Texas Administrative Code › Title 31 - NATURAL RESOURCES AND CONSERVATION › Part 1 - GENERAL LAND OFFICE › Chapter 9 - EXPLORATION AND LEASING OF STATE OIL AND GAS › Subchapter C - MAINTAINING A STATE OIL AND GAS LEASE › Section 9.32 - General Responsibilities of State Lessees

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose and Scope. This section sets out
				  some of the general responsibilities which lessees on properties leased under
				  this chapter owe the state. Operations on state lands are subject to all
				  applicable state and federal laws and regulations. The provisions of this
				  chapter do not alter, amend, or replace such state and federal laws and
				  regulations, and compliance with the requirements of this chapter does not
				  relieve the operator of the duty to comply with such laws and regulations. The
				  requirements of this chapter are in addition to the requirements of any other
				  applicable state or federal law or regulation.
(b) Minimum Standards of Lessee Conduct.
(1) As expressly required in state leases,
				  lessee shall use the highest degree of care in conducting operations on state
				  leases and shall take all proper safeguards to prevent pollution. To satisfy
				  these requirements, lessee must conduct operations as a reasonably prudent
				  operator using standard industry practices and procedures, must satisfy all
				  other express lease provisions, must satisfy implied lease obligations, and
				  must comply with all valid, applicable federal and state laws, regulations and
				  rules.
(2) Operations or activities
				  requiring such care and safeguards shall include, but are not limited to, the
				  following:
(A) Drilling, reworking, testing,
				  producing, and maintaining a well;
(B) Designing, constructing, treating,
				  testing, maintaining and repairing pipelines;
(C) Producing, storing, transporting or
				  otherwise handling hydrocarbons;
(D) Containing and recapturing discharged
				  hydrocarbons, pollutants, or other hazardous substances and restoring public
				  and private property damaged by such discharges;
(E) Transporting and disposing of solid
				  waste, pollutants or hazardous substances, including all materials associated
				  with drilling and producing hydrocarbons;
(F) Plugging abandoned well sites, removing
				  structures and equipment and restoring the surface after operations have
				  ceased. See also §
												9.91(c)(5)
				  of this title, (relating to General Provisions);
(G) Installing, testing and maintaining
				  signal lights at or near wells and structures that are located on submerged
				  state tracts;
(H) Conducting any
				  activities that could be destructive to marine life or its habitat on submerged
				  state tracts;
(I) Conducting
				  activities on upland tracts so as to prevent damage to livestock, crops and the
				  surface, including adequately fencing or enclosing equipment and
				  pits.
(J) Installing all necessary
				  equipment, seals, locks or other protective devices to prevent theft of
				  hydrocarbons and personal injury; and
(3) No provision in a state lease or in these
				  rules shall relieve a lessee of the obligation to act as a reasonably prudent
				  operator would under the circumstances. This obligation includes, but is not
				  limited to, the drilling of such additional well or wells as may be reasonably
				  necessary for the proper development of a state lease after a lease well
				  capable of producing in paying quantities has been completed.
(4) No discharge of garbage or solid waste in
				  violation of MARPOL Protocol, Title 33, Chapter 33 of the United States Code or
				  Title 33, Part 151 of the Code of Federal Regulations shall be allowed into
				  state waters from any drilling or support vessel, production platform, crew or
				  supply boat, barge, jack-up rig, or other equipment located on state submerged
				  tracts.