Bill Text: TX HB4442 | 2021-2022 | 87th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the regulation of oil and gas waste; imposing a fee.
Spectrum: Slight Partisan Bill (Republican 5-3)
Status: (Introduced - Dead) 2021-05-13 - Placed on General State Calendar [HB4442 Detail]
Download: Texas-2021-HB4442-Introduced.html
Bill Title: Relating to the regulation of oil and gas waste; imposing a fee.
Spectrum: Slight Partisan Bill (Republican 5-3)
Status: (Introduced - Dead) 2021-05-13 - Placed on General State Calendar [HB4442 Detail]
Download: Texas-2021-HB4442-Introduced.html
2021S0169-1 03/08/21 | ||
By: Raymond | H.B. No. 4442 |
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relating to the regulation of oil and gas waste; creating a tax | ||
exemption; imposing a fee. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 85.2021, Natural Resources Code, is | ||
amended by adding Subsection (b-1) to read as follows: | ||
(b-1) An applicant shall submit an additional nonrefundable | ||
fee of $200 for any well utilizing a reserve pit for disposal of oil | ||
field wastes on the well site. | ||
SECTION 2. Section 91.110, Natural Resources Code, is | ||
amended to read as follows: | ||
Sec. 91.110. OIL AND GAS WASTE REDUCTION AND MINIMIZATION. | ||
To encourage the reduction and minimization of oil and gas waste, | ||
the commission shall implement a program to: | ||
(1) provide operators with training and technical | ||
assistance on oil and gas waste reduction and minimization; | ||
(2) assist operators in developing oil and gas waste | ||
reduction and minimization plans; and | ||
(3) by rule establish and offer operators of oil and | ||
gas wells incentives for oil and gas waste reduction and | ||
minimization through the use of solids control equipment and | ||
closed-loop drilling systems at the well site. | ||
SECTION 3. Section 91.113(a), Natural Resources Code, is | ||
amended to read as follows: | ||
(a) For any [ |
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materials regulated by the commission under Section 91.101, | ||
including those that are disposed of or stored on a well site using | ||
a reserve pit, an aboveground tank, or other means, that are causing | ||
or are likely to cause the pollution of surface or subsurface water, | ||
the commission, through its employees or agents, may use money in | ||
the oil and gas regulation and cleanup fund to conduct a site | ||
investigation or environmental assessment or control or clean up | ||
the oil and gas wastes or other substances or materials if: | ||
(1) the responsible person has failed or refused to | ||
control or clean up the oil and gas wastes or other substances or | ||
materials after notice and opportunity for hearing; | ||
(2) the responsible person is unknown, cannot be | ||
found, or has no assets with which to control or clean up the oil and | ||
gas wastes or other substances or materials; or | ||
(3) the oil and gas wastes or other substances or | ||
materials are causing the pollution of surface or subsurface water. | ||
SECTION 4. Section 91.1132, Natural Resources Code, is | ||
amended to read as follows: | ||
Sec. 91.1132. PRIORITIZATION OF HIGH-RISK WELLS. The | ||
commission by rule shall develop a system for: | ||
(1) identifying abandoned wells that pose a high risk | ||
of contaminating surface water or groundwater, including those with | ||
on-site reserve pits; | ||
(2) periodically testing high-risk wells by | ||
conducting a fluid level test or, if necessary, a pressure test; and | ||
(3) giving priority to plugging high-risk wells with | ||
compromised casings. | ||
SECTION 5. Subchapter D, Chapter 91, Natural Resources | ||
Code, is amended by adding Section 91.118 to read as follows: | ||
Sec. 91.118. DISCLOSURE OF LOCATION OF NONCOMMERCIAL | ||
SURFACE DISPOSAL. (a) In this section, "noncommercial surface | ||
disposal" means the disposal of oil field fluids or oil and gas | ||
waste at a facility for which such disposal is: | ||
(1) not a primary business purpose; or | ||
(2) performed without compensation. | ||
(b) The commission by rule shall require that a notice of | ||
noncommercial surface disposal, including a legal description of | ||
the exact location of the noncommercial surface disposal, be filed | ||
with the county clerk in the county where the disposal occurs. | ||
SECTION 6. Section 91.141(a), Natural Resources Code, is | ||
amended to read as follows: | ||
(a) Owners and operators of oil and gas wells shall keep | ||
books and records that show accurately: | ||
(1) the amount of sold and unsold stock; | ||
(2) the amount of promotion money paid; | ||
(3) the amount of oil and gas produced and disposed of | ||
