By Walker H.B. No. 2538 77R3831 SMH-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the regulation of aggregate quarries; providing for an 1-3 administrative penalty. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Title 4, Natural Resources Code, is amended by 1-6 adding Chapter 135 to read as follows: 1-7 CHAPTER 135. AGGREGATE QUARRYING AND RECLAMATION 1-8 SUBCHAPTER A. GENERAL PROVISIONS 1-9 Sec. 135.001. SHORT TITLE. This chapter may be cited as the 1-10 Texas Aggregate Quarrying and Reclamation Act. 1-11 Sec. 135.002. DEFINITIONS. In this chapter: 1-12 (1) "Aggregates," "commission," "operator," 1-13 "overburden," "owner," "pit," "quarrying," "quarry," "ridge," and 1-14 "site" have the meanings assigned those terms by Section 133.003. 1-15 (2) "Certificate holder" means a person who holds a 1-16 certificate of registration issued under this chapter. 1-17 (3) "Land affected" means: 1-18 (A) the area from which any materials are to be 1-19 or have been displaced in a quarrying operation; 1-20 (B) the area on which any materials that are 1-21 displaced are to be or have been deposited; 1-22 (C) the haul roads and impoundment basins within 1-23 the quarrying area; and 1-24 (D) other land whose natural state has been or 2-1 will be disturbed as a result of the quarrying operations. 2-2 (4) "Reclamation" means the process of restoring an 2-3 area affected by a quarrying operation to its original or other 2-4 substantially beneficial condition, considering past and possible 2-5 future uses of the area and the surrounding topography. 2-6 Sec. 135.003. EXEMPTIONS. (a) This chapter does not apply 2-7 to: 2-8 (1) land under the jurisdiction of the General Land 2-9 Office; 2-10 (2) land from which aggregates are being produced on 2-11 September 1, 2001; or 2-12 (3) a parcel of land of less than five acres. 2-13 (b) Notwithstanding Subsection (a)(1), land covered by that 2-14 subsection on which quarrying is conducted must be reclaimed in a 2-15 manner consistent with this chapter. 2-16 (c) Notwithstanding Subsection (a)(2), an operator may not 2-17 expand the surface acreage of a pit from which aggregates are being 2-18 produced on September 1, 2001, unless the operator obtains a 2-19 certificate of registration and complies with the other provisions 2-20 of this chapter with respect to the expanded portion of the pit and 2-21 any land affected by the expansion. The operator is not required 2-22 to comply with this chapter with respect to the land affected by 2-23 the quarrying operation as of September 1, 2001. 2-24 (Sections 135.004-135.050 reserved for expansion 2-25 SUBCHAPTER B. AUTHORITY OF COMMISSION 2-26 Sec. 135.051. GENERAL AUTHORITY OF COMMISSION. (a) The 2-27 commission may: 3-1 (1) adopt rules and issue orders as necessary to 3-2 implement and enforce this chapter; 3-3 (2) conduct, encourage, request, and participate in 3-4 studies, surveys, investigations, research, experiments, training, 3-5 and demonstrations by contract, grant, or otherwise; 3-6 (3) apply for, accept, receive, and administer grants, 3-7 gifts, loans, or other money from any source for the purposes of 3-8 this chapter; 3-9 (4) hire employees, adopt standards for employment of 3-10 those persons, and hire or authorize the hiring of outside 3-11 contractors to assist in implementing this chapter; and 3-12 (5) enter into contracts with other state agencies 3-13 with pertinent expertise so as to obtain professional and technical 3-14 services necessary to implement this chapter. 3-15 (b) This chapter does not authorize the commission to 3-16 adjudicate property title or property rights disputes. 3-17 Sec. 135.052. INSPECTIONS. (a) On reasonable notice and on 3-18 presentation of appropriate credentials, the commission or an 3-19 authorized representative of the commission may inspect a quarrying 3-20 operation for the purpose of determining whether the operation is 3-21 properly reclaiming the land affected by the operation. 