By Merritt H.B. No. 3719
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to collection of fees on the delivery of certain petroleum
1-3 productions, the allocation of fees on the delivery of certain
1-4 petroleum products to the oil-field cleanup fund, the reduction of
1-5 certain fees by the Railroad Commission of Texas, the use of money
1-6 in the oil-field cleanup fund to implement the provisions of
1-7 Chapter 40 of the Natural Resources Code that relate to activities
1-8 under the jurisdiction of the Railroad Commission of Texas, and the
1-9 repeal of the expiration of certain fees imposed by the Railroad
1-10 Commission of Texas.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Sections 40.151(b) and (e), Natural Resources
1-13 Code, are amended to read as follows:
1-14 (b) The coastal protection fund is established in the state
1-15 treasury to be used by the commissioner as a nonlapsing revolving
1-16 fund [only for carrying out the purposes of this chapter]. To this
1-17 fund shall be credited all fees, penalties, judgments,
1-18 reimbursements, and charges provided for in this chapter and the
1-19 fee revenues levied, collected, and credited pursuant to this
1-20 chapter. [The fund shall not exceed $50 million.]
1-21 (e) The comptroller shall transfer all fees, penalties,
2-1 judgments, reimbursements, and charges levied and collected under
2-2 Section 40.155 [When the balance of the fund reaches $25 million,
2-3 income on the investment, in an amount not to exceed $5 million,
2-4 shall be transferred] to the Railroad Commission of Texas for the
2-5 oil-field cleanup fund.
2-6 (f) Income on the investment of money in the fund [that $25
2-7 million in excess of $5 million] shall be credited to the fund.
2-8 SECTION 2. Section 40.155, Natural Resources Code, is
2-9 amended to read as follows:
2-10 Sec. 40.155. AMOUNT [DETERMINATION] OF FEE. The [(a) Except
2-11 as otherwise provided in this section, the] rate of the fee shall
2-12 be four [two] cents per barrel of crude oil [until the commissioner
2-13 certifies that the unencumbered balance in the fund has reached
2-14 $25 million. The commissioner shall certify to the comptroller the
2-15 date on which the unencumbered balance in the fund exceeds $25
2-16 million. The fee shall not be collected or required to be paid on
2-17 or after the first day of the second month following the
2-18 commissioner's certification to the comptroller that the
2-19 unencumbered balance in the fund exceeds $25 million.]
2-20 [(b) If the unencumbered balance in the fund falls below $14
2-21 million, the commissioner shall certify such fact to the
2-22 comptroller. On receiving the commissioner's certification, the
2-23 comptroller shall resume collecting the fee until suspended in the
2-24 manner provided in Subsection (a) of this section.]
2-25 [(c) Notwithstanding the provisions of Subsection (a) or (b)
3-1 of this section, the fee shall be levied at the rate of four cents
3-2 per barrel if the commissioner certifies to the comptroller a
3-3 written finding of the following facts:]
3-4 [(1) the unencumbered balance in the fund is less than
3-5 $25 million;]
3-6 [(2) an unauthorized discharge of oil in excess of
3-7 100,000 gallons has occurred within the previous 30 days; and]
3-8 [(3) expenditures from the fund for response costs and
3-9 damages are expected to deplete the fund substantially.]
3-10 [(d) In the event of a certification to the comptroller
3-11 under Subsection (c) of this section, the comptroller shall collect
3-12 the fee at the rate of four cents per barrel until the
3-13 unencumbered balance in the fund reaches $25 million or any lesser
3-14 amount that the commissioner determines is necessary to pay
3-15 response costs and damages without substantially depleting the
3-16 fund. The commissioner shall certify to the comptroller the date
3-17 on which the unencumbered balance in the fund exceeds $25 million
3-18 or such other lesser amount. The fee shall not be collected or
3-19 required to be paid on or after the first day of the second month
3-20 following the commissioner's certification to the comptroller.]
3-21 [(e) For purposes of this section, the unencumbered balance
3-22 of the fund shall be determined by the unencumbered cash balance of
3-23 the fund at the end of each month or on the date of a finding under
3-24 Subsection (c) of this section.]