and the price for which the oil and gas was sold; | ||
(4) the volume and type of oil and gas wastes generated | ||
at the well site and the primary method of disposal for such wastes, | ||
whether managed: | ||
(A) on-site; | ||
(B) by a third-party commercial surface disposal | ||
facility, as defined by Section 91.116; or | ||
(C) by a recycling facility; | ||
(5) the receipts from the sale or transfer of leases or | ||
other property; and | ||
(6) [ |
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the benefit of the business. | ||
SECTION 7. Section 91.753, Natural Resources Code, is | ||
amended to read as follows: | ||
Sec. 91.753. NOTICE REQUIRED. (a) Not later than the 15th | ||
business day after the date the commission issues an oil or gas well | ||
operator a permit to drill a new oil or gas well or to reenter a | ||
plugged and abandoned oil or gas well, the operator shall give | ||
[ |
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of the tract of land on which the well is located or is proposed to | ||
be located written notice of: | ||
(1) the issuance of the permit; and | ||
(2) whether any on-site reserve pits will be used to | ||
permanently dispose of oil and gas waste on the surface owner's | ||
property, including the estimated volume and types of waste to be | ||
disposed of at the well site, if any. | ||
(b) An oil or gas well operator is not required to give | ||
notice under this subchapter to a surface owner if: | ||
(1) the operator and the surface owner have entered | ||
into a written [ |
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regarding the operator's obligation to give notice of oil and gas | ||
operations; or | ||
(2) the surface owner has waived in writing the owner's | ||
right to notice under this subchapter. | ||
SECTION 8. Section 151.355, Tax Code, is amended to read as | ||
follows: | ||
Sec. 151.355. WATER-RELATED EXEMPTIONS. The following are | ||
exempted from taxes imposed by this chapter: | ||
(1) rainwater harvesting equipment or supplies, water | ||
recycling and reuse equipment or supplies, or other equipment, | ||
services, or supplies used solely to reduce or eliminate water use; | ||
(2) equipment, services, or supplies used solely for | ||
desalination of surface water or groundwater; | ||
(3) equipment, services, or supplies used solely for | ||
brush control designed to enhance the availability of water; | ||
(4) equipment, services, or supplies used solely for | ||
precipitation enhancement; | ||
(5) equipment, services, or supplies used solely to | ||
construct or operate a water or wastewater system certified by the | ||
Texas Commission on Environmental Quality as a regional system; | ||
(6) equipment, services, or supplies used solely to | ||
construct or operate a water supply or wastewater system by a | ||
private entity as a public-private partnership as certified by the | ||
political subdivision that is a party to the project; [ |
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(7) tangible personal property specifically used to | ||
process, reuse, or recycle wastewater that will be used in | ||
fracturing work performed at an oil or gas well; and | ||
(8) tangible personal property or equipment used to | ||
process, reuse, or recycle oil and gas wastes, including solids | ||
control equipment and closed-loop drilling systems. | ||
SECTION 9. Section 85.2021(b-1), Natural Resources Code, as | ||
added by this Act, applies only to an application or materially | ||
amended application that is submitted to the Railroad Commission of | ||
Texas on or after the effective date of this Act. An application or | ||
materially amended application submitted to the commission before | ||
the effective date of this Act is governed by the law in effect when | ||
the application or materially amended application was submitted, | ||
and the former law is continued in effect for that purpose. | ||
SECTION 10. The changes in law made by this Act to Section | ||
91.753, Natural Resources Code, apply only to a permit issued by the | ||
Railroad Commission of Texas on or after the effective date of this | ||
Act. A permit issued by the commission before the effective date of | ||
this Act is governed by the law in effect when the permit was | ||
issued, and the former law is continued in effect for that purpose. | ||
SECTION 11. The change in law made by this Act to Section | ||
151.355, Tax Code, does not affect taxes imposed before the | ||
effective date of this Act, and the law in effect before the | ||
effective date of this Act is continued in effect for purposes of | ||
the liability for and collection of those taxes. | ||
SECTION 12. This Act takes effect September 1, 2021. |