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.
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