1-1 By: Bivins S.B. No. 1070 1-2 (In the Senate - Filed March 9, 1999; March 11, 1999, read 1-3 first time and referred to Committee on Natural Resources; 1-4 April 6, 1999, reported favorably by the following vote: Yeas 6, 1-5 Nays 0; April 6, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the creation of an administrative penalty for certain 1-9 violations relating to the production of oil and gas. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subchapter K, Chapter 85, Natural Resources Code, 1-12 is amended by adding Section 85.3855 to read as follows: 1-13 Sec. 85.3855. ADMINISTRATIVE PENALTY. (a) The commission 1-14 may impose an administrative penalty on a person who: 1-15 (1) violates Section 85.165 or 85.166 or a rule or 1-16 order adopted under Section 85.165 or 85.166; or 1-17 (2) knowingly destroys, breaks, removes, or otherwise 1-18 tampers with, or attempts to destroy, break, remove, or otherwise 1-19 tamper with, a cap, seal, or other device placed by the commission 1-20 on an oil well, gas well, oil and gas well, or other associated oil 1-21 or gas gathering equipment. 1-22 (b) The amount of the penalty may not exceed $10,000 for 1-23 each violation. The amount shall be based on: 1-24 (1) the seriousness of the violation, including the 1-25 nature, circumstances, extent, and gravity of the violation; 1-26 (2) the economic harm to property or the environment 1-27 caused by the violation; 1-28 (3) the history of previous violations; 1-29 (4) efforts to correct the violation; and 1-30 (5) any other matter that justice may require. 1-31 (c) The enforcement of the penalty may be stayed during the 1-32 time the order is under judicial review if the person pays the 1-33 penalty to the clerk of the court or files a supersedeas bond with 1-34 the court in the amount of the penalty. A person who cannot afford 1-35 to pay the penalty or file the bond may stay the enforcement by 1-36 filing an affidavit in the manner required by the Texas Rules of 1-37 Civil Procedure for a party who cannot afford to file security for 1-38 costs, subject to the right of the commission to contest the 1-39 affidavit as provided by those rules. 1-40 (d) The attorney general may sue to collect the penalty. 1-41 (e) A proceeding to impose the penalty is considered to be a 1-42 contested case under Chapter 2001, Government Code. 1-43 (f) A penalty imposed under this section is in addition to a 1-44 forfeiture provided by law or a penalty imposed by the commission 1-45 for contempt for violation of a commission rule or order. 1-46 SECTION 2. This Act takes effect September 1, 1999. 1-47 SECTION 3. (a) The change in law made by this Act applies 1-48 only to a violation that occurs on or after the effective date of 1-49 this Act. For purposes of this section a violation occurs before 1-50 the effective date of this Act if any element of the violation 1-51 occurs before that date. 1-52 (b) A violation that occurs before the effective date of 1-53 this Act is covered by the law in effect when the violation 1-54 occurred, and the former law is continued in effect for that 1-55 purpose. 1-56 SECTION 4. The importance of this legislation and the 1-57 crowded condition of the calendars in both houses create an 1-58 emergency and an imperative public necessity that the 1-59 constitutional rule requiring bills to be read on three several 1-60 days in each house be suspended, and this rule is hereby suspended. 1-61 * * * * *