Bill Text: TX HB3707 | 2025-2026 | 89th Legislature | Comm Sub

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Bill Title: Relating to the inspection, purchase, sale, possession, storage, transportation, and disposal of petroleum products, oil and gas equipment, and oil and gas waste; creating criminal offenses and increasing the punishment for an existing criminal offense.

Sponsorship: Partisan Bill (Republican 3)

Status: (Introduced - Dead) 2025-04-29 - Laid on the table subject to call [HB3707 Detail]

Download: Texas-2025-HB3707-Comm_Sub.html

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89R18736 JAM/AJZ-F
By: Craddick H.B. No. 3707
Substitute the following for H.B. No. 3707:
By: Darby C.S.H.B. No. 3707

A BILL TO BE ENTITLED
AN ACT
relating to the inspection, purchase, sale, possession, storage,
transportation, and disposal of petroleum products, oil and gas
equipment, and oil and gas waste; creating criminal offenses and
increasing the punishment for an existing criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article 47.07, Code of Criminal Procedure, is
amended to read as follows:
Art. 47.07. OWNER MAY RECOVER. The real owner of the
property sold under [the provisions of] Article 47.06 or 47.13 may
recover the proceeds from the sale of the [such] property under the
same terms as prescribed in Subsection (e) of Article 18.17 [of this
Code].
SECTION 2. Chapter 47, Code of Criminal Procedure, is
amended by adding Article 47.13 to read as follows:
Art. 47.13. PETROLEUM PRODUCT. (a) In this article,
"petroleum product" means crude oil or condensate.
(b) Notwithstanding any other provision of this chapter, an
officer who takes custody of a petroleum product alleged to have
been stolen shall immediately arrange for the total amount of the
petroleum product to be sold at a price that is equal to:
(1) in the case of crude oil, the price of the same
quantity of West Texas Intermediate crude oil, as calculated based
on that crude oil's closing price recorded on the New York
Mercantile Exchange (NYMEX) on the date preceding the date of sale;
or
(2) in the case of condensate, the price of the same
quantity of natural gas liquids as calculated based on the U.S.
natural gas liquid composite price recorded on the New York
Mercantile Exchange (NYMEX) on the date preceding the date of sale.
(c) The proceeds of the sale may be deposited in the manner
prescribed by Article 18.183 for seized money and disposed of in
accordance with this chapter and Chapter 18.
(d) A law enforcement agency may contract with a private
entity to sell a petroleum product in accordance with this article.
SECTION 3. Subchapter A, Chapter 411, Government Code, is
amended by adding Section 411.0185 to read as follows:
Sec. 411.0185. AUTHORIZED INSPECTION OF CARGO TANKS
CONTAINING CERTAIN PETROLEUM PRODUCTS. (a) In this section:
(1) "Cargo tank" has the meaning assigned by Section
162.001, Tax Code.
(2) "Crime laboratory" and "forensic analysis" have
the meanings assigned by Article 38.35, Code of Criminal Procedure.
(3) "Petroleum product" means crude oil or condensate.
(b) A commissioned officer of the department who receives
training described by Subsection (c) may conduct a comprehensive
inspection of any cargo tank used or suspected of being used to
transport a petroleum product on a public road or railroad in this
state. An officer who conducts an inspection under this subsection
may obtain a sample of the petroleum product or suspected petroleum
product being transported in the cargo tank and submit the sample to
a crime laboratory for forensic analysis.
(c) The commission by rule shall develop a training program
for commissioned officers to perform comprehensive inspections
described by Subsection (b). The training program must include
instruction regarding the proper method for an officer to safely
obtain a sample of a petroleum product from a cargo tank.
(d) The department may accept gifts and grants from any
source to fund forensic analyses of petroleum products under this
section.
SECTION 4. Section 31.19, Penal Code, is amended to read as
follows:
Sec. 31.19. THEFT OF PETROLEUM PRODUCT OR OIL AND GAS
EQUIPMENT. (a) In this section:
(1) "Oil and gas equipment" means machinery, drilling
equipment, welding equipment, pipeline equipment, fittings, pumps,
vehicles, or other equipment and materials that are part of or
incident to the exploration, development, maintenance, and
operation of oil and gas properties, including oil and gas wells,
oil and gas leases, gasoline plants, and refineries.
(2) "Petroleum [, "petroleum] product" means crude
oil, natural gas, or condensate.
(b) A person commits an offense if the person:
(1) unlawfully appropriates a petroleum product with
