Rep. Phil King
Legislation enabling oil and gas producers to transfer fluid oil and gas waste arising out of drilling and production for treatment and subsequent beneficial use passed the House on third reading earlier today. HB 2767 by Rep. Phil King (R-Weatherford) provides that waste material is considered to be the property of the person who takes possession of it for the purpose of treating the waste. When the person who treats the waste subsequently transfers the treated product or a treatment byproduct to another person for disposal or use, the transferred product or byproduct is considered the property of the person to whom the material is transferred. The bill further limits liability of the transferor of the treated product if the product is used in subsequent oil and gas drilling, but does not affect liability for personal injury or property damage that may be caused by exposure to the treated product. HB 2767 is intended to encourage oil and gas drillers to allow treatment and beneficial reuse of drilling fluid and water used in oil and gas production (as opposed to permanent disposal in a disposal well) without undue risk of liability. The bill now moves to the Senate for consideration. TCJL supports this legislation.
