HB 2767 by Rep. Phil King (R-Weatherford) and Sen. Craig Estes (R-Wichita Falls) has been placed on the Senate Local and Uncontested Calendar for May 21. The bill clarifies that ownership of fluid oil and gas waste for purposes of treatment and recycling such waste for beneficial use in oil and gas operations is transferred along with the waste. Under current law, there is uncertainty regarding whether a transferor of the waste (e.g., an oil and gas producer) retains ownership despite relinquishing custody. This uncertainty prevents many producers from transferring their fluid waste to a treatment facility that prepares the waste for subsequent use in oil and gas operations. Instead, producers dispose of the waste in disposal wells rather than recycling it. HB 2767 clarifies the law to encourage producers to recycle their used drilling fluids. TCJL supports this legislation and is grateful to Rep. Phil King (R-Weatherford) and Sen. Craig Estes (R-Wichita Falls) for carrying this bill.

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