1-1 By: Holzheauser, Kamel (Senate Sponsor - Barrientos) H.B. No. 1407
1-2 (In the Senate - Received from the House April 21, 1995;
1-3 April 24, 1995, read first time and referred to Committee on
1-4 Natural Resources; May 19, 1995, reported favorably by the
1-5 following vote: Yeas 10, Nays 0; May 19, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to applications for oil and gas permits and revocation of
1-9 permits, certificates of compliance, and organization reports filed
1-10 with the Railroad Commission of Texas.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 91.114, Natural Resources Code, is
1-13 amended to read as follows:
1-14 Sec. 91.114. FILING OF A <DRILLING> PERMIT APPLICATION OR
1-15 CERTIFICATE OF COMPLIANCE; REVOCATION. (a) The commission may not
1-16 accept an application for a permit under Chapter 85 or 91 of this
1-17 code or Chapter 26, 27, or 29, Water Code, or issue a certificate
1-18 of compliance under Section 85.161 of this code <Subsection (a) of
1-19 Section 85.2021 of this code> if:
1-20 (1) an officer, director, general partner, owner of
1-21 more than 25 percent ownership interest, or trustee of the
1-22 organization has, within the five years preceding the date on which
1-23 the organization report is filed, held a position of ownership or
1-24 control in the organization for which the application is filed or
1-25 in any other organization registered with the commission; and
1-26 (2) during that period of ownership or control the
1-27 organization violated a provision of this title or a commission
1-28 rule, order, license, permit, or certificate that relates to safety
1-29 or the prevention or control of pollution.
1-30 (b) An organization has committed a violation if:
1-31 (1) an order finding the violation has been entered
1-32 against the organization and all appeals have been exhausted; or
1-33 (2) the commission and the organization have entered
1-34 into an agreed order relating to the alleged violation.
1-35 (c) A person holds a position of ownership or control in an
1-36 organization if the person is:
1-37 (1) an officer or director;
1-38 (2) a general partner;
1-39 (3) the owner of a sole proprietorship;
1-40 (4) the owner of more than a 25 percent ownership
1-41 interest; or
1-42 (5) the designated trustee.
1-43 (d) The commission shall accept the application if:
1-44 (1) the conditions that constituted the violation are
1-45 corrected or, in the event the commission and the organization have
1-46 agreed on a schedule for correcting the conditions, the correction
1-47 of the conditions is on schedule;
1-48 (2) all administrative, civil, and criminal penalties
1-49 relating to those conditions are paid; and
1-50 (3) all reimbursements of costs and expenses assessed
1-51 by the commission to be collected in relation to those conditions
1-52 are collected.
1-53 (e) The commission may revoke a permit issued under Chapter
1-54 85 or 91 of this code or Chapter 26, 27, or 29, Water Code, a
1-55 certificate of compliance issued under Section 85.161 of this code,
1-56 or an organization report filed under Section 91.142 of this code
1-57 if the commission finds that the conditions of Subdivisions (a)(1)
1-58 and (a)(2) of this section exist as to the holder of any permit,
1-59 certificate, or report. An order of the commission entered as a
1-60 result of a revocation proceeding shall provide a reasonable period
1-61 of time to comply with the order before the revocation of a permit,
1-62 certificate, or report is effective.
1-63 (f) The commission may not revoke a permit, certificate of
1-64 compliance, or organization report under Subsection (e) of this
1-65 section if it finds that the holder of a permit, certificate, or
1-66 report has fulfilled the conditions set out in Subsection (d) of
1-67 this section.
1-68 (g) In determining whether or not to revoke a permit,
2-1 certificate of compliance, or organization report under Subsection
2-2 (e) of this section, the commission shall consider the person's
2-3 history of previous violations, the seriousness of previous
2-4 violations, any hazard to the health or safety of the public, and
2-5 the demonstrated good faith of the holder of the permit,
2-6 certificate, or report.
2-7 SECTION 2. This Act takes effect September 1, 1995.
2-8 SECTION 3. The importance of this legislation and the
2-9 crowded condition of the calendars in both houses create an
2-10 emergency and an imperative public necessity that the
2-11 constitutional rule requiring bills to be read on three several
2-12 days in each house be suspended, and this rule is hereby suspended.
2-13 * * * * *