By Holzheauser 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.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 91.110, Natural Resources Code, as added
1-7 by Acts 1991, 72nd Leg., ch. 603, Section 13, is amended to read
1-8 as follows:
1-9 Sec. 91.114<0>. Filing of a <Drilling> Permit Application or
1-10 Certificate of Compliance; Revocation
1-11 (a) The commission may not accept an application for a
1-12 permit under Chapters 85 or 91 of this code or Chapters 26, 27 or
1-13 29, Water Code or issue a certificate of compliance under Chapter
1-14 85.161 of this code <Subsection (a) of Section 85.2021 of this
1-15 code> if:
1-16 (1) an officer, director, general partner, owner of
1-17 more than 25 percent ownership interest, or trustee of the
1-18 organization has, within the five years preceding the date on which
1-19 the organization report is filed, held a position of ownership or
1-20 control in the organization for which the application is filed or
1-21 in any other organization registered with the commission; and
1-22 (2) during that period of ownership or control the
1-23 organization violated a provision of this title or a commission
2-1 rule, order, license, permit, or certificate that relates to safety
2-2 or the prevention or control of pollution.
2-3 (b) An organization has committed a violation if:
2-4 (1) an order finding the violation has been entered
2-5 against the organization and all appeals have been exhausted; or
2-6 (2) the commission and the organization have entered
2-7 into an agreed order relating to the alleged violation.
2-8 (c) A person holds a position of ownership or control in an
2-9 organization if the person is:
2-10 (1) an officer or director;
2-11 (2) a general partner;
2-12 (3) the owner of a sole proprietorship;
2-13 (4) the owner of more than a 25 percent ownership
2-14 interest; or
2-15 (5) the designated trustee.
2-16 (d) The commission shall accept the application if:
2-17 (1) the conditions that constituted the violation are
2-18 corrected;
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 Chapters
2-25 85 or 91 of this code or Chapters 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), if it finds
3-11 that the holder of a permit, certificate or report has fulfilled
3-12 the conditions set out in Subsection (d).
3-13 (g) In determining whether or not to revoke a permit,
3-14 certificate of compliance or organization report under Subsection
3-15 (e), the commission shall consider the person's history of previous
3-16 violations, the seriousness of previous violations, any hazard to
3-17 the health or safety of the public, and the demonstrated good faith
3-18 of the holder of the permit, certificate or report.
3-19 SECTION 2. This Act takes effect September 1, 1995.
3-20 SECTION 3. The importance of this legislation and the
3-21 crowded condition of the calendars in both houses create an
3-22 emergency and an imperative public necessity that the
3-23 constitutional rule requiring bills to be read on three several
3-24 days in each house be suspended, and this rule is hereby suspended.