By Holzheauser, Kamel H.B. No. 1407
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to applications for oil and gas permits and revocation of
1-3 permits, certificates of compliance, and organization reports filed
1-4 with the Railroad Commission of Texas.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 91.114, Natural Resources Code, is
1-7 amended to read as follows:
1-8 Sec. 91.114. FILING OF A <DRILLING> PERMIT APPLICATION OR
1-9 CERTIFICATE OF COMPLIANCE; REVOCATION. (a) The commission may not
1-10 accept an application for a permit under Chapter 85 or 91 of this
1-11 code or Chapter 26, 27, or 29, Water Code, or issue a certificate
1-12 of compliance under Section 85.161 of this code <Subsection (a) of
1-13 Section 85.2021 of this code> if:
1-14 (1) an officer, director, general partner, owner of
1-15 more than 25 percent ownership interest, or trustee of the
1-16 organization has, within the five years preceding the date on which
1-17 the organization report is filed, held a position of ownership or
1-18 control in the organization for which the application is filed or
1-19 in any other organization registered with the commission; and
1-20 (2) during that period of ownership or control the
1-21 organization violated a provision of this title or a commission
1-22 rule, order, license, permit, or certificate that relates to safety
1-23 or the prevention or control of pollution.
2-1 (b) An organization has committed a violation if:
2-2 (1) an order finding the violation has been entered
2-3 against the organization and all appeals have been exhausted; or
2-4 (2) the commission and the organization have entered
2-5 into an agreed order relating to the alleged violation.
2-6 (c) A person holds a position of ownership or control in an
2-7 organization if the person is:
2-8 (1) an officer or director;
2-9 (2) a general partner;
2-10 (3) the owner of a sole proprietorship;
2-11 (4) the owner of more than a 25 percent ownership
2-12 interest; or
2-13 (5) the designated trustee.
2-14 (d) The commission shall accept the application if:
2-15 (1) the conditions that constituted the violation are
2-16 corrected or, in the event the commission and the organization have
2-17 agreed on a schedule for correcting the conditions, the correction
2-18 of the conditions is on schedule;
2-19 (2) all administrative, civil, and criminal penalties
2-20 relating to those conditions are paid; and
2-21 (3) all reimbursements of costs and expenses assessed
2-22 by the commission to be collected in relation to those conditions
2-23 are collected.
2-24 (e) The commission may revoke a permit issued under Chapter
2-25 85 or 91 of this code or Chapter 26, 27, or 29, Water Code, a
3-1 certificate of compliance issued under Section 85.161 of this code,
3-2 or an organization report filed under Section 91.142 of this code
3-3 if the commission finds that the conditions of Subdivisions (a)(1)
3-4 and (a)(2) of this section exist as to the holder of any permit,
3-5 certificate, or report. An order of the commission entered as a
3-6 result of a revocation proceeding shall provide a reasonable period
3-7 of time to comply with the order before the revocation of a permit,
3-8 certificate, or report is effective.
3-9 (f) The commission may not revoke a permit, certificate of
3-10 compliance, or organization report under Subsection (e) of this
3-11 section if it finds that the holder of a permit, certificate, or
3-12 report has fulfilled the conditions set out in Subsection (d) of
3-13 this section.
3-14 (g) In determining whether or not to revoke a permit,
3-15 certificate of compliance, or organization report under Subsection
3-16 (e) of this section, the commission shall consider the person's
3-17 history of previous violations, the seriousness of previous
3-18 violations, any hazard to the health or safety of the public, and
3-19 the demonstrated good faith of the holder of the permit,
3-20 certificate, or report.
3-21 SECTION 2. This Act takes effect September 1, 1995.
3-22 SECTION 3. The importance of this legislation and the
3-23 crowded condition of the calendars in both houses create an
3-24 emergency and an imperative public necessity that the
3-25 constitutional rule requiring bills to be read on three several
4-1 days in each house be suspended, and this rule is hereby suspended.