3-22 (b) An inspection may be conducted only during normal 3-23 operating hours. 3-24 (c) An inspector must provide a written statement of the 3-25 reasons for the inspection. 3-26 (d) An inspector shall prepare an inspection report adequate 3-27 to enforce the requirements of, and to implement, this chapter. 4-1 The inspector shall provide a copy of the report to the operator or 4-2 an authorized representative of the operator before departing the 4-3 quarrying operation and shall file the report with the commission. 4-4 The commission shall provide a copy of the report to the operator 4-5 and each owner of the site of the quarry who is not the operator. 4-6 (e) The commission shall establish a system of rotation of 4-7 inspectors. 4-8 (Sections 135.053-135.100 reserved for expansion 4-9 SUBCHAPTER C. CERTIFICATE OF REGISTRATION 4-10 Sec. 135.101. CERTIFICATE OF REGISTRATION REQUIRED. A person 4-11 may not conduct a quarrying operation in this state unless the 4-12 person holds a certificate of registration for that operation 4-13 issued by the commission under this chapter. 4-14 Sec. 135.102. APPLICATION. (a) To obtain a certificate of 4-15 registration, a person must file an application for a certificate 4-16 of registration with the commission on a concise form prescribed by 4-17 the commission, accompanied by a fee of $200 and the bond or 4-18 alternative form of financial security required by Subchapter D. 4-19 (b) The application must include: 4-20 (1) the name, address, and telephone number of the 4-21 operator; 4-22 (2) the name, address, and telephone number of each 4-23 owner of the site of the proposed quarry who is not the operator; 4-24 (3) the type of aggregate extraction and production 4-25 activities to be conducted on the site of the proposed quarry, 4-26 including an estimate of the number of acres of land to be 4-27 disturbed annually for quarrying purposes; 5-1 (4) a legal description of the land on which the 5-2 quarry is to be located; 5-3 (5) a map of the site of the proposed quarry showing 5-4 any easement, public or private road, or right-of-way; 5-5 (6) a statement that the operator has the legal right 5-6 to quarry the land described; and 5-7 (7) a reclamation plan that complies with the 5-8 provisions of this chapter governing the reclamation activities 5-9 that shall be undertaken. 5-10 (c) A separate application is required for each quarrying 5-11 operation. The commission by rule shall specify criteria for 5-12 determining whether a quarrying operation constitutes a separate 5-13 operation for which a separate application is required. 5-14 Sec. 135.103. ISSUANCE OF CERTIFICATE. (a) Not later than 5-15 the 30th day after the date the commission receives a completed 5-16 application, the application fee, and a bond or alternative form of 5-17 financial security as required by Subchapter D, the commission 5-18 shall: 5-19 (1) issue a certificate of registration to the 5-20 applicant entitling the applicant to engage in aggregate quarrying 5-21 operations on the land described in the application; or 5-22 (2) provide the applicant a written statement 5-23 explaining the reason for denial of the certificate. 5-24 (b) The commission may not give public notice or hold a 5-25 public hearing before issuing a certificate of registration. 5-26 Sec. 135.104. TERM OF CERTIFICATE. A certificate of 5-27 registration expires on the first anniversary of the date of 6-1 issuance. 6-2 Sec. 135.105. RENEWAL OF CERTIFICATE. A person may renew an 6-3 unexpired certificate of registration by paying a renewal fee of 6-4 $500 to the commission before the expiration date of the 6-5 certificate. 6-6 Sec. 135.106. RECLAMATION STANDARDS. A certificate of 6-7 registration shall require that the quarrying operations meet the 6-8 applicable reclamation standards of this chapter and commission 6-9 rules. 