Relating to wildfire prevention, mitigation, and response at certain wells under the jurisdiction of the Railroad Commission of Texas; authorizing an administrative penalty.

89(R) HB 3334 - Engrossed version - Bill Text

By: King

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 notice of violation that was:

(1)

issued by the commission in the five years

preceding the date of transfer of ownership of the well; and

(2)

related to fire or to the operation and

maintenance of electrical power lines, poles, or other related

electrical equipment associated with the well.

(a-1)

To be eligible to perform an inspection under this

section, a person must hold a license issued by the Texas Department

of Licensing and Regulation under Subchapter D, Chapter 1305,

Occupations Code, that authorizes the person to determine

compliance with the National Electrical Code published by the

National Fire Protection Association and adopted by the Texas

Commission of Licensing and Regulation under Chapter 1305,

Occupations Code.

(b)

At least 60 but not more than 150 days before the date

operatorship of a well subject to this section may be transferred

from one operator to another, an inspector must inspect the well,

well site, and related facilities to determine compliance with the

National Electrical Code published by the National Fire Protection

Association and adopted by the Texas Commission of Licensing and

Regulation under Chapter 1305, Occupations Code.

(c)

Not later than the 30th day after the date of conducting

an inspection under Subsection (b), an 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.

(d)

Unless the commission grants an extension, 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 inspector shall:

(1)

conduct a follow-up inspection to confirm that

noncompliant items previously identified are now in compliance; 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 noncompliant items previously identified are now

in compliance, an operator may submit to the commission a

certification affirming that issues raised by the inspector have

been remedied.

(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

Sec.

231.101.

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.

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 $10,000 for

each violation. 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.