NATURAL RESOURCES CODE
CHAPTER 89. ABANDONED WELLS
SUBCHAPTER A. GENERAL PROVISIONS
§ 89.001. POLICY. The conservation and development of
all the natural resources of this state are declared to be a public
right and duty. It is also declared that the protection of water
and land of the state against pollution or the escape of oil or gas
is in the public interest. In the exercise of the police power of
the state, it is necessary and desirable to provide additional
means so that wells that are drilled for the exploration,
development, or production of oil or gas, or as injection or salt
water disposal wells, and that have been abandoned and are leaking
salt water, oil, gas, or other deleterious substances into
freshwater formations or on the surface of the land, may be plugged,
replugged, or repaired by or under the authority and direction of
the commission.
Acts 1977, 65th Leg., p. 2552, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 89.002. DEFINITIONS. (a) In this chapter:
(1) "Well" means a hole drilled for the purpose of:
(A) producing oil or gas;
(B) injecting fluid or gas in the ground in
connection with the exploration or production of oil and gas;
(C) obtaining geological information by taking
cores or through seismic operations; or
(D) producing geothermal energy and associated
resources that are subject to the jurisdiction of the Railroad
Commission of Texas.
Text of subd. (2) effective until September 1, 2004
(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. The commission may not require a person to
assume responsibility for a well as a condition to being permitted
to assume responsibility for another well. In the event of a sale
or conveyance of an unplugged well or the right to operate an
unplugged well, a person ceases being the operator for the purpose
of Section 89.011 only if the well was in compliance with commission
rules relating to safety or the prevention or control of pollution
at the time of sale or conveyance and once the person who acquires
the well or right to operate the well:
(A) specifically identifies the well as a well
for which the person assumes plugging responsibility on forms
required and approved by the commission;
(B) has a commission-approved organization
report as required by Section 91.142;
(C) has a commission-approved bond or other form
of financial security under Sections 91.103-91.107 covering the
well; and
(D) places the well in compliance with commission
rules.
Text of subd. (2) effective September 1, 2004
(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. The commission may not require a person to
assume responsibility for a well as a condition to being permitted
to assume responsibility for another well. In the event of a sale
or conveyance of an unplugged well or the right to operate an
unplugged well, a person ceases being the operator for the purpose
of Section 89.011 only if the well was in compliance with commission
rules relating to safety or the prevention or control of pollution
at the time of sale or conveyance and once the person who acquires
the well or right to operate the well:
(A) specifically identifies the well as a well
for which the person assumes plugging responsibility on forms
required and approved by the commission;
(B) has a commission-approved organization
report as required by Section 91.142;
(C) has a commission-approved bond, letter of
credit, or cash deposit under Sections 91.103-91. 107 covering the
well; and
(D) places the well in compliance with commission
rules.
(3) "Nonoperator" means a person who owns a working
interest in a well at the time the well is required to be plugged
pursuant to commission rules and is not an operator as defined in
Subdivision (2) of this subsection.
(4) "Commission" means the Railroad Commission of
Texas.
(5) "Well-site equipment" means any
production-related equipment or materials specific to the well
being plugged, including motors, pumps, pump jacks, tanks, tank
batteries, separators, compressors, casing, tubing, and rods.
(6) "Lease" means the lease on which a well made the
subject of a plugging contract is located.
(7) "Delinquent inactive well" means an unplugged well
that has had no reported production, disposal, injection, or other
permitted activity for a period of greater than 12 months and for
which, after notice and opportunity for a hearing, the commission
has not extended the plugging deadline.
(8) "Plugging" includes replugging.
(b) The terms operator and nonoperator as defined in this
section do not mean a royalty interest owner or an overriding
royalty interest owner.
Acts 1977, 65th Leg., p. 2552, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 5255, ch. 967, § 4,
eff. Sept. 1, 1983; Acts 1983, 68th Leg., p. 5406, ch. 1002, § 1,
eff. Aug. 29, 1983; Acts 1993, 73rd Leg., ch. 882, § 1, eff.
Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 515, § 1, eff. Jan. 1,
1994; Acts 1997, 75th Leg., ch. 89, § 1, eff. Sept. 1, 1997;
Acts 2001, 77th Leg., ch. 1233, § 11, eff. Sept. 1, 2004.
§ 89.003. APPLICABILITY. The provisions of this
chapter do not alter causes of action arising before August 30,
1965.
Acts 1977, 65th Leg., p. 2553, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
SUBCHAPTER B. DUTY TO PLUG WELLS
§ 89.011. DUTY OF OPERATOR. (a) The operator of a well
shall properly plug the well when required and in accordance with
the commission's rules that are in effect at the time of the
plugging.
(b) If useable quality water zones are present, the operator
shall verify the placement of the plug at the base of the deepest
fresh water zone required to be protected. The well is considered
to have been properly plugged only when the verification is
satisfactory and meets commission requirements.
(c) If, for the use of the surface owner, the operator of the
well plugs the well back to produced fresh water, the duty of the
operator to properly plug the well ends only when:
(1) the well has been properly plugged in accordance
with commission requirements; and
(2) the surface owner has obtained a permit for the
well from the groundwater conservation district, if applicable.
(d) Subsections (b) and (c) apply only to wells plugged on
or after the effective date of this Act.
(e) The duty of a person to plug an unplugged well that has
ceased operation ends only if the person's interest in the well is
sold or conveyed while the well is in compliance with rules of the
commission relating to safety or the prevention or control of
pollution and the provisions of Sections 89.002(a)(2)(A)-(D) have
been met. The person acquiring the seller's interest through such a
sale or conveyance succeeds the seller as the operator of the well
for the purpose of plugging responsibility once the provisions of
Sections 89.002(a)(2)(A)-(D) have been met.
Acts 1977, 65th Leg., p. 2553, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1993, 73rd Leg., ch. 882, § 2, eff. Sept.
1, 1993; Acts 1997, 75th Leg., ch. 89, § 2, eff. Sept. 1, 1997;
Acts 2001, 77th Leg., ch. 1233, § 12, eff. Sept. 1, 2001.
§ 89.012. DUTY OF NONOPERATOR. If the operator of a
well fails to comply with Section 89.011 of this code, each
nonoperator is responsible for his proportionate share of the cost
of the proper plugging of the well within a reasonable time,
according to the rules of the commission in effect at the time the
responsibility attaches.
Acts 1977, 65th Leg., p. 2553, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
SUBCHAPTER C. POWERS AND DUTIES OF THE COMMISSION
§ 89.041. DETERMINING PROPER PLUGGING. If it comes to
the attention of the commission that a well that has been abandoned
or is not being operated is causing or is likely to cause pollution
of fresh water above or below the ground or if gas or oil is escaping
from the well, the commission may determine at a hearing, after due
notice, whether or not the well was properly plugged as provided in
Section 89.011 or Section 89.012 of this code.
Acts 1977, 65th Leg., p. 2553, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 5256, ch. 967, § 5,
eff. Sept. 1, 1983; Acts 1983, 68th Leg., p. 5407, ch. 1002, § 2,
eff. Aug. 29, 1983.
§ 89.042. COMMISSION ORDER TO PLUG. (a) If the
commission finds that the well was not properly plugged, it shall
order the operator to plug the well according to the rules of the
commission in effect at the time the order is issued.
(b) If the operator cannot be found or is no longer in
existence or has no assets with which to properly plug the well, the
commission shall order the nonoperators to plug the well according
to the rules of the commission in effect at the time the order is
issued.
(c) Repealed by Acts 1983, 68th Leg., p. 5409, ch. 1002,
§ 3, eff. Aug. 29, 1983.
Acts 1977, 65th Leg., p. 2553, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 5256, ch. 967, § 5,
eff. Sept. 1, 1983; Acts 1983, 68th Leg., p. 5409, ch. 1002, § 3,
eff. Aug. 29, 1983.
