Relating to the treatment and beneficial use of fluid oil and gas waste and related material, including a limitation on liability for that treatment or use.

Contracts

Legal departments must amend agreements to operationalize the "contractual understanding" requirement in Section 122.003(a). Without this specific language, the liability shield is void.

• Master Service Agreements (MSAs): Insert clauses stating that fluid waste is transferred with the specific intent of treatment and beneficial use.
• Offtake/Sales Agreements: Contracts transferring treated waste to third parties must explicitly obligate the buyer to put the material to beneficial use.
• Surface Use Agreements: Leverage Section 1(a-2) to negotiate lower indemnity caps, as the statute now provides surface owners independent protection from third-party liability.

Hiring/Training

• Dispatch & Logistics: Train personnel handling manifests to verify that waste destined for treatment is coded correctly. A standard disposal manifest may not satisfy the "intent for beneficial use" evidentiary standard.
• Permit Compliance: Operational teams must understand that regulatory non-compliance now creates tort liability. Any deviation from RRC/TCEQ permit parameters automatically voids the statutory liability shield.

Reporting & Record-Keeping

• Chain of Custody: Maintain a rigorous audit trail linking the waste generator to the treatment facility and the final beneficial user. You must prove the "contractual understanding" existed at the moment of transfer.
• Compliance Logs: Maintain daily logs proving adherence to Section 122.004 rules and TPDES permits. In the event of a lawsuit, these logs are the primary defense to prove eligibility for the liability cap.

Fees & Costs

• No New State Fees: The bill does not impose new regulatory fees.
• Insurance Savings: Risk managers should contact carriers immediately. The statutory limitation on liability and the ban on exemplary damages for compliant operators should be leveraged to negotiate reduced premiums for General Liability and Pollution Legal Liability policies.