Relating to the inspection, purchase, sale, possession, storage, transportation, and disposal of petroleum products, oil and gas equipment, and oil and gas waste; creating criminal offenses and increasing the punishment for an existing criminal offense.

Contracts

• Master Service Agreements (MSAs): You must amend MSAs with trucking/transport vendors immediately. Include indemnification clauses specifically addressing the driver's failure to identify the "initial owner" on manifests, which is now a criminal predicate.
• Purchase Agreements: Update crude and condensate purchase contracts to include a mandatory warranty that the seller possesses a valid, active RRC P-5 Organization Report.
• Disposal Agreements: Commercial disposal facilities (SWDs) must update intake agreements to refuse any load that does not explicitly document the originating lease/operator.

Hiring/Training

• Driver Protocols: Update driver safety manuals regarding DPS "comprehensive inspections." Drivers must be trained to facilitate forensic sampling of cargo tanks without violating OSHA standards or causing environmental spills.
• Procurement Staff: Accounts Payable and Procurement teams require training to perform "Hard Stop" verifications. They must verify a seller’s RRC authorization status *before* issuing a purchase order or payment.

Reporting & Record-Keeping

• Run Tickets/Manifests: Dispatch software must be updated to make the "Initial Owner" (Operator/Lease Name) a mandatory field. Drivers cannot accept "blind" loads.
• Vendor Verification Logs: Maintain a timestamped audit trail proving you verified a seller's RRC status prior to transaction. This is your primary affirmative defense against charges of unauthorized purchasing.
• Seizure Receipts: If DPS extracts a sample for forensic analysis, drivers must obtain a chain-of-custody receipt to reconcile inventory losses, as this product is now evidence.

Fees & Costs

• Asset Seizure: The law authorizes the immediate sale of seized product at NYMEX market rates. If product is seized, you lose the physical commodity immediately; recovery is limited to cash proceeds after legal adjudication.
• Insurance Gaps: Review General Liability and D&O policies. Many policies exclude coverage for criminal acts. Since regulatory breaches (e.g., unpermitted disposal) are now felonies, defense costs for these allegations may be uninsurable.