§ 89.043. PLUGGING BY COMMISSION. (a) If the
commission determines at a hearing under Section 89.041 of this
code that a well has not been properly plugged or needs replugging,
the commission, through its employees or through a person acting as
agent for the commission, may plug or replug the well if:
(1) the well was properly plugged according to rules
in effect at the time the well was abandoned or ceased to be
operated; or
(2) neither the operator nor nonoperator properly
plugged the well, and
(A) neither the operator nor nonoperator can be
found; or
(B) neither the operator nor nonoperator has
assets with which to properly plug the well.
(b) If a well is leaking salt water, oil, or gas or is likely
to leak salt water, oil, or gas, and the leakage will cause or is
likely to cause a serious threat of pollution or injury to the
public health, the commission, through its employees or agents, may
direct the operator to take remedial action or to plug the well or
may plug or replug the well without holding a hearing under Section
89.041 of this code or giving notice under Subsection (c) of this
section.
(c) Not later than the 30th day before the date the
commission enters into a contract to plug a delinquent inactive
well, the commission shall send a notice by certified mail to the
operator of the well at the address last reported to the commission
as required by Section 91.142 and commission rules. The notice
shall direct the operator to plug the well and shall state that:
(1) the commission may plug the well and foreclose its
statutory lien under Section 89.083 unless the operator requests a
hearing not later than the 10th day after the date the operator
receives the notice;
(2) if the commission forecloses its statutory lien
under Section 89.083, all well-site equipment will be presumed to
have been abandoned and the commission may dispose of the equipment
and hydrocarbons from the well as provided by Section 89.085;
(3) if the commission plugs the well, the commission:
(A) by order may require the operator to
reimburse the commission for the plugging costs; or
(B) may request the attorney general to file suit
against the operator to recover those costs;
(4) the commission has a statutory lien on all
well-site equipment under Section 89.083; and
(5) the lien described by Subdivision (4) is
foreclosed by operation of law if the commission does not receive a
valid and timely request for a hearing before the 15th day after the
date the notice is mailed.
(d) The operator of a well made the subject of a prior
commission final order directing that it be plugged is not entitled
to a second hearing under this section.
(e) The commission shall file for record a copy of the
notice in the office of the county clerk of the county in which the
well is located. The notice filed with the county need not be
acknowledged. The copy of the notice filed in the office of the
county clerk must contain the section, block, survey, and abstract
number, when available to the commission, of the land on which the
well is located. The clerk shall record the notice in the real
property records of the county. The commission shall not be charged
a fee for the filing or recording of the notice. The commission
shall furnish a copy of the notice to a holder of a lien on the well
or a nonoperator on that person's request. For purposes of title
insurance policies issued under authority of Chapter 9, Insurance
Code, this notice is not a notice of enforcement or violation of
law, ordinance, or governmental regulation unless the notice
contains a legally sufficient description of the specific land on
which the well is located.
(f) At the request of the commission, the attorney general
may file suit to enforce an order issued by the commission under
Subsection (c)(3)(A).
Acts 1977, 65th Leg., p. 2554, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 5256, ch. 967, § 5,
eff. Sept. 1, 1983; Acts 1983, 68th Leg., p. 5407, ch. 1002, § 2,
eff. Aug. 29, 1983; Acts 1993, 73rd Leg., ch. 515, § 2, eff. Jan.
1, 1994; Acts 1995, 74th Leg., ch. 928, § 1, eff. Aug. 28, 1995;
Acts 1999, 76th Leg., ch. 29, § 1, eff. Aug. 30, 1999; Acts 1999,
76th Leg., ch. 57, § 1, eff. May 10, 1999; Acts 2001, 77th Leg.,
ch. 1233, § 13, eff. Sept. 1, 2001.
§ 89.044. RIGHT TO ENTER ON LAND. The commission or its
employees or agents, the operator or the nonoperator, on proper
identification, may enter the land of another for the purpose of
plugging or replugging a well that has not been properly plugged.
Acts 1977, 65th Leg., p. 2554, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 5256, ch. 967, § 5,
eff. Sept. 1, 1983; Acts 1983, 68th Leg., p. 5407, ch. 1002, § 2,
eff. Aug. 29, 1983.
§ 89.045. LIABILITY FOR DAMAGES. The commission and its
employees and agents, the operator, and the nonoperator are not
liable for any damages that may occur as a result of acts done or
omitted to be done by them or each of them in a good-faith effort to
carry out this chapter.
Acts 1977, 65th Leg., p. 2554, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 5256, ch. 967, § 5,
eff. Sept. 1, 1983; Acts 1983, 68th Leg., p. 5407, ch. 1002, § 2,
eff. Aug. 29, 1983.
§ 89.046. PENALTIES AND OTHER RELIEF. The plugging or
replugging of a well by the commission does not prevent the
commission from seeking penalties or other relief provided by law
from any person who is required by law, rules adopted by the
commission, or a valid order of the commission to plug the well.
Added by Acts 1983, 68th Leg., p. 5256, ch. 967, § 5, eff. Sept.
1, 1983.
SUBCHAPTER D. COSTS OF PLUGGING WELLS
§ 89.081. CAUSE OF ACTION FOR DISPROPORTIONATE SHARE OF
COST. If an operator or nonoperator owns only a partial interest
in the well or oil and gas and the operator or nonoperator pays a
larger proportion of the cost of plugging the well than his
proportionate interest in the well or oil and gas, he has a cause of
action against the other operators and nonoperators for their
proportionate shares of the cost of plugging.
Acts 1977, 65th Leg., p. 2554, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 5251, ch. 967, § 1,
eff. Sept. 1, 1983; Acts 1983, 68th Leg., p. 5407, ch. 1002, § 2,
eff. Aug. 29, 1983.
§ 89.083. FIRST LIEN ON EQUIPMENT; CAUSE OF ACTION IF
COMMISSION PLUGS. (a) If a well has not been plugged by the
deadline for plugging established by commission rules, the state
has a first lien, superior to all other preexisting and subsequent
liens and security interests, on the operator's and nonoperator's
interests in well-site equipment, in the amount of the total costs
of removing well-site equipment from the well, plugging the well,
and transporting, storing, and disposing of the well-site
equipment.
(b) The lien arises on the date by which the well is required
to be plugged under commission rules.
(c) The lien may be foreclosed by judicial action or
commission order at any time after notice and an opportunity for a
hearing. If notice is mailed under Section 89.043 and if the lien
is not previously foreclosed, the lien is foreclosed by operation
of law on the 15th day after the date the notice is mailed unless the
commission has received a valid and timely request for a hearing
before that date. The commission is not required to give notice or
an opportunity for a hearing to subordinate lienholders or
nonoperators before foreclosing the lien.
(d) The lien is extinguished if the well is plugged or
otherwise brought into compliance in accordance with commission
rules by any person authorized to do so before the commission enters
into a plugging contract.
(e) The lien is extinguished as to any item of well-site
equipment that is lawfully removed by any person other than the
operator or a nonoperator pursuant to a lien, lease, judgment,
written contract, or security agreement before the commission sends
notice under Section 89.043(c). A person may not remove from an
inactive well site any equipment necessary to prevent the well from
serving as a conduit for the passage of oil, gas, saltwater, oil and
gas wastes, or freshwater from one stratum or formation to another
or to the surface or from the surface downward except in the course
of plugging in accordance with commission rules.
(f) If the commission plugs a well under Sections 89.043
through 89.044 of this code, the state has a cause of action for all
reasonable expenses incurred in plugging or replugging the well and
not recovered under Section 89.085 of this code or through
reimbursement to the commission.
(g) The cause of action is:
(1) first, against the operator, to be secured by a
first lien, superior to all preexisting and subsequent liens and
security interests, on the operator's interest in the oil and gas in
the land and the fixtures, machinery, and equipment found or used on
the land where the well is located; and
(2) second, against a nonoperator at the time the well
should have been plugged, to be secured by a lien on the
nonoperator's interest in the oil and gas in the land. A
nonoperator may be made a party defendant in the suit against the
operator.
(h) The commission:
(1) by order may require the operator and any
nonoperator to reimburse the commission for all reasonable expenses
incurred in plugging a well; or
(2) may request the attorney general to file suit
against the operator and any nonoperator to recover those expenses.
(i) At the request of the commission, the attorney general
may file suit to enforce an order issued by the commission under
Subsection (h)(1).
(j) Money collected in a suit under this section shall be
deposited in the state oil-field cleanup fund.
(k) A civil action for reimbursement under this section may
be brought in Travis County, the county in which the plugged well is
located, or the county in which any defendant resides.
Acts 1977, 65th Leg., p. 2555, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 5251, ch. 967, § 1,
eff. Sept. 1, 1983; Acts 1983, 68th Leg., p. 5407, ch. 1002, § 2,
eff. Aug. 29, 1983; Acts 1991, 72nd Leg., ch. 603, § 6, eff.
Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 515, § 3, eff. Jan. 1,
1994; Acts 1999, 76th Leg., ch. 29, § 2, eff. Aug. 30, 1999;
Acts 1999, 76th Leg., ch. 57, § 2, eff. May 10, 1999; Acts 2001,
77th Leg., ch. 1233, § 14, eff. Sept. 1, 2001.
§ 89.084. MONEY PAID COMMISSION BY PRIVATE
PERSON. (a) The commission may accept money from private persons
and use the money to plug or replug a well.
(b) Paying money to the commission is not an admission that
the person paying the money is obligated to plug or replug the well.
Evidence that a person has paid money to the commission is not
admissible against the person in a suit in which the person's
obligation to plug a well is an issue and introducing the evidence
is a compulsory ground for mistrial.
Acts 1977, 65th Leg., p. 2555, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 89.085. POSSESSION AND SALE OF EQUIPMENT TO COVER
PLUGGING COSTS. (a) When the commission forecloses its lien
under Section 89.083 on a delinquent inactive well, well-site
equipment and any amount of hydrocarbons from the well that is
stored on the lease are presumed to have been abandoned and may be
disposed of by the commission in a commercially reasonable manner
by either or both of the following methods:
(1) entering into a plugging contract that provides
that the person plugging or cleaning up pollution, or both, will
take title to well-site equipment, hydrocarbons from the well that
are stored on the lease, or hydrocarbons recovered during the
plugging operation in exchange for a sum of money deducted as a
credit from the contract price; or
(2) selling the well-site equipment, hydrocarbons
from the well that are stored on the lease, or hydrocarbons
recovered during the plugging operation at a public auction or a
public or private sale.
(b) The commission shall assign separate costs to:
(1) removing well-site equipment;
(2) plugging the well; and
(3) transporting, storing, and disposing of the
well-site equipment.
(c) The commission shall dispose of well-site equipment or
hydrocarbons under this section at a price or value that reflects
the generally recognized market value of the equipment or
hydrocarbons, with allowances for physical condition.
(d) The commission shall deposit money received from the
sale of well-site equipment or hydrocarbons under this section to
the credit of the oil-field cleanup fund. The commission shall
separately account for money and credit received for each well.
(e) A person who acquires well-site equipment or
hydrocarbons under this section by sale or contract receives a
clear title, free of all prior legal or equitable claims of whatever
nature, whether perfected or inchoate.
(f) Not later than the 30th day after the date well-site
equipment or hydrocarbons are disposed of under this section, the
commission shall mail a notice by first class mail to the operator
of the well at the address last reported to the commission as
required by Section 91.142 of this code and commission rules and, on
request, to any lienholder or nonoperator.
(g) The notice required by Subsection (f) of this section
must include:
(1) the lease name;
(2) the well number;
(3) the county in which the well is located;
(4) the abstract number of the property on which the
lease is situated;
(5) the commission lease or gas well identification
number or drilling permit number;
(6) a list of the property disposed of under this
section; and
(7) a statement that any person who has a legal or
equitable ownership or security interest in the equipment or
hydrocarbons that was in existence on the date the commission
foreclosed its statutory lien may file a claim with the commission.
