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.