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  H.B. No. 3328
 
 
 
 
AN ACT
  relating to the disclosure of the composition of hydraulic
  fracturing fluids used in hydraulic fracturing treatments.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 91, Natural Resources Code, is amended
  by adding Subchapter S to read as follows:
  SUBCHAPTER S. DISCLOSURE OF COMPOSITION OF HYDRAULIC FRACTURING
  FLUIDS
         Sec. 91.851.  DISCLOSURE OF COMPOSITION OF HYDRAULIC
  FRACTURING FLUIDS. (a) The commission by rule shall:
               (1)  require an operator of a well on which a hydraulic
  fracturing treatment is performed to:
                     (A)  complete the form posted on the hydraulic
  fracturing chemical registry Internet website of the Ground Water
  Protection Council and the Interstate Oil and Gas Compact
  Commission with regard to the well;
                     (B)  include in the form completed under Paragraph
  (A):
                           (i)  the total volume of water used in the
  hydraulic fracturing treatment; and
                           (ii)  each chemical ingredient that is
  subject to the requirements of 29 C.F.R. Section 1910.1200(g)(2),
  as provided by a service company or chemical supplier or by the
  operator, if the operator provides its own chemical ingredients;
                     (C)  post the completed form described by
  Paragraph (A) on the website described by that paragraph or, if the
  website is discontinued or permanently inoperable, post the
  completed form on another publicly accessible Internet website
  specified by the commission;
                     (D)  submit the completed form described by
  Paragraph (A) to the commission with the well completion report for
  the well; and
                     (E)  in addition to the completed form specified
  in Paragraph (D), provide to the commission a list, to be made
  available on a publicly accessible website, of all other chemical
  ingredients not listed on the completed form that were
  intentionally included and used for the purpose of creating a
  hydraulic fracturing treatment for the well. The commission rule
  shall ensure that an operator, service company, or supplier is not
  responsible for disclosing ingredients that:
                           (i)  were not purposely added to the
  hydraulic fracturing treatment;
                           (ii)  occur incidentally or are otherwise
  unintentionally present in the treatment; or
                           (iii)  in the case of the operator, are not
  disclosed to the operator by a service company or supplier. The
  commission rule shall not require that the ingredients be
  identified based on the additive in which they are found or that the
  concentration of such ingredients be provided;
               (2)  require a service company that performs a
  hydraulic fracturing treatment on a well or a supplier of an
  additive used in a hydraulic fracturing treatment on a well to
  provide the operator of the well with the information necessary for
  the operator to comply with Subdivision (1);
               (3)  prescribe a process by which an entity required to
  comply with Subdivision (1) or (2) may withhold and declare certain
  information as a trade secret for purposes of Section 552.110,
  Government Code, including the identity and amount of the chemical
  ingredient used in a hydraulic fracturing treatment;
               (4)  require a person who desires to challenge a claim
  of entitlement to trade secret protection under Subdivision (3) to
  file the challenge not later than the second anniversary of the date
  the relevant well completion report is filed with the commission;
               (5)  limit the persons who may challenge a claim of
  entitlement to trade secret protection under Subdivision (3) to:
                     (A)  the landowner on whose property the relevant
  well is located;
                     (B)  a landowner who owns property adjacent to
  property described by Paragraph (A); or
                     (C)  a department or agency of this state with
  jurisdiction over a matter to which the claimed trade secret is
  relevant;
               (6)  require, in the event of a trade secret challenge,
  that the commission promptly notify the service company performing
  the hydraulic fracturing treatment on the relevant well, the
  supplier of the additive or chemical ingredient for which the trade
  secret claim is made, or any other owner of the trade secret being
  challenged and provide the owner an opportunity to substantiate its
  trade secret claim; and
               (7)  prescribe a process, consistent with 29 C.F.R.
  Section 1910.1200, for an entity described by Subdivision (1) or
  (2) to provide information, including information that is a trade
  secret as defined by Appendix D to 29 C.F.R. Section 1910.1200, to a
  health professional or emergency responder who needs the
  information in accordance with Subsection (i) of that section.
         (b)  The protection and challenge of trade secrets under this
  section is governed by Chapter 552, Government Code.
         SECTION 2.  Subchapter S, Chapter 91, Natural Resources
  Code, as added by this Act, applies only to a hydraulic fracturing
  treatment performed on a well for which an initial drilling permit
  is issued on or after the date the initial rules adopted by the
  Railroad Commission of Texas under that subchapter take effect. A
  hydraulic fracturing treatment performed on a well for which an
  initial drilling permit is issued before the date the initial rules
  take effect is governed by the law as it existed immediately before
  the effective date of this Act, and that law is continued in effect
  for that purpose.
         
         SECTION 3.  The Railroad Commission of Texas shall adopt
  rules under Subchapter S, Chapter 91, Natural Resources Code, as
  added by this Act, not later than July 1, 2012, with the exception
  of those rules under Paragraph (E), which are to be adopted not
  later than July 1, 2013.
         SECTION 4.  This Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3328 was passed by the House on May
  12, 2011, by the following vote:  Yeas 133, Nays 12, 2 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 3328 on May 27, 2011, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 3328 on May 29, 2011, by the following vote:  Yeas 137,
  Nays 8, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 3328 was passed by the Senate, with
  amendments, on May 25, 2011, by the following vote:  Yeas 31, Nays
  0; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  3328 on May 29, 2011, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor