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TITLE 16ECONOMIC REGULATION
PART 1RAILROAD COMMISSION OF TEXAS
CHAPTER 3OIL AND GAS DIVISION
RULE §3.29Hydraulic Fracturing Chemical Disclosure Requirements

Regulations §1910.1200(i) with respect to a written statement of need and confidentiality agreements, as applicable.

(d) Disclosures not required. A supplier, service company, or operator is not required to:

  (1) disclose ingredients that are not disclosed to it by the manufacturer, supplier, or service company;

  (2) disclose ingredients that were not intentionally added to the hydraulic fracturing treatment;

  (3) disclose ingredients that occur incidentally or are otherwise unintentionally present which may be present in trace amounts, may be the incidental result of a chemical reaction or chemical process, or may be constituents of naturally occurring materials that become part of a hydraulic fracturing fluid; or

  (4) identify specific chemical ingredients and/or their CAS numbers that are claimed as entitled to trade secret protection based on the additive in which they are found or provide the concentration of such ingredients, unless the Office of the Attorney General, or a court of proper jurisdiction on appeal of a determination by the Office of the Attorney General, determines that the information would not be entitled to trade secret protection under Texas Government Code, Chapter 552, if the information had been provided to the Commission.

(e) Trade secret protection.

  (1) A supplier, service company, or operator is not required to disclose trade secret information, unless the Office of the Attorney General or a court of proper jurisdiction determines that the information is not entitled to trade secret protection under Texas Government Code, Chapter 552.

  (2) If the specific identity and/or CAS number of a chemical ingredient, the concentration of a chemical ingredient, or both the specific identity and/or CAS number and concentration of a chemical ingredient are claimed or have been finally determined to be entitled to protection as a trade secret under Texas Government Code, Chapter 552, the supplier, service company, or operator, as applicable, may withhold the specific identity and/or CAS number, the concentration, or both the specific identity and/or CAS number and concentration, of the chemical ingredient from the information provided to the operator. If the supplier, service company, or operator, as applicable, elects to withhold that information, the supplier, service company, or operator, as applicable, must provide to the operator or the Commission, as applicable, information that:

    (A) indicates that the specific identity and/or CAS number of the chemical ingredient, the concentration of the chemical ingredient, or both the specific identity and/or CAS number and concentration of the chemical ingredient are entitled to protection as trade secret information; and

    (B) discloses the chemical family associated with the chemical ingredient; or

    (C) discloses the properties and effects of the chemical ingredient(s), the identity of which is withheld.

(f) Trade secret challenge.

  (1) The following persons may submit a request challenging a claim of entitlement to trade secret protection for any chemical ingredients and/or CAS numbers used in the hydraulic fracturing treatment(s) of a well:

    (A) the landowner on whose property the relevant wellhead is located;

    (B) the landowner who owns real property adjacent to property described in subparagraph (A) of this paragraph; or

    (C) a department or agency of this state with jurisdiction over a matter to which the claimed trade secret information is relevant.

  (2) A requestor must certify in writing to the director, over the requestor's signature, to the following:

    (A) the requestor's name, address, and daytime phone number;

    (B) if the requestor is a landowner, a statement that the requestor is listed on the county appraisal roll as owning the property on which the relevant wellhead is located or is listed on the county appraisal roll as owning property adjacent to the property on which the relevant wellhead is located;

    (C) the county in which the wellhead is located; and

    (D) the API number or other Railroad Commission of Texas identifying information, such as field name, oil lease name and number, gas identification number, and well number.

  (3) A requestor may use the following format to provide the written certification required by paragraph (2) of this subsection:

Attached Graphic

  (4) A requestor must file a request no later than 24 months from the date the operator filed the well completion report for the well on which the hydraulic fracturing treatment(s) were performed. A landowner who owned the property on which the wellhead is located, or owned adjacent property, on or after the date the operator filed with the Commission the completion report for the subject well may challenge a claim of entitlement to trade secret protection within that 24-month period only. The Commission will determine whether or not the request has been received within the allowed 24-month period.

  (5) If the Commission determines that the request has been received within the allowed 24-month period and the certification is properly completed and signed, the Commission will consider this sufficient for the purpose of forwarding the request to the Office of the Attorney General.

  (6) Within 10 business days of receiving a request that complies with paragraph (2) of this subsection, the director must:

    (A) submit to Office of the Attorney General, Open Records Division, a request for decision regarding the challenge;

    (B) notify the operator of the subject well and the owner of the claimed trade secret information of the submission of the request to the Office of the Attorney General and of the requirement that the owner of the claimed trade secret information submit directly to the Office of Attorney General, Open Records Division, the claimed trade secret information, clearly marked "confidential," submitted under seal; and

    (C) inform the owner of the claimed trade secret information of the opportunity to substantiate to the Office of the Attorney General, Open Records Division, its claim of entitlement of trade secret protection, in accordance with Texas Government Code, Chapter 552.

  (7) If the Office of the Attorney General determines that the claim of entitlement to trade secret protection is valid under Texas Government Code, Chapter 552, if the information had been provided to the Commission, the owner of the claimed trade secret information shall not be required to disclose the trade secret information, subject to appeal.

  (8) The request shall be deemed withdrawn if, prior to the determination of the Office of the Attorney General on the validity of the trade secret claim, the owner of the claimed trade secret information provides confirmation to the Commission and the Office of the Attorney General that the owner of the claimed trade secret information has voluntarily provided the information that is the subject of the request to the requestor subject to a claim of trade secret protection, or the requestor submits to the Commission and the Office of the Attorney General a written notice withdrawing the request.

  (9) A final determination by the Office of the Attorney General regarding the challenge to the claim of entitlement of trade secret protection of any withheld information may be appealed within 10 business days to a district court of Travis County pursuant to Texas Government Code, Chapter 552.

  (10) If the Office of the Attorney General, or a court of proper jurisdiction on appeal of a determination by the Office of the Attorney General, determines that the withheld information would not be entitled to trade secret protection under Texas Government Code, Chapter 552, if the information had been provided to the Commission, the owner of the claimed trade secret information must disclose such information to the requestor as directed by the Office of the Attorney General or a court of proper jurisdiction on appeal.

(g) Trade secret confidentiality. A health professional or emergency responder to whom information is disclosed under subsection (c)(4) of this section must hold the information confidential, except that the health professional or emergency responder may, for diagnostic or treatment purposes, disclose information provided under that subsection to another health professional, emergency responder, or accredited laboratory. A health professional, emergency responder, or accredited laboratory to which information is disclosed by another health professional or emergency responder under this subsection must hold the information confidential and the disclosing health professional or emergency responder must include with the disclosure, or in a medical emergency, as soon as circumstances permit, a statement of the recipient's confidentiality obligation pursuant to this subsection.

(h) Penalties. A violation of this section may subject a person to any penalty or remedy specified in the Texas Natural Resources Code, Title 3, and any other statutes administered by the Commission. The certificate of compliance for any oil, gas, or geothermal resource well may be revoked in the manner provided in §3.73 of this title (relating to Pipeline Connection; Cancellation of Certificate of Compliance; Severance) (Rule 73) for violation of this section.


Source Note: The provisions of this §3.29 adopted to be effective January 2, 2012, 36 TexReg 9307

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