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.