89R23131 JAM-F
By: King H.B. No. 3334
Substitute the following for H.B. No. 3334:
By: Darby C.S.H.B. No. 3334
A BILL TO BE ENTITLED
AN ACT
relating to wildfire prevention, mitigation, and response at
certain wells under the jurisdiction of the Railroad Commission of
Texas; authorizing an administrative penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The Natural Resources Code is amended by adding
Title 13 to read as follows:
TITLE 13. WILDFIRE PREVENTION, MITIGATION, AND RESPONSE
CHAPTER 231. OIL AND GAS FACILITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 231.001. DEFINITIONS. In this chapter:
(1) "Commission" means the Railroad Commission of
Texas.
(2) "Operator" means a person who assumes
responsibility for the physical operation and control of a well as
shown by a form the person files with the commission and the
commission approves.
(3) "Well" means a hole drilled for the purpose of:
(A) producing oil or gas;
(B) injecting fluid or gas into the ground in
connection with the exploration for or production of oil or gas; or
(C) obtaining geological information by taking
cores or through seismic operations.
SUBCHAPTER B. WILDFIRE SAFETY INSPECTIONS OF WELLS
Sec. 231.051. INSPECTION AND CERTIFICATION REQUIRED BEFORE
TRANSFER OF WELL. (a) This section applies only to a well that has
been the subject of a formal complaint filed with the commission.
(b) At least 60 but not more than 150 days before the date
ownership of a well or oil or gas lease on which a well is located
may be transferred from one operator to another, a bonded and
state-certified third-party inspector must inspect the well, well
site, and related facilities to determine compliance with state
laws and regulations pertaining to susceptibility to wildfires.
(c) Not later than the 30th day after the date of conducting
an inspection under Subsection (b), a third-party inspector shall
provide to the commission and the operator of any well or related
facility inspected a written report of the results of the
inspection. The inspector's report shall document any safety
issue, violation, or fire risk identified during the inspection.
(d) Not later than the 30th day after the date an operator
receives a report under Subsection (c), the operator shall confer
with the commission and take any remedial action necessary to
address a violation, safety issue, or fire risk identified in the
report.
(e) On completion of all remedial actions required by the
commission under Subsection (d), the third-party inspector shall:
(1) conduct a follow-up inspection to confirm that
there are no remaining violations; and
(2) provide to the commission and the operator a
report of the follow-up inspection.
(f) On receipt of a report issued under Subsection (e)(2)
documenting that a well, well site, and associated facilities are
compliant with state laws and regulations pertaining to
susceptibility to wildfires, an operator may submit to the
commission a certification affirming that the well is in compliance
with all such state laws and regulations.
(g) The commission may not approve a proposed transfer
subject to this section until the commission receives a
certification under Subsection (f).
SUBCHAPTER C. INACTIVE WELLS: COMMISSION POWERS AND DUTIES;
SURFACE OWNER LIABILITY
Sec. 231.101. COMMISSION CONTROL OF WELLS OR FACILITIES
WITH NO LOCATABLE OWNER OR OPERATOR. For any well and related
facilities for which there is no locatable owner or operator or for
which the owner or operator is not responsive, the commission
shall:
(1) assume control of and responsibility for the well
and related facilities; and
(2) ensure that the well and related facilities are
compliant with applicable state laws and regulations pertaining to
susceptibility to wildfires.
Sec. 231.102. TERMINATION OF ELECTRIC SERVICE FOR ORPHANED,
INACTIVE, OR NONCOMPLIANT WELL OR FACILITY. (a) At the time the
commission determines a well or related facility to be orphaned,
inactive, or not in compliance with state laws and regulations
pertaining to susceptibility to wildfires, the commission, in
consultation with the Public Utility Commission of Texas, shall
direct the electric utility or other entity that provides electric
service for the well or related facility to terminate electric
service for the well or related facility at the point of origin.
(b) Electric service that is terminated under this section
may not be reinstated until:
(1) an approved operator assumes ownership of the well
or related facility;
(2) the site of the well or related facility is
confirmed by the commission to be in compliance with all applicable
state laws and regulations pertaining to susceptibility to
wildfires; and
(3) the electric utility or other entity receives
written notice from the commission and the Public Utility
Commission of Texas that the service may be reinstated.
Sec. 231.103. SURFACE OWNER LIABILITY. (a) A surface owner
affected by a well or related facility that is orphaned, inactive,
or not in compliance with state laws and regulations pertaining to
susceptibility to wildfires is not liable for an action taken by the
owner to ensure the safety of the owner's property:
(1) if the operator of the well or related facility has
been unresponsive;
(2) if the owner has received notice of noncompliance
from the commission under Section 231.151(a)(2); or
(3) in the event of an emergency, including the
imminent threat of wildfire.
(b) A surface owner may seek reimbursement from the operator
of a well or related facility located on the owner's land for any
action taken by the owner to ensure the safety of the owner's
property.
SUBCHAPTER D. ENFORCEMENT AND PENALTIES
Sec. 231.151. REVOCATION OF OPERATING PERMIT; NOTICE TO
SURFACE OWNER. (a) If an operator fails to have an inspection
conducted under Section 231.051(b) or fails to take any required
remedial action under Section 231.051(d), the commission shall:
(1) suspend or revoke the permit to operate the well or
related facility for which a report was not submitted or remedial
action was not taken; and
(2) send to the owner of the surface of the tract of
land on which the well or related facility is located notice that
the operator of the well or related facility is not in compliance
with this chapter.
(b) A suspension or revocation issued under this section
remains in effect until the operator comes into compliance with
this chapter.
Sec. 231.152. ADMINISTRATIVE PENALTY. (a) The commission
may impose an administrative penalty on a person who violates this
chapter or a rule adopted or order issued under this chapter.
(b) The amount of the penalty may not exceed $5,000 for each
violation. Each day a violation continues or occurs is a separate
violation for the purpose of imposing a penalty. The amount of the
penalty shall be based on:
(1) the seriousness of the violation, including the
nature, circumstances, extent, and gravity of the violation;
(2) the economic harm to property or the environment
caused by the violation;
(3) the history of previous violations;
(4) the amount necessary to deter a future violation;
(5) efforts to correct the violation; and
(6) any other matter that justice may require.
(c) The enforcement of the penalty may be stayed during the
time the order is under judicial review if the person pays the
penalty to the clerk of the court or files a supersedeas bond with
the court in the amount of the penalty. A person who cannot afford
to pay the penalty or file the bond may stay the enforcement by
filing an affidavit in the manner required by the Texas Rules of
Civil Procedure for a party who cannot afford to file security for
costs, subject to the right of the commission to contest the
affidavit as provided by those rules.
(d) The attorney general may sue to collect the penalty.
(e) A proceeding to impose the penalty is considered to be a
contested case under Chapter 2001, Government Code.
SECTION 2. As soon as practicable after the effective date
of this Act, the Railroad Commission of Texas shall adopt rules
necessary to implement the changes in law made by this Act.
SECTION 3. This Act takes effect September 1, 2025.