SRC-TNM H.B. 3194 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 3194
By: Alexander (Cain)
Natural Resources
5-13-97
Engrossed


DIGEST 

Currently, a company that desires to build a pipeline for the purpose of
transporting poisonous hydrogen sulfide gas (sour gas) can condemn rights
of way and begin construction on the line before the Texas Railroad
Commission determines whether or not the proposed pipeline will pose an
unreasonable threat to public health or safety.  This can result in the
incurrance of substantial expense by the pipeline owner and certain
property owners related to the condemnation of rights-ofway and
construction when, ultimately, the commission may never grant the
necessary permit to operate.  H.B. 3194 would require pipelines that
propose to carry hydrogen sulfide at a concentration of 100 point parts
per million or more to obtain a signed commission order before beginning
construction of the pipeline facility.   

PURPOSE

As proposed, H.B. 3194 outlines provisions regarding the construction and
operation of certain sour gas pipeline facilities. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Railroad Commission under SECTION 1
(Section 5, Article 6053-4, V.T.C.S.) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 102, Revised V.T.C.S., by adding Article 6053-4,
as follows: 

Art. 6053-4. SOUR GAS PIPELINE FACILITIES

Sec. 1. DEFINITIONS. Defines "affected party," "commission," "construction
of a facility," "person," and "sour gas pipeline facility." 

Sec. 2. APPLICABILITY.  Sets forth entities to which this Act does not
apply. 

Sec. 3. PERMIT APPLICATION. Prohibits a person from beginning construction
of a sour gas pipeline facility before the person obtains from the
Railroad Commission (commission) a permit to construct the facility. 

Sec. 4. NOTICE. Sets forth requirements for an applicant for a permit to
construct a sour gas pipeline facility. 

Sec. 5. COMMISSION AUTHORIZATION REQUIRED.  Authorizes the commission, by
order, to approve an application for a permit to construct a sour gas
pipeline facility if the commission finds that the materials to be used in
and method of construction and operation of the facility comply with the
rules and safety standards adopted by the commission. Authorizes the
commission to issue an order under this section without holding a hearing
unless an affected party files a written protest with the commission not
later than the 30th day after the date notice is published under Section 4
of this article.  Sets forth requirements for the commission if an
affected party files a written protest. 

 SECTION 2. Amends Subsection (a), Article 6053-2, V.T.C.S., to provide
that a person who violates Article 6053-1 or 6053-4, V.T.C.S., or safety
standards relating to transportation of gas and gas pipeline facilities
adopted under those articles may be assessed a civil penalty by the
commission. 

SECTION 3. Emergency clause.
  Effective date: upon passage.