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By: Schwertner, Zaffirini |
S.B. No. 1872 |
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(In the Senate - Filed March 8, 2023; March 20, 2023, read |
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first time and referred to Committee on Business & Commerce; |
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May 1, 2023, reported adversely, with favorable Committee |
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Substitute by the following vote: Yeas 10, Nays 1; May 1, 2023, |
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sent to printer.) |
| Click here to see the committee vote |
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COMMITTEE SUBSTITUTE FOR S.B. No. 1872 |
By: Schwertner |
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A BILL TO BE ENTITLED
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AN ACT
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relating to certain contracts for the sale, transportation, or |
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gathering of natural gas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 81.060, Natural Resources Code, is |
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amended by adding Subsections (c) and (d) to read as follows: |
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(c) A confidentiality provision may not be required in a |
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contract between the owner or operator of a pipeline and a shipper |
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for the sale, transportation, or gathering of natural gas that is |
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entered into on or after September 1, 2023, unless the inclusion of |
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the confidentiality provision is requested in writing by one of the |
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parties to the contract before the execution of the contract. |
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(d) A confidentiality provision in a contract between the |
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owner or operator of a pipeline and a shipper for the sale, |
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transportation, or gathering of natural gas that was entered into |
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before September 1, 2023, becomes unenforceable on the date the |
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term of the contract expires, unless the continuation of the |
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confidentiality provision is requested in writing by one of the |
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parties to the contract before the date the term of the contract |
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expires. |
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SECTION 2. Subchapter C, Chapter 86, Natural Resources |
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Code, is amended by adding Section 86.045 to read as follows: |
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Sec. 86.045. INVESTIGATION OF USE OF FORCE MAJEURE. (a) |
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During a weather emergency, a purchaser of natural gas that |
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receives a notice from a person with which the purchaser contracted |
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to receive natural gas that the person can no longer make natural |
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gas available for delivery to the purchaser due to force majeure may |
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report to the commission that: |
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(1) the purchaser received the notice; and |
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(2) the purchaser reasonably believes that the person |
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sold the natural gas that would have otherwise been available for |
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delivery to the purchaser to a different purchaser at a higher price |
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than that provided in the original purchaser's contract. |
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(b) On receiving the report under Subsection (a), the |
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commission may investigate to determine whether a person providing |
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natural gas service has made a sale described by Subsection (a)(2) |
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in a manner that violates state law. If the commission determines |
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that the person has made a sale described by Subsection (a)(2) in a |
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manner that violates state law, the commission may notify the |
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attorney general. The attorney general may initiate a suit to |
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recover any penalties authorized by law. |
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SECTION 3. This Act takes effect September 1, 2023. |
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