3-25 SECTION 3. Section 91.111(c), Natural Resources Code, is
4-1 amended to read as follows:
4-2 (c) The fund consists of:
4-3 (1) penalties imposed under Section 85.381 of this
4-4 code for violation of a law, order, or rule relating to well
4-5 plugging requirements;
4-6 (2) proceeds from bonds and other financial assurances
4-7 required by this chapter, subject to the refund provisions of
4-8 Section 91.1091 of this code;
4-9 (3) private contributions, including contributions
4-10 made under Section 89.084 of this code;
4-11 (4) expenses collected under Section 89.083 of this
4-12 code;
4-13 (5) drilling permit fees imposed under Subsections (a)
4-14 and (c) of Section 85.2021 of this code;
4-15 (6) civil penalties collected for violations of
4-16 Chapter 89 of this code or of rules or orders relating to plugging
4-17 that are adopted under this code;
4-18 (7) proceeds collected under Sections 89.085 and
4-19 91.115 of this code;
4-20 (8) interest earned on the funds deposited in the
4-21 fund;
4-22 (9) fees collected under Section 91.104 of this code;
4-23 (10) civil penalties or costs recovered under Section
4-24 91.457 or 91.459 of this code;
4-25 (11) oil and gas waste hauler permit application fees
5-1 collected under Section 29.015, Water Code;
5-2 (12) costs recovered under Subsection (f) of Section
5-3 91.113 of this code;
5-4 (13) hazardous oil and gas waste generation fees
5-5 collected under Section 91.605 of this code;
5-6 (14) oil-field cleanup regulatory fees on oil
5-7 collected under Section 81.116 of this code;
5-8 (15) oil-field cleanup regulatory fees on gas
5-9 collected under Section 81.117 of this code;
5-10 (16) fees for a reissued certificate collected under
5-11 Section 85.167 of this code;
5-12 (17) fees collected under Subsection (b) of Section
5-13 91.1013 of this code;
5-14 (18) fees collected under Section 89.088 of this code;
5-15 [and]
5-16 (19) income deposited to the fund under Section
5-17 40.151(e); and
5-18 (20) legislative appropriations.
5-19 SECTION 4. Sections 40.156(b) and (c), Natural Resources
5-20 Code, are repealed.
5-21 SECTION 5. Section 91.112(a), Natural Resources Code, is
5-22 amended to read as follows:
5-23 (a) Money in the fund may be used by the commission or its
5-24 employees or agents for:
5-25 (1) conducting a site investigation or environmental
6-1 assessment to determine:
6-2 (A) the nature and extent of contamination
6-3 caused by oil and gas wastes or other substances or materials
6-4 regulated by the commission under Section 91.101; and
6-5 (B) the measures that should be taken to control
6-6 or clean up the wastes, substances, or materials described in
6-7 Paragraph (A);
6-8 (2) controlling or cleaning up oil and gas wastes or
6-9 other substances or materials regulated by the commission under
6-10 Section 91.101 that are causing or are likely to cause the
6-11 pollution of surface or subsurface water, consistent with Section
6-12 91.113;
6-13 (3) plugging abandoned wells and administering or
6-14 enforcing permits, orders, and rules relating to the commission's
6-15 authority to prevent pollution under this chapter, Chapter 89, or
6-16 any other law administered or enforced by the commission under
6-17 Title 3;
6-18 (4) implementing Subchapter N and enforcing rules,
6-19 orders, and permits adopted or issued under that subchapter; [and]
6-20 (5) preparing the report required under Subsection
6-21 (b); and
6-22 (6) implementing the provisions of Chapter 40 of this
6-23 code that relate to the authority of the commission, including
6-24 administering or enforcing any permits, rules, or orders adopted by
6-25 the commission thereunder.
