H.B. No. 40

	AN ACT
	relating to the exclusive jurisdiction of this state to regulate
	oil and gas operations in this state and the express preemption of
	local regulation of those operations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  The legislature finds that the laws and policy of
	this state have fostered successful development of oil and gas
	resources in concert with the growth of healthy and economically
	vibrant communities for over 100 years. The legislature
	acknowledges this cooperative progress and that mutual benefit is
	derived from the statutes already in effect, which provide
	effective and environmentally sound regulation of oil and gas
	operations that is so comprehensive and pervasive that the
	regulation occupies the field, while facilitating the overriding
	policy objective of this state of fully and effectively exploiting
	oil and gas resources while protecting the environment and the
	public's health and safety. The legislature recognizes that in
	order to continue this prosperity and the efficient management of a
	key industry in this state, it is in the interest of this state to
	explicitly confirm the authority to regulate oil and gas operations
	in this state. The legislature intends that this Act expressly
	preempt the regulation of oil and gas operations by municipalities
	and other political subdivisions, which is impliedly preempted by
	the statutes already in effect.
	SECTION 2.  Subchapter C, Chapter 81, Natural Resources
	Code, is amended by adding Section 81.0523 to read as follows:
	Sec. 81.0523.  EXCLUSIVE JURISDICTION AND EXPRESS
	PREEMPTION. (a) In this section:
	(1)  "Commercially reasonable" means a condition that
	would allow a reasonably prudent operator to fully, effectively,
	and economically exploit, develop, produce, process, and transport
	oil and gas, as determined based on the objective standard of a
	reasonably prudent operator and not on an individualized assessment
	of an actual operator's capacity to act.
	(2)  "Oil and gas operation" means an activity
	associated with the exploration, development, production,
	processing, and transportation of oil and gas, including drilling,
	hydraulic fracture stimulation, completion, maintenance,
	reworking, recompletion, disposal, plugging and abandonment,
	secondary and tertiary recovery, and remediation activities.
	(b)  An oil and gas operation is subject to the exclusive
	jurisdiction of this state. Except as provided by Subsection (c), a
	municipality or other political subdivision may not enact or
	enforce an ordinance or other measure, or an amendment or revision
	of an ordinance or other measure, that bans, limits, or otherwise
	regulates an oil and gas operation within the boundaries or
	extraterritorial jurisdiction of the municipality or political
	subdivision.
	(c)  The authority of a municipality or other political
	subdivision to regulate an oil and gas operation is expressly
	preempted, except that a municipality may enact, amend, or enforce
	an ordinance or other measure that:
	(1)  regulates only aboveground activity related to an
	oil and gas operation that occurs at or above the surface of the
	ground, including a regulation governing fire and emergency
	response, traffic, lights, or noise, or imposing notice or
	reasonable setback requirements;
	(2)  is commercially reasonable;
	(3)  does not effectively prohibit an oil and gas
	operation conducted by a reasonably prudent operator; and
	(4)  is not otherwise preempted by state or federal
	law.
	(d)  An ordinance or other measure is considered prima facie
	to be commercially reasonable if the ordinance or other measure has
	been in effect for at least five years and has allowed the oil and
	gas operations at issue to continue during that period.
	SECTION 3.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution.  If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2015.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 40 was passed by the House on April
	20, 2015, by the following vote:  Yeas 125, Nays 20, 1 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 40 was passed by the Senate on May 4,
	2015, by the following vote:  Yeas 24, Nays 7.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor