H.B. No. 1331
 
 
 
 
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.  The heading to Chapter 122, Natural Resources
  Code, is amended to read as follows:
  CHAPTER 122.  TREATMENT AND RECYCLING FOR BENEFICIAL USE OF FLUID
  [CERTAIN] OIL AND GAS WASTE
         SECTION 2.  The heading to Section 122.002, Natural
  Resources Code, is amended to read as follows:
         Sec. 122.002.  OWNERSHIP OF FLUID [CERTAIN] OIL AND GAS
  WASTE TRANSFERRED FOR TREATMENT AND SUBSEQUENT BENEFICIAL USE.
         SECTION 3.  Subtitle D, Title 3, Natural Resources Code, is
  amended by adding Chapter 123 to read as follows:
  CHAPTER 123. TREATMENT AND RECYCLING FOR BENEFICIAL USE OF DRILL
  CUTTINGS
         Sec. 123.001.  DEFINITIONS. In this chapter:
               (1)  "Commission" means the Railroad Commission of
  Texas.
               (2)  "Drill cuttings" means bits of rock or soil cut
  from a subsurface formation by a drill bit during the process of
  drilling an oil or gas well and lifted to the surface by means of the
  circulation of drilling mud.
               (3)  "Permit holder" means a person who holds a permit
  from the commission to operate a stationary commercial solid oil
  and gas waste recycling facility.
         Sec. 123.002.  OWNERSHIP OF DRILL CUTTINGS TRANSFERRED FOR
  TREATMENT AND SUBSEQUENT BENEFICIAL USE. Unless otherwise
  expressly provided by a contract, bill of sale, or other legally
  binding document:
               (1)  when drill cuttings are transferred to a permit
  holder who takes possession of the cuttings for the purpose of
  treating the cuttings for a subsequent beneficial use, the
  transferred material is considered to be the property of the permit
  holder until the permit holder transfers the cuttings or treated
  cuttings to another person for disposal or use; and
               (2)  when a permit holder who takes possession of drill
  cuttings for the purpose of treating the cuttings 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. 123.003.  RESPONSIBILITY IN TORT. A person who
  generates drill cuttings and transfers the drill cuttings to a
  permit holder with the contractual understanding that the drill
  cuttings will be used in connection with road building or another
  beneficial use is not liable in tort for a consequence of the
  subsequent use of the drill cuttings by the permit holder or by
  another person.
         Sec. 123.004.  PERMIT COPY REQUIRED. A permit holder who
  takes possession of drill cuttings from the person who generated
  the drill cuttings shall provide to the generator a copy of the
  holder's permit.
         Sec. 123.005.  COMMISSION RULES FOR TREATMENT AND BENEFICIAL
  USE.  The commission shall adopt rules to govern the treatment and
  beneficial use of drill cuttings.
         SECTION 4.  This Act takes effect September 1, 2015.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1331 was passed by the House on April
  23, 2015, by the following vote:  Yeas 139, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1331 was passed by the Senate on May
  20, 2015, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor