RELEVANT BILLS FILED THROUGH 03/04/09

Bill Status Report

03-06-2009 - 08:57:25

RRC, OFCU, IWSG, ED
HB 1533 / Burnam / Relating to notice of and action on applications for permits to drill certain gas wells.
Specific Remarks: / Applies to a county of population over 1.4 million that is located wholly or party above a hydrocarbon-producing formation in which during the preceding year the RRC issued over 2,000 drilling permits. (Tarrant) RRC must provide notice of application and a copy of it to the state senator and rep, the commissioners court if outside city limits, city council if within city limits. RRC may not issue a permit to drill before 14th day after it mails the notice.
HB 1534 / Burnam / Relating to the property valuation information required to be provided regarding property to be acquired by eminent domain.
Specific Remarks: / Condemnor must provide a landowner via certified mail a copy of any and all appraisals relating to the owner's property and used in determining the final offer. The landowner must also provide copies of their appraisals at least 10 days before the special hearing. Initial offers must also include copies of this law, the fair market value, damages to remaining property, statement of rights to appraisal, and adjacent property info if requested.
HB 1535 / Burnam / Relating to the requirement that gas corporations obtain a permit from the Railroad Commission of Texas before condemning property to construct certain gas pipelines.
Specific Remarks: / Same bracket for Tarrant County as HB 1534. Uses undefined term "gas corporation" to receive a permit before condemning property that describes the route, at least 3 alternative routes, and a feasibility study on public roadway rights-of-way in the routes. Allows protest from any interested person, defined broadly. Establishes a fee based on length of pipeline. RRC must make a determination that the pipeline is necessary for the service, accommodation, convenience or safety of the public. RRC may issue partial permit. RRC must consider a list of new factors in making the determination. RRC may revoke permit if the permit holder is not providing or had never provided service in all or any part of the permitted area.
HB 1536 / Burnam / Relating to the elimination of the power of eminent domain for certain gas corporations when constructing a pipeline for the gathering or transmission of natural gas.
HB 1537 / Burnam / Relating to safety requirements applicable to gas pipelines in certain counties.
HB 1538 / Burnam / Relating to the authority of certain municipalities or counties to adopt and enforce safety standards applicable to certain gas pipelines.
HB 1677 / Smith, Wayne / Relating to notice by a governmental entity regarding certain geospatial data products.
Specific Remarks: / County providing survey data not legally suitable for legal, engineering or survey purposes must state that disclaimer in the data.
HB 1796 / Chisum / Relating to the offshore geologic storage of carbon dioxide.
Specific Remarks: / Directs TCEQ to adopt rules for standards of location, construction, maintenance, monitoring, and operation of a CO2 repository. Rules must conform with EPA if EPA adopts rules on carbon sequestration. Creates a pilot study of state-owned offshore submerged land to identify potential locations for a CO2 repository. Commission shall issue RFP for construction of any infrastructure needed for transport and storage of CO2 to the repository. Allows Commission to accept CO2 for storage and establish a fee. Allows fee to be a percentage of carbon credits associated with storgae if Texas participates in a cap and trade program. TCEQ must establish rules for measuring, monitoring and verification. State acquires title and liability to all CO2 stored in repository. Commission may not set transportation rates. Must submit an annual report.
HB 1830 / Corte / Relating to information technology security practices of state agencies.
HB 1883 / Farabee / Relating to the authority of the Railroad Commission of Texas to determine whether certain transporters of natural or synthetic gas are gas utilities.
Specific Remarks: / TIPRO initiative. Clarifies RRC authority to review certifications of a gathering exemption under Sec. 121.005 Utilities Code. Allows RRC to request additional info if needed to verify the certification and to revoke the certification if the applicant is ineligible for it. Does not allow revocation of operating permit based on revocation of this exemption.
HB 1890 / Creighton / Relating to notification of applications for permits for certain injection wells.
