By: Brown S.B. No. 639
A BILL TO BE ENTITLED
AN ACT
1-1 relating to acceptance, approval, or revocation by the Railroad
1-2 Commission of Texas of organization reports, applications for
1-3 permits, or certificates of compliance.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 91.114, Natural Resources Code, is
1-6 amended to read as follows:
1-7 Sec. 91.114. ACCEPTANCE [FILING] OF ORGANIZATION REPORT OR
1-8 APPLICATION FOR [A] PERMIT; APPROVAL OF [APPLICATION OR]
1-9 CERTIFICATE OF COMPLIANCE; REVOCATION. (a) Except as provided by
1-10 Subsection (d), the [The] commission may not accept an organization
1-11 report required under Section 91.142 or an application for a permit
1-12 under this chapter, Chapter 85, [or 91 of this code] or Chapter 26,
1-13 27, or 29, Water Code, or approve [issue] a certificate of
1-14 compliance under Section 85.161 [of this code] if:
1-15 (1) the organization that submitted the report,
1-16 application, or certificate violated a statute or commission rule,
1-17 order, license, certificate, or permit that relates to safety or
1-18 the prevention or control of pollution; or
1-19 (2) a person who holds a position of ownership or
1-20 control in the organization [an officer, director, general partner,
1-21 owner of more than 25 percent ownership interest, or trustee of the
1-22 organization] has, within the five years preceding the date on
1-23 which the [organization] report, application, or certificate is
2-1 filed, held a position of ownership or control in another [the]
2-2 organization [for which the application is filed or in any other
2-3 organization registered with the commission;] and
2-4 [(2)] during that period of ownership or control the
2-5 other organization violated a statute [provision of this title] or
2-6 [a] commission rule, order, license, permit, or certificate that
2-7 relates to safety or the prevention or control of pollution.
2-8 (b) An organization has committed a violation if:
2-9 (1) a final judgment or final administrative [an]
2-10 order finding the violation has been entered against the
2-11 organization and all appeals have been exhausted; or
2-12 (2) the commission and the organization have entered
2-13 into an agreed order relating to the alleged violation.
2-14 (c) Regardless of whether the person's name appears or is
2-15 required to appear on the organization report required by Section
2-16 91.142, a [A] person holds a position of ownership or control in an
2-17 organization if:
2-18 (1) the person is:
2-19 (A) [(1)] an officer or director of the
2-20 organization;
2-21 (B) [(2)] a general partner of the organization;
2-22 (C) [(3)] the owner of a sole proprietorship
2-23 organization;
2-24 (D) [(4)] the owner of at least [more than a] 25
2-25 percent of the beneficial [ownership] interest in the organization;
3-1 or
3-2 (E) a [(5) the designated] trustee of the
3-3 organization; or
3-4 (2) the person has been determined by a final judgment
3-5 or final administrative order to have exerted actual control over
3-6 the organization.
3-7 (d) The commission shall accept the report or application or
3-8 approve the certificate if:
3-9 (1) the conditions that constituted the violation are
3-10 corrected or are being corrected in accordance with a schedule to
3-11 which[, in the event] the commission and the organization have
3-12 agreed [on a schedule for correcting the conditions, the correction
3-13 of the conditions is on schedule];
3-14 (2) all administrative, civil, and criminal penalties
3-15 and all cleanup and plugging costs incurred by the state and
3-16 assessed or adjudged against the organization relating to those
3-17 conditions are paid or are being paid in accordance with a payment
3-18 schedule to which the commission and the organization have agreed;
3-19 and
3-20 (3) the report, application, or certificate is in
3-21 compliance with all other requirements of law and commission rules
3-22 [all reimbursements of costs and expenses assessed by the
3-23 commission to be collected in relation to those conditions are
3-24 collected].
3-25 (e) If a report or application is rejected or a certificate
4-1 is disapproved under this section, the commission shall provide the
4-2 organization with a written statement explaining the reason for the
4-3 rejection or disapproval.
