Natural Resources Code
CHAPTER 91. PROVISIONS GENERALLY APPLICABLE
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 91.001. Definitions.
In this chapter:
(1) "Commission" means the Railroad Commission of Texas.
(2) "Gas" means natural gas.
(3) "Oil" means crude oil and crude petroleum oil.
Acts 1977, 65th Leg., p. 2560, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.002. Criminal Penalty.
(a) A person who wilfully or with criminal negligence violates
Section 91.101 of this code or a rule, order, or permit of the
commission issued under that section commits an offense.
(b) An offense under Subsection (a) of this section is
punishable by a fine of not more than $10,000 a day for each day
a violation is committed.
(c) Venue for prosecution of an alleged violation of this
section is in a court of competent jurisdiction in the county in
which the violation is alleged to have occurred.
Added by Acts 1983, 68th Leg., p. 5262, ch. 967, Sec. 9, eff.
Sept. 1, 1983. Renumbered from Sec. 91.351 by Acts 1987, 70th
Leg., ch. 167, Sec. 5.01(a)(32), eff. Sept. 1, 1987.
Sec. 91.003. Additional Enforcement Authority.
(a) In addition to other authority specifically granted to the
commission under this chapter, the commission may enforce this
chapter or any rule, order, or permit of the commission adopted
under this chapter in the manner and subject to the conditions
provided in Chapters 81 and 85 of this code, including the
authority to seek and obtain civil penalties and injunctive
relief as provided by those chapters.
(b) If the enforcement authority in Section 81.054, Natural
Resources Code, is used to institute a civil action alleging a
violation of an NPDES permit issued under this chapter, the
attorney general may not oppose intervention by a person who has
standing to intervene as provided by Rule 60, Texas Rules of
Civil Procedure.
Added by Acts 1983, 68th Leg., p. 5262, ch. 967, Sec. 9, eff.
Sept. 1, 1983. Renumbered from Sec. 91.352 by Acts 1987, 70th
Leg., ch. 167, Sec. 5.01(a)(32), eff. Sept. 1, 1987.
Amended by Acts 1995, 74th Leg., ch. 310, Sec. 6, eff. Aug. 28,
1995.
SUBCHAPTER B. DUTIES RELATING TO OIL AND GAS WELLS
Sec. 91.011. Casing.
Before drilling into the oil or gas bearing rock, the owner or
operator of a well being drilled for oil or gas shall encase the
well with good and sufficient wrought iron or steel casing or
with any other material that meets standards adopted by the
commission, particularly where wells could be subjected to
corrosive elements or high pressures and temperatures, in a
manner that will exclude surface or fresh water from the lower
part of the well from penetrating the oil or gas bearing rock,
and if the well is drilled through the first into the lower oil
or gas bearing rock, the well shall be cased in a manner that
will exclude fresh water above the last oil or gas bearing rock
penetrated.
Acts 1977, 65th Leg., p. 2560, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 704, Sec. 1,
eff. Aug. 26, 1985.
Sec. 91.012. Water in Wells.
(a) In boring any well for oil or gas, if a person pierces any
cap rock or other geological formation in a manner that will
cause a flow of salt water or fresh water injurious to an already
bored oil well or any oil or gas deposits and that will probably
result in the injury of the oil or gas field or already bored oil
or gas well, the person shall abandon immediately all work on the
well if the flow of water cannot be cased off and shall plug and
fill the well in a manner and with materials that will stop the
flow of the water.
(b) No well owner or person boring a well described under
Subsection (a) of this section may remove the casing from the
drilled well until the flow of water is stopped either by casing
off or plugging the well.
(c) The provisions of this section apply only if the cap rock
or other formation is pierced at a depth below the horizon at
which oil or gas has been discovered already.
Acts 1977, 65th Leg., p. 2560, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.013. Plugging and Shutting in Wells by Others.
(a) If the owner of a well described in Subsection (a) of
Section 91.012 of this code neglects or refuses to have the well
plugged or shut in for more than 20 days after written notice is
given to him, the owner or operator of adjacent or neighboring
land may enter the premises on which the well is located and have
the well plugged if it is an abandoned well or shut in if it is
not abandoned, in the manner provided by law.
(b) Notice may be given to the owner of the well either by
personal service on the owner or by posting the notice at a
conspicuous place at or near the well.
(c) The reasonable cost and expense incurred in plugging or
shutting in the well shall be paid by the owner of the well and
may be recovered as debts of like amount are recovered under the
law.
Acts 1977, 65th Leg., p. 2560, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.014. Petition to Restrain Waste.
(a) In addition to any other penalties, a district judge, in
term time or vacation time, shall hear and determine any petition
that is filed to restrain the waste of gas in violation of this
subchapter and may issue mandatory or restraining orders that in
his judgment are necessary.
(b) The petition may be filed by any citizen of this state and
does not have to allege further financial interest of the
petitioner in the state's natural resources than that possessed
in common with all citizens of the state.
Acts 1977, 65th Leg., p. 2561, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.015. Prevention of Waste.
Operators, contractors, drillers, pipeline companies, and gas
distributing companies that drill for or produce oil or gas or
pipe oil or gas for any purpose shall use every possible
precaution in accordance with the most approved methods to stop
and prevent waste of oil, gas, or both oil and gas in drilling
and producing operations, storage, piping, and distribution and
shall not wastefully use oil or gas or allow oil or gas to leak
or escape from natural reservoirs, wells, tanks, containers, or
pipes.
Acts 1977, 65th Leg., p. 2561, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.016. Confining Gas to Original Stratum.
(a) If gas located in a gas-bearing stratum known to contain
gas in paying quantities is encountered in a well drilled for oil
or gas in this state, the gas shall be confined to its original
stratum until it can be produced and used without waste.
(b) Gas-bearing strata shall be adequately protected from
infiltrating water.
Acts 1977, 65th Leg., p. 2561, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.017. Using Gas in the Open Air.
(a) Any person who uses gas in lights in the open air or in or
around derricks shall turn off the gas not later than 8 a. m. of
each day the lights are burning or are used and shall not turn
the lights on or relight them between 8 a. m. and 5 p. m.
(b) The person consuming the gas and using the burners in the
open air shall enclose them in glass globes or lamps.
Acts 1977, 65th Leg., p. 2561, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.018. Illumination.
No person, copartnership, or corporation may use gas for
illuminating purposes in flambeau lights. The use of "jumbo"
burners or other burners consuming no more gas than the "jumbo"
burners is not prohibited.
Acts 1977, 65th Leg., p. 2561, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER C. STANDARD GAS MEASUREMENT
Sec. 91.051. Title.
This subchapter may be cited as the Standard Gas Measurement Law.
Acts 1977, 65th Leg., p. 2561, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.052. Definition.
(a) The term "cubic foot of gas" or "standard cubic foot of
gas" means the volume of gas contained in one cubic foot of space
at a standard pressure base and at a standard temperature base.
(b) The standard pressure base shall be 14.65 pounds per square
inch absolute, and the standard temperature base shall be 60
degrees Fahrenheit. If the conditions of pressure and
temperature differ from this standard, conversion of the volume
from these conditions to the standard conditions shall be made in
accordance with the ideal gas laws, corrected for deviation.
Acts 1977, 65th Leg., p. 2562, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.053. Commission Determination.
The commission shall determine the average temperature of gas
as produced in each oil and gas field in Texas, other variable
factors necessary to calculate the metered volumes in accordance
with the ideal gas laws, and the variable factors to correct for
deviation from the ideal gas laws in each of the oil and gas
fields in the state.
Acts 1977, 65th Leg., p. 2562, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.054. Notice and Hearing.
On request of any interested person, the commission shall give
proper notice and hold a public hearing before making a
determination under Section 91.053 of this code.
Acts 1977, 65th Leg., p. 2562, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.055. Findings and Rules.
On making the determination, the commission promptly shall make
its findings and shall adopt reasonable field rules that may be
necessary to effectuate the provisions of this subchapter.
Acts 1977, 65th Leg., p. 2562, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.056. Use of Findings and Field Rules.
(a) Any person may use the findings and field rules of the
commission for any purposes under this subchapter.
(b) If the findings or field rules are not used as provided in
Subsection (a) of this section in determining volumes under this
subchapter, the volumes otherwise determined shall be corrected
to the basis of the standard cubic foot of gas as defined in
Section 91.052 of this code.
Acts 1977, 65th Leg., p. 2562, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.057. Method of Reporting.
A person required to report volumes of gas under the laws of
this state shall report the volumes in number of standard cubic
feet calculated and determined under the provisions of this
subchapter.
Acts 1977, 65th Leg., p. 2562, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.058. Sale, Purchase, Delivery, and Receipt of Gas.
(a) Each sale, purchase, delivery, and receipt of gas by volume
made in this state by, for, or on behalf of an oil and gas lease
owner, royalty owner under a lease, or other mineral interest
owner shall be made and the gas shall be measured, calculated,
purchased, delivered, and accounted for on the basis of a
standard cubic foot of gas as defined in this subchapter and
determined under this subchapter.
(b) If the provisions of this subchapter operate to change the
basis of measurement provided in existing contracts, the price
for gas, including royalty gas, provided for in the contracts
shall be adjusted to compensate for the change in the method of
measuring the volume of gas delivered under the contracts if
either the purchaser or seller so desires.
(c) This section is intended to protect parties to contracts in
existence on October 4, 1949, so that the total amount of money
paid for a volume of gas purchased or required to be accounted
for under these contracts shall remain unaffected by this
subchapter.
Acts 1977, 65th Leg., p. 2562, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.059. Constitutionality.
If the provisions of Section 91.058 of this code or any part of
that section are held to be invalid or unconstitutional by the
courts, the remaining portions of this subchapter shall become
ineffective and inoperative.
Acts 1977, 65th Leg., p. 2563, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.061. Civil Suit.
None of these provisions shall prevent an aggrieved person from
maintaining a civil suit for damages in the county or counties in
which the gas is produced.
Acts 1977, 65th Leg., p. 2563, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.062. Applicability of Certain Provisions.
None of the provisions of Sections 91.058 through 91.061 of
this code affect or apply to purchases or sales made on any basis
other than a volume basis.
Acts 1977, 65th Leg., p. 2563, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER D. PREVENTION OF POLLUTION
Sec. 91.101. Rules and Orders.
Text of section effective until delegation of RCRA authority to
Railroad Commission of Texas
(a) To prevent pollution of surface water or subsurface water
in the state, the commission shall adopt and enforce rules and
orders and may issue permits relating to:
(1) the drilling of exploratory wells and oil and gas wells
or any purpose in connection with them;
(2) the production of oil and gas, including:
(A) activities associated with the drilling of injection
water source wells which penetrate the base of useable
quality water;
(B) activities associated with the drilling of cathodic
protection holes associated with the cathodic protection of
wells and pipelines subject to the jurisdiction of the
commission;
(C) activities associated with gasoline plants, natural
gas or natural gas liquids processing plants, pressure
maintenance plants, or repressurizing plants;
(D) activities associated with any underground natural
gas storage facility, provided the terms "natural gas" and
"storage facility" shall have the meanings set out in
Section 91.173, Natural Resources Code;
(E) activities associated with any underground
hydrocarbon storage facility, provided the terms
"hydrocarbons" and "underground hydrocarbon storage
facility" shall have the meanings set out in Section 91.201,
Natural Resources Code; and
(F) activities associated with the storage, handling,
reclamation, gathering, transportation, or distribution of
oil or gas prior to the refining of such oil or prior to the
use of such gas in any manufacturing process or as a
residential or industrial fuel;
(3) the operation, abandonment, and proper plugging of wells
subject to the jurisdiction of the commission; and
(4) the discharge, storage, handling, transportation,
reclamation, or disposal of oil and gas waste as defined in
Section 91.1011 of this subchapter, or of any other substance
or material associated with any operation or activity regulated
by the commission under Subdivisions (1), (2), and (3) of this
subsection.
(b) Notwithstanding the provisions of Subsection (a) of this
section, the authority granted to the commission by this section
does not include the authority to adopt and enforce rules and
orders or issue permits regarding the collection, storage,
handling, transportation, processing, or disposal of waste
arising out of or incidental to activities associated with
gasoline plants, natural gas or natural gas liquids processing
plants, pressure maintenance plants, or repressurizing plants if
that waste is a hazardous waste as defined by the administrator
of the United States Environmental Protection Agency pursuant to
the federal Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act, 42 U.S.C. 6901 et seq., as
amended.
