Bill Text: TX HB49 | 2025-2026 | 89th Legislature | Enrolled

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Bill Title: Relating to the treatment and beneficial use of fluid oil and gas waste and related material, including a limitation on liability for that treatment or use.

Sponsorship: Slight Partisan Bill (Republican 15-6)

Status: (Passed) 2025-06-20 - Effective on 9/1/25 [HB49 Detail]

Download: Texas-2025-HB49-Enrolled.html

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H.B. No. 49

AN ACT
relating to the treatment and beneficial use of fluid oil and gas
waste and related material, including a limitation on liability for
that treatment or use.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 122.003, Natural Resources Code, is
amended to read as follows:
Sec. 122.003. RESPONSIBILITY IN TORT. (a) Except as
provided by Subsections [Subsection] (b) and (b-1), a person,
including an owner of the surface estate of real property, who takes
possession of fluid oil and gas waste for treatment, produces from
that waste [a] treated waste [product generally considered in the
oil and gas industry to be suitable for use in connection with the
drilling for or production of oil or gas], and either puts the
treated waste to a beneficial use or transfers the treated waste
[product] to another person with the contractual understanding that
the treated waste [product] will be put to a beneficial use [used in
connection with the drilling for or production of oil or gas] is not
liable in tort for a consequence of the subsequent use of that
treated waste [product] by any [the person to whom the treated
product is transferred or by another] person.
(a-1) Except as provided by Subsections (b) and (b-1), a
person, including an owner of the surface estate of real property,
who produces fluid oil and gas waste or who supplies or conveys
fluid oil and gas waste to a treatment facility for the purpose of
generating treated waste is not liable in tort for:
(1) a consequence of the subsequent treatment of that
fluid oil and gas waste to generate treated waste;
(2) the subsequent use of that treated waste by any
person; or
(3) exposure to any component of the waste or any
byproduct of the process used to generate treated waste.
(a-2) An owner of the surface estate of real property on or
under which fluid oil and gas waste is produced, conveyed,
transported, or treated by others is not liable in an action for
damages for personal injury, death, or property damage arising from
exposure to fluid oil and gas waste, treated waste, or a byproduct
of a process used to generate treated waste.
(b) This section does not affect the liability of a person
[that treats fluid oil and gas waste for beneficial use] in an
action brought by a claimant [person] for damages for personal
injury, death, or property damage arising from exposure to fluid
oil and gas waste, treated waste, or a byproduct of a process used
to generate treated waste if that exposure occurred as a result of
the person's:
(1) gross negligence or intentional, wrongful act or
omission; or
(2) negligence and the person did not treat, generate,
use, or dispose of the fluid oil and gas waste, treated waste, or
byproduct in conformity with:
(A) rules adopted under Section 122.004;
(B) a Texas Pollutant Discharge Elimination
System program permit issued by the Texas Commission on
Environmental Quality under Section 26.027 or 26.131, Water Code;
or
(C) a permit issued by the commission for the
hauling or handling of fluid oil and gas waste, treated waste, or
byproduct [product].
(b-1) This section does not affect the liability under
common, statutory, regulatory, or other law of a producer or
subsequent transferee of fluid oil and gas waste to the owner of the
surface estate of real property, and any owner of an interest in the
surface estate of real property, on or under which fluid oil and gas
waste is produced, transported, or treated.
(c) A claimant awarded damages for a tort premised solely on
the person's negligence and regulatory nonconformity under
Subsection (b)(2) may not be awarded exemplary damages.
SECTION 2. Section 122.004(a), Natural Resources Code, is
amended to read as follows:
(a) The commission shall adopt rules to govern the treatment
and beneficial use of fluid oil and gas waste, treated waste, and
any byproduct of a process used to generate treated waste.
SECTION 3. Chapter 122, Natural Resources Code, as amended
by this Act, applies only to a cause of action that accrues on or
after the effective date of this Act. A cause of action that
accrues before the effective date of this Act is governed by the law
as it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2025.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 49 was passed by the House on May 10,
2025, by the following vote: Yeas 109, Nays 21, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 49 was passed by the Senate on May 25,
2025, by the following vote: Yeas 29, Nays 2.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor