Bill Caption

Relating to the authority of the Railroad Commission of Texas to contract for the treatment of and sell drill cuttings.

Fiscal Notes

The fiscal implications of the bill cannot be determined because the amount of potential revenue and cost savings associated with disposing of abandoned stored drill cuttings are unknown

Bill Analysis

HB 3381 gives the state of Texas a first lien, superior to all preexisting and subsequent liens and security interests, on the drill cuttings stored at the site or facility and in any abandoned equipment that is located on a site that has ceased oil and gas operations.

HB 3381 considers drill cuttings subject to a lien under this section as  abandoned and allows the commission to contract with a person to treat the drill cuttings at the site or facility for a subsequent beneficial use and sell the treated drill cuttings.

"Drill cuttings" means bits of rock or soil cut from a subsurface formation by a drill bit during the process of drilling an oil or gas well and lifted to the surface by means of the circulation of drilling mud.

Vote Recommendation Notes

Texas Action remains neutral on HB 3381 as this bill does not appear to impact our liberty principles.