1-1     By:  Alexander (Senate Sponsor - Cain)                H.B. No. 3194

 1-2           (In the Senate - Received from the House May 6, 1997;

 1-3     May 7, 1997, read first time and referred to Committee on Natural

 1-4     Resources; May 15, 1997, reported favorably, as amended, by

 1-5     the  following vote:  Yeas 11, Nays 0; May 15, 1997, sent to

 1-6     printer.)

 1-7     COMMITTEE AMENDMENT NO. 1                            By:  Wentworth

 1-8           Amend H.B. 3194, as follows:

 1-9           (1)  On page 1, line 39, insert "initial" between "the" and

1-10     "construction".

1-11     COMMITTEE AMENDMENT NO. 2                            By:  Wentworth

1-12           Amend H.B. 3194, as follows:

1-13           (1)  On page 1, line 45, insert the following new subsection

1-14     (4), and renumber the subsequent subsections accordingly:

1-15                 (4)  "Low pressure gathering system" means a pipeline

1-16     which operates at a working pressure of less than fifty (50) pounds

1-17     per square inch.

1-18           (2)  On page 2, line 2, insert the following new subsection

1-19     (2), and renumber the subsequent subsections accordingly:

1-20                 (2)  a new or an extension of a low pressure gathering

1-21     system.

1-22                            A BILL TO BE ENTITLED

1-23                                   AN ACT

1-24     relating to the construction and operation of certain sour gas

1-25     pipeline facilities.

1-26           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-27           SECTION 1.  Title 102, Revised Statutes, is amended by adding

1-28     Article 6053-4 to read as follows:

1-29           Art. 6053-4.  SOUR GAS PIPELINE FACILITIES

1-30           Sec. 1.  DEFINITIONS.  In this article:

1-31                 (1)  "Affected party" means the owner or occupant of

1-32     real property located in the radius of exposure, as calculated in

1-33     accordance with a methodology approved by the commission, of the

1-34     proposed route of a sour gas pipeline facility.

1-35                 (2)  "Commission" means the Railroad Commission of

1-36     Texas.

1-37                 (3)  "Construction of a facility" means any activity

1-38     conducted  during the construction of a pipeline, including the

1-39     removal of earth, vegetation, or obstructions along the proposed

1-40     pipeline right-of-way.  The term does not include:

1-41                       (A)  surveying  or  acquiring  the  right-of-way;

1-42     or

1-43                       (B)  clearing the right-of-way with the consent

1-44     of the owner.

1-45                 (4)  "Person" means an individual, firm, partnership,

1-46     association, corporation, trust, or governmental entity.

1-47                 (5)  "Sour gas pipeline facility" means a pipeline

1-48     facility that contains a concentration of 100 parts per million or

1-49     more of hydrogen sulfide.

1-50           Sec. 2.  APPLICABILITY.  This Act does not apply to:

1-51                 (1)  an extension of an existing sour gas pipeline

1-52     facility that is in compliance with the commission's rules for oil,

1-53     gas, or geothermal resource operation in a hydrogen sulfide area

1-54     if:

1-55                       (A)  the extension is not longer than five miles;

1-56                       (B)  the nominal pipe size is not larger than six

1-57     inches in diameter; and

1-58                       (C)  the commission is given notice of the

1-59     construction of the extension not later than 24 hours before the

1-60     start of construction; or

1-61                 (2)  an interstate gas pipeline facility, as defined by

1-62     49 U.S.C. Section 60101, that is used for the transportation of

1-63     sour gas.

1-64           Sec. 3.  PERMIT APPLICATION.  A person may not begin

 2-1     construction of a sour gas pipeline facility before the person

 2-2     obtains from the commission a permit to construct the facility.

 2-3           Sec. 4.  NOTICE.  An applicant for a permit to construct a

 2-4     sour gas pipeline facility must:

 2-5                 (1)  publish notice of the application in a form

 2-6     determined by the commission in a newspaper of general circulation

 2-7     in each county that contains part of the proposed route of the sour

 2-8     gas pipeline facility; and

 2-9                 (2)  provide a copy of the application to the county

2-10     clerk of each county that contains part of the proposed route.

2-11           Sec. 5.  COMMISSION AUTHORIZATION REQUIRED.  (a)  The

2-12     commission by order may approve an application for a permit to

2-13     construct a sour gas pipeline facility if the commission finds that

2-14     the materials to be used in and method of construction and

2-15     operation of the facility comply with the rules and safety

2-16     standards adopted by the commission.

2-17           (b)  The commission may issue an order under this section

2-18     without holding a hearing unless an affected party files a written

2-19     protest with the commission not later than the 30th day after the

2-20     date notice is published under Section 4 of this article.  If an

2-21     affected party files a written protest, the commission shall:

2-22                 (1)  hold a hearing not later than the 60th day after

2-23     the date the protest is filed; and

2-24                 (2)  issue an order:

2-25                       (A)  approving the permit application; or

2-26                       (B)  denying the application and stating the

2-27     reasons for the denial.

2-28           SECTION 2.  Subsection (a), Article 6053-2, Revised Statutes,

2-29     is amended to read as follows:

2-30           (a)  A person who violates Article 6053-1 or 6053-4, Revised

2-31     Statutes, or safety standards or regulations relating to

2-32     transportation of gas and gas pipeline facilities adopted under

2-33     those articles [that article] may be assessed a civil penalty by

2-34     the Railroad Commission of Texas.

2-35           SECTION 3.  The importance of this legislation and the

2-36     crowded condition of the calendars in both houses create an

2-37     emergency and an imperative public necessity that the

2-38     constitutional rule requiring bills to be read on three several

2-39     days in each house be suspended, and this rule is hereby suspended,

2-40     and that this Act take effect and be in force from and after its

2-41     passage, and it is so enacted.

2-42                                  * * * * *