Acts 1977, 65th Leg., p. 2563, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5258, ch.
967, Sec. 6, eff. Sept. 1, 1983; Acts 1985, 69th Leg., ch. 921,
Sec. 4, eff. June 15, 1985.
For text of section effective upon delegation of RCRA authority
to Railroad Commission of Texas, see Sec. 91.101, post
Sec. 91.101. Rules and Orders.
Text of section effective upon delegation of RCRA authority to
Railroad Commission of Texas
To prevent pollution of surface water or subsurface water in
the state, the commission shall adopt and enforce rules and
orders and may issue permits relating to:
(1) the drilling of exploratory wells and oil and gas wells
or any purpose in connection with them;
(2) the production of oil and gas, including:
(A) activities associated with the drilling of injection
water source wells which penetrate the base of useable
quality water;
(B) activities associated with the drilling of cathodic
protection holes associated with the cathodic protection of
wells and pipelines subject to the jurisdiction of the
commission;
(C) activities associated with gasoline plants, natural
gas or natural gas liquids processing plants, pressure
maintenance plants, or repressurizing plants;
(D) activities associated with any underground natural
gas storage facility, provided the terms "natural gas" and
"storage facility" shall have the meanings set out in
Section 91.173, Natural Resources Code;
(E) activities associated with any underground
hydrocarbon storage facility, provided the terms
"hydrocarbons" and "underground hydrocarbon storage
facility" shall have the meanings set out in Section 91.201,
Natural Resources Code; and
(F) activities associated with the storage, handling,
reclamation, gathering, transportation, or distribution of
oil or gas prior to the refining of such oil or prior to the
use of such gas in any manufacturing process or as a
residential or industrial fuel;
(3) the operation, abandonment, and proper plugging of wells
subject to the jurisdiction of the commission; and
(4) the discharge, storage, handling, transportation,
reclamation, or disposal of oil and gas waste as defined in
Section 91.1011 of this subchapter, or of any other substance
or material associated with any operation or activity regulated
by the commission under Subdivisions (1), (2), and (3) of this
section.
Acts 1977, 65th Leg., p. 2563, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5258, ch.
967, Sec. 6, eff. Sept. 1, 1983; Acts 1985, 69th Leg., ch. 921,
Sec. 4, eff. June 15, 1985.
For text of section effective until delegation of RCRA authority
to Railroad Commission of Texas, see Sec. 91.101, ante
Sec. 91.1011. Oil and Gas Waste.
Text of section effective until delegation of RCRA authority to
Railroad Commission of Texas
(a) In this subchapter, "oil and gas waste" means waste that
arises out of or incidental to the drilling for or producing of
oil or gas, including waste arising out of or incidental to:
(1) activities associated with the drilling of injection
water source wells which penetrate the base of useable quality
water;
(2) activities associated with the drilling of cathodic
protection holes associated with the cathodic protection of
wells and pipelines subject to the jurisdiction of the
commission;
(3) activities associated with gasoline plants, natural gas
or natural gas liquids processing plants, pressure maintenance
plants, or repressurizing plants;
(4) activities associated with any underground natural gas
storage facility, provided the terms "natural gas" and "storage
facility" shall have the meanings set out in Section 91.173,
Natural Resources Code;
(5) activities associated with any underground hydrocarbon
storage facility, provided the terms "hydrocarbons" and
"underground hydrocarbon storage facility" shall have the
meanings set out in Section 91.201, Natural Resources Code; and
(6) activities associated with the storage, handling,
reclamation, gathering, transportation, or distribution of oil
or gas prior to the refining of such oil or prior to the use of
such gas in any manufacturing process or as a residential or
industrial fuel.
(b) "Oil and gas waste" includes salt water, brine, sludge,
drilling mud, and other liquid, semiliquid, or solid waste
material, but does not include waste arising out of or incidental
to activities associated with gasoline plants, natural gas or
natural gas liquids processing plants, pressure maintenance
plants, or repressurizing plants if that waste is a hazardous
waste as defined by the administrator of the United States
Environmental Protection Agency pursuant to the federal Solid
Waste Disposal Act, as amended by the Resource Conservation and
Recovery Act, 42 U.S.C. 6901 et seq., as amended.
Added by Acts 1983, 68th Leg., p. 5060, ch. 967, Sec. 7, eff.
Sept. 1, 1983. Amended by Acts 1985, 69th Leg., ch. 921, Sec. 4,
eff. June 15, 1985.
For text of section effective upon delegation of RCRA authority
to Railroad Commission of Texas, see Sec. 91.1011, post
Sec. 91.1011. Oil and Gas Waste.
Text of section effective upon delegation of RCRA authority to
Railroad Commission of Texas
(a) In this subchapter, "oil and gas waste" means waste that
arises out of or incidental to the drilling for or producing of
oil or gas, including waste arising out of or incidental to:
(1) activities associated with the drilling of injection
water source wells which penetrate the base of useable quality
water;
(2) activities associated with the drilling of cathodic
protection holes associated with the cathodic protection of
wells and pipelines subject to the jurisdiction of the
commission;
(3) activities associated with gasoline plants, natural gas
or natural gas liquids processing plants, pressure maintenance
plants, or repressurizing plants;
(4) activities associated with any underground natural gas
storage facility, provided the terms "natural gas" and "storage
facility" shall have the meanings set out in Section 91.173,
Natural Resources Code;
(5) activities associated with any underground hydrocarbon
storage facility, provided the terms "hydrocarbons" and
"underground hydrocarbon storage facility" shall have the
meanings set out in Section 91.201, Natural Resources Code; and
(6) activities associated with the storage, handling,
reclamation, gathering, transportation, or distribution of oil
or gas prior to the refining of such oil or prior to the use of
such gas in any manufacturing process or as a residential or
industrial fuel.
(b) "Oil and gas waste" includes salt water, brine, sludge,
drilling mud, and other liquid, semiliquid, or solid waste
material.
Added by Acts 1983, 68th Leg., p. 5060, ch. 967, Sec. 7, eff.
Sept. 1, 1983. Amended by Acts 1985, 69th Leg., ch. 921, Sec. 4,
eff. June 15, 1985.
For text of section effective until delegation of RCRA authority
to Railroad Commission of Texas, see Sec. 91.1011, ante
Sec. 91.1012. Access to Property and Records.
Members and employees of the commission, on proper
identification, may enter public or private property to inspect
and investigate conditions relating to the quality of water in
the state, to inspect and investigate conditions relating to
development of rules, orders, or permits issuable under Section
91.101 of this code, to monitor compliance with a rule, permit,
or other order of the commission, or to examine and copy, during
reasonable working hours, those records or memoranda of the
business being investigated. Members or employees acting under
the authority of this section who enter an establishment on
public or private property shall observe the establishment's
safety, internal security, and fire protection rules.
Added by Acts 1983, 68th Leg., p 5260, ch. 967, Sec. 7, eff.
Sept. 1, 1983.
Sec. 91.1013. Application Fees.
(a) With each application for a fluid injection well permit,
the applicant shall submit to the commission a nonrefundable fee
of $100. In this section, "fluid injection well" means any well
used to inject fluid or gas into the ground in connection with
the exploration or production of oil or gas other than an oil and
gas waste disposal well regulated by the commission pursuant to
Chapter 27, Water Code.
(b) With each application for a permit to discharge to surface
water under this chapter and commission rules, other than a
permit for a discharge that meets National Pollutant Discharge
Elimination System requirements for agricultural or wildlife use,
the applicant shall submit to the commission a nonrefundable fee
of $200.
(c) Fees collected under Subsection (b) of this section shall
be deposited in the state oil-field cleanup fund.
Added by Acts 1985, 69th Leg., ch. 239, Sec. 72, eff. Sept. 1,
1985. Amended by Acts 1991, 72nd Leg., ch. 603, Sec. 14, eff.
Sept. 1, 1991.
Sec. 91.102. Additional Personnel.
The commission is directed to employ additional personnel
necessary to administer this subchapter and related laws and
rules and orders adopted by the commission.
Acts 1977, 65th Leg., p. 2563, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5258, ch.
967, Sec. 6, eff. Sept. 1, 1983.
Sec. 91.103. Persons Required to Execute Bond or Alternate Form of
Financial Security.
Any person, including any firm, partnership, joint stock
association, corporation, or other organization, required to file
an organization report under Section 91.142 of this code shall
execute and file with the commission a bond or alternate form of
financial security.
Acts 1977, 65th Leg., p. 2564, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5258, ch.
967, Sec. 6, eff. Sept. 1, 1983; Acts 1991, 72nd Leg., ch. 603,
Sec. 8, eff. Sept. 1, 1991.
Sec. 91.104. Bonds and Alternate Forms of Financial Security.
(a) The commission shall require a bond or an alternate form of
financial security to be filed with the commission as provided by
Subsection (b) of this section.
(b) A person required to file a bond under Section 91.103 of
this code may choose to file:
(1) an individual bond as provided under Section 91.1041 of
this code;
(2) a blanket bond as provided under Section 91.1042 of this
code;
(3) a nonrefundable annual fee of $100, if the person can
demonstrate to the commission an acceptable record of
compliance with all commission rules, orders, licenses,
permits, or certificates that relate to safety or the
prevention or control of pollution for the previous 48 months
and the person and, if a firm, partnership, joint stock
association, corporation, or other organization, its officers,
directors, general partners, or owners of more than 25 percent
ownership interest or any trustee:
(A) has no outstanding violations of such commission
rules, orders, licenses, permits, or certificates;
(B) has paid all administrative, civil, and criminal
penalties, if any, relating to any violation of such
commission rules, orders, licenses, permits, or
certificates; and
(C) has paid all reimbursements of any costs and
expenses assessed by the commission in relation to any
violation of such commission rules, orders, licenses,
permits, or certificates;
(4) a nonrefundable annual fee equal to three percent of the
bond that otherwise would be required; or
(5) to give a first lien on tangible personal property
associated with oil and gas production whose salvage value
equals the value of an individual bond under Section 91.1041 of
this code or the value of a blanket bond under Section 91.1042
of this code that otherwise would be required.
(c) A person who chooses to file a form of financial security
other than a bond shall also submit a fee of $100 for each
application to extend the time to plug a well in accordance with
Section 85.2021 of this code.
Acts 1977, 65th Leg., p. 2564, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5258, ch.
967, Sec. 6, eff. Sept. 1, 1983; Acts 1991, 72nd Leg., ch. 603,
Sec. 9, eff. Sept. 1, 1991.
Sec. 91.1041. Individual Bond.
A person required to file a bond under Section 91.103 who
operates one or more wells may file a bond in an amount equal to
$2 for each foot of well depth for each well.
Added by Acts 1991, 72nd Leg., ch. 603, Sec. 10, eff. Sept. 1,
1991.
Sec. 91.1042. Blanket Bond.
A person required to file a bond under Section 91.103 may file
a blanket bond to cover all wells and operations for which a bond
is required as follows:
(1) a person who operates 10 or fewer wells or performs
other operations shall file a $25,000 blanket bond;
(2) a person who operates more than 10 but fewer than 100
wells shall file a $50,000 blanket bond; and
(3) a person who operates 100 or more wells shall file a
$250,000 blanket bond.
Added by Acts 1991, 72nd Leg., ch. 603, Sec. 10, eff. Sept. 1,
1991.
Sec. 91.105. Bond Conditions.
Each bond required by Section 91.103 of this code shall be
conditioned that the operator will plug and abandon all wells and
control, abate, and clean up pollution associated with an
operator's oil and gas activities covered under the bond in
accordance with the law of the state and the permits, rules, and
orders of the commission.
Acts 1977, 65th Leg., p. 2563, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Renumbered from Sec. 91.106 by Acts 1983, 68th
Leg., p. 5258, ch. 967, Sec. 6, eff. Sept. 1, 1983. Amended by
Acts 1991, 72nd Leg., ch. 603, Sec. 11, eff. Sept. 1, 1991.
Sec. 91.106. Execution of Bond.
Each bond shall be executed by a corporate surety authorized to
do business in this state and shall be renewed and be continued
in effect until the conditions have been met or release is
authorized by the commission.
Acts 1977, 65th Leg., p. 2564, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Renumbered from Sec. 91.107 by Acts 1983, 68th
Leg., p. 5258, ch. 967, Sec. 6, eff. Sept. 1, 1983.
