Relating to permits issued by the Railroad Commission of Texas for commercial surface disposal facilities.

Contracts

• Master Service Agreements (MSAs): Upstream operators must amend waste disposal agreements. Insert a clause requiring disposal vendors to represent and warrant that they have filed renewal applications by the statutory 120-day deadline.
• Capacity Guarantees: Facility owners must review long-term disposal contracts. If your compliance history risks a permit denial or a shortened term (e.g., 2 years instead of 10), ensure your force majeure or termination clauses cover regulatory reduction of permit terms.

Hiring/Training

• Compliance Staff: No new certifications are required, but regulatory managers must be retrained on the new "cross-facility" liability. A violation at *Site A* now directly impacts the permit term for *Site B*.
• Docketing: Legal assistants must update docketing software to trigger renewal alerts at 180 days prior to expiration, ensuring ample time to meet the 120-day hard stop.

Reporting & Record-Keeping

• Pre-Filing Audit: Before submitting a renewal, you must conduct an internal audit of all "Quarterly Reports" and "Inspection History" for *all* your surface disposal facilities. The RRC will use these specific records to set your permit term.
• Rebuttal Documentation: If your audit reveals violations, prepare a "Corrective Action Statement" to submit with your renewal application to argue against a shortened permit term.

Fees & Costs

• Administrative Costs: While filing fees remain unchanged, the potential for shorter permit terms (e.g., 5 years vs. 10 years) will double your long-term legal and engineering costs associated with renewal applications.
• Risk Premium: Expect increased scrutiny from insurance carriers regarding Environmental Impairment Liability (EIL) policies if the RRC issues a short-term permit due to "compliance history."