6-10 Sec. 135.107. TRANSFER OF CERTIFICATE. (a) An operator must 6-11 provide written notice to the commission at least 15 days before 6-12 the date the operator transfers a certificate of registration. The 6-13 notice must: 6-14 (1) include the name of the person to whom the 6-15 operator proposes to transfer the certificate; and 6-16 (2) be accompanied by a bond or alternative form of 6-17 financial security as required by Subchapter D provided by the 6-18 person to whom the operator proposes to transfer the certificate. 6-19 (b) An operator may transfer a certificate of registration 6-20 on or after the 15th day after the date the operator provides 6-21 notice under Subsection (a) unless the commission notifies the 6-22 operator that the transfer is disapproved before that day. On the 6-23 transfer of the certificate: 6-24 (1) the new operator assumes all obligations of the 6-25 former operator with respect to the quarrying operation covered by 6-26 the certificate; and 6-27 (2) the former operator is released from those 7-1 obligations. 7-2 Sec. 135.108. AMENDMENT OF CERTIFICATE. (a) On application, 7-3 the commission may amend a certificate of registration to cover 7-4 additional land that is in the immediate vicinity of the quarry for 7-5 which the certificate was issued, including land that is not 7-6 contiguous to the quarry. 7-7 (b) An application for an amended certificate of 7-8 registration must describe: 7-9 (1) the additional land to be covered by the 7-10 certificate; and 7-11 (2) the quarrying operations to be conducted on the 7-12 land. 7-13 (c) The filing of an application to amend a certificate of 7-14 registration does not affect the authority granted under the 7-15 certificate of which amendment is sought. 7-16 (Sections 135.109-135.150 reserved for expansion 7-17 SUBCHAPTER D. BOND OR ALTERNATIVE FORM OF FINANCIAL SECURITY 7-18 Sec. 135.151. BOND REQUIRED. (a) An application for a 7-19 certificate of registration must be accompanied by a bond on a form 7-20 prescribed by the commission payable to the state and conditioned 7-21 on the operator's compliance with the requirements of this chapter, 7-22 any rule adopted or order issued by the commission under this 7-23 chapter, and the reclamation plan for the quarry. 7-24 (b) A bond must be signed by the operator as principal and 7-25 by a good and sufficient surety licensed to do business in this 7-26 state. 7-27 Sec. 135.152. AMOUNT OF BOND. A bond must be in the amount 8-1 of $1,000 for each acre of land to be disturbed as provided by the 8-2 reclamation plan for the proposed quarry. 8-3 Sec. 135.153. TERM OF BOND. (a) A bond shall remain in 8-4 effect until the commission determines that the quarry has been 8-5 reclaimed in accordance with this chapter, commission rules, and 8-6 the reclamation plan for the quarry. 8-7 (b) Notwithstanding Subsection (a), if the commission 8-8 determines that part of a quarry site has been reclaimed in 8-9 accordance with this chapter, the commission may release a part of 8-10 the amount of the bond. 8-11 Sec. 135.154. CANCELLATION OF BOND. The surety on a bond may 8-12 not cancel the bond until the 91st day after the date the surety 8-13 gives the commission written notice of intent to cancel the bond. 8-14 Sec. 135.155. SUBSTITUTION OF SURETY. (a) If the surety on 8-15 a bond ceases to do business in this state or the surety's license 8-16 to do business is suspended or revoked, the operator, after 8-17 receiving notice from the commission, shall substitute another good 8-18 and sufficient surety licensed to do business in this state. 8-19 (b) If an operator fails to substitute sureties as required 8-20 by this section, the commission may suspend the operator's 8-21 certificate of registration until the substitution is made. 8-22 Sec. 135.156. ALTERNATIVE FORM OF FINANCIAL SECURITY. In 8-23 lieu of filing a bond, an operator may deposit cash, government 8-24 securities, a certificate of deposit, or an irrevocable letter of 8-25 credit with the commission in an amount equal to the amount of a 8-26 bond required under Section 135.152, on terms prescribed by the 8-27 commission. 