89R23131 JAM-F     By: King H.B. No. 3334     Substitute the following for H.B. No. 3334:     By:  Darby C.S.H.B. No. 3334       A BILL TO BE ENTITLED   AN ACT   relating to wildfire prevention, mitigation, and response at   certain wells under the jurisdiction of the Railroad Commission of   Texas; authorizing an administrative penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The Natural Resources Code is amended by adding   Title 13 to read as follows:   TITLE 13. WILDFIRE PREVENTION, MITIGATION, AND RESPONSE   CHAPTER 231. OIL AND GAS FACILITIES   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 231.001.  DEFINITIONS. In this chapter:                (1)  "Commission" means the Railroad Commission of   Texas.                (2)  "Operator" means a person who assumes   responsibility for the physical operation and control of a well as   shown by a form the person files with the commission and the   commission approves.                (3)  "Well" means a hole drilled for the purpose of:                      (A)  producing oil or gas;                      (B)  injecting fluid or gas into the ground in   connection with the exploration for or production of oil or gas; or                      (C)  obtaining geological information by taking   cores or through seismic operations.   SUBCHAPTER B. WILDFIRE SAFETY INSPECTIONS OF WELLS          Sec. 231.051.  INSPECTION AND CERTIFICATION REQUIRED BEFORE   TRANSFER OF WELL. (a)  This section applies only to a well that has   been the subject of a formal complaint filed with the commission.          (b)  At least 60 but not more than 150 days before the date   ownership of a well or oil or gas lease on which a well is located   may be transferred from one operator to another, a bonded and   state-certified third-party inspector must inspect the well, well   site, and related facilities to determine compliance with state   laws and regulations pertaining to susceptibility to wildfires.          (c)  Not later than the 30th day after the date of conducting   an inspection under Subsection (b), a third-party inspector shall   provide to the commission and the operator of any well or related   facility inspected a written report of the results of the   inspection. The inspector's report shall document any safety   issue, violation, or fire risk identified during the inspection.          (d)  Not later than the 30th day after the date an operator   receives a report under Subsection (c), the operator shall confer   with the commission and take any remedial action necessary to   address a violation, safety issue, or fire risk identified in the   report.          (e)  On completion of all remedial actions required by the   commission under Subsection (d), the third-party inspector shall:                (1)  conduct a follow-up inspection to confirm that   there are no remaining violations; and                (2)  provide to the commission and the operator a   report of the follow-up inspection.          (f)  On receipt of a report issued under Subsection (e)(2)   documenting that a well, well site, and associated facilities are   compliant with state laws and regulations pertaining to   susceptibility to wildfires, an operator may submit to the   commission a certification affirming that the well is in compliance   with all such state laws and regulations.          (g)  The commission may not approve a proposed transfer   subject to this section until the commission receives a   certification under Subsection (f).   SUBCHAPTER C. INACTIVE WELLS: COMMISSION POWERS AND DUTIES;   SURFACE OWNER LIABILITY          Sec. 231.101.  COMMISSION CONTROL OF WELLS OR FACILITIES   WITH NO LOCATABLE OWNER OR OPERATOR. For any well and related   facilities for which there is no locatable owner or operator or for   which the owner or operator is not responsive, the commission   shall:                (1)  assume control of and responsibility for the well   and related facilities; and                (2)  ensure that the well and related facilities are   compliant with applicable state laws and regulations pertaining to   susceptibility to wildfires.          Sec. 231.102.  TERMINATION OF ELECTRIC SERVICE FOR ORPHANED,   INACTIVE, OR NONCOMPLIANT WELL OR FACILITY. (a)  At the time the   commission determines a well or related facility to be orphaned,   inactive, or not in compliance with state laws and regulations   pertaining to susceptibility to wildfires, the commission, in   consultation with the Public Utility Commission of Texas, shall   direct the electric utility or other entity that provides electric   service for the well or related facility to terminate electric   service for the well or related facility at the point of origin.          (b)  Electric service that is terminated under this section   may not be reinstated until:                (1)  an approved operator assumes ownership of the well   or related facility;                (2)  the site of the well or related facility is   confirmed by the commission to be in compliance with all applicable   state laws and regulations pertaining to susceptibility to   wildfires; and                (3)  the electric utility or other entity receives   written notice from the commission and the Public Utility   Commission of Texas that the service may be reinstated.          Sec. 231.103.  SURFACE OWNER LIABILITY. (a)  A surface owner   affected by a well or related facility that is orphaned, inactive,   or not in compliance with state laws and regulations pertaining to   susceptibility to wildfires is not liable for an action taken by the   owner to ensure the safety of the owner's property:                (1)  if the operator of the well or related facility has   been unresponsive;                (2)  if the owner has received notice of noncompliance   from the commission under Section 231.151(a)(2); or                (3)  in the event of an emergency, including the   imminent threat of wildfire.          (b)  A surface owner may seek reimbursement from the operator   of a well or related facility located on the owner's land for any   action taken by the owner to ensure the safety of the owner's   property.   SUBCHAPTER D. ENFORCEMENT AND PENALTIES          Sec. 231.151.  REVOCATION OF OPERATING PERMIT; NOTICE TO   SURFACE OWNER. (a)  If an operator fails to have an inspection   conducted under Section 231.051(b) or fails to take any required   remedial action under Section 231.051(d), the commission shall:                (1)  suspend or revoke the permit to operate the well or   related facility for which a report was not submitted or remedial   action was not taken; and                (2)  send to the owner of the surface of the tract of   land on which the well or related facility is located notice that   the operator of the well or related facility is not in compliance   with this chapter.          (b)  A suspension or revocation issued under this section   remains in effect until the operator comes into compliance with   this chapter.          Sec. 231.152.  ADMINISTRATIVE PENALTY. (a)  The commission   may impose an administrative penalty on a person who violates this   chapter or a rule adopted or order issued under this chapter.          (b)  The amount of the penalty may not exceed $5,000 for each   violation. Each day a violation continues or occurs is a separate   violation for the purpose of imposing a penalty. The amount of the   penalty shall be based on:                (1)  the seriousness of the violation, including the   nature, circumstances, extent, and gravity of the violation;                (2)  the economic harm to property or the environment   caused by the violation;                (3)  the history of previous violations;                (4)  the amount necessary to deter a future violation;                (5)  efforts to correct the violation; and                (6)  any other matter that justice may require.          (c)  The enforcement of the penalty may be stayed during the   time the order is under judicial review if the person pays the   penalty to the clerk of the court or files a supersedeas bond with   the court in the amount of the penalty.  A person who cannot afford   to pay the penalty or file the bond may stay the enforcement by   filing an affidavit in the manner required by the Texas Rules of   Civil Procedure for a party who cannot afford to file security for   costs, subject to the right of the commission to contest the   affidavit as provided by those rules.          (d)  The attorney general may sue to collect the penalty.          (e)  A proceeding to impose the penalty is considered to be a   contested case under Chapter 2001, Government Code.          SECTION 2.  As soon as practicable after the effective date   of this Act, the Railroad Commission of Texas shall adopt rules   necessary to implement the changes in law made by this Act.          SECTION 3.  This Act takes effect September 1, 2025.