The bill, H.B. No. 49, aims to amend the Natural Resources Code regarding the treatment and beneficial use of fluid oil and gas waste. It introduces new provisions that limit liability for individuals and entities involved in the treatment and use of such waste. Specifically, it states that a person who takes possession of fluid oil and gas waste for treatment and either puts it to beneficial use or transfers it with the understanding that it will be used beneficially is not liable for any consequences arising from that use. Additionally, the bill provides that owners of the surface estate of real property involved in the production or transportation of fluid oil and gas waste are also shielded from liability for personal injury, death, or property damage related to exposure to the waste or its byproducts, unless gross negligence or intentional wrongdoing is proven.

Furthermore, the bill mandates the Texas Commission on Environmental Quality to adopt rules governing the treatment and beneficial use of fluid oil and gas waste, treated waste, and any byproducts generated from the treatment process. It clarifies that the new provisions will only apply to causes of action that accrue on or after the effective date of the Act, which is set for September 1, 2025. This ensures that any claims arising before this date will be governed by the existing law.

Statutes affected:
Introduced: Natural Resources Code 122.001, Natural Resources Code 122.002, Natural Resources Code 122.004 (Natural Resources Code 122)
House Committee Report: Natural Resources Code 122.003, Natural Resources Code 122.004 (Natural Resources Code 122)