intent to deprive the owner of the petroleum product by:
(A) [(1)] possessing, removing, delivering,
receiving, purchasing, selling, moving, concealing, or
transporting the petroleum product; or
(B) [(2)] making or causing a connection to be
made with, or drilling or tapping or causing a hole to be drilled or
tapped in, a pipe, pipeline, or tank used to store or transport a
petroleum product;
(2) transports to a waste disposal location a
petroleum product for which the person cannot identify the
petroleum product's initial owner;
(3) purchases a petroleum product from a person that
is not authorized by the Railroad Commission of Texas to sell the
petroleum product; or
(4) stores, purchases, or trades a petroleum product
for financial benefit by means of a method that is not authorized by
the Railroad Commission of Texas.
(b-1) A person commits an offense if the person unlawfully
appropriates oil and gas equipment with intent to deprive the owner
of the oil and gas equipment by possessing, removing, delivering,
receiving, purchasing, selling, moving, concealing, or
transporting the oil and gas equipment.
(c) Appropriation of a petroleum product or oil and gas
equipment is unlawful if it is without the owner's effective
consent.
(d) An offense under Subsection (b) [this section] is:
(1) a [state jail] felony of the third degree if the
total value of the petroleum product appropriated is less than
$10,000;
(2) a felony of the second [third] degree if the total
value of the petroleum product appropriated is $10,000 or more but
less than $100,000; or
(3) a felony of the first [second] degree if the total
value of the petroleum product appropriated is $100,000 or more
[but less than $300,000; or
[(4) a felony of the first degree if the total value of
the petroleum product appropriated is $300,000 or more].
(e) An offense under Subsection (b-1) is:
(1) a felony of the third degree if the total value of
the oil and gas equipment appropriated is less than $10,000;
(2) a felony of the second degree if the total value of
the oil and gas equipment appropriated is $10,000 or more but less
than $100,000; or
(3) a felony of the first degree if the total value of
the oil and gas equipment appropriated is $100,000 or more.
(f) If conduct that constitutes an offense under this
section also constitutes an offense under any other law, the actor
may be prosecuted under this section or the other law, but not both.
SECTION 5. Section 27.031, Water Code, is amended to read as
follows:
Sec. 27.031. PERMIT FROM RAILROAD COMMISSION; CRIMINAL
PENALTY. (a) A [No] person commits an offense if the person begins
drilling or [may continue] using a disposal well or [begin drilling
a disposal well or] converting an existing well into a disposal well
to dispose of oil and gas waste without first obtaining a permit
from the railroad commission.
(b) An offense under this section is:
(1) a felony of the third degree if no oil and gas
waste has been disposed of or the total value of the oil and gas
waste disposed of is less than $10,000;
(2) a felony of the second degree if the total value of
the oil and gas waste disposed of is $10,000 or more but less than
$100,000; or
(3) a felony of the first degree if the total value of
the oil and gas waste disposed of is $100,000 or more.
(c) If conduct that constitutes an offense under this
section also constitutes an offense under any other law, the actor
may be prosecuted under this section or the other law, but not both.
SECTION 6. Article 47.07, Code of Criminal Procedure, as
amended by this Act, and Article 47.13, Code of Criminal Procedure,
as added by this Act, apply only to property seized on or after the
effective date of this Act. Property seized before the effective
date of this Act is governed by the law in effect on the date the
property was seized, and the former law is continued in effect for
that purpose. For purposes of this section, property was seized
before the effective date of this Act if any portion of the property
was seized before that date.
SECTION 7. Not later than January 1, 2026, the Public Safety
Commission shall adopt rules to implement Section 411.0185,
Government Code, as added by this Act.
SECTION 8. Except as provided by Section 6 of this Act, the
changes in law made by this Act apply only to an offense committed
on or after the effective date of this Act. An offense committed
before the effective date of this Act is governed by the law in
effect on the date the offense was committed, and the former law is
continued in effect for that purpose. For purposes of this section,
an offense was committed before the effective date of this Act if
any element of the offense was committed before that date.
SECTION 9. This Act takes effect September 1, 2025.