MBN C.S.H.B. 3194 75(R)BILL ANALYSIS ENERGY RESOURCES C.S.H.B. 3194 By: Alexander 4-22-97 Committee Report (Substituted) BACKGROUND 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 incurrence of substantial expense by the pipeline owner and certain property owners related to the condemnation of rights-of-way and construction when, ultimately, the Commission may never grant the necessary permit to operate. PURPOSE As proposed, C.S.H.B. 3194 will 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. The commission would be required to find that material used in construction, the method of construction and the operation of the proposed sour gas pipeline facility does not pose an unreasonable danger to public health or safety. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1: Amends Title 102, Revised Statues, by adding Article 6053-4, Sour Gas Pipeline Facilities, Secs. 1-5. Sec. 1. defines "Affected party," "Commission", "Construction of a facility", "Person", and "Sour gas pipeline facility." Sec. 2. states that this Act does not apply to interstate gas pipeline facilities transporting sour gas or extensions of existing sour gas pipeline facilities in compliance with applicable commission rules if the extension is not longer than five miles, the nominal type size is not larger than six inches, and the commission is notified not later than 24 hours before the start of construction. Sec. 3. States that a person may not begin construction of a sour gas pipeline facility before the person obtains from the commission a permit to construct the facility. Sec. 4. States that an applicant for a sour gas pipeline facility construction permit must publish notice and provide a copy of the application to the county clerk of each county that contains part of the proposed route. Sec. 5. States that the commission may approve an application for a sour gas pipeline facility construction permit if the commission finds that the construction complies with commission rules and safety standards. Provides that the commission may issue an order under this section without holding a hearing unless the affected party files a written protest with the commission not later than 30 days after the notice prescribed in Sec. 4 is published. The commission shall hold a hearing within 60 days of the written protest and approve or deny the permit application. SECTION 2. Amends Subsection (a), Article 6053-2, Revised Statutes to reference Article 60534, Revised Statutes to allow the commission to asses a civil penalty for violations. Makes a conforming change. SECTION 3. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 1. Art. 6053-4. Sec. 1. The substitute adds definitions for "affected party", "construction of a facility", and "sour gas pipeline facility." The definition for "sour gas" is deleted. Makes conforming changes. Art. 6053-4. Sec 2. The substitute replaces the original Sec. 2 requiring commission authorization to determine that the materials and method used in constructing and operating a hydrogen sulfide (sour gas) pipeline facility will not pose an unreasonable threat to the public before a person may: (1) file right of eminent domain petition to acquire property for the pipeline or pipeline facility; (2) begin construction of the facility. Art. 6053-4. Sec. 2. of C.S.H.B. 3194 addresses applicability stating that this Act does not apply to interstate gas pipeline facilities transporting sour gas or extensions of existing sour gas pipeline facilities in compliance with applicable commission rules if the extension is not longer than five miles, the nominal type size is not larger than six inches, and the commission if notified not later than 24 hours before the start of construction.. C.S.H.B. 3194 adds new Art. 6053-4. Sec. 3 stating that a person may not begin construction of a sour gas pipeline facility before the person obtains from the commission a permit to construct the facility. C.S.H.B. 3194 adds new Art. 6053-4. Sec. 4. stating that an applicant for a sour gas pipeline facility construction permit must publish notice and provide a copy of the application to the county clerk of each county that contains part of the proposed route. C.S.H.B. 3194 adds new Art. 6053-4. Sec. 5. stating that the commission may approve an application for a sour gas pipeline facility construction permit if the commission finds that the construction complies with commission rules and safety standards. Provides that the commission may issue an order under this section without holding a hearing unless the affected party files a written protest with the commission not later than 30 days after the notice prescribed in Sec. 4 is published. The commission shall hold a hearing within 60 days of the written protest and approve or deny the permit application. SECTION 2: No changes. SECTION 3: No changes.