Morales Bill Charges New Waste Sites $100,000, Spares Existing Ones

The text as introduced · 1,306 words

90R141 ANG-F

By: Morales of Maverick
H.B. No. 262

A BILL TO BE ENTITLED

AN ACT

relating to the regulation by the Railroad Commission of Texas of

certain commercial facilities that dispose of oil and gas waste;

imposing a fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 91.109, Natural Resources Code, is

amended by amending Subsections (a) and (b) and adding Subsections

(a-1), (a-2), and (a-3) to read as follows:

(a) In this section, "stationary commercial surface

disposal facility" has the meaning assigned by Section 91.116.

(a-1) A person applying for or acting under a commission

permit to operate a stationary commercial surface disposal facility

for oil and gas waste shall maintain a performance bond or other

form of financial security conditioned that the permittee will

operate and close the facility in accordance with state law,

commission rules, and the permit to operate the facility.

(a-2) A person applying for or acting under a commission

permit to store, handle, treat, reclaim, or dispose of oil and gas

waste may be required by the commission to maintain a performance

bond or other form of financial security conditioned that the

permittee will operate and close the storage, handling, treatment,

reclamation, or disposal site in accordance with state law,

commission rules, and the permit to operate the site. However, this

section does not authorize the commission to require a bond or other

form of financial security for saltwater disposal pits, emergency

saltwater storage pits (including blow-down pits), collecting

pits, or skimming pits provided that such pits are used in

conjunction with the operation of an individual oil or gas lease.

(a-3) Subject to the refund provisions of Section 91.1091,

proceeds from any bond or other form of financial security required

by this section shall be placed in the oil and gas regulation and

cleanup fund. Each bond or other form of financial security shall

be renewed and continued in effect until the conditions have been

met or release is authorized by the commission.

(b) In addition to the financial security requirements of

Subsections (a-1) and (a-2) [ Subsection (a) ], a person required to

file a bond, letter of credit, or cash deposit under Section 91.103

who is involved in activities other than the ownership or operation

of wells must file the bond, letter of credit, or cash deposit at

the time of filing or renewing an organization report required by

Section 91.142 according to the following schedule:

(1) no bond, letter of credit, or cash deposit if the

person is a:

(A) local distribution company;

(B) gas marketer;

(C) crude oil nominator;

(D) first purchaser;

(E) well servicing company;

(F) survey company;

(G) salt water hauler;

(H) gas nominator;

(I) gas purchaser; or

(J) well plugger; or

(2) a bond, letter of credit, or cash deposit in an

amount not to exceed $25,000 if the person is involved in an

activity that is not associated with the ownership or operation of

wells and is not listed in Subdivision (1).

SECTION 2. The heading to Section 91.116, Natural Resources

Code, is amended to read as follows:

Sec. 91.116. NOTICE OF STATIONARY COMMERCIAL SURFACE

DISPOSAL FACILITY PERMIT APPLICATION.

SECTION 3. Sections 91.116(a) and (b), Natural Resources

Code, are amended to read as follows:

(a) In this section, " stationary commercial surface

disposal facility" means a facility whose primary business purpose

is to provide, for compensation :

(1) [ , ] surface disposal of oil field fluids or oil and

gas wastes, including land application for treatment and disposal ;

or

(2) the surface disposal of drill cuttings, drilling

mud, or other solid or semi-solid oil using a stationary commercial

oil and gas treatment facility .

(b) A person who files an application for a permit for a

stationary commercial surface disposal facility shall publish

notice of the application in accordance with this section.

SECTION 4. The heading to Section 91.117, Natural Resources

Code, is amended to read as follows:

Sec. 91.117. PUBLIC INFORMATION HEARING ON APPLICATION FOR

STATIONARY COMMERCIAL SURFACE DISPOSAL FACILITY PERMIT.

SECTION 5. Sections 91.117(a) and (b), Natural Resources

Code, are amended to read as follows:

(a) In this section, " stationary commercial surface

disposal facility" has the meaning assigned by Section 91.116.

(b) The commission may hold a public meeting to receive

public comment on an application for a stationary commercial

surface disposal facility if the commission determines a public

meeting is in the public interest.

SECTION 6. The heading to Section 91.118, Natural Resources

Code, is amended to read as follows:

Sec. 91.118. TERM AND RENEWAL OF STATIONARY COMMERCIAL

SURFACE DISPOSAL FACILITY PERMIT.

SECTION 7. Sections 91.118(a), (b), (c), and (d), Natural

Resources Code, are amended to read as follows:

(a) In this section, " stationary commercial surface

disposal facility" has the meaning assigned by Section 91.116.

(b) Unless otherwise provided by law, a permit for a

stationary commercial surface disposal facility:

(1) is valid for a term of not more than 10 years; and

(2) carries with it the right to apply for successive

renewal on expiration for areas within the boundaries of the

existing permit.

(c) In determining the proper term of a new permit for a

stationary commercial surface disposal facility, the commission

may consider the applicant's history of compliance with commission

rules and permits issued by the commission for similar waste

management facilities based on previous inspections, quarterly

reports, and other relevant evidence documented by the commission.

(d) In determining the proper term of an amended or renewal

permit for a stationary commercial surface disposal facility, the

commission may consider the applicant's history of compliance with

commission rules and permits issued by the commission for the

subject facility or similar waste management facilities based on

previous inspections, quarterly reports, and other relevant

evidence documented by the commission.

SECTION 8. Subchapter D, Chapter 91, Natural Resources

Code, is amended by adding Sections 91.119 and 91.120 to read as

follows:

Sec. 91.119. DEMONSTRATION OF NECESSITY REQUIRED FOR

CERTAIN STATIONARY COMMERCIAL SURFACE DISPOSAL FACILITY PERMITS.

(a) In this section, "stationary commercial surface disposal

facility" has the meaning assigned by Section 91.116.

(b) The commission may not approve an application for a

permit for a stationary commercial surface disposal facility unless

the person applying for the permit demonstrates the necessity for

an additional stationary commercial surface disposal facility in

the primary market area, as established by the commission, in which

the facility will be located.

(c) To demonstrate the necessity for an additional

stationary commercial surface disposal facility, the applicant

must include with the applicant's permit application for the

stationary commercial surface disposal facility:

(1) a map and list of all permitted stationary

commercial surface disposal facilities located within a 30-mile

radius of the location of the site for which the applicant is

applying for the permit; and

(2) the number of oil and gas wells located within a

30-mile radius of the location of the site for which the applicant

is applying for a permit in the year preceding the date on which the

applicant submitted the application for the permit.

(d) In addition to the information required under

Subsection (c), the applicant shall submit to the commission other

relevant economic, environmental, and feasibility information to

demonstrate the necessity of the stationary commercial surface

disposal facility.

Sec. 91.120. APPLICATION FEE FOR CERTAIN STATIONARY

COMMERCIAL SURFACE DISPOSAL FACILITIES. (a) In this section,

"stationary commercial surface disposal facility" has the meaning

assigned by Section 91.116.

(b) With each application for a stationary commercial

surface disposal facility permit, the applicant shall submit to the

commission a nonrefundable fee of $100,000.

(c) The application fee under Subsection (b) is not

applicable to stationary commercial surface disposal facility

permit holders seeking the renewal or modification of a permit in

effect before September 1, 2027.

SECTION 9. This Act takes effect September 1, 2027.