(h) Not later than the 180th day after the date the
well-site equipment or hydrocarbons are disposed of under this
section, the commission shall publish a notice that states:
(1) the lease name;
(2) the well number;
(3) the county in which the well is located;
(4) the commission lease or gas well identification
number or drilling permit number; and
(5) that equipment or hydrocarbons if applicable from
the well and lease were disposed of under this section and that any
person who has a legal or equitable ownership or security interest
in the equipment or hydrocarbons that was in existence on the date
the commission foreclosed its statutory lien may file a claim with
the commission.
(i) The commission shall publish the notice required under
Subsection (h) of this section in a newspaper of general
circulation in the county in which the lease is located. A single
notice may contain the information required for more than one well
and lease. A notice given under this section following the plugging
of a well may be combined with a notice given under Section 91.115
of this code following the cleanup of a site or facility.
Added by Acts 1985, 69th Leg., ch. 715, § 1, eff. Aug. 26, 1985.
Amended by Acts 1989, 71st Leg., ch. 755, § 1, eff. Sept. 1,
1989; Acts 1993, 73rd Leg., ch. 515, § 4, eff. Jan. 1, 1994;
Acts 2001, 77th Leg., ch. 1233, § 15, eff. Sept. 1, 2001.
§ 89.086. CLAIMS AGAINST THE OIL-FIELD CLEANUP
FUND. (a) A person with a legal or equitable ownership or
security interest in well-site equipment or hydrocarbons disposed
of under Section 89.085 of this code may make a claim against the
oil-field cleanup fund unless an element of the transaction giving
rise to the interest occurs after the commission forecloses its
statutory lien under Section 89.083.
(b) The commission shall adopt a form on which a person may
file a sworn claim with the commission.
(c) A claimant must identify the well-site equipment or
hydrocarbons in which the claimant has an interest and state the
amount of the property interest as of the date the commission
foreclosed its statutory lien under Section 89.083.
(d) The commission may require a person to include with a
claim documentation that substantiates the claim or to disclose
whether the claimant was an operator or nonoperator of the well.
(e) The commission may set a hearing to receive evidence on
a claim filed under this section. The commission shall notify the
claimant of the date, time, and place of a hearing.
(f) If the commission holds a hearing, the commission shall
issue:
(1) a decision on the claim;
(2) a statement of findings of fact that includes the
substance of the evidence heard; and
(3) the conclusions of law that support the decision.
(g) The commission shall consider the validity of claims in
the order in which the claims are filed.
(h) The commission shall suspend an amount of money in the
oil-field cleanup fund equal to the amount of the claim until the
claim is finally resolved. If the provisions of Subsection (k) of
this section prevent suspension of the full amount of the claim, the
commission shall treat the claim as two consecutively filed claims,
one in the amount of funds available for suspension and the other in
the remaining amount of the claim.
(i) A claim made by or on behalf of the operator or a
nonoperator of a well or a successor to the rights of the operator
or nonoperator is subject to a ratable deduction from the proceeds
or credit received for the well-site equipment to cover the costs
incurred by the commission in removing the equipment or
hydrocarbons from the well or in transporting, storing, or
disposing of the equipment or hydrocarbons. A claim made by a
person who is not an operator or nonoperator is subject to a ratable
deduction for the costs incurred by the commission in removing the
equipment from the well. If a claimant is a person who is
responsible under law or commission rules for plugging the well or
cleaning up pollution originating on the lease or if the claimant
owes a penalty assessed by the commission or a court for a violation
of a commission rule or order, the commission may recoup from or
offset against a valid claim an expense incurred by the oil-field
cleanup fund that is not otherwise reimbursed or any penalties
owed. An amount recouped from, deducted from, or offset against a
claim under this subsection shall be treated as an invalid portion
of the claim and shall remain suspended in the oil-field cleanup
fund in the manner provided by Subsection (j) of this section.
(j) If the commission finds that a claim is valid in whole or
in part, the commission shall pay the valid portion of the claim
from the suspended amount in the oil-field cleanup fund not later
than the 30th day after the date of the commission's decision. If
the commission finds that a claim is invalid in whole or in part,
the commission shall continue to suspend in the oil-field cleanup
fund an amount equal to the invalid portion of the claim until the
period during which the commission's decision may be appealed has
expired or, if appealed, during the period the case is under
judicial review. If on appeal the district court finds the claim
valid in whole or in part, the commission shall pay the valid
portion of the claim from the suspended amount in the oil-field
cleanup fund not later than 30 days after the date the court's
judgment becomes unappealable. On the date the commission's
decision is not subject to judicial review, the commission shall
release from the suspended amount in the oil-field cleanup fund the
amount of the claim held to be invalid.
