The bill amends the Produced Water Act to introduce new requirements for owners or operators of produced water facilities. Specifically, it mandates that these entities must acquire and maintain an insurance policy that meets certain criteria before they can receive permits or authorizations for the treatment, reuse, discharge, or transport of produced water. The insurance must be issued by an authorized insurer and provide coverage sufficient to cover the costs associated with spill response, cleanup, remediation, reclamation, long-term monitoring, and public health impacts related to their activities.

Additionally, the bill establishes a framework for joint and several liability, holding individuals who control the production, treatment, use, or transport of produced water accountable for damages caused by their activities. This means that any person harmed by these activities can seek damages from any party involved, regardless of their level of control or involvement. The provisions of this act are set to take effect on July 1, 2026.

Statutes affected:
introduced version: 70-13-1