) the operator and the surface owner have entered
102	102	into a written [an] agreement that contains alternative provisions
103	103	regarding the operator's obligation to give notice of oil and gas
104	104	operations; or
105	105	(2) the surface owner has waived in writing the owner's
106	106	right to notice under this subchapter.
107	107	SECTION 8. Section 85.2021(b-1), Natural Resources Code, as
108	108	added by this Act, applies only to an application or materially
109	109	amended application that is submitted to the Railroad Commission of
110	110	Texas on or after the effective date of this Act. An application or
111	111	materially amended application submitted to the commission before
112	112	the effective date of this Act is governed by the law in effect when
113	113	the application or materially amended application was submitted,
114	114	and the former law is continued in effect for that purpose.
115	115	SECTION 9. Section 91.753, Natural Resources Code, as
116	116	amended by this Act, applies only to a permit issued by the Railroad
117	117	Commission of Texas on or after the effective date of this Act. A
118	118	permit issued by the commission before the effective date of this
119	119	Act is governed by the law in effect when the permit was issued, and
120	120	the former law is continued in effect for that purpose.
121	121	SECTION 10. This Act takes effect September 1, 2023.