9-1 (Sections 135.157-135.200 reserved for expansion 9-2 SUBCHAPTER E. CONDUCT OF QUARRYING OPERATIONS 9-3 Sec. 135.201. DISTANCE OF PIT PERIMETER FROM PROPERTY LINE. 9-4 A pit perimeter must be located at least: 9-5 (1) 50 feet from the nearest property line if the 9-6 slope has a horizontal to vertical ratio of at least two to one; or 9-7 (2) 100 feet from the nearest property line if the 9-8 slope is vertical and has a height of at least 10 feet. 9-9 (Sections 135.202-135.250 reserved for expansion 9-10 SUBCHAPTER F. RECLAMATION 9-11 Sec. 135.251. RECLAMATION PLAN. (a) A reclamation plan 9-12 submitted as part of an application for a certificate of 9-13 registration must be developed in a manner consistent with: 9-14 (1) physical, environmental, and climatological 9-15 conditions; and 9-16 (2) quarrying and reclamation technologies the use of 9-17 which is considered a customary business practice at the time the 9-18 plan is developed. 9-19 (b) A reclamation plan must specify: 9-20 (1) the number of acres to be disturbed by the 9-21 proposed quarrying operation; and 9-22 (2) whether the quarry site is to be reclaimed for 9-23 forest, pasture, crop, horticultural, homesite, recreational, 9-24 industrial, wildlife, or other use. 9-25 (c) An operator may amend a reclamation plan at any time, 9-26 subject to commission approval. 9-27 Sec. 135.252. ACCESS TO LAND ABOVE BENCH OR HIGHWALL. If a 10-1 quarrying operation produces a bench or solid rock highwall, the 10-2 operator shall provide at least one suitable access to land above 10-3 the bench or highwall. 10-4 Sec. 135.253. RESTRICTION OF WATERWAY. An operator may not 10-5 move overburden in a manner that restricts a waterway unless a 10-6 drainway can be constructed with the approval of each proper state 10-7 agency. 10-8 Sec. 135.254. GRADING OF OVERBURDEN. (a) An operator shall: 10-9 (1) place, grade, and stabilize all overburden removed 10-10 so as to minimize soil erosion, surface disturbance, and stream 10-11 sedimentation; and 10-12 (2) grade all ridges and peaks of overburden created 10-13 by quarrying to a rolling topography traversable by equipment 10-14 customarily used in connection with the use to be made of the land 10-15 after reclamation, except that the slope is not required to be 10-16 reduced to less than: 10-17 (A) the original grade of the area surrounding 10-18 the pit before mining; or 10-19 (B) 25 degrees from horizontal if the ridge or 10-20 peak results from a box cut. 10-21 (b) This section does not apply to a quarrying operation: 10-22 (1) conducted: 10-23 (A) in the flood plain of a river or stream and 10-24 subject to periodic flooding; or 10-25 (B) in a wetland; or 10-26 (2) the pit of which is covered by a lake or 10-27 settlement pond as provided by Section 135.255. 11-1 (c) Notwithstanding Subsection (a), an operator: 11-2 (1) is not required to backfill a pit; and 11-3 (2) may leave boulders in a pit. 11-4 Sec. 135.255. CONSTRUCTION OF DAM. An operator may construct 11-5 a dam to form a lake or settlement pond in a pit resulting from a 11-6 quarrying operation. 11-7 Sec. 135.256. REVEGETATION. Revegetation of land affected by 11-8 a quarrying operation is not required if: 11-9 (1) the chemical or physical characteristics of the 11-10 soil seriously inhibit plant growth; or 11-11 (2) the land is to be covered by a permanent lake or 11-12 pond. 11-13 (Sections 135.257-135.300 reserved for expansion 11-14 SUBCHAPTER G. ADMINISTRATIVE PENALTY 11-15 Sec. 135.301. IMPOSITION OF PENALTY. The commission shall 11-16 impose an administrative penalty on an owner or operator of a 11-17 quarrying operation who violates this chapter or a rule adopted or 11-18 order issued under this chapter. 11-19 Sec. 135.302. AMOUNT OF PENALTY. The amount of the penalty 11-20 is $5,000, and each day a violation continues or occurs is a 11-21 separate violation for purposes of imposing a penalty. 