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.