By: Landgraf H.B. No. 3884
A BILL TO BE ENTITLED
AN ACT
relating to the regulation and management of produced water from
oil and gas operations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 91.101(a), Natural Resources Code, as
effective until delegation of authority under the Resource
Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et
seq.) to the Railroad Commission of Texas, is amended to read as
follows:
(a) To prevent pollution of surface water or subsurface
water in the state, the commission shall adopt and enforce rules and
orders and may issue permits relating to:
(1) the drilling of exploratory wells and oil and gas
wells or any purpose in connection with them;
(2) the production of oil and gas, including:
(A) activities associated with the drilling of
injection water source wells which penetrate the base of useable
quality water;
(B) activities associated with the drilling of
cathodic protection holes associated with the cathodic protection
of wells and pipelines subject to the jurisdiction of the
commission;
(C) activities associated with gasoline plants,
natural gas or natural gas liquids processing plants, pressure
maintenance plants, or repressurizing plants;
(D) activities associated with any underground
natural gas storage facility, provided the terms "natural gas" and
"storage facility" shall have the meanings set out in Section
91.173, Natural Resources Code;
(E) activities associated with any underground
hydrocarbon storage facility, provided the terms "hydrocarbons"
and "underground hydrocarbon storage facility" shall have the
meanings set out in Section 91.201, Natural Resources Code; and
(F) activities associated with the storage,
handling, reclamation, gathering, transportation, or distribution
of oil or gas prior to the refining of such oil or prior to the use
of such gas in any manufacturing process or as a residential or
industrial fuel;
(3) the operation, abandonment, and proper plugging of
wells subject to the jurisdiction of the commission; [and]
(4) the discharge, storage, handling, transportation,
reclamation, or disposal of oil and gas waste as defined in Section
91.1011 of this subchapter, or of any other substance or material
associated with any operation or activity regulated by the
commission under Subdivisions (1), (2), and (3) of this subsection;
and
(5) the recycling and beneficial use of produced water
associated with any operation or activity regulated by the
commission under Subdivisions (1), (2), and (3) of this subsection,
taking into account the need to protect the public health and the
environment.
SECTION 2. Section 91.101, Natural Resources Code, as
effective on delegation of authority under the Resource
Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et
seq.) to the Railroad Commission of Texas, is amended to read as
follows:
Sec. 91.101. RULES AND ORDERS. To prevent pollution of
surface water or subsurface water in the state, the commission
shall adopt and enforce rules and orders and may issue permits
relating to:
(1) the drilling of exploratory wells and oil and gas
wells or any purpose in connection with them;
(2) the production of oil and gas, including:
(A) activities associated with the drilling of
injection water source wells which penetrate the base of useable
quality water;
(B) activities associated with the drilling of
cathodic protection holes associated with the cathodic protection
of wells and pipelines subject to the jurisdiction of the
commission;
(C) activities associated with gasoline plants,
natural gas or natural gas liquids processing plants, pressure
maintenance plants, or repressurizing plants;
(D) activities associated with any underground
natural gas storage facility, provided the terms "natural gas" and
"storage facility" shall have the meanings set out in Section
91.173, Natural Resources Code;
(E) activities associated with any underground
hydrocarbon storage facility, provided the terms "hydrocarbons"
and "underground hydrocarbon storage facility" shall have the
meanings set out in Section 91.201, Natural Resources Code; and
(F) activities associated with the storage,
handling, reclamation, gathering, transportation, or distribution
of oil or gas prior to the refining of such oil or prior to the use
of such gas in any manufacturing process or as a residential or
industrial fuel;
(3) the operation, abandonment, and proper plugging of
wells subject to the jurisdiction of the commission; [and]
(4) the discharge, storage, handling, transportation,
reclamation, or disposal of oil and gas waste as defined in Section
91.1011 of this subchapter, or of any other substance or material
associated with any operation or activity regulated by the
commission under Subdivisions (1), (2), and (3) of this section;
and
(5) the recycling and beneficial use of produced water
associated with any operation or activity regulated by the
commission under Subdivisions (1), (2), and (3) of this section,
taking into account the need to protect the public health and the
environment.
SECTION 3. Subtitle D, Title 3, Natural Resources Code, is
amended by adding Chapter 122A to read as follows:
CHAPTER 122A. BENEFICIAL USE OF PRODUCED WATER
Sec. 122A.0101. BENEFICIAL USE. For the purposes of this
chapter, a beneficial use of produced water means irrigation, a
discharge approved under a permit issued by the Texas Commission on
Environmental Quality under Chapter 26, Water Code, or another
beneficial use approved under a permit issued by the Railroad
Commission of Texas under Chapter 91.
SECTION 4. Section 26.131(d), Water Code, as effective
until delegation of authority under the Resource Conservation and
Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.) to the
Railroad Commission of Texas, is amended to read as follows:
(d) The commission may issue permits for the discharge into
water in this state of produced water, hydrostatic test water, and
gas plant effluent resulting from the activities described by
Subsection (a) on delegation to the commission of NPDES authority
for those discharges. The discharge of produced water, hydrostatic
test water, and gas plant effluent into water in this state under
this subsection must meet the water quality standards established
by the commission. The commission shall provide to an applicant for
a permit described by this subsection for the discharge of produced
water assistance with the preparation and submission of the permit
application.
SECTION 5. Section 26.131(c), Water Code, as effective on
delegation of authority under the Resource Conservation and
Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.) to the
Railroad Commission of Texas, is amended to read as follows:
(c) The commission may issue permits for the discharge into
water in this state of produced water, hydrostatic test water, and
gas plant effluent resulting from the activities described by
Subsection (a) on delegation to the commission of NPDES authority
for those discharges. The discharge of produced water, hydrostatic
test water, and gas plant effluent into water in this state under
this subsection must meet the water quality standards established
by the commission. The commission shall provide to an applicant for
a permit described by this subsection for the discharge of produced
water assistance with the preparation and submission of the permit
application.
SECTION 6. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 7. This Act takes effect September 1, 2023.