Specific Remarks: / Requires TCEQ to submit a copy of an application for an injection well to the GCD. GCD may make recommendations to TCEQ on any aspect of the application. Evidence of notification must be included in contested case hearing.
HB 2087 / Homer / Relating to the state's statutory and contractual liens to secure the payment of unpaid royalty and other amounts due under oil and gas leases of state land.
Specific Remarks: / When a lessee accepts a lease with the state, lessee grants express contractual lien on and security interest in all oil and gas extracted from the area covered by the lease and all proceeds which may accrue to lessee from sale of oil and gas. This bill adds that this includes proceeds from sale of oil and gas "extracted from the area covered by the lease or from the area covered by any other lease of state land or minerals held by the lessee." Commissioner may temporarily suspend enforcement of a lien if he determines that, due to extenuating circumstances beyong lessee's control, lessee did not receive payment from the first purchaser of the oil or gas produced from the lease area.
HB 2110 / Hughes / Relating to the applicability of the Private Real Property Rights Preservation Act to certain governmental actions.
Specific Remarks: / Adds to governmental actions covered under the Private Real Proeprty Rights Preservation Act and action that "takes, dmages, destroys, impairs, or prohibits development of a mineral interest."
HB 2254 / Hancock / Relating to the authority of a local government to prohibit the Railroad Commission of Texas or the Texas Commission on Environmental Quality from issuing a permit for a disposal well.
Companions: / SB 752 / Davis, Wendy / (Identical)
3- 4-09 S Introduced and referred to committee on Senate Natural Resources
HB 2259 / Crownover / Relating to the plugging of inactive oil or gas wells.
Companions: / SB 1378 / Duncan / (Identical)
3- 4-09 S Filed
Specific Remarks: / Inactive Well Study Group proposal on financial assurance requirements and surface clean-up schedule for inactive wells as a condition of extending plugging deadlines. Allows operator to choose one option for each well out of possible seven for supplemental financial assurance. Options include 1)plug or produce 10% of inactive wells per year, 2)Obtain an Abeyance of Plugging Study and pay a fee of $100 per well, 3) Prove well is part of a certified EOR project, 4)Obtain a supplemental bond, letter of credit or cash deposit equal to the per foot per RRC district cost of plugging, 5)Obtain a fluid pressure test, 6) Establish an escrow account with 10% of the per foot, per RRC distict cost calculation OR 7) provide documentation of FASB 143 account and UCC1 form. Establishes a schedule for surface clean-up requirements based on length of inactivity. Any extentions for plugging a well must include affirmation that electricity has been disconnected. An extention for wells inactive 5 years or more must also include affirmation of purging lines and equipment. An extention for wells inactive 10 years or more must also include affirmation of removal of surface equipment, except for equipment used for required maintenance and safety or for an EOR project.
HB 2356 / Crownover / Relating to the filing with the state of well logs by operators of oil-related or gas-related wells.
Specific Remarks: / Changes title of Natural Resources Code 91.551(a) from Electric Logs to Well Logs. Adds to definition of "well" a well that is completed as a dry hole. Defines "well log" as a wireline-conveyed or drill pipe-conveyed survey recorded in an open borehole using electric or radioactive technologies for the purpose of obtaining geological or geophysical information or other information regarding the properties of a reservoir or of the rocks penetrated by the well. The term includes (A) spontaneous potential log; (B) induction log; (C) laterolog; (D) density log; (E) gamma ray log; (F) neutron log; or (G) mud log wireline survey, except dipmeter surveys and seismic wireline surveys, run in an open hole or a cased hole of a well for purposes of obtaining geological information. Defines "mud log" as a graphical representation generated while drilling a well of: (A) the rate of penetration of the well; (B) the lithology, hydrocarbon content, or other properties of the rocks penetrated by the well; or (C) other properties of the drilling of the well or of the mud used in the drilling of the well. Requires well logs to be filed not later than the 60th day (from 90) after drilling is completed. Log must include each borehole section of the log run after 1/1/09. Reduces period of confidentiality of log from 1 year to 6 months and reduces extensions of same. Penalty for failure to file if the well is completed as a producing well is RRC option to refuse to assign an allowable or a change in allowable production from the well until the log is filed. If well is a dry hole, RRC may refuse to approve plugging until log is filed. RRc may refuse to release operator's financial security until log is filed. RRC may require operator to reenter the well and run a well log and filed it. Penalties may include $15,000 per well.
