Texas Water Code
§ 27.073 — FINANCIAL RESPONSIBILITY
WA § 27.073Title 2. WATER ADMINISTRATION · Part D. WATER QUALITY CONTROL · Ch. 27. INJECTION WELLS · Art. E. GENERAL POWERS
Statute text
View on source(a)A person to whom an injection well permit is issued may be required by the commission or railroad commission to maintain a performance bond or other form of financial security to ensure that:
(1)an abandoned injection well is properly plugged; or
(2)funds are available for plugging, postinjection site care, and closure of an anthropogenic carbon dioxide injection well subject to Subchapter C-1. (a-1) Notwithstanding Subsection (a), a person to whom an in situ uranium mining injection well, monitoring well, or production well permit is issued shall be required by the commission to maintain a performance bond or other form of financial security to ensure that an abandoned well is properly plugged.
(b)Each state agency is authorized to receive funds as the beneficiary of a financial responsibility mechanism established under this section for the proper plugging of an injection well. Each state agency is authorized to expend such funds from a financial responsibility mechanism for the plugging of wells covered by that mechanism. (b-1) The railroad commission is authorized to receive funds as the beneficiary of a financial responsibility mechanism established under this chapter for the proper management of an anthropogenic carbon dioxide injection well or geologic storage facility. The funds shall be deposited to the credit of the anthropogenic carbon dioxide storage trust fund established under Section 121.003, Natural Resources Code.
(c)If liability insurance is required of an applicant, the applicant may not use a claims made policy as security unless:
(1)the policy provides for a right of extension by the insured upon cancellation or nonrenewal of the policy by the insurance company;
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Legislative history
Acts 2007, 80th Leg., R.S., Ch. 1118 (H.B. 3838), Sec. 7, eff. September 1, 2007. Acts 2009, 81st Leg., R.S., Ch. 224 (S.B. 1387), Sec. 5, eff. September 1, 2009. Acts 2021, 87th Leg., R.S., Ch. 460 (H.B. 1284), Sec. 14, eff. June 9, 2021.