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.
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