Texas 2025 - 89th Regular

Texas Senate Bill SB1399 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R9070 JAM-F
2	2	By: Perry S.B. No. 1399
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to fluid oil and gas waste and products and byproducts of
10	10	that waste.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 122.001, Natural Resources Code, is
13	13	amended by adding Subdivision (3) to read as follows:
14	14	(3) "Treated product" means the product of a process
15	15	that treats, filters, refines, extracts, or otherwise alters any
16	16	portion or component of fluid oil and gas waste to render it
17	17	suitable for a beneficial use.
18	18	SECTION 2. Sections 122.002 and 122.003, Natural Resources
19	19	Code, are amended to read as follows:
20	20	Sec. 122.002. OWNERSHIP OF FLUID OIL AND GAS WASTE
21	21	TRANSFERRED FOR TREATMENT AND SUBSEQUENT BENEFICIAL USE. Unless
22	22	otherwise expressly provided by an oil or gas lease, a surface use
23	23	agreement, a contract, a bill of sale, or another legally binding
24	24	document:
25	25	(1) when fluid oil and gas waste is produced and used
26	26	by or transferred to a person who takes possession of that waste for
27	27	the purpose of generating treated product [treating the waste for a
28	28	subsequent beneficial use], the waste is considered to be the
29	29	property of the person who takes possession of it for the purpose of
30	30	generating the treated product [treating the waste for subsequent
31	31	beneficial use] until the person transfers the waste or treated
32	32	product [waste] to another person for disposal or use; and
33	33	(2) when a person who takes possession of fluid oil and
34	34	gas waste for the purpose of generating treated product [treating
35	35	the waste for a subsequent beneficial use] transfers possession of
36	36	the treated product or any [treatment] byproduct of the process
37	37	that generated the treated product to another person for the
38	38	purpose of subsequent disposal or beneficial use, the transferred
39	39	product or byproduct is considered to be the property of the person
40	40	to whom the material is transferred.
41	41	Sec. 122.003. RESPONSIBILITY IN TORT. (a) Except as
42	42	provided by Subsection (b), a person who takes possession of fluid
43	43	oil and gas waste, produces from that waste a treated product
44	44	[generally considered in the oil and gas industry to be suitable for
45	45	use in connection with the drilling for or production of oil or
46	46	gas], and either puts the treated product to a beneficial use or
47	47	transfers the treated product to another person with the
48	48	contractual understanding that the treated product will be put to a
49	49	beneficial use [used in connection with the drilling for or
50	50	production of oil or gas] is not liable in tort for a consequence of
51	51	the subsequent use of that treated product by any [the person to
52	52	whom the treated product is transferred or by another] person.
53	53	(a-1) Except as provided by Subsection (b), a person who
54	54	produces fluid oil and gas waste or who supplies or conveys fluid
55	55	oil and gas waste to a treatment facility for the purpose of
56	56	generating a treated product is not liable in tort for:
57	57	(1) a consequence of the subsequent treatment of that
58	58	fluid oil and gas waste to generate treated product;
59	59	(2) the subsequent use of that treated product by any
60	60	person; or
61	61	(3) exposure to a byproduct of the process used to
62	62	generate treated product.
63	63	(b) This section does not affect the liability of a person
64	64	[that treats fluid oil and gas waste for beneficial use] in an
65	65	action brought by a claimant [person] for damages for personal
66	66	injury, death, or property damage arising from exposure to fluid
67	67	oil and gas waste, a treated product, or a byproduct of a process
68	68	used to generate treated product if that exposure occurred as a
69	69	result of the person's:
70	70	(1) gross negligence or intentional, wrongful act or
71	71	omission; or
72	72	(2) negligence and the person did not treat, generate,
73	73	use, or dispose of the fluid oil and gas waste, treated product, or
74	74	byproduct in conformity with:
75	75	(A) rules adopted under Section 122.004; or
76	76	(B) a Texas Pollutant Discharge Elimination
77	77	System program permit issued by the Texas Commission on
78	78	Environmental Quality under Section 26.027 or 26.131, Water Code.
79	79	(c) A claimant awarded damages for a tort premised solely on
80	80	the person's negligence and regulatory nonconformity under
81	81	Subsection (b)(2) may not be awarded exemplary damages.
82	82	SECTION 3. Section 122.004(a), Natural Resources Code, is
83	83	amended to read as follows:
84	84	(a) The commission shall adopt rules to govern the treatment
85	85	and beneficial use of fluid oil and gas waste, treated product, and
86	86	any byproduct of a process used to generate treated product.
87	87	SECTION 4. Chapter 122, Natural Resources Code, as amended
88	88	by this Act, applies only to a cause of action that accrues on or
89	89	after the effective date of this Act. A cause of action that
90	90	accrues before the effective date of this Act is governed by the law
91	91	as it existed immediately before the effective date of this Act, and
92	92	that law is continued in effect for that purpose.
93	93	SECTION 5. This Act takes effect September 1, 2025.