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, the official text

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