Sec. 91.107. New Bond or Alternate Form of Financial Security.
If a well covered by a bond or alternate form of financial
security is transferred, sold, or assigned by its operator, the
commission shall require the party acquiring the well to file a
new bond or alternate form of financial security as provided by
this subchapter, and the bond or alternate form of financial
security of the prior operator shall continue to be required and
to remain in effect until the new bond or alternate form of
financial security is provided or the commission determines that
the financial security previously submitted to the commission by
the person acquiring the well complies with this subchapter.
Acts 1977, 65th Leg., p. 2563, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Renumbered from Sec. 91.108 by Acts 1983, 68th
Leg., p. 5258, ch. 967, Sec. 6, eff. Sept. 1, 1983. Amended by
Acts 1991, 72nd Leg., ch. 603, Sec. 12, eff. Sept. 1, 1991.
Sec. 91.108. Deposit of Funds.
Subject to the refund provisions of Section 91.1091 of this
code, proceeds from bonds required pursuant to this chapter shall
be deposited in the oil-field cleanup fund.
Added by Acts 1983, 68th Leg., p. 5258, ch. 967, Sec. 6, eff.
Sept. 1, 1983. Amended by Acts 1991, 72nd Leg., ch. 603, Sec.
15, eff. Sept. 1, 1991.
Sec. 91.109. Disposal Site Bond.
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. Subject to the refund provisions of
Section 91.1091 of this code, proceeds from any bond or other
form of financial security required by this section shall be
placed in the oil-field 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.
Added by Acts 1985, 69th Leg., ch. 464, Sec. 1, eff. Aug. 26,
1985. Amended by Acts 1991, 72nd Leg., ch. 603, Sec. 17, eff.
Sept. 1, 1991.
Sec. 91.1091. Refund.
The commission shall refund the proceeds from a bond or other
form of security required under this subchapter if:
(1) the conditions that caused the proceeds to be collected
are corrected;
(2) all administrative, civil, and criminal penalties
relating to those conditions are paid; and
(3) all reimbursements of costs and expenses assessed by the
commission to be collected in relation to those conditions are
collected.
Added by Acts 1991, 72nd Leg., ch. 603, Sec. 16, eff. Sept. 1,
1991.
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 incentives for oil and gas waste
reduction and minimization.
Added by Acts 1991, 72nd Leg., ch. 296, Sec. 2.06, eff. June 7,
1991; Acts 1991, 72nd Leg., ch. 590, Sec. 6, eff. June 16, 1991.
Sec. 91.111. Oil-Field Cleanup Fund.
(a) The oil-field cleanup fund is created as a special fund in
the state treasury.
(b) The commission shall certify to the comptroller the date on
which the balance in the fund equals or exceeds $10 million. The
oil-field cleanup regulatory fees on oil and gas shall not be
collected or required to be paid on or after the first day of the
second month following the certification, except that the
comptroller shall resume collecting the fees on receipt of a
commission certification that the fund has fallen below $6
million. The comptroller shall continue collecting the fees
until collections are again suspended in the manner provided by
this subsection.
(c) The fund consists of:
(1) penalties imposed under Section 85.381 of this code for
violation of a law, order, or rule relating to well plugging
requirements;
(2) proceeds from bonds and other financial assurances
required by this chapter, subject to the refund provisions of
Section 91.1091 of this code;
(3) private contributions, including contributions made
under Section 89.084 of this code;
(4) expenses collected under Section 89.083 of this code;
(5) drilling permit fees imposed under Subsections (a) and
(c) of Section 85.2021 of this code;
(6) civil penalties collected for violations of Chapter 89
of this code or of rules or orders relating to plugging that
are adopted under this code;
(7) proceeds collected under Sections 89.085 and 91.115 of
this code;
(8) interest earned on the funds deposited in the fund;
(9) fees collected under Section 91.104 of this code;
(10) civil penalties or costs recovered under Section 91.457
or Section 91.459 of this code;
(11) oil and gas waste hauler permit application fees
collected under Section 29.015, Water Code;
(12) costs recovered under Subsection (f) of Section 91.113
of this code;
(13) hazardous oil and gas waste generation fees collected
under Section 91.605 of this code;
(14) oil-field cleanup regulatory fees on oil collected
under Section 81.116 of this code;
(15) oil-field cleanup regulatory fees on gas collected
under Section 81.117 of this code;
(16) fees for a reissued certificate collected under Section
85.167 of this code;
(17) fees collected under Subsection (b) of Section 91.1013
of this code;
(18) fees collected under Section 89.088 of this code; and
(19) legislative appropriations.
(d) All revenues and balances in the oil-field cleanup fund
created in this section are exempt from Section 403.094(h) and
Section 403.095(b), Government Code.
Added by Acts 1991, 72nd Leg., ch. 603, Sec. 1, eff. Sept. 1,
1991.
Amended by Acts 1993, 73rd Leg., ch. 515, Sec. 6, eff. Jan. 1,
1994.
Sec. 91.112. Purpose of the Fund.
(a) Money in the fund may be used by the commission or its
employees or agents for:
(1) conducting a site investigation or environmental
assessment to determine:
(A) the nature and extent of contamination caused by oil
and gas wastes or other substances or materials regulated by
the commission under Section 91.101; and
(B) the measures that should be taken to control or
clean up the wastes, substances, or materials described in
Paragraph (A);
(2) controlling or cleaning up oil and gas wastes or other
substances or materials regulated by the commission under
Section 91.101 that are causing or are likely to cause the
pollution of surface or subsurface water, consistent with
Section 91.113;
(3) plugging abandoned wells and administering or enforcing
permits, orders, and rules relating to the commission's
authority to prevent pollution under this chapter, Chapter 89,
or any other law administered or enforced by the commission
under Title 3;
(4) implementing Subchapter N and enforcing rules, orders,
and permits adopted or issued under that subchapter; and
(5) preparing the report required under Subsection (b).
(b) The commission shall submit to the legislature, annually, a
report that reviews the extent to which money provided under
Section 91.111 has enabled the commission to better protect the
environment and enhance the income of the oil-field cleanup fund.
The report shall include:
(1) the number of wells plugged;
(2) the number of wells abandoned;
(3) the number of inactive wells not currently in compliance
with commission rules;
(4) the status of enforcement proceedings for all wells in
violation of commission rules and the time period during which
the wells have been in violation;
(5) the method by which the commission sets priorities by
which it determines the order in which abandoned wells are
plugged;
(6) a projection of the amount of money needed for the next
biennium for conducting site investigations and environmental
assessments, plugging abandoned wells, and remediating surface
locations; and
(7) the status of implementation of the provisions of
Section 89.085 relating to possession and sale of equipment to
recover plugging costs.
Added by Acts 1991, 72nd Leg., ch. 603, Sec. 1, eff. Sept. 1,
1991.
Amended by Acts 1997, 75th Leg., ch. 120, Sec. 1, eff. Sept. 1,
1997.
Sec. 91.113. Investigation, Assessment, Or Cleanup by Commission.
(a) If oil and gas wastes or other substances or materials
regulated by the commission under Section 91.101 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-field 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.
(b) For purposes of this section, "responsible person" means
any operator or other person required by law, rules adopted by
the commission, or a valid order of the commission to control or
clean up the oil and gas wastes or other substances or materials.
(c) The commission or its employees or agents, on proper
identification, may enter the land of another for the purpose of
conducting a site investigation or environmental assessment or
controlling or cleaning up oil and gas wastes or other substances
or materials under this section.
(d) The conducting of a site investigation or environmental
assessment or the control or cleanup of oil and gas wastes or
other substances or materials by the commission under this
section does not prevent the commission from seeking penalties or
other relief provided by law from any person who is required by
law, rules adopted by the commission, or a valid order of the
commission to control or clean up the oil and gas wastes or other
substances or materials.
(e) The commission and its employees are not liable for any
damages arising from an act or omission if the act or omission is
part of a good-faith effort to carry out this section.
(f) If the commission conducts a site investigation or
environmental assessment or controls or cleans up oil and gas
wastes or other substances or materials under this section, the
commission may recover all costs incurred by the commission from
any person who was required by law, rules adopted by the
commission, or a valid order of the commission to control or
clean up the oil and gas wastes or other substances or materials.
The commission may request the attorney general to file suit in
any court of competent jurisdiction in Travis County to recover
these costs. Costs recovered under this subsection shall be
deposited to the oil-field cleanup fund.
Added by Acts 1991, 72nd Leg., ch. 603, Sec. 1, eff. Sept. 1,
1991.
Amended by Acts 1997, 75th Leg., ch. 120, Sec. 1, eff. Sept. 1,
1997.
Sec. 91.114. Acceptance of Organization Report or Application for Permit;
Approval of Certificate of Compliance; Revocation/statutes
(a) Except as provided by Subsection (d), the commission may
not accept an organization report required under Section 91.142
or an application for a permit under this Chapter, Chapter 85, or
Chapter 26, 27, or 29, Water Code, or approve a certificate of
compliance under Section 85.161 if:
(1) the organization that submitted the report, application,
or certificate violated a statute or commission rule, order,
license, certificate, or permit that relates to safety or the
prevention or control of pollution; or
(2) a person who holds a position of ownership or control in
the organization has, within the five years preceding the date
on which the report, application, or certificate is filed, held
a position of ownership or control in another organization and
during that period of ownership or control the other
organization violated a statute or commission rule, order,
license, permit, or certificate that relates to safety or the
prevention or control of pollution.
(b) An organization has committed a violation if:
(1) a final judgment or final administrative order finding
the violation has been entered against the organization and all
appeals have been exhausted; or
(2) the commission and the organization have entered into an
agreed order relating to the alleged violation.
(c) Regardless of whether the person's name appears or is
required to appear on the organization report required by Section
91.142, a person holds a position of ownership or control in an
organization if:
(1) the person is:
(A) an officer or director of the organization;
(B) a general partner of the organization;
(C) the owner of a sole proprietorship organization;
(D) the owner of at least 25 percent of the beneficial
interest in the organization; or
(E) a trustee of the organization; or
(2) the person has been determined by a final judgment or
final administrative order to have exerted actual control over
the organization.
(d) The commission shall accept the report or application or
approve the certificate if:
(1) the conditions that constituted the violation are
corrected or are being corrected in accordance with a schedule
to which the commission and the organization have agreed;
(2) all administrative, civil, and criminal penalties and
all cleanup and plugging costs incurred by the state and
assessed or adjudged against the organization relating to those
conditions are paid or are being paid in accordance with a
payment schedule to which the commission and the organization
have agreed; and
(3) the report, application, or certificate is in compliance
with all other requirements of law and commission rules.
(e) If a report or application is rejected or a certificate is
disapproved under this section, the commission shall provide the
organization with a written statement explaining the reason for
the rejection or disapproval.
(f) Notwithstanding Subsection (a), the commission may issue a
permit to an organization described by Subsection (a) for a term
specified by the commission if the permit is necessary to remedy
a violation of law or commission rules.
(g) A fee tendered in connection with a report or application
that is rejected under this section is nonrefundable.
(h) If the commission is prohibited by Subsection (a) from
accepting an organization's organization report or application or
approving the organization's certificate or would be prohibited
from doing so by that subsection if the organization submitted a
report, application, or certificate, the commission, after notice
and opportunity for a hearing, by order may revoke:
(1) the organization's organization report filed under
Section 91.142;
(2) a permit issued to the organization under this chapter,
Chapter 85, or Chapter 26, 27, or 29, Water Code; or
(3) any certificate of compliance approved under Section
85.161.
(i) An order under Subsection (h) shall provide the
organization a reasonable period of time to comply with the
judgment or order finding the violation before the revocation
takes effect.
(j) On revocation of its organization report, an organization
may not perform any activities under the jurisdiction of the
commission under this title or Chapter 26, 27, or 29, Water Code,
except as necessary to remedy a violation of law or commission
rules and as authorized by the commission.
(k) The commission may not revoke an organization's
organization report, permit, or certificate of compliance under
Subsection (h) if it finds that the organization has fulfilled
the conditions set out in Subsection (d).
(l) In determining whether or not to revoke an organization's
organization report, permit, or certificate of compliance under
Subsection (h), the commission shall consider the organization's
history of previous violations, the seriousness of previous
violations, any hazard to the health or safety of the public, and
the demonstrated good faith of the organization.
