BILL ANALYSIS


                                                        H.B. 1407
                                        By: Holzheauser (Sponsor)
                                                Natural Resources
                                                         05-19-95
                              Senate Committee Report (Unamended)
BACKGROUND

Current law prohibits the Railroad Commission of Texas from
accepting applications for drilling permits if an operator is in
noncompliance with commission orders, rules, or permits relating to
safety or pollution.  Current law does not prohibit a noncompliant
operator from taking over a new well after it has been drilled.

PURPOSE

As proposed, H.B. 1407 prohibits a person who has not complied with
orders of the Railroad Commission of Texas from obtaining injection
or disposal well permits; oil and gas waste storage, disposal, or
hauling permits; or certificates of compliance from the commission. 
Authorizes the commission 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. Amends Section 91.114, Natural Resources Code, as
follows:

     Sec. 91.114.  New heading: FILING OF A PERMIT APPLICATION OR
     CERTIFICATE OF COMPLIANCE; REVOCATION.  (a) Prohibits the
     Railroad Commission of Texas (commission) from accepting an
     application for a permit under Chapter 85 or 91 of this code
     or Chapter 26, 27, or 29, Water Code, or issuing a certificate
     of compliance under Section 85.161 of this code if, among
     other circumstances, an officer of the organization, within
     five years preceding the date on which the organization report
     is filed, held a position of ownership or control in any
     organization registered with the commission.
     
     (b)-(c) Make no change.
       
       (d) Requires the commission to accept the application if the
       correction of the conditions that constituted the violation
       is on schedule, in the event that the commission and
       organization have agreed on a schedule for correcting the
       conditions.
       
       (e) Authorizes the commission to revoke a permit under
       Chapter 85 or 91 of this code or Chapter 26, 27, or 29,
       Water Code, a certificate of compliance under Section 85.161
       of this code, or an organization report under Section 91.142
       of this code, if the commission finds that the conditions of
       Subdivisions (a)(1) and (a)(2) of this section exist as to
       the holder of any permit, certificate, or report.  Requires
       an order of the commission entered as a result of a
       revocation proceeding to provide a reasonable period of time
       to comply with the order before the revocation of a permit,
       certificate, or report is effective.
       
       (f) Prohibits the commission from revoking a permit,
       certificate of compliance, or organization report under
       Subsection (e) of this section if it finds that the holder
       of a permit, certificate, or report has fulfilled the
       conditions set out in Subsection (d) of this section.
       
       (g) Requires the commission, in determining whether to
       revoke a permit, certificate of compliance, or organization
       report under Subsection (e), to 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 3. Emergency clause.