7-1 SECTION 6. Sections 85.2021(a) and (c), Natural Resources
7-2 Code, are amended to read as follows:
7-3 (a) With each application or materially amended application
7-4 for a permit to drill, deepen, plug back, or reenter a well, the
7-5 applicant shall submit to the commission a nonrefundable fee of:
7-6 (1) $100, or such lesser amount as may be established
7-7 by the commission by rule in accordance with Section 91.1111 of
7-8 this code, if the total depth of the well is 2,000 feet or less;
7-9 (2) $125, or such lesser amount as may be established
7-10 by the commission by rule in accordance with Section 91.1111 of
7-11 this code, if the total depth of the well is greater than 2,000
7-12 feet but less than or equal to 4,000 feet;
7-13 (3) $150, or such lesser amount as may be established
7-14 by the commission by rule in accordance with Section 91.1111 of
7-15 this code, if the total depth of the well is greater than 4,000
7-16 feet but less than or equal to 9,000 feet;
7-17 (4) $200, or such lesser amount as may be established
7-18 by the commission by rule in accordance with Section 91.1111 of
7-19 this code, if the total depth of the well is greater than 9,000
7-20 feet.
7-21 (c) With each application for an extension of time to plug a
7-22 well pursuant to commission rules, an applicant shall submit to the
7-23 commission a nonrefundable fee of $100, or such lesser amount as
7-24 may be established by the commission by rule in accordance with
7-25 Section 91.1111 of this code, unless the applicant has filed a bond
8-1 under Section 91.1041 or Section 91.1042 of this code.
8-2 SECTION 7. Section 91.104(c), Natural Resources Code, is
8-3 amended to read as follows:
8-4 (c) A person who chooses to file a form of financial
8-5 security other than a bond shall also submit a fee of $100, or such
8-6 lesser amount as may be established by the commission by rule in
8-7 accordance with Section 91.1111 of this code, for each application
8-8 to extend the time to plug a well in accordance with Section
8-9 85.2021 of this code.
8-10 SECTION 8. Section 81.116(a), Natural Resources Code, is
8-11 amended to read as follows:
8-12 (a) An oil-field cleanup regulatory fee is imposed on crude
8-13 petroleum produced in this state. Such fee shall be in the amount
8-14 of five-sixteenths of one cent on each barrel of 42 standards
8-15 gallons or such lesser amount as may be established by the
8-16 commission by rule in accordance with Section 91.1111 of this code.
8-17 SECTION 9. Section 81.117(a), Natural Resources Code, is
8-18 amended to read as follows:
8-19 (a) An oil-field cleanup regulatory fee is imposed on gas
8-20 initially produced and saved in this state. Such fee shall be in
8-21 the amount of one-thirtieth of one cent for each thousand cubic
8-22 feet or such lesser amount as may be established by the commission
8-23 by rule in accordance with Section 91.1111 of this code.
8-24 SECTION 10. Chapter 91, Natural Resources Code, is amended
8-25 by adding Section 91.1111 to read as follows:
9-1 Sec. 91.1111. REDUCTION IN FEES. The commission may by rule
9-2 reduce the statutory fees imposed under each of Sections 85.2021(a)
9-3 and (c), 91.104(c), 81.116(a), and 81.117(a) if the commission
9-4 determines that a portion of the revenue from such fees is not
9-5 necessary to fully accomplish the purposes of the fund as set out
9-6 in Section 91.111 of this code. The commission may reinstate all
9-7 or any portion of a fee reduction under this section if the
9-8 commission determines that the additional revenues are necessary to
9-9 fully accomplish all of the purposes of the fund as set out in
9-10 Section 91.111 of this code.
9-11 SECTION 11. Section 34, Chapter 603, Acts of the 72nd
9-12 Legislature, Regular Session, 1991, is repealed.
9-13 SECTION 12. (a) SECTIONS 1 through 10 of this Act shall
9-14 take effect on September 1, 1999.
9-15 (b) SECTION 11 of this Act shall take effect on August 31,
9-16 1999.
9-17 SECTION 13. The importance of this legislation and the
9-18 crowded condition of the calendars in both houses create an
9-19 emergency and an imperative public necessity that the
9-20 constitutional rule requiring bills to be read on three several
9-21 days in each house be suspended, and this rule is hereby suspended.