(m) Revocation of an organization's organization report,
permit, or certificate does not relieve the organization of any
existing or future duty under law, rules, or permit conditions
to:
(1) protect surface or subsurface water from pollution;
(2) properly dispose of oil and gas waste; or
(3) clean up unpermitted discharges of oil and gas waste.
Added by Acts 1991, 72nd Leg., ch. 603, Sec. 13, eff. Sept. 1,
1991. Renumbered from Sec. 91.110 by Acts 1993, 73rd Leg., ch.
107, Sec. 10.01(10), eff. Aug. 30, 1993. Amended by Acts 1995,
74th Leg., ch. 617, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th
Leg., ch. 121, Sec. 1, eff. Sept. 1, 1997.
Sec. 91.115. First Lien on Equipment.
(a) If a responsible person fails to clean up a site or
facility that has ceased oil and gas operations under the
commission's jurisdiction on or before the date the site or
facility is required to be cleaned up by law or by a rule adopted
or order issued by the commission, the state has a first lien,
superior to all preexisting and subsequent liens and security
interests, on the responsible person's interest in equipment that
is:
(1) located at the site or facility; and
(2) used by the responsible person in connection with the
activity that generated the pollution.
(b) The lien is in the amount of the total costs of cleaning up
the oil and gas wastes or other substances from the site or
facility and arises on the date the site or facility is required
by law or by a rule or order of the commission to be cleaned up.
(c) The commission may foreclose on the lien by entering into a
contract to clean up the site or facility. The commission is not
required to give notice or an opportunity for a hearing to
subordinate lienholders before entering into a contract to clean
up the site or facility.
(d) The lien is extinguished if the site or facility is cleaned
up in accordance with commission rules by any person before the
commission enters into a contract to clean up the site or
facility.
(e) The lien is extinguished as to any item of equipment that
is lawfully removed by any person other than the operator or a
nonoperator according to a lien, lease, judgment, written
contract, or security agreement before the commission enters into
a cleanup contract. An item of equipment may not be removed from
an abandoned site or facility if the removal will cause the
release of a substance that may cause pollution unless the
substance is lawfully disposed of.
(f) Equipment subject to a lien under this section is presumed
to have been abandoned on the date the commission enters into a
contract to clean up the site or facility on which the equipment
is located. The commission may dispose of the equipment in
accordance with the provisions of Sections 89.085, 89.086, and
89.087 of this code for the disposition of well-site equipment.
(g) In this section "responsible person" has the meaning
assigned by Section 91.113 of this code.
Added by Acts 1993, 73rd Leg., ch. 515, Sec. 7, eff. Jan. 1,
1994.
SUBCHAPTER E. BOOKS, RECORDS, AND REPORTS
Sec. 91.141. Books and Records.
(a) Owners and operators of oil and gas wells shall keep books
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 receipts from the sale or transfer of leases or other
property; and
(5) disbursements made in connection with or for the benefit of
the business.
(b) The books shall be kept open for the inspection of the
commission or any accredited representative of the commission and
any stockholder or shareholder or royalty owner in the business.
(c) The owners and operators of oil and gas wells shall report
the information to the commission for its information if required
by the commission to do so.
Acts 1977, 65th Leg., p. 2564, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 91.142. Report to Commission.
(a) A person, firm, partnership, joint stock association,
corporation, or other domestic or foreign organization operating
wholly or partially in this state and acting as principal or
agent for another for the purpose of performing operations which
are within the jurisdiction of the commission shall file
immediately with the commission:
(1) the name of the company or organization;
(2) the post-office address of the company or organization;
(3) the plan under which the company or organization was
organized;
(4) the names and post-office addresses of the trustee or
trustees of the company or organization;
(5) the names, unique identifying numbers such as driver's
license numbers, and post-office addresses of the officers and
directors; and
(6) if required by Subsection (b) of this section, the name
and address of the resident agent.
(b) Any foreign or nonresident entity listed in Subsection (a)
of this section shall maintain or designate a resident agent upon
whom any process, notice, or demand required or permitted by law
to be served upon such entity may be served.
(c) If any such entity required by the terms of this section to
maintain or designate such agent shall fail to do so, then and in
such event, the organization report required to be filed with the
commission is not valid.
(d) Failure by any such entity listed in Subsection (a) of this
section to answer such process or demand shall render the
organization report invalid.
(e) The commission shall require an entity described by
Subsection (a) of this section to refile an organization report
annually according to a schedule established by the commission.
(f) If an entity described by Subsection (a) of this section
does not maintain on file with the commission an organization
report and financial security as required by this chapter:
(1) the entity may not perform operations under the
jurisdiction of the commission except as necessary to remedy a
violation of law or commission rules and as authorized by the
commission; and
(2) the commission, on written notice, may suspend:
(A) any permits held by the entity; or
(B) any certificates of compliance approved under
Chapter 85 of this code.
Acts 1977, 65th Leg., p. 2565, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 398, Sec. 1,
eff. Aug. 26, 1985.
Amended by Acts 1997, 75th Leg., ch. 121, Sec. 2, eff. Sept. 1,
1997.
Sec. 91.143. False Applications, Reports, and Documents and Tampering With
Gauges.
(a) A person is guilty of a felony and on conviction shall be
punished by imprisonment in the state penitentiary for not less
than two years but not more than five years or by a fine of not
more than $10,000 or by both if:
(1) he makes or subscribes any application, report, or other
document required or permitted to be filed with the commission
by the provisions of Title 102, Revised Civil Statutes of
Texas, 1925, as amended, including provisions of this code
formerly included in that title, knowing that the application,
report, or other document is false or untrue in a material
fact;
(2) he aids or assists in, or procures, counsels, or advises
the preparation or presentation of any of these applications,
reports, or other documents that are fraudulent, false, or
incorrect in any material matter, knowing them to be
fraudulent, false, or incorrect in any material matter;
(3) he knowingly simulates or falsely or fraudulently
executes or signs such an application, report, or other
document;
(4) he knowingly procures these applications, reports, or
other documents to be falsely or fraudulently executed, or
advises, aids in, or connives at this execution; or
(5) he knowingly renders inaccurate any monitoring device
required to be maintained by a commission rule, order, or
permit.
(b) If other penalties prescribed in Title 102, Revised Civil
Statutes of Texas, 1925, as amended, including provisions of this
code formerly included in that title, overlap offenses that are
also punishable under this section, the penalties prescribed in
this section shall be in addition to other penalties.
(c) No application, report, or other document required or
permitted to be filed with the commission under Title 102,
Revised Civil Statutes of Texas, 1925, as amended, including
provisions of this code formerly included in that title, may be
required to be under oath, verification, acknowledgment, or
affirmation.
Acts 1977, 65th Leg., p. 2565, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5251, ch.
967, Sec. 1, eff. Sept. 1, 1983.
SUBCHAPTER F. UNDERGROUND NATURAL GAS STORAGE AND CONSERVATION
Sec. 91.171. Short Title.
This subchapter may be cited as the Underground Natural Gas
Storage and Conservation Act of 1977.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff.
June 13, 1979.
Sec. 91.172. Declaration of Policy.
The underground storage of natural gas promotes the
conservation of natural gas, permits the building of reserves for
orderly withdrawal in periods of peak demand, makes more readily
available natural gas resources to residential, commercial, and
industrial customers of this state, provides a better year-round
market to the various gas fields, and promotes the public
interest and welfare of this state.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff.
June 13, 1979.
Sec. 91.173. Definitions.
In this subchapter:
(1) "Person" means any natural person, partnership or other
combination of natural persons, corporation, group of
corporations, trust, or governmental entity.
(2) "Gas utility" means a gas utility as defined in Section
3, Public Utility Regulatory Act (Article 1446c, Vernon's Texas
Civil Statutes), or Article 6050, Revised Civil Statutes of
Texas, 1925, as amended.
(3) "Natural gas" means any gaseous material composed
predominantly of the following hydrocarbons or mixtures
thereof: methane, ethane, propane, butane (normal or
isobutane), in either its original or manufactured state, or
gas which has been processed to separate it into one or more of
its component parts after its withdrawal from the earth.
(4) "Native gas" means:
(A) natural gas which has not previously been withdrawn
from the earth; or
(B) natural gas which has been withdrawn from the
storage facility, processed, and reinjected into the storage
facility.
(5) "Storage facility" means any subsurface sand, stratum,
or formation used or to be used for the underground storage of
natural gas and all surface and subsurface rights and
appurtenances necessary to the operation of a facility for the
underground storage of natural gas.
(6) "Storer" means (A) a gas utility, (B) a wholly owned
subsidiary of a gas utility, (C) the parent corporation of a
gas utility, or (D) a wholly owned subsidiary of a parent
corporation which also wholly owns a subsidiary gas utility,
but a nonutility storer included in category (B), (C), or (D)
must operate the storage facility pursuant to a contract with
its affiliated gas utility that provides that all withdrawals
of natural gas from the storage facility must be delivered to
the affiliated gas utility.
(7) "Substantially depleted" means that at least 75 percent
of the estimated volume of recoverable native gas reserves
originally in place in any gas-bearing sand, formation, or
stratum have been withdrawn from the sand, formation, or
stratum.
(8) "Interested person" means any person who enters an
appearance at the commission hearing required by Section 91.174
of this code.
(9) "Commission" means the Railroad Commission of Texas.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff.
June 13, 1979.
Sec. 91.174. Findings of Commission.
(a) Any storer desiring to exercise the right of eminent domain
for the acquisition of a storage facility shall, as a condition
precedent to the filing of its petition in the appropriate court,
obtain from the commission an order finding:
(1) that the underground formation or stratum sought to be
acquired is classified by the commission as a gas reservoir and
is suitable for the underground storage of natural gas and that
the storage of natural gas is necessary for the gas utility to
provide adequate service to the public and is in the public
interest;
(2) that the use of the formation or stratum as a storage
facility will cause no injury to surface or underground water
resources;
(3) that the formation or stratum does not contain native
gas producible in paying quantities unless the recoverable
volumes of native gas originally in place are substantially
depleted and unless the formation or stratum has a greater
value of ultimate use to the consuming public as a storage
facility to ensure an adequate supply of natural gas or for the
conservation of natural gas than the production of native gas
which remains;
(4) the extent of the horizontal limits of the reservoir
expected to be penetrated by displaced or injected gas; and
(5) that no portion of the formation or stratum sought to be
acquired has been condemned or is being utilized for the
injection, storage, and withdrawal of gas by others.
(b) The designation of a storage facility does not prevent any
storer from instituting additional proceedings in the event it is
later determined that the underground reservoir should be
extended to prevent the escape, displacement, or withdrawal by
others of injected gas.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff.
June 13, 1979.
Sec. 91.175. Commission Jurisdiction.
The commission shall have jurisdiction to supervise the
construction and operation of all storage facilities formed
pursuant to this subchapter, and in addition to the findings
required by Section 91.174 of this code, the commission shall
include in any order of approval a requirement that the storer
file a report each month, including each month prior to the time
the storage facility is in operation, with the commission
showing, for that month, the volume of gas injected and stored
gas withdrawn from storage.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff.
June 13, 1979.
Sec. 91.176. Withdrawal of Native Gas.
A storer may withdraw from storage injected and stored gas as
market demand dictates. However, any time a storer's withdrawals
from a storage facility equal the volume of gas injected for
storage, the storer shall not withdraw additional gas from the
storage facility without first obtaining specific authority from
the commission.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff.
June 13, 1979.
Sec. 91.177. Storage Operations Must be Bona Fide.
(a) A storer must initiate injection operations for gas storage
within 12 months after the condemnation order of the court
becomes final and storage operations must continue with
reasonable diligence after that time.
(b) Should the monthly reports to the commission indicate that
bona fide underground gas storage operations are not being
conducted, the commission may, on its own motion or on motion of
any interested person, schedule a public hearing, giving the
storer the opportunity to show cause why the commission approval
of the project should not be withdrawn.
(c) If the commission finds that the storage project is not
being conducted in a bona fide manner, it shall issue an order
withdrawing approval of the storage facility, and all property,
both mineral and surface, that was condemned by the storer shall
revert to those who owned the property at the time of
condemnation or their successors.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff.
June 13, 1979.
Sec. 91.178. Relocation of Facilities.