11-22 Sec. 135.303. NOTICE OF VIOLATION AND PENALTY. (a) If, 11-23 after investigation of a possible violation and the facts 11-24 surrounding that possible violation, the commission determines that 11-25 a violation has occurred, the commission shall give written notice 11-26 of the violation to the person alleged to have committed the 11-27 violation. 12-1 (b) The notice must: 12-2 (1) include a brief summary of the alleged violation; 12-3 (2) state the amount of the proposed administrative 12-4 penalty; and 12-5 (3) inform the person of the person's right to a 12-6 hearing on the occurrence of the violation, the amount of the 12-7 penalty, or both. 12-8 Sec. 135.304. PENALTY TO BE PAID OR HEARING REQUESTED. (a) 12-9 Not later than the 20th day after the date the person receives the 12-10 notice, the person in writing may: 12-11 (1) accept the determination and the proposed 12-12 administrative penalty; or 12-13 (2) make a request for a hearing on the occurrence of 12-14 the violation, the amount of the penalty, or both. 12-15 (b) If the person accepts the determination and proposed 12-16 penalty, the commission by order shall approve the determination 12-17 and impose the proposed penalty. 12-18 Sec. 135.305. HEARING. (a) If the person requests a hearing 12-19 or fails to respond in a timely manner to the notice, the 12-20 commission shall set a hearing and give written notice of the 12-21 hearing to the person. The commission may employ a hearings 12-22 officer to hold the hearing. 12-23 (b) The hearings officer shall make findings of fact and 12-24 conclusions of law and promptly issue to the commission a proposal 12-25 for a decision about the occurrence of the violation and the amount 12-26 of a proposed penalty. 12-27 Sec. 135.306. DECISION BY COMMISSION. (a) Based on the 13-1 findings of fact, conclusions of law, and proposal for a decision, 13-2 the commission by order may: 13-3 (1) find that a violation occurred and impose a 13-4 penalty; or 13-5 (2) find that a violation did not occur. 13-6 (b) The notice of the commission's order given to the person 13-7 must include a statement of the right of the person to judicial 13-8 review of the order. 13-9 Sec. 135.307. OPTIONS FOLLOWING DECISION: PAY OR APPEAL. Not 13-10 later than the 30th day after the date the commission's order 13-11 becomes final, the person shall: 13-12 (1) pay the penalty; or 13-13 (2) file a petition for judicial review contesting the 13-14 occurrence of the violation, the amount of the penalty, or both. 13-15 Sec. 135.308. STAY OF ENFORCEMENT OF PENALTY. (a) Within 13-16 the 30-day period prescribed by Section 135.307, a person who files 13-17 a petition for judicial review may: 13-18 (1) stay enforcement of the penalty by: 13-19 (A) paying the penalty to the court for 13-20 placement in an escrow account; or 13-21 (B) giving the court a supersedeas bond approved 13-22 by the court that: 13-23 (i) is for the amount of the penalty; and 13-24 (ii) is effective until all judicial 13-25 review of the commission's order is final; or 13-26 (2) request the court to stay enforcement of the 13-27 penalty by: 14-1 (A) filing with the court a sworn affidavit of 14-2 the person stating that the person is financially unable to pay the 14-3 penalty and is financially unable to give the supersedeas bond; and 14-4 (B) giving a copy of the affidavit to the 14-5 commission by certified mail. 14-6 (b) If the commission receives a copy of an affidavit under 14-7 Subsection (a)(2), the commission may file with the court, within 14-8 five days after the date the copy is received, a contest to the 14-9 affidavit. The court shall hold a hearing on the facts alleged in 14-10 the affidavit as soon as practicable and shall stay the enforcement 14-11 of the penalty on finding that the alleged facts are true. The 14-12 person who files an affidavit has the burden of proving that the 14-13 person is financially unable to pay the penalty and to give a 14-14 supersedeas bond. 14-15 Sec. 135.309. COLLECTION OF PENALTY. (a) If the person does 14-16 not pay the penalty and the enforcement of the penalty is not 14-17 stayed, the penalty may be collected. 14-18 (b) The attorney general may sue to collect the penalty. 14-19 (c) A penalty collected under this subchapter shall be 14-20 deposited in the state treasury to the credit of the Texas 14-21 aggregate quarry reclamation account. 14-22 Sec. 135.310. DECISION BY COURT. (a) If the court sustains 14-23 the finding that a violation occurred, the court may uphold or 14-24 reduce the amount of the penalty and order the person to pay the 14-25 full or reduced amount of the penalty. 14-26 (b) If the court does not sustain the finding that a 14-27 violation occurred, the court shall order that a penalty is not 15-1 owed. 15-2 Sec. 135.311. REMITTANCE OF PENALTY AND INTEREST. (a) If 15-3 the person paid the penalty and if the amount of the penalty is 15-4 reduced or the penalty is not upheld by the court, the court shall 15-5 order, when the court's judgment becomes final, that the 15-6 appropriate amount plus accrued interest be remitted to the person. 15-7 (b) The interest accrues at the rate charged on loans to 15-8 depository institutions by the New York Federal Reserve Bank. 15-9 (c) The interest shall be paid for the period beginning on 15-10 the date the penalty is paid and ending on the date the penalty is 15-11 remitted. 15-12 Sec. 135.312. RELEASE OF BOND. (a) If the person gave a 15-13 supersedeas bond and the penalty is not upheld by the court, the 15-14 court shall order, when the court's judgment becomes final, the 15-15 release of the bond. 15-16 (b) If the person gave a supersedeas bond and the amount of 15-17 the penalty is reduced, the court shall order the release of the 15-18 bond after the person pays the reduced amount. 15-19 Sec. 135.313. ADMINISTRATIVE PROCEDURE. A proceeding to 15-20 impose the penalty is considered to be a contested case under 15-21 Chapter 2001, Government Code. 15-22 (Sections 135.314-135.350 reserved for expansion) 15-23 SUBCHAPTER H. RECLAMATION ACCOUNT 15-24 Sec. 135.351. TEXAS AGGREGATE QUARRY RECLAMATION ACCOUNT. 15-25 (a) The commission shall deposit the amount recovered on a bond or 15-26 alternative form of financial security as required by Subchapter D 15-27 or an administrative penalty collected under Subchapter G to the 16-1 credit of the Texas aggregate quarry reclamation account. 16-2 (b) The Texas aggregate quarry reclamation account is an 16-3 account in the general revenue fund that may be appropriated only 16-4 for the purpose of undertaking corrective or enforcement action 16-5 under this chapter. 16-6 SECTION 2. (a) This Act takes effect September 1, 2001. 16-7 (b) Not later than March 1, 2002, the Railroad Commission of 16-8 Texas shall adopt rules as necessary to implement this Act. 16-9 (c) Notwithstanding Section 135.101, Natural Resources Code, 16-10 as added by this Act, an operator may begin conducting a quarrying 16-11 operation in this state on or after the effective date of this Act 16-12 and before the Railroad Commission of Texas adopts rules as 16-13 provided by Subsection (b) of this section without obtaining a 16-14 certificate of registration for that operation from the commission 16-15 under Chapter 135, Natural Resources Code, as added by this Act. 16-16 As soon as practicable after the commission adopts rules, an 16-17 operator described by this subsection shall file an application for 16-18 a certificate of registration under Section 135.102, Natural 16-19 Resources Code, as added by this Act, accompanied by a reclamation 16-20 plan under Section 135.251, Natural Resources Code, as added by 16-21 this Act. An operator who files an application accompanied by a 16-22 reclamation plan may continue conducting the operation under this 16-23 subsection until the commission approves or disapproves the 16-24 application and reclamation plan.