89R23954 ANG-F     By: Morales of Maverick H.B. No. 4891     Substitute the following for H.B. No. 4891:     By:  Darby C.S.H.B. No. 4891       A BILL TO BE ENTITLED   AN ACT   relating to the regulation by the Railroad Commission of Texas of   certain commercial facilities that dispose of oil and gas waste;   imposing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 91.109, Natural Resources Code, is   amended by amending Subsections (a) and (b) and adding Subsections   (a-1), (a-2), and (a-3) to read as follows:          (a)  In this section, "stationary commercial surface   disposal facility" has the meaning assigned by Section 91.116.          (a-1)  A person applying for or acting under a commission   permit to operate a stationary commercial surface disposal facility   for oil and gas waste shall maintain a performance bond or other   form of financial security conditioned that the permittee will   operate and close the facility in accordance with state law,   commission rules, and the permit to operate the facility.          (a-2)  A person applying for or acting under a commission   permit to store, handle, treat, reclaim, or dispose of oil and gas   waste may be required by the commission to maintain a performance   bond or other form of financial security conditioned that the   permittee will operate and close the storage, handling, treatment,   reclamation, or disposal site in accordance with state law,   commission rules, and the permit to operate the site.  However, this   section does not authorize the commission to require a bond or other   form of financial security for saltwater disposal pits, emergency   saltwater storage pits (including blow-down pits), collecting   pits, or skimming pits provided that such pits are used in   conjunction with the operation of an individual oil or gas lease.          (a-3)  Subject to the refund provisions of Section 91.1091,   proceeds from any bond or other form of financial security required   by this section shall be placed in the oil and gas regulation and   cleanup fund.  Each bond or other form of financial security shall   be renewed and continued in effect until the conditions have been   met or release is authorized by the commission.          (b)  In addition to the financial security requirements of   Subsections (a-1) and (a-2) [Subsection (a)], a person required to   file a bond, letter of credit, or cash deposit under Section 91.103   who is involved in activities other than the ownership or operation   of wells must file the bond, letter of credit, or cash deposit at   the time of filing or renewing an organization report required by   Section 91.142 according to the following schedule:                (1)  no bond, letter of credit, or cash deposit if the   person is a:                      (A)  local distribution company;                      (B)  gas marketer;                      (C)  crude oil nominator;                      (D)  first purchaser;                      (E)  well servicing company;                      (F)  survey company;                      (G)  salt water hauler;                      (H)  gas nominator;                      (I)  gas purchaser; or                      (J)  well plugger; or                (2)  a bond, letter of credit, or cash deposit in an   amount not to exceed $25,000 if the person is involved in an   activity that is not associated with the ownership or operation of   wells and is not listed in Subdivision (1).          SECTION 2.  The heading to Section 91.116, Natural Resources   Code, is amended to read as follows:          Sec. 91.116.  NOTICE OF STATIONARY COMMERCIAL SURFACE   DISPOSAL FACILITY PERMIT APPLICATION.          SECTION 3.  Sections 91.116(a) and (b), Natural Resources   Code, are amended to read as follows:          (a)  In this section, "stationary commercial surface   disposal facility" means a facility whose primary business purpose   is to provide, for compensation:                (1)[,] surface disposal of oil field fluids or oil and   gas wastes, including land application for treatment and disposal;   or                (2)  the surface disposal of drill cuttings, drilling   mud, or other solid or semi-solid oil using a stationary commercial   oil and gas treatment facility.          (b)  A person who files an application for a permit for a   stationary commercial surface disposal facility shall publish   notice of the application in accordance with this section.          SECTION 4.  The heading to Section 91.117, Natural Resources   Code, is amended to read as follows:          Sec. 91.117.  PUBLIC INFORMATION HEARING ON APPLICATION FOR   STATIONARY COMMERCIAL SURFACE DISPOSAL FACILITY PERMIT.          SECTION 5.  Sections 91.117(a) and (b), Natural Resources   Code, are amended to read as follows:          (a)  In this section, "stationary commercial surface   disposal facility" has the meaning assigned by Section 91.116.          (b)  The commission may hold a public meeting to receive   public comment on an application for a stationary commercial   surface disposal facility if the commission determines a public   meeting is in the public interest.          SECTION 6.  Subchapter D, Chapter 91, Natural Resources   Code, is amended by adding Sections 91.118 and 91.119 to read as   follows:          Sec. 91.118.  DEMONSTRATION OF NECESSITY REQUIRED FOR   CERTAIN STATIONARY COMMERCIAL SURFACE DISPOSAL FACILITY PERMITS.   (a)  In this section, "stationary commercial surface disposal   facility" has the meaning assigned by Section 91.116.          (b)  The commission may not approve an application for a   permit for a stationary commercial surface disposal facility unless   the person applying for the permit demonstrates the necessity for   an additional stationary commercial surface disposal facility in   the primary market area, as established by the commission, in which   the facility will be located.          (c)  To demonstrate the necessity for an additional   stationary commercial surface disposal facility, the applicant   must include with the applicant's permit application for the   stationary commercial surface disposal facility:                (1)  a map and list of all permitted stationary   commercial surface disposal facilities located within a 30-mile   radius of the location of the site for which the applicant is   applying for the permit; and                (2)  the number of oil and gas wells located within a   30-mile radius of the location of the site for which the applicant   is applying for a permit in the year preceding the date on which the   applicant submitted the application for the permit.          (d)  In addition to the information required under   Subsection (c), the applicant shall submit to the commission other   relevant economic, environmental, and feasibility information to   demonstrate the necessity of the stationary commercial surface   disposal facility.          Sec. 91.119.  APPLICATION FEE FOR CERTAIN STATIONARY   COMMERCIAL SURFACE DISPOSAL FACILITIES. (a)  In this section,   "stationary commercial surface disposal facility" has the meaning   assigned by Section 91.116.          (b)  With each application for a stationary commercial   surface disposal facility permit, the applicant shall submit to the   commission a nonrefundable fee of $100,000.          (c)  The application fee under Subsection (b) is not   applicable to stationary commercial surface disposal facility   permit holders seeking the renewal or modification of a permit in   effect before September 1, 2025.          SECTION 7.  This Act takes effect September 1, 2025.