By Lewis of Orange                                    H.B. No. 3751
         76R6337 MI-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of an administrative penalty for certain
 1-3     violations relating to the production of oil and gas.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter K, Chapter 85, Natural Resources Code,
 1-6     is amended by adding Section 85.3855 to read as follows:
 1-7           Sec. 85.3855.  ADMINISTRATIVE PENALTY.  (a)  The commission
 1-8     may impose an administrative penalty on a person who:
 1-9                 (1)  violates Section 85.165 or Section 85.166 or a
1-10     rule or order adopted under Section 85.165 or Section 85.166; or
1-11                 (2)  knowingly destroys, breaks, removes, or otherwise
1-12     tampers with, or attempts to destroy, break, remove, or otherwise
1-13     tamper with a cap, seal, or other device placed by the commission
1-14     on an oil well, gas well, oil and gas well, or other associated oil
1-15     or gas gathering equipment.
1-16           (b)  The amount of the penalty may not exceed $10,000 for
1-17     each violation.  The amount shall be based on:
1-18                 (1)  the seriousness of the violation, including the
1-19     nature, circumstances, extent, and gravity of the violation;
1-20                 (2)  the economic harm to property or the environment
1-21     caused by the violation;
1-22                 (3)  the history of previous violations;
1-23                 (4)  efforts to correct the violation; and
1-24                 (5)  any other matter that justice may require.
 2-1           (c)  The enforcement of the penalty may be stayed during the
 2-2     time the order is under judicial review if the person pays the
 2-3     penalty to the clerk of the court or files a supersedeas bond with
 2-4     the court in the amount of the penalty.  A person who cannot afford
 2-5     to pay the penalty or file the bond may stay the enforcement by
 2-6     filing an affidavit in the manner required by the Texas Rules of
 2-7     Civil Procedure for a party who cannot afford to file security for
 2-8     costs, subject to the right of the board to contest the affidavit
 2-9     as provided by those rules.
2-10           (d)  The  attorney general may sue to collect the penalty.
2-11           (e)  A proceeding to impose the penalty is considered to be a
2-12     contested case under Chapter 2001, Government Code.
2-13           (f)  A penalty imposed under this section is in addition to a
2-14     forfeiture provided by law or a penalty imposed by the commission
2-15     for contempt for violation of a commission rule or order.
2-16           SECTION 2.  This Act takes effect September 1, 1999.
2-17           SECTION 3.  (a)  The change in law made by this Act applies
2-18     only to a violation that occurs on or after the effective date of
2-19     this Act.  For purposes of this section a violation occurs before
2-20     the effective date of this Act if any element of the violation
2-21     occurs before that date.
2-22           (b)  A violation that occurs before the effective date of
2-23     this Act is covered by the law in effect when the violation
2-24     occurred, and the former law is continued in effect for that
2-25     purpose.
2-26           SECTION 4.  The importance of this legislation and the
2-27     crowded condition of the calendars in both houses create an
 3-1     emergency and an imperative public necessity that the
 3-2     constitutional rule requiring bills to be read on three several
 3-3     days in each house be suspended, and this rule is hereby suspended.