In the event the acquisition or operation of a storage facility
acquired through the exercise of the power of eminent domain
requires the relocation or alteration of any railroad, electric,
telegraph, telephone, or pipeline lines or facilities, the
expense of the relocation or alteration shall be borne by the
storer. The expense of relocation means the actual cost incurred
in providing a comparable replacement line or facility, less net
salvage value from the sale or other disposition of the old
facility.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff.
June 13, 1979.
Sec. 91.179. Appropriation of Storage Facilities; Limitations.
After an order of the commission is issued approving a storage
facility, a storer may condemn without further attack as to its
right to condemn, any subsurface sand, stratum, or formation for
the underground storage of natural gas, condemning all mineral
and royalty rights as are reasonably necessary for the operation
of the storage facility, subject to the limitations of this
subchapter, and the storer may condemn any other interests in
property that may be required, including interests in the surface
estate in the sand, stratum, or formation reasonably necessary to
the operation of the storage facility, provided that:
(1) no part of a reservoir is subject to condemnation unless
the storer has acquired by option, lease, conveyance, or other
negotiated means at least 66- 2/3 percent of the ownership of
minerals, including working interests, and 66- 2/3 percent of
the ownership of the royalty interests, computed in relation to
the surface area overlying the part of the reservoir which as
found by the commission to be expected to be penetrated by
displaced or injected gas;
(2) no dwelling, barn, store, or other building is subject
to condemnation; and
(3) the right of condemnation is without prejudice to the
rights of the owners or holders of other rights or interests of
land to drill through the storage facility under such terms and
conditions as the commission may prescribe for the purpose of
protecting the storage facility against pollution or escape of
natural gas and is without prejudice to the rights of the
owners or holders of other rights or interests of the land to
all other uses so long as those uses do not interfere with the
operation of the storage facility.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff.
June 13, 1979.
Sec. 91.180. Institution of Condemnation Proceedings.
(a) The finding by the commission that underground storage is
in the public interest is binding on all persons whose property
the storer has the right to condemn. After that finding of the
commission, the storer has the right to condemn all of the
underground storage area and any surface area required for the
use and enjoyment of the storage facility.
(b) The storer shall initiate eminent domain proceedings in the
court having jurisdiction in the area in which a portion of the
land is situated. The petition shall set forth the purpose for
which the property is sought to be acquired, a description of the
sand, stratum, or formation and of the land under which it is
alleged to be contained, the names of the owners as shown by the
deed records of the county, and a description of all other
property and rights sought to be appropriated for use in
connection with the storage facility, including any parts of the
surface necessary for any facilities incidental to the operation
of the storage facility.
(c) The petition shall state facts showing that the storer has
obtained the findings of the commission required by Section
91.174 of this code, that the storer in good faith has been
unable to acquire the rights sought to be appropriated, that the
storer has acquired, prior to the filing of the petition, by any
means other than condemnation, at least 66 2/3 percent of the
ownership of the minerals, including working interests, and 66
2/3 percent of the royalty interests of the property rights in
the storage facility required for that purpose, and shall
describe the surface area overlying the storage facility the
storer seeks to acquire and the names of the owners of those
rights and interests.
(d) Where more than one tract of land is involved, all or any
tracts may be joined in one proceeding, without prejudice to the
right of the storer to institute additional proceedings;
provided, that the failure to make service upon a defendant does
not affect the right of the storer to proceed against any or all
other of the defendants upon whom service has been made.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff.
June 13, 1979.
Sec. 91.181. Exercise of Right of Eminent Domain.
All proceedings in connection with the condemnation and
acquisition of storage facilities shall be in accordance with
Articles 3264 through 3271, Revised Civil Statutes of Texas,
1925, as amended, and to the extent of any conflict between those
articles and this subchapter, the provisions of this subchapter
prevail.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff.
June 13, 1979.
Sec. 91.182. Ownership of Stored Gas.
All natural gas in the stratum condemned which is not native
gas, and which is subsequently injected into storage facilities
is personal property and is the property of the injector or its
assigns, and in no event is the gas subject to the right of the
owner of the surface of the land or of any mineral or royalty
owner's interest under which the storage facilities lie, or of
any person other than the injector to produce, take, reduce to
possession, either by means of the law of capture or otherwise,
waste, or otherwise interfere with or exercise any control over a
storage facility. Upon failure, neglect, or refusal of the
person to comply with this section, the storer has the right to
compel compliance by injunction or by other appropriate relief by
application to a court of competent jurisdiction.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff.
June 13, 1979.
Sec. 91.183. Rights of Purchasers of Native Gas.
(a) In the event there are remaining reserves of native gas in
the storage facility which are dedicated to a purchaser and the
purchaser and storer are unable to agree on an equitable
settlement of rights with respect to the remaining native gas
within a period of time that will prevent interference with the
operation of the storage facility, the storer or purchaser may
apply to the commission for an adjudication concerning remaining
reserves of native gas.
(b) Upon application, the commission shall direct a settlement
of remaining reserves of native gas that is equitable to all
parties, but which does not interfere with the public benefits
arising from the operation of the storage facility.
(c) In addition to any other disposition that is equitable to
all parties, the commission may make a finding of the quantity of
remaining recoverable native gas and an allocation of future
production on a reasonable production schedule and order delivery
to the purchaser by the storer of the amounts of native gas that
the commission finds would have been taken by the purchaser
during the term of the purchase agreement.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff.
June 13, 1979.
Sec. 91.184. Abandonment.
(a) When a storer has permanently abandoned the storage
facility, the storer shall file with the commission a notice of
abandonment, and shall file an instrument in the deed records in
the appropriate county or counties, stating that the storage has
ceased, and that all property, both mineral and surface,
condemned by the storer has reverted to those who owned the
property at the time of condemnation, or their heirs, successors,
or assigns.
(b) The storer shall also file in the deed records in the
appropriate county or counties a list of the owners of the
mineral, royalty, and surface owners to whom the various
interests have reverted, together with an affidavit that the
storer has compiled the list from a current examination of title
records and that the list is true and correct to the best of the
knowledge of the affiant.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff.
June 13, 1979.
SUBCHAPTER G. UNDERGROUND HYDROCARBON STORAGE
Sec. 91.201. Definitions.
In this subchapter:
(1) "Underground hydrocarbon storage facility" or "storage
facility" means a subsurface sand, stratum, or geological
formation used for the underground storage of hydrocarbons, and
includes surface or subsurface rights and appurtenances necessary
for the operation of the facility.
(2) "Hydrocarbons" means oil, gas, or products of oil or gas, as
those terms are defined by Section 85.001 of this code.
(3) "Waste" means surface or subsurface waste, as defined by
Section 85.046 of this code, of hydrocarbons, including, but not
limited to, the physical or economic waste or loss of
hydrocarbons in the creation, operation, maintenance, or
abandonment of an underground hydrocarbon storage facility.
(4) "Commission" means the Railroad Commission of Texas.
Added by Acts 1981, 67th Leg., p. 3167, ch. 830, Sec. 3, eff.
June 17, 1981.
Sec. 91.202. Policy.
It is the policy of this state and the purpose of this
subchapter to prevent the waste of oil, gas, and products of oil
or gas, to protect the ground and surface water of the state from
unreasonable degradation, and to protect the public health,
welfare, and physical property in the creation, operation,
maintenance, and abandonment of underground hydrocarbon storage
facilities.
Added by Acts 1981, 67th Leg., p. 3167, ch. 830, Sec. 3, eff.
June 17, 1981.
Sec. 91.203. Authority; Rules.
(a) The commission shall supervise or monitor the construction,
operation, maintenance, and closure of storage facilities.
(b) The commission may adopt reasonable rules or issue
reasonable orders to implement the policies of this subchapter
and may establish minimum standards regulating the creation,
operation, maintenance, and abandonment of underground
hydrocarbon storage facilities. The rules and standards of the
commission may include, but are not limited to, requirements for
monitoring, recordkeeping, and reporting, the drilling and
creation of the facility, selecting the site of the facility, and
for proper closure of the facility on abandonment.
Added by Acts 1981, 67th Leg., p. 3167, ch. 830, Sec. 3, eff.
June 17, 1981.
Sec. 91.204. Permits.
(a) The commission by rule may require a person who creates,
operates, maintains, or abandons an underground hydrocarbon
storage facility to obtain a permit from the commission. A
permit issued by the commission may contain provisions and
conditions necessary to implement the policies of this
subchapter. The commission may adopt reasonable rules for the
amendment, revocation, transfer, or suspension of a permit.
(b) A person desiring to obtain a permit or to amend a permit
must submit an application containing the information required by
the commission.
Added by Acts 1981, 67th Leg., p. 3167, ch. 830, Sec. 3, eff.
June 17, 1981.
Sec. 91.205. Authority to Enter Property.
Members and employees of the commission may enter public or
private property at reasonable times to inspect and investigate
conditions relating to the creation, operation, maintenance, or
abandonment of an underground hydrocarbon storage facility. The
members and employees may not enter private property having
management in residence without notifying the management of their
presence and shall observe safety, internal security, and fire
protection rules of the establishment being inspected.
Added by Acts 1981, 67th Leg., p. 3167, ch. 830, Sec. 3, eff.
June 17, 1981.
Sec. 91.206. Authority to Examine Records.
Members and employees of the commission may examine and copy
during regular business hours records pertaining to the creation,
operation, maintenance, or abandonment of an underground
hydrocarbon storage facility.
Added by Acts 1981, 67th Leg., p. 3167, ch. 830, Sec. 3, eff.
June 17, 1981.
Sec. 91.207. Notice of Noncompliance.
(a) On receipt of notice from the commission that a person
creating, operating, maintaining, or abandoning an underground
hydrocarbon storage facility has violated this subchapter or a
term, condition, or provision of a permit issued under this
subchapter, an operator of the pipeline or other carrier
connected to the facility shall disconnect from the facility and
shall remain disconnected from the facility until notice of
compliance has been received from the commission.
(b) On receipt of notice from the commission of a violation of
this subchapter, a rule of the commission issued under this
subchapter, or a term, condition, or provision of a permit issued
under this subchapter, the owner or operator of an underground
hydrocarbon storage facility shall discontinue any removal of
hydrocarbons from the facility or any addition of hydrocarbons to
the facility and may not begin or renew removal of hydrocarbons
from the facility or begin or renew addition of hydrocarbons to
the facility until notice of compliance has been received from
the commission.
Added by Acts 1981, 67th Leg., p. 3167, ch. 830, Sec. 3, eff.
June 17, 1981.
SUBCHAPTER H. UNDERGROUND STORAGE FACILITIES FOR NATURAL GAS
Sec. 91.251. Definitions.
In this subchapter:
(1) "Intrastate gas pipeline facility" has the meaning assigned
by the United States Department of Transportation under Chapter
601, Title 49, United States Code (49 U.S.C. Section 60101 et
seq.), and its subsequent amendments.
(2) "Natural gas" means any gaseous material composed primarily
of methane in either its original or its manufactured state.
(3) "Natural gas underground storage" means the storage of
natural gas beneath the surface of the earth in a formation,
stratum, or reservoir.
(4) "Storage facility" has the meaning assigned by Section
91.173.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1,
1997.
Sec. 91.252. Commission Jurisdiction.
(a) The commission has jurisdiction over:
(1) natural gas underground storage; and
(2) surface and subsurface equipment and facilities used for
natural gas underground storage.
(b) This subchapter does not apply to a storage facility that
is:
(1) part of an interstate gas pipeline facility as defined
by the United States Department of Transportation; and
(2) subject to federal minimum standards adopted under
Chapter 601, Title 49, United States Code (49 U.S.C. Section
60101 et seq.), and its subsequent amendments.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1,
1997.
Sec. 91.253. Commission Enforcement.
(a) In addition to other authority specifically granted to the
commission under this subchapter, the commission may enforce this
subchapter or a rule adopted or an order or permit issued under
this subchapter as provided by Section 91.207.
(b) Section 91.003 does not apply to this subchapter.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1,
1997.
Sec. 91.254. Inspection; Examination; Credentials.
(a) The commission may inspect a storage facility for
compliance with the safety standards and practices and the
recordkeeping requirements adopted under Sections 91.255, 91.257,
and 91.258.
(b) To conduct an inspection under this section, a commissioner
or a designated commission employee or agent may enter property
on which a storage facility is located at a reasonable time and
in a reasonable manner to examine:
(1) the facility and any related buildings or equipment; and
(2) the records required to be maintained at the storage
facility under Section 91.258.
