By: Birdwell S.B. No. 1260     (Leman)           A BILL TO BE ENTITLED   AN ACT   relating to the authority of the Railroad Commission of Texas to   contract for the treatment of and sell drill cuttings.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The heading to Section 91.115, Natural Resources   Code, is amended to read as follows:          Sec. 91.115.  FIRST LIEN ON EQUIPMENT AND STORED   HYDROCARBONS OR DRILL CUTTINGS.          SECTION 2.  Section 91.115, Natural Resources Code, is   amended by amending Subsections (a), (e), (f), and (g) and adding   Subsections (f-1) and (f-2) to read as follows:          (a)  If a responsible person fails to clean up a site or   facility that has ceased oil and gas operations under the   commission's jurisdiction on or before the date the site or   facility is required to be cleaned up by law or by a rule adopted or   order issued by the commission, the state has a first lien, superior   to all preexisting and subsequent liens and security interests, on   the responsible person's interest in any hydrocarbons or drill   cuttings stored at the site or facility and in any equipment that   is:                (1)  located at the site or facility; and                (2)  used by the responsible person in connection with   the activity that generated the pollution.          (e)  The lien is extinguished as to any stored hydrocarbons   or drill cuttings or items of equipment that are lawfully removed by   any person other than the operator or a nonoperator according to a   lien, lease, judgment, written contract, or security agreement   before the commission enters into a cleanup contract.  An item of   equipment may not be removed from an abandoned site or facility if   the removal will cause the release of a substance that may cause   pollution unless the substance is lawfully disposed of.          (f)  Equipment or stored hydrocarbons or drill cuttings   subject to a lien under this section are presumed to have been   abandoned on the date the commission enters into a contract to clean   up the site or facility on which the equipment, [or] hydrocarbons,   or drill cuttings are located.          (f-1)  The commission may dispose of the abandoned equipment   or stored hydrocarbons in accordance with the provisions of   Sections 89.085, 89.086, and 89.087 [of this code] for the   disposition of well-site equipment and hydrocarbons.          (f-2)  The commission may dispose of the abandoned stored   drill cuttings by contracting with a person to treat the drill   cuttings at the site or facility for a subsequent beneficial use and   selling the treated drill cuttings at a public auction or a public   or private sale.  Sections 89.085(c)-(i), 89.086, and 89.087 apply   to the disposition of drill cuttings under this subsection in the   same manner as those sections apply to the disposition of   hydrocarbons.           (g)  In this section:                (1)  "Drill cuttings" has the meaning assigned by   Section 123.001.                 (2)  "Responsible ["responsible] person" has the   meaning assigned by Section 91.113 [of this code].                (3)  "Treat" means to use a manufacturing, mechanical,   thermal, or chemical process other than sizing, shaping, diluting,   or sorting.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2021.