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H.B. No. 149
AN ACT
relating to the ownership and use of carbon dioxide captured by a
clean coal project.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle D, Title 3, Natural Resources Code, is
amended by adding Chapter 119 to read as follows:
CHAPTER 119. OWNERSHIP OF CARBON DIOXIDE CAPTURED BY CLEAN COAL
PROJECT
Sec. 119.001. DEFINITIONS. In this chapter:
(1) "Clean coal project" has the meaning assigned by
Section 5.001, Water Code.
(2) "Commission" means the Railroad Commission of
Texas.
Sec. 119.002. ACQUISITION OF CARBON DIOXIDE. (a) The
commission shall acquire title to carbon dioxide captured by a
clean coal project.
(b) The right, title, and interest in carbon dioxide
acquired under this section are the property of the commission,
acting on behalf of the state, and shall be administered and
controlled by the commission in the name of the state.
(c) A right, title, or interest acquired under this section
does not vest in any fund created by the Texas Constitution.
Sec. 119.003. TRANSFER COSTS. Carbon dioxide transferred
to the state under Section 119.002 shall be transferred to the state
without cost, other than administrative and legal costs incurred in
making the transfer.
Sec. 119.004. LIABILITY. The transfer of title to the state
under Section 119.002 does not relieve an owner or operator of a
clean coal project of liability for any act or omission regarding
the generation of carbon dioxide performed before the carbon
dioxide was captured.
Sec. 119.005. SALE OF CARBON DIOXIDE FOR BENEFICIAL USE.
(a) The commission may sell, for enhanced oil recovery or other
beneficial use, carbon dioxide that is:
(1) captured by a clean coal project; and
(2) not injected for permanent storage in a geologic
formation.
(b) The commission shall deposit any proceeds from the sale
of carbon dioxide under this section to the credit of the general
revenue fund.
Sec. 119.006. INDEMNIFICATION. The University of Texas
System and the permanent university fund may enter into a lease with
the commission, or an owner or operator of a clean coal project, for
the use of lands owned or controlled by the system or fund for
permanent storage of carbon dioxide captured by a clean coal
project, provided that such lease adequately indemnifies the system
and fund against liability for personal injury or property damage
incurred by the system or fund as a result of the escape or
migration of the carbon dioxide after it is injected into a zone or
reservoir. This section does not affect the application of Chapter
101, Civil Practice and Remedies Code, to any activity carried out
by a governmental unit, as defined by that chapter.
SECTION 2. This Act takes effect September 1, 2006.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 149 was passed by the House on May 12,
2006, by the following vote: Yeas 143, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 149 on May 15, 2006, by the following vote: Yeas 140, Nays 0, 1
present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 149 was passed by the Senate, with
amendments, on May 15, 2006, by the following vote: Yeas 30, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor