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.