4-4 (f) Notwithstanding Subsection (a), the commission may issue
4-5 a permit to an organization described by Subsection (a) for a term
4-6 specified by the commission if the permit is necessary to remedy a
4-7 violation of law or commission rules.
4-8 (g) A fee tendered in connection with a report or
4-9 application that is rejected under this section is nonrefundable.
4-10 (h) If the commission is prohibited by Subsection (a) from
4-11 accepting an organization's organization report or application or
4-12 approving the organization's certificate or would be prohibited
4-13 from doing so by that subsection if the organization submitted a
4-14 report, application, or certificate, the [The] commission, after
4-15 notice and opportunity for a hearing, by order may revoke:
4-16 (1) the organization's organization report filed under
4-17 Section 91.142;
4-18 (2) a permit issued to the organization under this
4-19 chapter, Chapter 85, [or 91 of this code] or Chapter 26, 27, or 29,
4-20 Water Code; or
4-21 (3) any [, a] certificate of compliance approved
4-22 [issued] under Section 85.161 [of this code, or an organization
4-23 report filed under Section 91.142 of this code if the commission
4-24 finds that the conditions of Subdivisions (a)(1) and (a)(2) of this
4-25 section exist as to the holder of any permit, certificate, or
5-1 report].
5-2 (i) An order under Subsection (h) [of the commission entered
5-3 as a result of a revocation proceeding] shall provide the
5-4 organization a reasonable period of time to comply with the
5-5 judgment or order finding the violation before the revocation takes
5-6 effect [of a permit, certificate, or report is effective].
5-7 (j) On revocation of its organization report, an
5-8 organization may not perform any activities under the jurisdiction
5-9 of the commission under this title or Chapter 26, 27, or 29, Water
5-10 Code, except as necessary to remedy a violation of law or
5-11 commission rules and as authorized by the commission.
5-12 (k) [(f)] The commission may not revoke an organization's
5-13 organization report, [a] permit, or certificate of compliance[, or
5-14 organization report] under Subsection (h) [(e) of this section] if
5-15 it finds that the organization [holder of a permit, certificate, or
5-16 report] has fulfilled the conditions set out in Subsection (d) [of
5-17 this section].
5-18 (l) [(g)] In determining whether or not to revoke an
5-19 organization's organization report, [a] permit, or certificate of
5-20 compliance[, or organization report] under Subsection (h) [(e) of
5-21 this section], the commission shall consider the organization's
5-22 [person's] history of previous violations, the seriousness of
5-23 previous violations, any hazard to the health or safety of the
5-24 public, and the demonstrated good faith of the organization [holder
5-25 of the permit, certificate, or report].
6-1 (m) Revocation of an organization's organization report,
6-2 permit, or certificate does not relieve the organization of any
6-3 existing or future duty under law, rules, or permit conditions to:
6-4 (1) protect surface or subsurface water from
6-5 pollution;
6-6 (2) properly dispose of oil and gas waste; or
6-7 (3) clean up unpermitted discharges of oil and gas
6-8 waste.
6-9 SECTION 2. Section 91.142, Natural Resources Code, is
6-10 amended by adding Subsections (e) and (f) to read as follows:
6-11 (e) The commission shall require an entity described by
6-12 Subsection (a) of this section to refile an organization report
6-13 annually according to a schedule established by the commission.
6-14 (f) If an entity described by Subsection (a) of this section
6-15 does not maintain on file with the commission an organization
6-16 report and financial security as required by this chapter:
6-17 (1) the entity may not perform operations under the
6-18 jurisdiction of the commission except as necessary to remedy a
6-19 violation of law or commission rules and as authorized by the
6-20 commission; and
6-21 (2) the commission, on written notice, may suspend:
6-22 (A) any permits held by the entity; or
6-23 (B) any certificates of compliance approved
6-24 under Chapter 85 of this code.
6-25 SECTION 3. This Act takes effect September 1, 1997.
7-1 SECTION 4. The importance of this legislation and the
7-2 crowded condition of the calendars in both houses create an
7-3 emergency and an imperative public necessity that the
7-4 constitutional rule requiring bills to be read on three several
7-5 days in each house be suspended, and this rule is hereby suspended.