Texas Senate Bill SB2800

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

Relating to the imposition of a fee for oil and gas waste that is not produced in this state.

Impact

The introduction of SB2800 reflects Texas's ongoing efforts to regulate the oil and gas industry more stringently, particularly regarding waste management. By establishing a fee for out-of-state waste, the bill aims to deter companies from dumping waste without accountability and supports the state's environmental regulatory framework. The funds collected will presumably help in mitigating any adverse environmental impacts caused by oil and gas waste disposal, thereby promoting more responsible practices within the sector. This bill may influence existing laws on waste management and environmental protection, creating a financial incentive for cleaner operations in the industry.

Summary

SB2800 mandates the imposition of a fee for oil and gas waste that is not produced within Texas. Specifically, the bill sets a disposal fee of 20 cents per barrel for such waste. It allows for the passing of this fee onto the producer of the oil and gas waste, ensuring that the costs are ultimately covered by the entities that produce the waste, even if they are not the ones directly paying the fee. By collecting this fee, the bill aims to generate funds for the oil and gas regulation and cleanup fund, which is crucial for addressing environmental concerns associated with oil and gas operations.

Contention

While the bill is primarily seen as a step toward better environmental accountability, it could face opposition from companies that produce oil and gas waste outside Texas. Entities affected may argue that imposing additional fees could dissuade them from doing business in the state or opting for more affordable disposal methods elsewhere. Additionally, concerns could be raised regarding how these fees would ultimately impact consumers, as producers might pass on costs. The balance between regulatory measures aimed at environmental protection and the interests of the oil and gas industry could lead to debates among stakeholders.

Texas Constitutional Statutes Affected

Water Code

• Chapter 27. Injection Wells
  • Section: New Section

Natural Resources Code

• Chapter 81. Railroad Commission Of Texas
  • Section: 067