1-1 By: Brown S.B. No. 639
1-2 (In the Senate - Filed February 18, 1997; February 20, 1997,
1-3 read first time and referred to Committee on Natural Resources;
1-4 March 6, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 8, Nays 0; March 6, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 639 By: Brown
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to acceptance, approval, or revocation by the Railroad
1-11 Commission of Texas of organization reports, applications for
1-12 permits, or certificates of compliance.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Section 91.114, Natural Resources Code, is
1-15 amended to read as follows:
1-16 Sec. 91.114. ACCEPTANCE [FILING] OF ORGANIZATION REPORT OR
1-17 APPLICATION FOR [A] PERMIT; APPROVAL OF [APPLICATION OR]
1-18 CERTIFICATE OF COMPLIANCE; REVOCATION. (a) Except as provided by
1-19 Subsection (d), the [The] commission may not accept an organization
1-20 report required under Section 91.142 or an application for a permit
1-21 under this chapter, Chapter 85, [or 91 of this code] or Chapter 26,
1-22 27, or 29, Water Code, or approve [issue] a certificate of
1-23 compliance under Section 85.161 [of this code] if:
1-24 (1) the organization that submitted the report,
1-25 application, or certificate violated a statute or commission rule,
1-26 order, license, certificate, or permit that relates to safety or
1-27 the prevention or control of pollution; or
1-28 (2) a person who holds a position of ownership or
1-29 control in the organization [an officer, director, general partner,
1-30 owner of more than 25 percent ownership interest, or trustee of the
1-31 organization] has, within the five years preceding the date on
1-32 which the [organization] report, application, or certificate is
1-33 filed, held a position of ownership or control in another [the]
1-34 organization [for which the application is filed or in any other
1-35 organization registered with the commission;] and
1-36 [(2)] during that period of ownership or control the
1-37 other organization violated a statute [provision of this title] or
1-38 [a] commission rule, order, license, permit, or certificate that
1-39 relates to safety or the prevention or control of pollution.
1-40 (b) An organization has committed a violation if:
1-41 (1) a final judgment or final administrative [an]
1-42 order finding the violation has been entered against the
1-43 organization and all appeals have been exhausted; or
1-44 (2) the commission and the organization have entered
1-45 into an agreed order relating to the alleged violation.
1-46 (c) Regardless of whether the person's name appears or is
1-47 required to appear on the organization report required by Section
1-48 91.142, a [A] person holds a position of ownership or control in an
1-49 organization if:
1-50 (1) the person is:
1-51 (A) [(1)] an officer or director of the
1-52 organization;
1-53 (B) [(2)] a general partner of the organization;
1-54 (C) [(3)] the owner of a sole proprietorship
1-55 organization;
1-56 (D) [(4)] the owner of at least [more than a] 25
1-57 percent of the beneficial [ownership] interest in the organization;
1-58 or
1-59 (E) a [(5) the designated] trustee of the
1-60 organization; or
1-61 (2) the person has been determined by a final judgment
1-62 or final administrative order to have exerted actual control over
1-63 the organization.
1-64 (d) The commission shall accept the report or application or
2-1 approve the certificate if:
2-2 (1) the conditions that constituted the violation are
2-3 corrected or are being corrected in accordance with a schedule to
2-4 which[, in the event] the commission and the organization have
2-5 agreed [on a schedule for correcting the conditions, the correction
2-6 of the conditions is on schedule];
2-7 (2) all administrative, civil, and criminal penalties
2-8 and all cleanup and plugging costs incurred by the state and
2-9 assessed or adjudged against the organization relating to those
2-10 conditions are paid or are being paid in accordance with a payment
2-11 schedule to which the commission and the organization have agreed;
2-12 and
2-13 (3) the report, application, or certificate is in
2-14 compliance with all other requirements of law and commission rules
2-15 [all reimbursements of costs and expenses assessed by the
2-16 commission to be collected in relation to those conditions are
2-17 collected].
2-18 (e) If a report or application is rejected or a certificate
2-19 is disapproved under this section, the commission shall provide the
2-20 organization with a written statement explaining the reason for the
2-21 rejection or disapproval.
