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