By Kitchen H.B. No. 1857
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to restrictions on the authority of a person to transport
1-3 petroleum products in a pipeline system.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 111.004, Natural Resources Code, is
1-6 amended to read as follows:
1-7 Sec. 111.004. GENERAL RESTRICTIONS [RESTRICTION] ON
1-8 TRANSPORTATION OF OIL OR PETROLEUM PRODUCTS. (a) No person,
1-9 including a common carrier, may transport crude oil or petroleum in
1-10 this state unless the crude oil or petroleum has been produced or
1-11 purchased or both in accordance with the laws of this state or a
1-12 rule of the commission made under those laws, or both.
1-13 (b) A person, including a common carrier, may not transport
1-14 a petroleum product in a pipeline system any part of which was
1-15 constructed before January 1, 1970 and was originally used for
1-16 transporting crude oil, unless:
1-17 (1) the pipeline system had begun operation as a
1-18 pipeline transporting petroleum products before January 1, 2000; or
1-19 (2) the commission holds a public hearing and
1-20 determines that:
1-21 (A) there is no reasonable possibility that
1-22 public drinking water supplies or state-owned natural resources
2-1 will be adversely affected by the pipeline;
2-2 (B) the operation of the pipeline complies with
2-3 the state's program adopted under Section 1428, Safe Drinking Water
2-4 Act (42 U.S.C. Section 300h-7), to protect wellhead areas within
2-5 the state's jurisdiction from contaminants that may have an adverse
2-6 effect on the health of persons;
2-7 (C) the governing body of each political
2-8 subdivision that has a right-of-way or easement or has an ownership
2-9 interest in other property that is crossed by the pipeline has
2-10 given the person the political subdivision's written consent for
2-11 the pipeline to cross the property and for the pipeline to be used
2-12 to transport petroleum products;
2-13 (D) the person has obtained all necessary
2-14 easements from the appropriate state agencies, including the
2-15 General Land Office, Parks and Wildlife Department, Texas Natural
2-16 Resource Conservation Commission, and Texas Department of Health;
2-17 and
2-18 (E) the person has demonstrated that the person
2-19 has obtained liability insurance coverage in an amount sufficient
2-20 to cover any damages that the person may become liable to pay as a
2-21 result of discharges of petroleum products from the pipeline into
2-22 public drinking water supplies.
2-23 (c) The following governmental entities may intervene in a
2-24 hearing under Subsection (b) as a matter of right:
2-25 (1) the General Land Office, Parks and Wildlife
2-26 Department, Texas Natural Resource Conservation Commission, and
3-1 Texas Department of Health;
3-2 (2) any state agency the property of which is crossed
3-3 by the pipeline; and
3-4 (3) any political subdivision the jurisdiction or
3-5 extraterritorial jurisdiction of which is crossed by the pipeline.
3-6 SECTION 2. This Act takes effect immediately if it receives
3-7 a vote of two-thirds of all the members elected to each house, as
3-8 provided by Section 39, Article III, Texas Constitution. If this
3-9 Act does not receive the vote necessary for immediate effect, this
3-10 Act takes effect September 1, 2001.