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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 83(R)

Senate Bill 900

Senate Author:  Fraser

Effective:  9-1-13

House Sponsor:  Wu


            Senate Bill 900 amends the Natural Resources Code and the Utilities Code regarding the amounts of the administrative, civil, and criminal penalties for violating certain statutes under the jurisdiction of, rules or orders adopted by, or licenses, permits, or certificates issued by the Railroad Commission of Texas.  The bill, among other things, increases the cap on certain penalties, including penalties specifically related to pipeline safety violations, and sets or increases caps on the maximum penalty for a related series of certain violations.  Affected violations and offenses include the following:

·         a violation of oil and gas provisions relating to safety or to the prevention or control of pollution;

·         a violation of provisions governing the hazardous liquid or carbon dioxide pipeline transportation industry;

·         the offense of intentionally violating provisions governing the hazardous liquid or carbon dioxide pipeline transportation industry or a related rule;

·         the offense of intentionally injuring or destroying a pipeline facility;

·         a violation of a safety standard adopted under provisions relating to gas pipeline safety;

·         a violation of provisions relating to railroad commission safety rules regarding gas pipeline safety;

·         a violation by a gas utility of gas pipeline provisions or a failure of the utility to perform a duty under those provisions or to comply with a railroad commission order;

·         a violation by a gas utility of gas pipeline provisions, or a failure of the utility to perform a duty under those provisions or to comply with a railroad commission order, relating to pollution or public safety; and

·         an offense by certain applicable persons relating to a wilful violation of provisions governing gas pipelines or the gas utility pipeline tax.

Senate Bill 900 establishes that a person who owns a natural gas pipeline, a liquefied natural gas pipeline, or an underground storage facility is not a gas utility under the same conditions that a person operating such a pipeline or facility is not a gas utility under provisions relating to the transportation of natural gas to and from a liquefied natural gas marine terminal.  The bill specifies that such provisions do not create an exception to the applicability of a pipeline safety requirement provided under gas pipeline provisions or a penalty for a violation of such a requirement.