Sec. 91.109. FINANCIAL SECURITY FOR PERSONS INVOLVED IN ACTIVITIES OTHER THAN OPERATION OF WELLS. (a) A person applying for or acting under a commission permit to store, handle, treat, reclaim, or dispose of oil and gas waste may be required by the commission to maintain a performance bond or other form of financial security conditioned that the permittee will operate and close the storage, handling, treatment, reclamation, or disposal site in accordance with state law, commission rules, and the permit to operate the site. However, this section does not authorize the commission to require a bond or other form of financial security for saltwater disposal pits, emergency saltwater storage pits (including blow-down pits), collecting pits, or skimming pits provided that such pits are used in conjunction with the operation of an individual oil or gas lease. Subject to the refund provisions of Section 91.1091, proceeds from any bond or other form of financial security required by this section shall be placed in the oil and gas regulation and cleanup fund. Each bond or other form of financial security shall be renewed and continued in effect until the conditions have been met or release is authorized by the commission.
(b) In addition to the financial security requirements of Subsection (a), a person required to file a bond, letter of credit, or cash deposit under Section 91.103 who is involved in activities other than the ownership or operation of wells must file the bond, letter of credit, or cash deposit at the time of filing or renewing an organization report required by Section 91.142 according to the following schedule:
(1) no bond, letter of credit, or cash deposit if the person is a:
(A) local distribution company;
(B) gas marketer;
(C) crude oil nominator;
(D) first purchaser;
(E) well servicing company;
(F) survey company;
(G) salt water hauler;
(H) gas nominator;
(I) gas purchaser; or
(J) well plugger; or
(2) a bond, letter of credit, or cash deposit in an amount not to exceed $25,000 if the person is involved in an activity that is not associated with the ownership or operation of wells and is not listed in Subdivision (1).
(c) A person who engages in more than one activity or operation, including well operation, for which a bond, letter of credit, or cash deposit is required under this subchapter is not required to file a separate bond, letter of credit, or cash deposit for each activity or operation in which the person is engaged. The person is required to file a bond, letter of credit, or cash deposit only in the amount required for the activity or operation in which the person engages for which a bond, letter of credit, or cash deposit in the greatest amount is required. The bond, letter of credit, or cash deposit filed covers all of the activities and operations for which a bond, letter of credit, or cash deposit is required under this subchapter.
Added by Acts 1985, 69th Leg., ch. 464, Sec. 1, eff. Aug. 26, 1985. Amended by Acts 1991, 72nd Leg., ch. 603, Sec. 17, eff. Sept. 1, 1991; Acts 2001, 77th Leg., ch. 1233, Sec. 29, eff. Sept. 1, 2004; Acts 2003, 78th Leg., ch. 490, Sec. 3, eff. Sept. 1, 2003.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 19.17, eff. September 28, 2011.
Structure Texas Statutes
Subtitle B - Conservation and Regulation of Oil and Gas
Chapter 91 - Provisions Generally Applicable
Subchapter D. Prevention of Pollution
Section 91.101. Rules and Orders
Section 91.101. Rules and Orders
Section 91.1011. Oil and Gas Waste
Section 91.1011. Oil and Gas Waste
Section 91.1012. Access to Property and Records
Section 91.1013. Application Fees
Section 91.1015. Groundwater Protection Requirements
Section 91.1017. Location of Certain Pits
Section 91.102. Additional Personnel
Section 91.103. Persons Required to Execute Bond, Letter of Credit, or Cash Deposit
Section 91.1041. Individual Bond
Section 91.105. Bond Conditions
Section 91.106. Execution of Bond
Section 91.107. New Bond, Letter of Credit, or Cash Deposit
Section 91.108. Deposit and Use of Funds
Section 91.109. Financial Security for Persons Involved in Activities Other Than Operation of Wells
Section 91.110. Oil and Gas Waste Reduction and Minimization
Section 91.113. Investigation, Assessment, or Cleanup by Commission
Section 91.1131. Risk Assessment Standards
Section 91.1132. Prioritization of High-Risk Wells
Section 91.115. First Lien on Equipment and Stored Hydrocarbons or Drill Cuttings
Section 91.116. Notice of Commercial Surface Disposal Facility Permit Application