By: Morales of Maverick H.B. No. 4891
A BILL TO BE ENTITLED
AN ACT
relating to the regulation by the Railroad Commission of Texas of
certain commercial facilities that dispose of oil and gas waste;
imposing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 91.109, Natural Resources Code, is
amended by amending Subsections (a) and (b) and adding Subsections
(a-1), (a-2), and (a-3) to read as follows:
(a) In this section, "commercial disposal facility" has the
meaning assigned by Section 91.116.
(a-1) A person applying for or acting under a commission
permit to operate a commercial disposal facility shall maintain a
performance bond or other form of financial security conditioned
that the permittee will operate and close the facility in
accordance with state law, commission rules, and the permit to
operate the facility.
(a-2) A person applying for or acting under a commission
permit to store, handle, treat, reclaim, or dispose of oil and gas
waste, other than a permit to operate a commercial disposal
facility, may be required by the commission to maintain a
performance bond or other form of financial security conditioned
that the permittee will operate and close the storage, handling,
treatment, reclamation, or disposal site in accordance with state
law, commission rules, and the permit to operate the site. However,
this section does not authorize the commission to require a bond or
other form of financial security for saltwater disposal pits,
emergency saltwater storage pits (including blow-down pits),
collecting pits, or skimming pits provided that such pits are used
in conjunction with the operation of an individual oil or gas lease.
(a-3) Subject to the refund provisions of Section 91.1091,
proceeds from any bond or other form of financial security required
by this section shall be placed in the oil and gas regulation and
cleanup fund. Each bond or other form of financial security shall
be renewed and continued in effect until the conditions have been
met or release is authorized by the commission.
(b) In addition to the financial security requirements of
Subsections (a-1) and (a-2) [Subsection (a)], a person required to
file a bond, letter of credit, or cash deposit under Section 91.103
who is involved in activities other than the ownership or operation
of wells must file the bond, letter of credit, or cash deposit at
the time of filing or renewing an organization report required by
Section 91.142 according to the following schedule:
(1) no bond, letter of credit, or cash deposit if the
person is a:
(A) local distribution company;
(B) gas marketer;
(C) crude oil nominator;
(D) first purchaser;
(E) well servicing company;
(F) survey company;
(G) salt water hauler;
(H) gas nominator;
(I) gas purchaser; or
(J) well plugger; or
(2) a bond, letter of credit, or cash deposit in an
amount not to exceed $25,000 if the person is involved in an
activity that is not associated with the ownership or operation of
wells and is not listed in Subdivision (1).
SECTION 2. The heading to Section 91.116, Natural Resources
Code, is amended to read as follows:
Sec. 91.116. NOTICE OF COMMERCIAL [SURFACE] DISPOSAL
FACILITY PERMIT APPLICATION.
SECTION 3. Sections 91.116(a) and (b), Natural Resources
Code, are amended to read as follows:
(a) In this section, "commercial [surface] disposal
facility" means a facility whose primary business purpose is to
provide, for compensation:
(1) [,] surface disposal of oil field fluids or oil and
gas wastes, including land application for treatment and disposal;
or
(2) the injection of drill cuttings, drilling mud, or
other solid or semi-solid oil using a Commercial oil and gas waste
stationary treatment facilities.
(b) A person who files an application for a permit for a
commercial [surface] disposal facility shall publish notice of the
application in accordance with this section.
SECTION 4. The heading to Section 91.117, Natural Resources
Code, is amended to read as follows:
Sec. 91.117. PUBLIC INFORMATION HEARING ON APPLICATION FOR
COMMERCIAL [SURFACE] DISPOSAL FACILITY PERMIT.
SECTION 5. Sections 91.117(a) and (b), Natural Resources
Code, are amended to read as follows:
(a) In this section, "commercial [surface] disposal
facility" has the meaning assigned by Section 91.116.
(b) The commission may hold a public meeting to receive
public comment on an application for a commercial [surface]
disposal facility if the commission determines a public meeting is
in the public interest.
SECTION 6. Subchapter D, Chapter 91, Natural Resources
Code, is amended by adding Sections 91.118 and 91.119 to read as
follows:
Sec. 91.118. DEMONSTRATION OF NECESSITY REQUIRED FOR
CERTAIN COMMERCIAL DISPOSAL FACILITY PERMITS. (a) In this
section, "commercial disposal facility" has the meaning assigned by
Section 91.116.
(b) The commission may not approve an application for a
permit for a commercial disposal facility unless the person
applying for the permit demonstrates the necessity for an
additional commercial disposal facility in the primary market area,
as established by the commission, in which the facility will be
located.
(c) To demonstrate the necessity for an additional
commercial disposal facility, the applicant must include with the
applicant's permit application for the commercial disposal
facility:
(1) a map and list of all permitted commercial
disposal facilities located within a 30-mile radius of the location
of the site for which the applicant is applying for the permit; and
(2) the number of oil and gas wells located within a
30-mile radius of the location of the site for which the applicant
is applying for a permit in the year preceding the date on which the
applicant submitted the application for the permit.
(d) In addition to the information required under
Subsection (c), the applicant may submit to the commission other
relevant economic, environmental, and feasibility information to
demonstrate the necessity of the commercial disposal facility.
Sec. 91.119. APPLICATION FEE FOR CERTAIN COMMERCIAL
DISPOSAL FACILITIES. (a) In this section, "commercial disposal
facility" has the meaning assigned by Section 91.116.
(b) With each application for a commercial disposal
facility permit, the applicant shall submit to the commission a
nonrefundable fee of $100,000.
(c) The application fee under Subsection (b) is not
applicable to commercial disposal facility permit holders seeking
the renewal or modification of a permit in effect before September
1, 2025.
SECTION 7. Section 27.073(a), Water Code, is amended to
read as follows:
(a) A person to whom an injection well permit is issued,
other than a permit for a well subject to Section 91.109(a-1),
Natural Resources Code, may be required by the commission or
railroad commission to maintain a performance bond or other form of
financial security to ensure that:
(1) an abandoned injection well is properly plugged;
or
(2) funds are available for plugging, postinjection
site care, and closure of an anthropogenic carbon dioxide injection
well subject to Subchapter C-1.
SECTION 8. This Act takes effect September 1, 2025.