(k) If the aggregate of claims paid and money suspended that
relates to well-site equipment or hydrocarbons from a particular
well equals the total of the actual proceeds and credit realized
from the disposition of that equipment or those hydrocarbons, the
oil-field cleanup fund is not liable for any subsequently filed
claims that relate to the same equipment or hydrocarbons unless and
until the commission releases from the suspended amount money
derived from the disposition of that equipment or those
hydrocarbons. If the commission releases money, then the
commission shall suspend money in the amount of subsequently filed
claims in the order of filing.
(l) A person who informs a potential claimant that the
potential claimant may be entitled to file a claim under this
section or who files a claim on behalf of a claimant may not
contract for or receive from the claimant for services an amount
greater than 10 percent of the paid claim.
Added by Acts 1993, 73rd Leg., ch. 515, § 5, eff. Jan. 1, 1994.
Amended by Acts 2001, 77th Leg., ch. 1233, § 16, eff. Sept. 1,
2001.
§ 89.087. JUDICIAL REVIEW OF COMMISSION DECISIONS;
IMMUNITY FROM SUIT AND LIABILITY. (a) A claimant aggrieved by the
commission's decision on a claim may appeal the decision in a
district court of Travis County on or before the 60th day after the
date the decision was issued. If the commission does not decide a
claim by the 90th day after the date it was filed, the claimant may
appeal within the 60-day period beginning on the 91st day after the
date of filing.
(b) Judicial review under this section is by trial de novo.
(c) No interest accrues on a claim before an appeal is filed
under this section.
(d) Except to the extent permitted by this chapter, and
notwithstanding any other provision of law, the commission, its
employees or agents, and the State of Texas are immune from suit and
from liability based on the disposition of well-site equipment or
hydrocarbons in accordance with this chapter.
Added by Acts 1993, 73rd Leg., ch. 515, § 5, eff. Jan. 1, 1994.
§ 89.088. RECORD OF REQUEST FOR NOTICE BY LIENHOLDER OR
NONOPERATOR; FORM; FEE. (a) The commission shall maintain a
record of a request for notice by a lienholder or nonoperator under
Section 89.043(e) or 89.085(f) of this code for five years after the
date on which the commission receives the request.
(b) The commission shall prepare a form for a request for
notice. The commission shall require a person who requests notice
to include on the form information that identifies the lease
covered by the request.
(c) The commission may charge a filing fee for a request for
notice not to exceed $10 for each lease covered by the request.
Added by Acts 1993, 73rd Leg., ch. 515, § 5, eff. Jan. 1, 1994.
SUBCHAPTER E. ENFORCEMENT; JUDICIAL REVIEW
§ 89.121. ENFORCEMENT BY COMMISSION. (a) In addition
to the powers specifically granted to the commission under this
chapter, the commission may enforce this chapter or any rule or
order of the commission adopted under this chapter in the same
manner and on the same conditions as provided in the other chapters
of Title 3 of this code.
(b) Civil penalties collected for violations of this
chapter or of rules relating to plugging that are adopted under this
code shall be deposited in the state oil-field cleanup fund.
Acts 1977, 65th Leg., p. 2555, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 5251, ch. 967, § 1,
eff. Sept. 1, 1983; Acts 1991, 72nd Leg., ch. 603, § 7, eff.
Sept. 1, 1991.
§ 89.122. APPEAL TO COURTS. Any person affected by the
provisions of this chapter may sue to test the validity of any order
adopted by the commission under this chapter in the same manner, on
the same conditions, and to the same court or courts as prescribed
for suits testing the validity of orders of the commission adopted
under the general oil conservation statutes of this state.
Acts 1977, 65th Leg., p. 2555, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
