The bill, H.B. No. 3156, amends the Natural Resources Code to establish new definitions and clarify ownership and liability related to fluid oil and gas waste and its treated products. A new definition for "treated product" is introduced, which refers to any product resulting from the treatment of fluid oil and gas waste that makes it suitable for beneficial use. The bill also modifies existing sections to specify that ownership of fluid oil and gas waste transfers to the person treating it for the purpose of generating a treated product, and that this ownership remains until the treated product is transferred for disposal or further use.

Additionally, the bill outlines the liability protections for individuals involved in the production and treatment of fluid oil and gas waste. It states that those who produce or supply this waste for treatment are not liable for any consequences arising from the subsequent treatment or use of the treated product, except in cases of gross negligence or failure to comply with regulatory standards. The Texas Commission on Environmental Quality is tasked with adopting rules governing the treatment and beneficial use of fluid oil and gas waste, treated products, and byproducts. The provisions of this bill will take effect on September 1, 2025, and will apply only to causes of action that accrue on or after that date.

Statutes affected:
Introduced: Natural Resources Code 122.001, Natural Resources Code 122.002, Natural Resources Code 122.004 (Natural Resources Code 122)