2-22 (f) Notwithstanding Subsection (a), the commission may issue
2-23 a permit to an organization described by Subsection (a) for a term
2-24 specified by the commission if the permit is necessary to remedy a
2-25 violation of law or commission rules.
2-26 (g) A fee tendered in connection with a report or
2-27 application that is rejected under this section is nonrefundable.
2-28 (h) If the commission is prohibited by Subsection (a) from
2-29 accepting an organization's organization report or application or
2-30 approving the organization's certificate or would be prohibited
2-31 from doing so by that subsection if the organization submitted a
2-32 report, application, or certificate, the [The] commission, after
2-33 notice and opportunity for a hearing, by order may revoke:
2-34 (1) the organization's organization report filed under
2-35 Section 91.142;
2-36 (2) a permit issued to the organization under this
2-37 chapter, Chapter 85, [or 91 of this code] or Chapter 26, 27, or 29,
2-38 Water Code; or
2-39 (3) any [, a] certificate of compliance approved
2-40 [issued] under Section 85.161 [of this code, or an organization
2-41 report filed under Section 91.142 of this code if the commission
2-42 finds that the conditions of Subdivisions (a)(1) and (a)(2) of this
2-43 section exist as to the holder of any permit, certificate, or
2-44 report].
2-45 (i) An order under Subsection (h) [of the commission entered
2-46 as a result of a revocation proceeding] shall provide the
2-47 organization a reasonable period of time to comply with the
2-48 judgment or order finding the violation before the revocation takes
2-49 effect [of a permit, certificate, or report is effective].
2-50 (j) On revocation of its organization report, an
2-51 organization may not perform any activities under the jurisdiction
2-52 of the commission under this title or Chapter 26, 27, or 29, Water
2-53 Code, except as necessary to remedy a violation of law or
2-54 commission rules and as authorized by the commission.
2-55 (k) [(f)] The commission may not revoke an organization's
2-56 organization report, [a] permit, or certificate of compliance[, or
2-57 organization report] under Subsection (h) [(e) of this section] if
2-58 it finds that the organization [holder of a permit, certificate, or
2-59 report] has fulfilled the conditions set out in Subsection (d) [of
2-60 this section].
2-61 (l) [(g)] In determining whether or not to revoke an
2-62 organization's organization report, [a] permit, or certificate of
2-63 compliance[, or organization report] under Subsection (h) [(e) of
2-64 this section], the commission shall consider the organization's
2-65 [person's] history of previous violations, the seriousness of
2-66 previous violations, any hazard to the health or safety of the
2-67 public, and the demonstrated good faith of the organization [holder
2-68 of the permit, certificate, or report].
2-69 (m) Revocation of an organization's organization report,
3-1 permit, or certificate does not relieve the organization of any
3-2 existing or future duty under law, rules, or permit conditions to:
3-3 (1) protect surface or subsurface water from
3-4 pollution;
3-5 (2) properly dispose of oil and gas waste; or
3-6 (3) clean up unpermitted discharges of oil and gas
3-7 waste.
3-8 SECTION 2. Section 91.142, Natural Resources Code, is
3-9 amended by adding Subsections (e) and (f) to read as follows:
3-10 (e) The commission shall require an entity described by
3-11 Subsection (a) of this section to refile an organization report
3-12 annually according to a schedule established by the commission.
3-13 (f) If an entity described by Subsection (a) of this section
3-14 does not maintain on file with the commission an organization
3-15 report and financial security as required by this chapter:
3-16 (1) the entity may not perform operations under the
3-17 jurisdiction of the commission except as necessary to remedy a
3-18 violation of law or commission rules and as authorized by the
3-19 commission; and
3-20 (2) the commission, on written notice, may suspend:
3-21 (A) any permits held by the entity; or
3-22 (B) any certificates of compliance approved
3-23 under Chapter 85 of this code.
3-24 SECTION 3. This Act takes effect September 1, 1997.
3-25 SECTION 4. The importance of this legislation and the
3-26 crowded condition of the calendars in both houses create an
3-27 emergency and an imperative public necessity that the
3-28 constitutional rule requiring bills to be read on three several
3-29 days in each house be suspended, and this rule is hereby suspended.
3-30 * * * * *