HBA-KDB H.B. 2872 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2872
By: Uher
Energy Resources
3/23/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, the Railroad Commission of Texas (commission) is
authorized to use money in the state oilfield cleanup fund to conduct an
emergency site investigation or environment clean up of oil and gas wastes
if a responsible party fails or refuses to clean up oil and gas wastes,
cannot be found to clean up the waste, does not have the proper assets to
clean up the waste, or the waste is causing pollution of surface or
subsurface water.  However, there are no procedures or guidelines the
commission must follow when initiating an emergency cleanup.  House Bill
2872 provides the commission with a standard set of criteria to consider
before initiating an emergency waste cleanup. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2872 amends the Natural Resources Code to authorize the Railroad
Commission of Texas (commission) to conduct an emergency cleanup of oil and
gas wastes or other substances or materials only in accordance with the
procedures set forth in the Act.  The bill provides that before beginning
an emergency cleanup the commission must assess the threat to the public
caused by the release by considering prescribed factors and must attempt to
contact the responsible person.  If the  commission is able to contact the
responsible person, the commission must determine whether the person is
willing and has sufficient assets to perform the cleanup at the person's
expense.  If the commission is unable to contact the responsible person or
the person refuses or does not have  sufficient assets to perform the
cleanup at the person's expense,  the commission must inform the person
that the commission will authorize an emergency cleanup and the person will
be held financially responsible for reimbursement of all reasonable costs
incurred by the commission in conducting the cleanup.  The bill authorizes
the responsible person to take over and complete the cleanup at any time
before the commission completes the cleanup.  The bill requires the
commission to make all reasonable attempts to prevent unreasonable and
excessive costs associated with an emergency cleanup.  If the responsible
person disputes the costs associated with the cleanup, the commission has
the burden of substantiating the costs incurred by presenting evidence from
a qualified expert in the field of oilfield cleanups. 

EFFECTIVE DATE

September 1, 2001.