Texas 2025 - 89th Regular

Texas House Bill HB4891 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		By: Morales of Maverick H.B. No. 4891
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to the regulation by the Railroad Commission of Texas of
7	9		certain commercial facilities that dispose of oil and gas waste;
8	10		imposing a fee.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Section 91.109, Natural Resources Code, is
11	13		amended by amending Subsections (a) and (b) and adding Subsections
12	14		(a-1), (a-2), and (a-3) to read as follows:
13	15		(a) In this section, "commercial disposal facility" has the
14	16		meaning assigned by Section 91.116.
15	17		(a-1) A person applying for or acting under a commission
16	18		permit to operate a commercial disposal facility shall maintain a
17	19		performance bond or other form of financial security conditioned
18	20		that the permittee will operate and close the facility in
19	21		accordance with state law, commission rules, and the permit to
20	22		operate the facility.
21	23		(a-2) A person applying for or acting under a commission
22	24		permit to store, handle, treat, reclaim, or dispose of oil and gas
23	25		waste, other than a permit to operate a commercial disposal
24	26		facility, may be required by the commission to maintain a
25	27		performance bond or other form of financial security conditioned
26	28		that the permittee will operate and close the storage, handling,
27	29		treatment, reclamation, or disposal site in accordance with state
28	30		law, commission rules, and the permit to operate the site. However,
29	31		this section does not authorize the commission to require a bond or
30	32		other form of financial security for saltwater disposal pits,
31	33		emergency saltwater storage pits (including blow-down pits),
32	34		collecting pits, or skimming pits provided that such pits are used
33	35		in conjunction with the operation of an individual oil or gas lease.
34	36		(a-3) Subject to the refund provisions of Section 91.1091,
35	37		proceeds from any bond or other form of financial security required
36	38		by this section shall be placed in the oil and gas regulation and
37	39		cleanup fund. Each bond or other form of financial security shall
38	40		be renewed and continued in effect until the conditions have been
39	41		met or release is authorized by the commission.
40	42		(b) In addition to the financial security requirements of
41	43		Subsections (a-1) and (a-2) [Subsection (a)], a person required to
42	44		file a bond, letter of credit, or cash deposit under Section 91.103
43	45		who is involved in activities other than the ownership or operation
44	46		of wells must file the bond, letter of credit, or cash deposit at
45	47		the time of filing or renewing an organization report required by
46	48		Section 91.142 according to the following schedule:
47	49		(1) no bond, letter of credit, or cash deposit if the
48	50		person is a:
49	51		(A) local distribution company;
50	52		(B) gas marketer;
51	53		(C) crude oil nominator;
52	54		(D) first purchaser;
53	55		(E) well servicing company;
54	56		(F) survey company;
55	57		(G) salt water hauler;
56	58		(H) gas nominator;
57	59		(I) gas purchaser; or
58	60		(J) well plugger; or
59	61		(2) a bond, letter of credit, or cash deposit in an
60	62		amount not to exceed $25,000 if the person is involved in an
61	63		activity that is not associated with the ownership or operation of
62	64		wells and is not listed in Subdivision (1).
63	65		SECTION 2. The heading to Section 91.116, Natural Resources
64	66		Code, is amended to read as follows:
65	67		Sec. 91.116. NOTICE OF COMMERCIAL [SURFACE] DISPOSAL
66	68		FACILITY PERMIT APPLICATION.
67	69		SECTION 3. Sections 91.116(a) and (b), Natural Resources
68	70		Code, are amended to read as follows:
69	71		(a) In this section, "commercial [surface] disposal
70	72		facility" means a facility whose primary business purpose is to
71	73		provide, for compensation:
72	74		(1) [,] surface disposal of oil field fluids or oil and
73	75		gas wastes, including land application for treatment and disposal;
74	76		or
75	77		(2) the injection of drill cuttings, drilling mud, or
76	78		other solid or semi-solid oil using a Commercial oil and gas waste
77	79		stationary treatment facilities.
78	80		(b) A person who files an application for a permit for a
79	81		commercial [surface] disposal facility shall publish notice of the
80	82		application in accordance with this section.
81	83		SECTION 4. The heading to Section 91.117, Natural Resources
82	84		Code, is amended to read as follows:
83	85		Sec. 91.117. PUBLIC INFORMATION HEARING ON APPLICATION FOR
84	86		COMMERCIAL [SURFACE] DISPOSAL FACILITY PERMIT.
85	87		SECTION 5. Sections 91.117(a) and (b), Natural Resources
86	88		Code, are amended to read as follows:
87	89		(a) In this section, "commercial [surface] disposal
88	90		facility" has the meaning assigned by Section 91.116.
89	91		(b) The commission may hold a public meeting to receive
90	92		public comment on an application for a commercial [surface]
91	93		disposal facility if the commission determines a public meeting is
92	94		in the public interest.
93	95		SECTION 6. Subchapter D, Chapter 91, Natural Resources
94	96		Code, is amended by adding Sections 91.118 and 91.119 to read as
95	97		follows:
96	98		Sec. 91.118. DEMONSTRATION OF NECESSITY REQUIRED FOR
97	99		CERTAIN COMMERCIAL DISPOSAL FACILITY PERMITS. (a) In this
98	100		section, "commercial disposal facility" has the meaning assigned by
99	101		Section 91.116.
100	102		(b) The commission may not approve an application for a
101	103		permit for a commercial disposal facility unless the person
102	104		applying for the permit demonstrates the necessity for an
103	105		additional commercial disposal facility in the primary market area,
104	106		as established by the commission, in which the facility will be
105	107		located.
106	108		(c) To demonstrate the necessity for an additional
107	109		commercial disposal facility, the applicant must include with the
108	110		applicant's permit application for the commercial disposal
109	111		facility:
110	112		(1) a map and list of all permitted commercial
111	113		disposal facilities located within a 30-mile radius of the location
112	114		of the site for which the applicant is applying for the permit; and
113	115		(2) the number of oil and gas wells located within a
114	116		30-mile radius of the location of the site for which the applicant
115	117		is applying for a permit in the year preceding the date on which the
116	118		applicant submitted the application for the permit.
117	119		(d) In addition to the information required under
118	120		Subsection (c), the applicant may submit to the commission other
119	121		relevant economic, environmental, and feasibility information to
120	122		demonstrate the necessity of the commercial disposal facility.
121	123		Sec. 91.119. APPLICATION FEE FOR CERTAIN COMMERCIAL
122	124		DISPOSAL FACILITIES. (a) In this section, "commercial disposal
123	125		facility" has the meaning assigned by Section 91.116.
124	126		(b) With each application for a commercial disposal
125	127		facility permit, the applicant shall submit to the commission a
126	128		nonrefundable fee of $100,000.
127	129		(c) The application fee under Subsection (b) is not
128	130		applicable to commercial disposal facility permit holders seeking
129	131		the renewal or modification of a permit in effect before September
130	132		1, 2025.
131	133		SECTION 7. Section 27.073(a), Water Code, is amended to
132	134		read as follows:
133	135		(a) A person to whom an injection well permit is issued,
134	136		other than a permit for a well subject to Section 91.109(a-1),
135	137		Natural Resources Code, may be required by the commission or
136	138		railroad commission to maintain a performance bond or other form of
137	139		financial security to ensure that:
138	140		(1) an abandoned injection well is properly plugged;
139	141		or
140	142		(2) funds are available for plugging, postinjection
141	143		site care, and closure of an anthropogenic carbon dioxide injection
142	144		well subject to Subchapter C-1.
143	145		SECTION 8. This Act takes effect September 1, 2025.