HCR 67 / Farabee / Urging the United States Congress to maintain state regulatory coverage of hydraulic fracturing.
Specific Remarks: / Resolution documenting steps Texas has taken for environmental regulation of fracing and urging Congress to leave such regulation to the states. TIPRO initiative.
SB 1023 / Ogden / Relating to the exercise of eminent domain authority.
Specific Remarks: / E.D. concepts: least intrusive means; court costs,attorney and expert fees; ability to deny condemnation.
SB 1154 / Davis, Wendy / Relating to the licensing and regulation of landmen by the Texas Real Estate Commission.
Companions: / HB 1405 / Geren / (Identical)
3- 2-09 H Introduced and referred to committee on Licensing and Administrative Procedures
Specific Remarks: / Same as HB 1405. No exemption for company landmen. Authorizes Real Estate Comm to promulgate rules for education, eligibility, experience and examination, moral character requirements, establish procedures, set fees and terms, establish scope of practice and standards of conduct.
SB 1180 / Patrick, Dan / Relating to regulatory takings.
Specific Remarks: / E.D. concepts: series of actions vs single action; limits on impervious cover. Directed at gov't entities.
SB 1378 / Duncan / Relating to the plugging of inactive oil or gas wells.
Companions: / HB 2259 / Crownover / (Identical)
3- 3-09 H Filed
Specific Remarks: / Inactive Well Study Group proposal on financial assurance requirements and surface clean-up schedule for inactive wells as a condition of extending plugging deadlines. Allows operator to choose one option for each well out of possible seven for supplemental financial assurance. Options include 1)plug or produce 10% of inactive wells per year, 2)Obtain an Abeyance of Plugging Study and pay a fee of $100 per well, 3) Prove well is part of a certified EOR project, 4)Obtain a supplemental bond, letter of credit or cash deposit equal to the per foot per RRC district cost of plugging, 5)Obtain a fluid pressure test, 6) Establish an escrow account with 10% of the per foot, per RRC distict cost calculation OR 7) provide documentation of FASB 143 account and UCC1 form. Establishes a schedule for surface clean-up requirements based on length of inactivity. Any extentions for plugging a well must include affirmation that electricity has been disconnected. An extention for wells inactive 5 years or more must also include affirmation of purging lines and equipment. An extention for wells inactive 10 years or more must also include affirmation of removal of surface equipment, except for equipment used for required maintenance and safety or for an EOR project.
Water, Air, Enviro, TCEQ
HB 1662 / King, Phil / Relating to the availability of certain Upper Trinity Groundwater Conservation District financial information on the district's Internet website.
Specific Remarks: / Requires UTGCD to maintain checking account records in a searchable PDF format on its website and update monthly. Must also post credit card transactions. Annually must post budgeted amounts for compensation of field inspectors, professional service providers, admin staff, and all employees.
HB 1664 / King, Phil / Relating to an exemption for groundwater used for certain puposes from production fees assessed by the Upper Trinity Groundwater Conservation District.
Specific Remarks: / UTGCD shall exempt from production fees any groundwater used for firefighting purposes by a fire dept or ESD.
HB 1741 / King, Tracy / Relating to recharge of the Edwards Aquifer.
HB 1818 / Rose / Relating to rainwater harvesting and other water conservation initiatives.
HB 1923 / Heflin / Relating to the Irion County Water Conservation District.
HB 1947 / Kuempel / Relating to the election and terms of office of directors of the Guadalupe County Groundwater Conservation District.