Highlights 77th Texas Legislature - Senate

___________________________
REGULATORY
77 th Texas Legislature
Makes changes regarding bonding and financial security of operators. Adds letters of credit or cash
deposits to individual bonds and blanket bonds, as means of showing financial security required for well
operators under the Natural Resources Code.
Oil-field Cleanup Fund
Raises the cap on the oil-field cleanup fund from $10 million to $20 million and increases the floor from $6
million to $10 million.
Requires RRC to notify the comptroller when the fund reaches $20 million, and suspends the collection of
oil-field cleanup fees until the fund falls below $10 million.
Raises application fee for an exception to RRC rules from $50 to $150 and provides that two-thirds of this
fee be deposited to the oil-field cleanup fund.
Increases drilling permit fees, requires an applicant to submit an additional fee when spacing or density
exception review is required, increases the fee for an extension of time to plug a well and provides these
fees be deposited into the oil-field cleanup fund.
Increases the oil-field cleanup regulatory fee on crude oil and gas to five-eighths and one-fifteenth of one
cent, respectively. Creates a fee for filing an organization report.
Establishes, through the legislative appropriations request process, specific performance goals for the oilfield
cleanup fund for the next biennium, including:
• goals for the number of site investigations and environmental assessments to be conducted,
abandoned wells to be plugged; and
• surface locations to be remediated.
Creates the Oil-field Cleanup Fund Advisory Committee (committee) to monitor the effectiveness of the oilfield
cleanup fund; and charges the committee to:
• report on the status of the fund, analyze problems with administration of the oil-field cleanup fund;
and
• make recommendations to the legislature addressing problems or in furtherance of the purposes of
the fund.
Voluntary Cleanup Program
Establishes the voluntary cleanup program to provide incentive for remediation of property by removing the
liability of lenders, developers, owners, and operators who did not cause or contribute to contamination
released at a contaminated site.
Senate Research Center 241