HB49 - Relating to the treatment and beneficial use of fluid oil and gas waste and related material, including a limitation on liability for that treatment or use.

      H.B. No. 49         AN ACT   relating to the treatment and beneficial use of fluid oil and gas   waste and related material, including a limitation on liability for   that treatment or use.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 122.003, Natural Resources Code, is   amended to read as follows:          Sec. 122.003.  RESPONSIBILITY IN TORT.  (a) Except as   provided by Subsections [ Subsection ] (b) and (b-1) , a person ,   including an owner of the surface estate of real property, who takes   possession of fluid oil and gas waste for treatment , produces from   that waste [ a ] treated waste  [ product generally considered in the   oil and gas industry to be suitable for use in connection with the   drilling for or production of oil or gas ], and either puts the   treated waste to a beneficial use or transfers the treated waste     [ product ] to another person with the contractual understanding that   the treated waste  [ product ] will be put to a beneficial use [ used in   connection with the drilling for or production of oil or gas ] is not   liable in tort for a consequence of the subsequent use of that   treated waste  [ product ] by any [ the person to whom the treated   product is transferred or by another ] person.           (a-1)     Except as provided by Subsections (b) and (b-1), a   person, including an owner of the surface estate of real property,   who produces fluid oil and gas waste or who supplies or conveys   fluid oil and gas waste to a treatment facility for the purpose of   generating treated waste is not liable in tort for:                 (1)     a consequence of the subsequent treatment of that   fluid oil and gas waste to generate treated waste;                 (2)     the subsequent use of that treated waste by any   person; or                 (3)     exposure to any component of the waste or any   byproduct of the process used to generate treated waste.           (a-2)     An owner of the surface estate of real property on or   under which fluid oil and gas waste is produced, conveyed,   transported, or treated by others is not liable in an action for   damages for personal injury, death, or property damage arising from   exposure to fluid oil and gas waste, treated waste, or a byproduct   of a process used to generate treated waste.          (b)  This section does not affect the liability of a person   [ that treats fluid oil and gas waste for beneficial use ] in an   action brought by a claimant [ person ] for damages for personal   injury, death, or property damage arising from exposure to fluid   oil and gas waste , treated waste, or a byproduct of a process used   to generate treated waste if that exposure occurred as a result of   the person's:                 (1)     gross negligence or intentional, wrongful act or   omission; or                 (2)     negligence and the person did not treat, generate,   use, or dispose of the fluid oil and gas waste, treated waste, or   byproduct in conformity with:                       (A)  rules adopted under Section 122.004;                       (B)     a Texas Pollutant Discharge Elimination   System program permit issued by the Texas Commission on   Environmental Quality under Section 26.027 or 26.131, Water Code;   or                       (C)     a permit issued by the commission for the   hauling or handling of fluid oil and gas waste, treated waste, or   byproduct [ product ].           (b-1)     This section does not affect the liability under   common, statutory, regulatory, or other law of a producer or   subsequent transferee of fluid oil and gas waste to the owner of the   surface estate of real property, and any owner of an interest in the   surface estate of real property, on or under which fluid oil and gas   waste is produced, transported, or treated.           (c)     A claimant awarded damages for a tort premised solely on   the person's negligence and regulatory nonconformity under   Subsection (b)(2) may not be awarded exemplary damages.          SECTION 2.  Section 122.004(a), Natural Resources Code, is   amended to read as follows:          (a)  The commission shall adopt rules to govern the treatment   and beneficial use of fluid oil and gas waste , treated waste, and   any byproduct of a process used to generate treated waste .          SECTION 3.  Chapter 122, Natural Resources Code, as amended   by this Act, applies only to a cause of action that accrues on or   after the effective date of this Act.  A cause of action that   accrues before the effective date of this Act is governed by the law   as it existed immediately before the effective date of this Act, and   that law is continued in effect for that purpose.          SECTION 4.  This Act takes effect September 1, 2025.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 49 was passed by the House on May 10,   2025, by the following vote:  Yeas 109, Nays 21, 2 present, not   voting.     ______________________________   Chief Clerk of the House                 I certify that H.B. No. 49 was passed by the Senate on May 25,   2025, by the following vote:  Yeas 29, Nays 2.     ______________________________   Secretary of the Senate       APPROVED:  _____________________                      Date                           _____________________                    Governor