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  H.B. No. 2767
 
 
 
 
AN ACT
  relating to the treatment and recycling for beneficial use of
  certain waste arising out of or incidental to the drilling for or
  production of oil or gas.
         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 122 to read as follows:
  CHAPTER 122. TREATMENT AND RECYCLING FOR BENEFICIAL USE OF CERTAIN
  OIL AND GAS WASTE
         Sec. 122.001.  DEFINITIONS. In this chapter:
               (1)  "Commission" means the Railroad Commission of
  Texas.
               (2)  "Fluid oil and gas waste" means waste containing
  salt or other mineralized substances, brine, hydraulic fracturing
  fluid, flowback water, produced water, or other fluid that arises
  out of or is incidental to the drilling for or production of oil or
  gas.
         Sec. 122.002.  OWNERSHIP OF CERTAIN OIL AND GAS WASTE
  TRANSFERRED FOR TREATMENT AND SUBSEQUENT BENEFICIAL USE. Unless
  otherwise expressly provided by a contract, bill of sale, or other
  legally binding document:
               (1)  when fluid oil and gas waste is transferred to a
  person who takes possession of that waste for the purpose of
  treating the waste for a subsequent beneficial use, the transferred
  material is considered to be the property of the person who takes
  possession of it for the purpose of treating the waste for
  subsequent beneficial use until the person transfers the waste or
  treated waste to another person for disposal or use; and
               (2)  when a person who takes possession of fluid oil and
  gas waste for the purpose of treating the waste for a subsequent
  beneficial use transfers possession of the treated product or any
  treatment byproduct to another person for the purpose of subsequent
  disposal or beneficial use, the transferred product or byproduct is
  considered to be the property of the person to whom the material is
  transferred.
         Sec. 122.003.  RESPONSIBILITY IN TORT. (a) Except as
  provided by Subsection (b), a person who takes possession of fluid
  oil and gas waste, produces from that waste a treated product
  generally considered in the oil and gas industry to be suitable for
  use in connection with the drilling for or production of oil or gas,
  and transfers the treated product to another person with the
  contractual understanding that the treated product will be used in
  connection with the drilling for or production of oil or gas is not
  liable in tort for a consequence of the subsequent use of that
  treated product by the person to whom the treated product is
  transferred or by another person.
         (b)  This section does not affect the liability of a person
  that treats fluid oil and gas waste for beneficial use in an action
  brought by a person for damages for personal injury, death, or
  property damage arising from exposure to fluid oil and gas waste or
  a treated product.
         Sec. 122.004.  COMMISSION RULES FOR TREATMENT AND BENEFICIAL
  USE. The commission shall adopt rules to govern the treatment and
  beneficial use of oil and gas waste.
         SECTION 2.  This Act takes effect September 1, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2767 was passed by the House on May 9,
  2013, by the following vote:  Yeas 137, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2767 was passed by the Senate on May
  22, 2013, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor