Texas SB1399 modifies liability rules for fluid oil and gas waste and its byproducts.

Texas SB1399 amends the Natural Resources Code to redefine liability for fluid oil and gas waste and its byproducts. It specifies that a person who takes possession of fluid oil and gas waste, produces a treated product, and either uses it or transfers it for beneficial use is not liable for subsequent use consequences unless gross negligence or regulatory nonconformity is proven. The bill also clarifies ownership rules for waste transferred for treatment and beneficial use. The changes apply to causes of action accruing after the bill's effective date of September 1, 2025.

Texas SB1399 modifies liability rules for fluid oil and gas waste and its byproducts.

Texas SB1399 amends the Natural Resources Code to redefine liability for fluid oil and gas waste and its byproducts. It specifies that a person who takes possession of fluid oil and gas waste, produces a treated product, and either uses it or transfers it for beneficial use is not liable for subsequent use consequences unless gross negligence or regulatory nonconformity is proven. The bill also clarifies ownership rules for waste transferred for treatment and beneficial use. The changes apply to causes of action accruing after the bill's effective date of September 1, 2025.