(c) A commissioner or a commission employee or agent may not
enter the premises of a storage facility having personnel on the
premises of the facility unless proper credentials are first
presented to the person at the facility who is in charge of the
property.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1,
1997.
Sec. 91.255. Safety Standards and Practices.
(a) The commission by rule shall adopt safety standards and
practices for natural gas underground storage and storage
facilities. The standards and practices must:
(1) require the installation and periodic testing of safety
devices;
(2) establish emergency notification procedures for the
operator of a facility in the event of a release of a hazardous
substance that poses a substantial risk to the public;
(3) establish fire prevention and response procedures;
(4) require training for the employees of the storage
facility on the safe operation of the storage facility; and
(5) establish any other safety standard or practice that is
reasonable and necessary for underground natural gas storage
and the safe construction, operation, and maintenance of a
storage facility.
(b) The commission may adopt different standards and practices
for different types of storage facilities and may distinguish
among natural gas underground storage in salt dome caverns,
depleted reservoirs, and embedded salt formations.
(c) The commission may grant an exception to a standard or
practice adopted under this section in a permit or amended permit
issued to a storage facility if the exception will not constitute
an unreasonable danger to the public.
(d) The commission may impose an additional standard or
practice in a permit or amended permit issued to a storage
facility.
(e) A safety standard or practice adopted by the commission for
a storage facility that is part of an intrastate gas pipeline
facility must be compatible with federal minimum standards.
(f) The commission shall require that records of safety device
tests required by Subsection (a)(1) be:
(1) filed with the commission; or
(2) maintained by the owner or operator and made available
for inspection by the commission.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1,
1997.
Sec. 91.256. Limitation on Powers of Municipalities and Counties.
A municipality or county may not adopt or enforce an ordinance
that establishes a safety standard or practice applicable to a
storage facility that is subject to regulation under this
subchapter, another state law, or a federal law.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1,
1997.
Sec. 91.257. Safety Procedure Manual.
The commission may require the owner or operator of a storage
facility to prepare a safety procedure manual for each storage
facility and to:
(1) file a copy of the manual with the commission; or
(2) make the manual available for inspection under Section
91.254.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1,
1997.
Sec. 91.258. Records; Reports.
(a) An owner or operator of a storage facility shall:
(1) maintain records and make reports relating to
construction, operation, or maintenance of the facility as
required by commission rule; and
(2) provide any other information required by the commission
relating to construction, operation, or maintenance of the
facility.
(b) The commission may provide forms for reports required under
Subsection (a).
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1,
1997.
Sec. 91.259. Damage to Storage Facility; Disabling a Safety Device.
A person may not:
(1) intentionally damage or destroy a storage facility; or
(2) disable a safety device in a storage facility except to:
(A) repair, maintain, test, or replace the device; or
(B) conduct other activities that are reasonably
necessary for the safe operation of the storage facility.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1,
1997.
Sec. 91.260. Injunction; Civil Penalty.
(a) The attorney general, at the request of the commission,
shall bring a civil action against a person who has violated or
is violating this subchapter or a rule adopted or an order or
permit issued under this subchapter for:
(1) injunctive relief to restrain the person from the
violation;
(2) the assessment and recovery of a civil penalty for a
violation; or
(3) both injunctive relief and a civil penalty.
(b) A civil penalty assessed under this section may not exceed
$25,000 for each violation.
(c) Each day of a continuing violation may be considered a
separate violation for the purpose of penalty assessment.
(d) The maximum penalty assessed for a related series of
violations may not exceed $500,000.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1,
1997.
Sec. 91.261. Administrative Penalty.
(a) The commission may assess, as provided by this section and
Sections 91.262, 91.263, and 91.264, an administrative penalty
against a person who violates this subchapter or a rule adopted
or an order or permit issued under this subchapter.
(b) Except as provided by Subsection (c), the penalty for each
violation may be in an amount not to exceed $10,000. The maximum
penalty assessed under this subsection for a related series of
violations may not exceed $200,000.
(c) The penalty for each violation of Section 91.259 may be in
an amount not to exceed $25,000. The maximum penalty assessed
under this subsection for a continuing violation may not exceed
$300,000.
(d) Each day a violation continues or occurs may be considered
a separate violation for the purpose of penalty assessment under
Subsection (b) or (c).
(e) In determining the amount of the penalty, the commission
shall consider:
(1) the seriousness of the violation, including the nature,
circumstances, extent, and gravity of the prohibited act and
the hazard or potential hazard created to the health, safety,
or economic welfare of the public;
(2) the economic harm to property or the environment caused
by the violation;
(3) the history of previous violations;
(4) the amount necessary to deter future violations;
(5) efforts to correct the violation; and
(6) any other matter that justice may require.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1,
1997.
Sec. 91.262. Administrative Penalty Assessment Procedure.
(a) An administrative penalty may be assessed only after the
person charged under Section 91.261 has been given an opportunity
for a public hearing. If a public hearing is held, the
commission shall make findings of fact and issue a written
decision as to the occurrence of the violation and the penalty
amount warranted by the violation, incorporating, if appropriate,
an order requiring that the penalty be paid. If appropriate, the
commission shall consolidate the hearing with other proceedings.
(b) If a person charged under Section 91.261 fails to take
advantage of the opportunity for a public hearing, a penalty may
be assessed by the commission after it has determined that a
violation occurred and the penalty amount warranted by the
violation. The commission shall then issue an order requiring
the penalty to be paid.
(c) The commission shall give notice of the commission's order
to the person charged with the violation as provided by Chapter
2001, Government Code. The notice must include a statement of
the right of the person to judicial review of the order.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1,
1997.
Sec. 91.263. Payment of Administrative Penalty.
(a) Not later than the 30th day after the date on which the
commission's order imposing an administrative penalty becomes
final as provided by Section 2001.144, Government Code, the
person charged with the violation shall:
(1) pay the amount of the penalty;
(2) pay the amount of the penalty and file a petition for
judicial review contesting:
(A) the amount of the penalty;
(B) the fact of the violation; or
(C) both the amount of the penalty and the fact of the
violation; or
(3) without paying the amount of the penalty, file a
petition for judicial review contesting:
(A) the amount of the penalty;
(B) the fact of the violation; or
(C) both the amount of the penalty and the fact of the
violation.
(b) Within the 30-day period, a person who acts under
Subsection (a)(3) may:
(1) stay the enforcement of the penalty by:
(A) paying the amount of the penalty to the court for
placement in an escrow account; or
(B) giving to the court a supersedeas bond in a form
approved by the court that is effective until all judicial
review of the order or decision is final; or
(2) request the court to stay enforcement of the penalty by:
(A) filing with the court a sworn affidavit stating that
the person is financially unable to pay the amount of the
penalty and is financially unable to give the supersedeas
bond; and
(B) delivering a copy of the affidavit to the
commission.
(c) If the commission receives a copy of an affidavit under
Subsection (b), the commission may file a contest to the
affidavit with the court not later than the fifth day after the
date the copy is received. The court shall hold a hearing on the
facts alleged in the affidavit as soon as practicable. The
person who files an affidavit has the burden of proving that the
person is financially unable to pay the amount of the penalty and
to give a supersedeas bond.
(d) If the person does not pay the amount of the penalty and
the penalty is not stayed, the commission may refer the matter to
the attorney general for enforcement.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1,
1997.
Sec. 91.264. Judicial Review of Administrative Penalty.
(a) Judicial review of a commission order imposing an
administrative penalty is:
(1) instituted by filing a petition as provided by
Subchapter G, Chapter 2001, Government Code; and
(2) under the substantial evidence rule.
(b) If the person paid the amount of the penalty and that
amount is reduced or is not assessed by the court, the court
shall order that the appropriate amount plus accrued interest be
remitted to the person. The rate of interest is the rate charged
on loans to depository institutions by the New York Federal
Reserve Bank and shall be paid for the period beginning on the
date the penalty is paid and ending on the date the penalty is
remitted. If the person gave a supersedeas bond, the court shall
order the release of the bond:
(1) without further action by the person if the penalty is
not assessed by the court; or
(2) on payment of the penalty in the amount determined by
the court.
(c) A penalty collected under this section shall be deposited
to the credit of the oil-field cleanup fund account.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1,
1997.
SUBCHAPTER J. PAYMENT FOR PROCEEDS OF SALE
Sec. 91.401. Definitions.
In this subchapter:
(1) "Payee" means any person or persons legally entitled to
payment from the proceeds derived from the sale of oil or gas
from an oil or gas well located in this state.
(2) "Payor" means the party who undertakes to distribute oil and
gas proceeds to the payee, whether as the purchaser of the
production of oil or gas generating such proceeds or as operator
of the well from which such production was obtained or as lessee
under the lease on which royalty is due. The payor is the first
purchaser of such production of oil or gas from an oil or gas
well, unless the owner of the right to produce under an oil or
gas lease or pooling order and the first purchaser have entered
into arrangements providing that the proceeds derived from the
sale of oil or gas are to be paid by the first purchaser to the
owner of the right to produce who is thereby deemed to be the
payor having the responsibility of paying those proceeds received
from the first purchaser to the payee.
(3) "Division order" means an agreement signed by the payee
directing the distribution of proceeds from the sale of oil, gas,
casinghead gas, or other related hydrocarbons. The order directs
and authorizes the payor to make payment for the products taken
in accordance with the division order. When used herein
"division order" shall also include "transfer order".
(4) "Transfer order" means an agreement signed by a payee and his
transferee (new payee) directing the payor under the division
order to pay another person a share in the oil or gas produced.
Added by Acts 1983, 68th Leg., p. 966, ch. 228, Sec. 1, eff.
Sept. 1, 1983. Amended by Acts 1991, 72nd Leg., ch. 650, Sec. 1,
eff. Aug. 26, 1991.
Sec. 91.402. Time for Payment of Proceeds.
(a) The proceeds derived from the sale of oil or gas production
from an oil or gas well located in this state must be paid to
each payee by payor on or before 120 days after the end of the
month of first sale of production from the well. After that time,
payments must be made to each payee on a timely basis according
to the frequency of payment specified in a lease or other written
agreement between payee and payor. If the lease or other
agreement does not specify the time for payment, subsequent
proceeds must be paid no later than:
(1) 60 days after the end of the calendar month in which
subsequent oil production is sold; or
(2) 90 days after the end of the calendar month in which
subsequent gas production is sold.
(b) Payments may be withheld without interest beyond the time
limits set out in Subsection (a) of this section when there is:
(1) a dispute concerning title that would affect
distribution of payments;
(2) a reasonable doubt that the payee:
(A) has sold or authorized the sale of its share of the
oil or gas to the purchaser of such production; or
(B) has clear title to the interest in the proceeds of
production;
(3) a requirement in a title opinion that places in issue
the title, identity, or whereabouts of the payee and that has
not been satisfied by the payee after a reasonable request for
curative information has been made by the payor.
(c)(1) As a condition for the payment of proceeds from the sale
of oil and gas production to payee, a payor shall be entitled to
receive a signed division order from payee containing only the
following provisions:
(A) the effective date of the division order, transfer
order, or other instrument;
(B) a description of the property from which the oil or
gas is being produced and the type of production;
(C) the fractional and/or decimal interest in production
claimed by payee, the type of interest, the certification of
title to the share of production claimed, and, unless
otherwise agreed to by the parties, an agreement to notify
payor at least one month in advance of the effective date of
any change in the interest in production owned by payee and
an agreement to indemnify the payor and reimburse the payor
for payments made if the payee does not have merchantable
title to the production sold;
(D) the authorization to suspend payment to payee for
production until the resolution of any title dispute or
adverse claim asserted regarding the interest in production
claimed by payee;
(E) the name, address, and taxpayer identification
number of payee;
(F) provisions for the valuation and timing of
settlements of oil and gas production to the payee; and
(G) a notification to the payee that other statutory
rights may be available to a payee with regard to payments.
(2) Such a division order does not amend any lease or
operating agreement between the interest owner and the lessee
or operator or any other contracts for the purchase of oil or
gas.
(d) In the alternative, the provisions of Subsection (c) of
this section may be satisfied by a division order for oil
payments in substantially the following form and content:
DIVISION ORDER
TO:
(Payor)Property No.
Effective
(Date)
The undersigned severally and not jointly certifies it is the
legal owner of the interest set out below of all the oil and
related liquid hydrocarbons produced from the property described
below:
OPERATOR:
Property name:
County:
State:
Legal Description:
OWNER NO.
TAX I.D./SOC. SEC. NO. PAYEE
DIVISION OF INTEREST
THIS AGREEMENT DOES NOT AMEND ANY LEASE OR OPERATING
AGREEMENT
BETWEEN THE INTEREST OWNERS AND THE LESSEE OR OPERATOR OR ANY
OTHER CONTRACTS FOR THE PURCHASE OF OIL OR GAS.
The following provisions apply to each interest owner ("owner")
who executes this agreement:
TERMS OF SALE: The undersigned will be paid in accordance with
the division of interests set out above. The payor shall pay all
parties at the price agreed to by the operator for oil to be sold
pursuant to this division order. Purchaser shall compute
quantity and make corrections for gravity and temperature and
make deductions for impurities.
PAYMENT: From the effective date, payment is to be made
monthly by payor's check, based on this division of interest, for
oil run during the preceding calendar month from the property
listed above, less taxes required by law to be deducted and
remitted by payor as purchaser. Payments of less than $100 may
be accrued before disbursement until the total amount equals $100
or more, or until 12 months' proceeds accumulate, whichever
occurs first. However, the payor may hold accumulated proceeds
of less than $10 until production ceases or the payor's
responsibility for making payment for production ceases,
whichever occurs first. Payee agrees to refund to payor any
amounts attributable to an interest or part of an interest that
payee does not own.
INDEMNITY: The owner agrees to indemnify and hold payor
harmless from all liability resulting from payments made to the
owner in accordance with such division of interest, including but
not limited to attorney fees or judgments in connection with any
suit that affects the owner's interest to which payor is made a
party.
DISPUTE; WITHHOLDING OF FUNDS: If a suit is filed that affects
the interest of the owner, written notice shall be given to payor
by the owner together with a copy of the complaint or petition
filed.
In the event of a claim or dispute that affects title to the
division of interest credited herein, payor is authorized to
withhold payments accruing to such interest, without interest
unless otherwise required by applicable statute, until the claim
or dispute is settled.
TERMINATION: Termination of this agreement is effective on the
first day of the month that begins after the 30th day after the
date written notice of termination is received by either party.
NOTICES: The owner agrees to notify payor in writing of any
change in the division of interest, including changes of interest
contingent on payment of money or expiration of time.
No change of interest is binding on payor until the recorded
copy of the instrument of change or documents satisfactorily
evidencing such change are furnished to payor at the time the
change occurs.
Any change of interest shall be made effective on the first day
of the month following receipt of such notice by payor.
Any correspondence regarding this agreement shall be furnished
to the addresses listed unless otherwise advised by either party.
In addition to the legal rights provided by the terms and
provisions of this division order, an owner may have certain
statutory rights under the laws of this state.
Signature of
Social Security/
Witness
Interest Owner
Tax I.D. No.
Address
Failure to furnish your Social Security/Tax I.D. number will
result in withholding tax in accordance with federal law, and any
tax withheld will not be refundable by payor.
(e) If an owner in a producing property will not sign a division
order because it contains provisions in addition to those
provisions provided for in this section, payor shall not withhold
payment solely because of such refusal. If an owner in a
producing property refuses to sign a division order which
includes only the provisions specified in Subsection (c) of this
section, payor may withhold payment without interest until such
division order is signed.
(f) Payment may be remitted to a payee annually for the aggregate
of up to 12 months' accumulation of proceeds if the payor owes
the payee a total amount of $100 or less for production from all
oil or gas wells for which the payor must pay the payee.
However, the payor may hold accumulated proceeds of less than $10
until production ceases or the payor's responsibility for making
payment for production ceases, whichever occurs first. On the
written request of the payee, the payor shall remit payment of
accumulated proceeds to the payee annually if the payor owes the
payee less than $10. On the written request of the payee, the
payor shall remit payment of proceeds to the payee monthly if the
payor owes the payee more than $25 but less than $100.
(g) Division orders are binding for the time and to the extent
that they have been acted on and made the basis of settlements
and payments, and, from the time that notice is given that
settlements will not be made on the basis provided in them, they
cease to be binding. Division orders are terminable by either
party on 30 days written notice.
(h) The execution of a division order between a royalty owner and
lessee or between a royalty owner and a party other than lessee
shall not change or relieve the lessee's specific, expressed or
implied obligations under an oil and gas lease, including any
obligation to market production as a reasonably prudent lessee.
Any provision of a division order between payee and its lessee
which is in contradiction with any provision of an oil and gas
lease is invalid to the extent of the contradiction.
(i) A division order may be used to clarify royalty settlement
terms in the oil and gas lease. With respect to oil and/or gas
sold in the field where produced or at a gathering point in the
immediate vicinity, the terms "market value," "market price,"
"prevailing price in the field," or other such language, when
used as a basis of valuation in the oil and gas lease, shall be
defined as the amount realized at the mouth of the well by the
seller of such production in an arm's-length transaction.
Added by Acts 1983, 68th Leg., p. 966, ch. 228, Sec. 1, eff.
Sept. 1, 1983. Amended by Acts 1991, 72nd Leg., ch. 650, Sec. 2,
eff. Aug. 26, 1991.
Amended by Acts 1995, 74th Leg., ch. 681, Sec. 1, eff. June 15,
1995.
Sec. 91.403. Payment of Interest on Late Payments.
(a) If payment has not been made for any reason in the time
limits specified in Section 91.402 of this code, the payor must
pay interest to a payee beginning at the expiration of those time
limits at two percentage points above the percentage rate charged
on loans to depository institutions by the New York Federal
Reserve Bank, unless a different rate of interest is specified in
a written agreement between payor and payee.
(b) Subsection (a) of this section does not apply where
payments are withheld or suspended by a payor beyond the time
limits specified in Section 91.402 of this code because of the
conditions enumerated in Section 91.402 of this code.
(c) The payor's obligation to pay interest and the payee's
right to receive interest under Subsection (a) of this section
terminate on delivery of the proceeds and accumulated interest to
the comptroller as provided by Title 6, Property Code.
Added by Acts 1983, 68th Leg., p. 966, ch. 228, Sec. 1, eff.
Sept. 1, 1983. Amended by Acts 1985, 69th Leg., ch. 230, Sec.
18, eff. Sept. 1, 1985; Acts 1991, 72nd Leg., ch. 650, Sec. 3,
eff. Aug. 26, 1991; Acts 1991, 72nd Leg., ch. 676, Sec. 1, eff.
Sept. 1, 1991.
Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 39, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1423, Sec. 14.15, eff. Sept. 1,
1997.
Sec. 91.404. Nonpayment of Oil and Gas Proceeds or Interest.
(a) If a payee seeks relief for the failure of a payor to make
timely payment of proceeds from the sale of oil or gas or an
interest in oil or gas as required under Section 91.402 or 91.403
of this code, the payee must give the payor written notice by
mail of that failure as a prerequisite to beginning judicial
action against the payor for nonpayment.
(b) The payor has 30 days after receipt of the required notice
from the payee in which to pay the proceeds due, or to respond by
stating in writing a reasonable cause for nonpayment.
(c) A payee has a cause of action for nonpayment of oil or gas
proceeds or interest on those proceeds as required in Section
91.402 or 91.403 of this code in any court of competent
jurisdiction in the county in which the oil or gas well is
located.
Added by Acts 1983, 68th Leg., p. 966, ch. 228, Sec. 1, eff.
Sept. 1, 1983.
Sec. 91.405. Exemptions.
This subchapter does not apply to any royalties that are
payable to:
(1) the board of regents of The University of Texas System
under a lease of land dedicated to the permanent university
fund; or
(2) the General Land Office as provided by Subchapter D,
Chapter 52, of this code.
Added by Acts 1983, 68th Leg., p. 966, ch. 228, Sec. 1, eff.
Sept. 1, 1983.
Sec. 91.406. Attorney's Fees and Minimum Award.
If a suit is filed to collect proceeds and interest under this
subchapter, the court shall include in any final judgment in
favor of the plaintiff an award of:
(1) reasonable attorney's fees; and
(2) if the actual damages to the plaintiff are less than
$200, an additional amount so that the total amount of damages
equals $200.
Added by Acts 1987, 70th Leg., ch. 1011, Sec. 1, eff. Aug. 31,
1987.
Sec. 91.407. Notice of change of Payor.
(a) Following a change in payor, the new payor shall give
written notice to each payee to whom the payor is responsible for
distributing oil or gas proceeds. The notice must be given to
the payee or the payee's designee at the payee's or designee's
most recent known address.
(b) Upon receipt of payee's address from the operator or
lessee, the payor must provide the notice within the time
permitted for payment of proceeds and in accordance with the
conditions for payment provided by Section 91.402. The notice
must include:
(1) the information required by Sections 91.502(1), (2), and
(12) and Section 91.503; and
(2) the payor's telephone number.
(c) The notice may be given by any writing, including a
division order, check stub, or attachment to a payment form.
(d) A payor that is obligated to pay interest to a payee under
Section 91.403 and that does not give the payee a notice required
by this section is liable to the payee for interest under that
section at a rate that is two percent more than the rate provided
by that section.
Added by Acts 1997, 75th Leg., ch. 1432, Sec. 1, eff. Sept. 1,
1997.
SUBCHAPTER K. SALTWATER DISPOSAL PITS
Sec. 91.451. Definition.
In this subchapter, "saltwater disposal pit" means a collecting
pit on the surface of the ground used to store or evaporate oil
field brines, geothermal resource water, or other mineralized
water.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff.
Sept. 1, 1983.
Sec. 91.452. Prohibited Activity.
Except as provided by this subchapter, a person conducting oil
and gas development or production operations, geothermal
operations, or underground hydrocarbon storage operations may not
use a saltwater disposal pit for storage or evaporation of oil
field brines.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff.
Sept. 1, 1983.
Sec. 91.453. Commission Authorized.
(a) On written application, the commission or its designated
employee may administratively authorize a person to use a
saltwater disposal pit on a temporary emergency basis.
(b) On written application, the commission or its designated
employee may administratively authorize a person to use an
impervious surface pit in conjunction with a geothermal
operation, an underground hydrocarbon storage operation, or an
approved saltwater disposal operation.
(c) In cases where it may be conclusively shown that use of a
saltwater disposal pit can cause no pollution of surrounding
productive agricultural land and no pollution of ground or
surface water supplies, either because of the absence of such
waters, or due to physical isolation of such waters by naturally
occurring impervious barriers, the commission or its designated
employee may administratively authorize a person to use a
saltwater disposal pit.
(d) An authorization under this section must be in writing and
must state the conditions under which any pit may be operated.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff.
Sept. 1, 1983.
Sec. 91.454. Removal of Authorized Pits.
(a) A person who is authorized to operate a saltwater disposal
pit under Section 91.453 of this code shall close the pit within
45 days after being ordered to close the pit by the commission;
provided that the commission may grant an extension or extensions
for a reasonable period or periods of time on a showing of good
cause or upon request for an extension by the surface owner or
owners of the land upon which the pit is situated.
(b) A saltwater disposal pit must be closed in compliance with
this subchapter and rules, standards, and specifications adopted
by the commission.
(c) In closing a saltwater disposal pit, the person authorized
to operate the pit shall remove all salt water and wastes and
shall backfill and compact in compliance with commission-approved
procedures.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff.
Sept. 1, 1983.
Sec. 91.455. Rules, Standards, and Specifications.
(a) The commission shall adopt rules that:
(1) define the procedures for obtaining authorization to
operate a saltwater disposal pit;
(2) define the conditions under which authorizations for
saltwater disposal pits will be granted;
(3) establish standards for saltwater disposal pits
authorized by the commission;
(4) provide for standards for the proper closing of
saltwater disposal pits authorized by the commission; and
(5) provide other standards, procedures, and requirements
necessary to carry out this subchapter.
(b) The commission, by rule, shall require:
(1) liner specifications and installation procedures that
are adequate to insulate a saltwater disposal pit; and
(2) the draining, cleaning, and closing of saltwater
disposal pits.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff.
Sept. 1, 1983.
Sec. 91.456. Injunctive Relief.
If a person is operating a saltwater disposal pit in violation
of this subchapter or the commission's rules, standards, or
specifications, the commission may have the attorney general
institute a suit in a district court in the county in which the
saltwater disposal pit is located for injunctive relief to
restrain the person from continuing to operate the pit in
violation of this subchapter or the rules, standards, or
specifications of the commission.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff.
