BILL ANALYSIS
H.B. 1407
By: HOLZHEAUSER
02-26-95
Committee Report (Amended)
BACKGROUND
Current law prohibits the Commission from accepting only
applications for drilling permits if an operator is in non-compliance with Commission orders, rules, or permits relating to
safety or pollution. Current law does not prohibit a non-compliant
operator from taking over a new well after it has been drilled.
PURPOSE
This legislation expands and tightens the compliance incentives
enacted for drilling permits in the 91st Legislative Session.
This legislation amends the Natural Resources Code to prohibit a
person who has not complied with Railroad Commission enforcement
orders from obtaining injection or disposal well permits, oil and
gas waste storage, disposal or hauling permits or certificates of
compliance from the Commission. The bill also gives the Commission
discretionary authority, with guidelines, to revoke permits, a
certificate of compliance or an operator's organization report if
the operator has outstanding violations.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Changes Section 91.110, Natural Resources Code, to
91.114 (currently two 91.110 sections exist) and amends
the Section as follows:
Subsection (a) provides that the commission may not
accept applications for permits under Chapters 85
or 91, Natural Resources Code, or under Chapters
26, 27, or 29, Water Code, or issue a certificate
of compliance under Chapter 85.161 if certain
persons named in Subdivision (a)(1) hold an
specified interest in organizations that have
violated a rule, order, license, permit, or
certificate that relates to safety or pollution as
provided in Subdivision (a)(2) and the violation
has not been corrected in compliance with
Subsection (d).
Subsection (e) is added and provides that the
commission may revoke a permit named in Subsection
(a), a certificate of compliance, or an
organization report, if the holder is not in
compliance with the conditions set out in
Subdivisions (a)(1) and (2) of the Act. The
Subsection requires that the commission order
entered in a revocation proceeding provide a
reasonable period of time to comply with the order
before revocation is effective.
Subsection (f) is added and provides that the
commission may not revoke a permit, certificate of
compliance or organization report if the holder has
fulfilled the conditions in Subsection (d) of the
Act.
Subsection (g) is added and provides that the
commission in a revocation proceeding must consider
the person's history of previous violations, the
seriousness of previous violations, any hazard to
the health or safety of the public, and the
demonstrated good faith of the holder of the
permit, certificate or report.
SECTION 2. Effective Date: September 1, 1995.
SECTION 4. Emergency Clause.
EXPLANATION OF AMENDMENTS
Committee amendment No. 1 applies Section 85.161, Natural Resources
Code, to this bill rather than the incorrect citing of "Chapter"
85.161. Amendment No. 1 also allows non-complying organizations to
obtain permits from the Railroad Commission if they are on schedule
to correct conditions causing them to be out of compliance.
SUMMARY OF COMMITTEE ACTION
H.B. 1407 was considered by the Energy Resources Committee in a
public hearing on March 6, 1995. The committee considered one
amendment to the bill. The amendment was adopted. The following
witnesses testified in favor of the bill:
Lindsey Dingmore, representing T.I.P.R.O.; and,
Rob Looney, representing the Texas Mid-Continent Oil and Gas
Association.
Brenda Loudermilk of the Railroad Commission of Texas testified
neutrally on the bill. No one testified against the bill.
The bill was reported favorably as amended, with the recommendation
that it do pass and be printed and be sent to the Committee on
Local and Consent Calendars, by a record vote of
8 ayes, 0 nays, 0 PNV, and 1 absent.