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.