Sept. 1, 1983.
Sec. 91.457. Removal of Unauthorized Pit.
(a) The commission may order a person who is operating a
saltwater disposal pit in violation of this subchapter to close
the pit in compliance with this subchapter and commission rules,
standards, and specifications, at the pit operator's own expense.
(b) If a person ordered to close a saltwater disposal pit under
Subsection (a) of this section fails or refuses to close the pit
in compliance with the commission's order and rules, the
commission may close the pit using money from the oil-field
cleanup fund and may direct the attorney general to file suits in
any courts of competent jurisdiction in Travis County to recover
applicable penalties and the costs incurred by the commission in
closing the saltwater disposal pit.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff.
Sept. 1, 1983. Amended by Acts 1991, 72nd Leg., ch. 603, Sec.
18, eff. Sept. 1, 1991.
Sec. 91.458. Criminal Penalty.
(a) A person who violates Section 91.452 of this code or an
order of the commission under Subsection (a), Section 91.457,
commits an offense.
(b) An offense under this section is a Class A misdemeanor.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff.
Sept. 1, 1983.
Sec. 91.459. Civil Penalty.
(a) A person who violates this subchapter or a rule, standard,
or specification of the commission or who fails to close a
saltwater disposal pit in compliance with this subchapter, a
rule, standard, or specification of the commission, an order of
the commission, or the authorization for the pit is subject to a
civil penalty of not less than $100 nor more than $10,000 for
each act of violation or failure to comply.
(b) The attorney general shall recover the civil penalty
provided by Subsection (a) of this section in a court of
competent jurisdiction.
(c) Any penalties or costs recovered by the attorney general
under this subchapter shall be deposited in the oil-field cleanup
fund.
(d) Repealed by Acts 1991, 72nd Leg., ch. 603, Sec. 32(1), eff.
Sept. 1, 1991.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff.
Sept. 1, 1983. Amended by Acts 1991, 72nd Leg., ch. 603, Secs.
19, 32(1), eff. Sept. 1, 1991.
SUBCHAPTER L. ROYALTY REPORTING STANDARDS
Sec. 91.501. Information Required.
If payment is made to a royalty interest owner from the proceeds
derived from the sale of oil or gas production pursuant to a
division order, lease, servitude, or other agreement, the person
making the payment shall include the information required by
Section 91.502 of this code on the check stub or on an attachment
to the payment form.
Added by Acts 1985, 69th Leg., ch. 199, Sec. 1, eff. Sept. 1,
1985.
Sec. 91.502. Types of Information Provided.
Each check stub or attachment to a payment form must include:
(1) the lease, property, or well name or any lease,
property, or well identification number used to identify the
lease, property, or well;
(2) the month and year during which the sales occurred for
which payment is being made;
(3) the total number of barrels of oil or the total amount
of gas sold;
(4) the price per barrel or per MCF of oil or gas sold;
(5) the total amount of state severance and other production
taxes paid;
(6) the windfall profit tax paid on the owner's interest;
(7) any other deductions or adjustments;
(8) the net value of total sales after deductions;
(9) the owner's interest in sales from the lease, property,
or well expressed as a decimal;
(10) the owner's share of the total value of sales before
any tax deductions;
(11) the owner's share of the sales value less deductions;
and
(12) an address at which additional information may be
obtained and questions may be answered.
Added by Acts 1985, 69th Leg., ch. 199, Sec. 1, eff. Sept. 1,
1985.
Sec. 91.503. Lease, Property, or Well Name.
If a lease, property, or well identification number is used
under Subdivision (1) of Section 91.502 of this code, the person
making the payment must provide prior to or with the first
payment to which this subchapter applies the lease, property, or
well name to which the lease, property, or well number refers.
Added by Acts 1985, 69th Leg., ch. 199, Sec. 1, eff. Sept. 1,
1985.
Sec. 91.504. Explanation of Certain Payment Deductions and Adjustments.
If the person making a payment does not explain on the check
stub or attachment to the payment form or by a separate mailing,
deductions from or adjustments to payments, the person making the
payment must provide an explanation on request of the royalty
interest owner.
Added by Acts 1985, 69th Leg., ch. 199, Sec. 1, eff. Sept. 1,
1985.
Sec. 91.505. Providing Information.
If a royalty interest owner requests information or answers to
questions concerning a payment made pursuant to this subchapter
and the request is made by certified mail, the person making the
payment must respond to the request by certified mail not later
than 30 days after the request is received.
Added by Acts 1985, 69th Leg., ch. 199, Sec. 1, eff. Sept. 1,
1985.
Sec. 91.506. Exemption.
If the information required by Section 91.502 of this code is
provided in some other manner on a monthly basis, the person
making the payment is not required to include the information on
the check stub or attachment to the payment form.
Added by Acts 1985, 69th Leg., ch. 199, Sec. 1, eff. Sept. 1,
1985.
SUBCHAPTER M. ELECTRIC LOGS
Sec. 91.551. Definitions.
(a) In this subchapter:
(1) "Well" means a well being drilled for exploration for oil or
gas or both oil and gas.
(2) "Electric log" means a wireline survey, except dipmeter
surveys and seismic wireline surveys, run in an open hole or a
cased hole of a well for purposes of obtaining geological
information.
(b) In this subchapter, "person" includes a successor in
interest.
Added by Acts 1985, 69th Leg., ch. 978, Sec. 1, eff. Sept. 1,
1985.
Sec. 91.552. Electric Logs Required to be Filed; Criteria.
(a) Except as otherwise provided by this subchapter, at the
time a person files with the commission a completion report for a
well or, in the case of a dry hole, an application to plug a
well, the person shall also file with the commission a copy of a
basic electric log made after September 1, 1985, in conjunction
with the drilling of the well that meets basic criteria
established by the commission.
(b) The commission by rule shall establish criteria for basic
electric logs to be filed with the commission.
Added by Acts 1985, 69th Leg., ch. 978, Sec. 1, eff. Sept. 1,
1985.
Sec. 91.553. Availability of Electric Logs.
(a) Except as specifically provided by this section, each
electric log filed with the commission under this subchapter is
not confidential and is public information under Chapter 552,
Government Code.
(b) At the time an electric log is required to be filed with
the commission under Section 91.552 of this code, the person
required to file the electric log may file a written request with
the commission asking that the electric log remain confidential
and not be made available as public information. On filing this
request, the electric log or copy of the electric log required to
be filed with the commission may be retained by the person
required to file the electric log, and the electric log may
remain in the possession of the person for the period of
confidentiality and any extensions of that period. On filing of
the request for confidentiality, the electric log becomes
confidential and remains confidential for a period of one year
after the date that the electric log is required to be filed with
the commission.
(c) If an electric log is made confidential under Subsection
(b) of this section, the person who is required to file the
electric log is entitled to have the period of confidentiality
extended once for an additional period of two years. The
commission shall grant the two-year extension on written request
of the person who is required to file the electric log. The
written request must be made to the commission before the
one-year period of confidentiality under Subsection (b) of this
section expires.
(d) If an electric log is made confidential under Subsection
(b) of this section and the log was run in a well drilled on land
submerged in state water, the person who is required to file the
electric log is entitled to have the period of confidentiality
extended for not more than two additional periods of two years
each. The commission shall grant the extension or extensions on
written request of the person who is required to file the
electric log. The written request must be made to the commission
before the expiration of the one-year period of confidentiality
under Subsection (b) of this section or the expiration of the
first extension granted under this subsection.
(e) A person required to file an electric log under this
section who has held the log during a period of confidentiality
or any extensions of that period shall file the log with the
commission within 30 days after the conclusion of the period of
confidentiality or the period of the last extension.
Added by Acts 1985, 69th Leg., ch. 978, Sec. 1, eff. Sept. 1,
1985.
Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(90), eff.
Sept. 1, 1995.
Sec. 91.554. Availability of Confidential Electric Logs.
If the commission requires an electric log to be filed before
the expiration of a period of confidentiality, the commission
shall make that electric log available for inspection during the
period of confidentiality only to:
(1) a person authorized in writing by the person who filed
the electric log with the commission; and
(2) members of the commission and its employees in the
exercise of their powers and duties under this code.
Added by Acts 1985, 69th Leg., ch. 978, Sec. 1, eff. Sept. 1,
1985.
Sec. 91.555. Management and Storage of Electric Logs.
The commission may contract with any person for the management
and storage of the electric logs filed with the commission.
Added by Acts 1985, 69th Leg., ch. 978, Sec. 1, eff. Sept. 1,
1985.
Sec. 91.556. Denial of Allowable.
If a person fails to file an electric log as required by this
subchapter, the commission may refuse to assign an allowable or a
change in allowable for production from the well for which the
electric log is required until that person files the electric log
with the commission.
Added by Acts 1985, 69th Leg., ch. 978, Sec. 1, eff. Sept. 1,
1985.
SUBCHAPTER N. OIL AND GAS HAZARDOUS WASTE
Sec. 91.601. Definitions.
In this subchapter:
(1) "Oil and gas hazardous waste" means oil and gas waste that is
a hazardous waste as defined by the administrator of the United
States Environmental Protection Agency under the federal Solid
Waste Disposal Act, as amended by the Resource Conservation and
Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.).
(2) "Oil and gas waste" means oil and gas waste as defined in
Section 91.1011 of this chapter.
Added by Acts 1991, 72nd Leg., ch. 603, Sec. 20, eff. Sept. 1,
1991.
Sec. 91.602. Rules.
(a) To protect human health and the environment, the commission
shall adopt and enforce rules and orders and may issue permits
relating to the generation, transportation, treatment, storage,
and disposal of oil and gas hazardous waste.
(b) The rules adopted by the commission under this section must
be consistent with the hazardous waste regulations adopted by the
administrator of the United States Environmental Protection
Agency under the federal Solid Waste Disposal Act, as amended by
the Resource Conservation and Recovery Act of 1976 (42 U.S.C.
Section 6901 et seq.). The commission may adopt and enforce rules
that are more stringent than the federal hazardous waste
regulations if necessary to protect human health.
Added by Acts 1991, 72nd Leg., ch. 603, Sec. 20, eff. Sept. 1,
1991.
Sec. 91.603. Access to Property and Records.
(a) A member or employee of the commission, on proper
identification, may enter public or private property to:
(1) inspect and investigate conditions relating to the
generation, transportation, treatment, storage, or disposal of
oil and gas hazardous waste;
(2) inspect and investigate conditions relating to the
development of rules, orders, or permits under Section 91.602
of this code;
(3) monitor compliance with a rule, order, or permit of the
commission; or
(4) examine and copy, during reasonable working hours, those
records or memoranda of the business being investigated.
(b) A member or employee acting under this section who enters
an establishment on public or private property shall observe the
establishment's posted safety, internal security, and fire
protection rules.
Added by Acts 1991, 72nd Leg., ch. 603, Sec. 20, eff. Sept. 1,
1991.
Sec. 91.604. Criminal Penalty.
(a) A person who knowingly violates a rule, order, or permit of
the commission issued under this subchapter commits an offense.
(b) An offense under this section is punishable by imprisonment
for up to six months, by a fine of up to $10,000 for each day the
violation is committed, or by both.
(c) Venue for prosecution under this section is in the county
in which the violation is alleged to have occurred.
Added by Acts 1991, 72nd Leg., ch. 603, Sec. 20, eff. Sept. 1,
1991.
Sec. 91.605. Hazardous Oil and Gas Waste Generation Fee.
(a) An annual fee is imposed on each operator who generates
hazardous oil and gas waste.
(b) The commission by rule shall set the fee, which must:
(1) be based on the volume of hazardous oil and gas waste
generated by the operator; and
(2) be reasonably related to the costs of implementing this
subchapter and enforcing the rules, orders, and permits adopted
or issued by the commission under this subchapter.
(c) The commission by rule shall also prescribe the procedures
by which an operator must account for the volume of hazardous oil
and gas waste generated and pay the fee.
(d) This section does not apply to an operator who, at all
facilities operated in this state, satisfies the requirements
established by the administrator of the United States
Environmental Protection Agency for a conditionally exempt small
quantity generator.
(e) The fees collected under this section shall be deposited in
the oil-field cleanup fund.
Added by Acts 1991, 72nd Leg., ch. 603, Sec. 20, eff. Sept. 1,
1991