(a) In this section, “evaporation pit” means a pit into which water, including rainwater or storm water runoff, is or has been placed and retained for the purpose of collecting, after the water’s evaporation, brine water or residual minerals, salts, or other substances present in the water, and for the purpose of storing brine water and minerals.
(b) This section applies only to evaporation pits:
(1) operated for the commercial production of brine water, minerals, salts, or other substances that naturally occur in groundwater; and
(2) that are not regulated by the Railroad Commission of Texas.

(c) The owner or operator of an evaporation pit shall ensure that the pit is lined as provided by this subsection and rules adopted under this subsection. An evaporation pit must have a liner designed by an engineer who holds a license issued under Chapter 1001, Occupations Code, to minimize surface water and groundwater pollution risks. The liner must meet standards at least as stringent as those adopted by the commission for a Type I landfill managing Class I industrial solid waste.
(d) An owner or operator may not place or permit the placement of groundwater or on-site storm water runoff into an evaporation pit if the pit does not comply with this section or with rules adopted or orders issued under this section.
(e) The owner or operator of an evaporation pit shall ensure that:
(1) storm water runoff is diverted away from or otherwise prevented from entering the evaporation pit; and
(2) all berms and other structures used to manage storm water are properly constructed and maintained in a manner to prevent the threat of water pollution from the evaporation pit.
(f) The owner or operator of an evaporation pit may not by act or omission cause:
(1) water pollution from the evaporation pit; or
(2) a discharge from the evaporation pit into or adjacent to water in the state.
(g) The owner or operator of an evaporation pit shall ensure that the pit is located so that a failure of the pit or a discharge from the pit does not result in an adverse effect on water in the state.
(h) The owner or operator of an evaporation pit shall provide the commission with proof that the owner or operator has financial assurance adequate to ensure satisfactory closure of the pit.
(i) The owner or operator of an evaporation pit shall provide the commission with proof that the owner or operator of the pit has a third party pollution liability insurance policy that:
(1) is issued by an insurance company authorized to do business in this state that has a rating by the A. M. Best Company of “A-” or better;
(2) covers bodily injury and property damage to third parties caused by accidental sudden or nonsudden occurrences arising from operations at the pit; and
(3) is in an amount of not less than $3 million.
(j) The commission shall adopt rules as necessary to protect surface water and groundwater quality from the risks presented by commercial evaporation pits and as necessary to administer and enforce this section, including rules:
(1) governing the location, design, construction, capacity, operations, maintenance, and closure of evaporation pits;
(2) ensuring that the owner or operator of an evaporation pit has adequate financial assurance; and
(3) requiring an owner or operator of an evaporation pit to obtain a permit from the commission for the operation of the pit.
(k) The commission shall impose against the owners of evaporation pits fees in amounts necessary to recover the costs of administering this section.