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