AN ACT
1-1 relating to the creation of an administrative penalty for certain
1-2 violations relating to the production of oil and gas.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter K, Chapter 85, Natural Resources Code,
1-5 is amended by adding Section 85.3855 to read as follows:
1-6 Sec. 85.3855. ADMINISTRATIVE PENALTY. (a) The commission
1-7 may impose an administrative penalty on a person who:
1-8 (1) violates Section 85.165 or 85.166 or a rule or
1-9 order adopted under Section 85.165 or 85.166; or
1-10 (2) knowingly destroys, breaks, removes, or otherwise
1-11 tampers with, or attempts to destroy, break, remove, or otherwise
1-12 tamper with, a cap, seal, or other device placed by the commission
1-13 on an oil well, gas well, oil and gas well, or other associated oil
1-14 or gas gathering equipment.
1-15 (b) The amount of the penalty may not exceed $10,000 for
1-16 each violation. The amount shall be based on:
1-17 (1) the seriousness of the violation, including the
1-18 nature, circumstances, extent, and gravity of the violation;
1-19 (2) the economic harm to property or the environment
1-20 caused by the violation;
1-21 (3) the history of previous violations;
1-22 (4) efforts to correct the violation; and
1-23 (5) any other matter that justice may require.
1-24 (c) The enforcement of the penalty may be stayed during the
2-1 time the order is under judicial review if the person pays the
2-2 penalty to the clerk of the court or files a supersedeas bond with
2-3 the court in the amount of the penalty. A person who cannot afford
2-4 to pay the penalty or file the bond may stay the enforcement by
2-5 filing an affidavit in the manner required by the Texas Rules of
2-6 Civil Procedure for a party who cannot afford to file security for
2-7 costs, subject to the right of the commission to contest the
2-8 affidavit as provided by those rules.
2-9 (d) The attorney general may sue to collect the penalty.
2-10 (e) A proceeding to impose the penalty is considered to be a
2-11 contested case under Chapter 2001, Government Code.
2-12 (f) A penalty imposed under this section is in addition to a
2-13 forfeiture provided by law or a penalty imposed by the commission
2-14 for contempt for violation of a commission rule or order.
2-15 SECTION 2. This Act takes effect September 1, 1999.
2-16 SECTION 3. (a) The change in law made by this Act applies
2-17 only to a violation that occurs on or after the effective date of
2-18 this Act. For purposes of this section a violation occurs before
2-19 the effective date of this Act if any element of the violation
2-20 occurs before that date.
2-21 (b) A violation that occurs before the effective date of
2-22 this Act is covered by the law in effect when the violation
2-23 occurred, and the former law is continued in effect for that
2-24 purpose.
2-25 SECTION 4. The importance of this legislation and the
2-26 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.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1070 passed the Senate on
April 15, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1070 passed the House on
May 25, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor