1-1 AN ACT
1-2 relating to the continuation and functions of the Railroad
1-3 Commission of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Articles 6445a, 6447, 6447b, 6447c, and 6447h,
1-6 Revised Statutes, are amended to read as follows:
1-7 Art. 6445a. SUNSET PROVISION. The Railroad Commission of
1-8 Texas is subject to Chapter 325, Government Code (Texas Sunset
1-9 Act). Unless continued in existence as provided by that chapter,
1-10 the commission is abolished September 1, 2013 [2001].
1-11 Art. 6447. THE COMMISSION. Election.--The Railroad
1-12 Commission of Texas shall be composed of three members, one of whom
1-13 shall be elected biennially at each general election for a term of
1-14 six years.
1-15 Qualifications.--The members shall be resident citizens of
1-16 this State, and qualified voters under the Constitution and laws,
1-17 and not less than twenty-five years of age. The members are
1-18 subject to the provisions of Chapter 572, Government Code, that
1-19 apply to elected officers, including the requirements governing
1-20 personal financial statements, standards of conduct, and conflicts
1-21 of interest. [No member shall be directly or indirectly interested
1-22 in any railroad, or in any stock, bond, mortgage, security, or
1-23 earnings of any railroad, and should a member voluntarily become so
1-24 interested his office shall become vacant, or should he become so
1-25 interested otherwise than voluntarily, he shall within a reasonable
2-1 time divest himself of such interest, failing to do this, his
2-2 office shall become vacant.]
2-3 [Shall hold no other office, etc.--No commissioner shall hold
2-4 any other office of any character, while such commissioner, nor
2-5 engage in any occupation or business inconsistent with his duties
2-6 as such commissioner.]
2-7 Oath, etc.--Before entering upon the duties of his office,
2-8 each commissioner shall take and subscribe to the official oath and
2-9 shall in addition thereto[,] swear that he [is not directly or
2-10 indirectly interested in any railroad, nor in the bonds, stock,
2-11 mortgages, securities, contracts, or earnings of any railroad, and
2-12 that he] will to the best of his ability faithfully and justly
2-13 execute and enforce the provisions of this title[,] and all laws of
2-14 this State concerning railroads, which oath shall be filed with the
2-15 Secretary of State.
2-16 Organization.--The commissioners shall elect one of their
2-17 number chairman. They may make all rules necessary for their
2-18 government and proceedings. They shall be known collectively as
2-19 the "Railroad Commission of Texas," and shall have a seal, a star
2-20 of five points with the words "Railroad Commission of Texas"
2-21 engraved thereon. They shall be furnished necessary furniture,
2-22 stationery, supplies and all necessary expenses, to be paid for on
2-23 the order of the Governor.
2-24 Expenses.--The Commissioners shall receive from the State
2-25 their necessary traveling expenses while traveling on the business
2-26 of the Commission, which shall include the cost only of
3-1 transportation while traveling on business for the Commission, upon
3-2 an itemized statement thereof, sworn to by the party who incurred
3-3 the expense, and approved by the Commission. Employees of the
3-4 Commission are entitled to reimbursement for expenses incurred in
3-5 traveling on the business of the Commission as provided by the
3-6 General Appropriations Act.
3-7 Sessions.--The Commission may hold its sessions at any place
3-8 in this State when deemed necessary.
3-9 Art. 6447b. EQUAL EMPLOYMENT OPPORTUNITY [EMPLOYEE
3-10 PERFORMANCE]. (a) The commission [or its designee shall develop
3-11 an intra-agency career ladder program, one part of which shall be
3-12 the intra-agency posting of all nonentry level positions for at
3-13 least 10 days before any public posting.]
3-14 [(b) The commission or its designee shall develop a system
3-15 of annual performance evaluations based on measurable job tasks.
3-16 All merit pay for commission employees must be based on the system
3-17 established under this subsection.]
3-18 [(c) The commission] shall prepare and maintain a written
3-19 policy statement that implements [plan to assure implementation of]
3-20 a program of equal employment opportunity to ensure that [whereby]
3-21 all personnel decisions [transactions] are made without regard to
3-22 race, color, disability, sex, religion, age, or national origin.
3-23 (b) The policy statement must [plan shall] include:
3-24 (1) personnel policies, including policies relating to
3-25 [plans for] recruitment, evaluation, selection, [appointment,]
3-26 training, and promotion of personnel, that show the intent of the
4-1 commission to avoid the unlawful employment practices described by
4-2 Chapter 21, Labor Code; and
4-3 (2) an analysis of the extent to which the composition
4-4 of the commission's personnel is in accordance with state and
4-5 federal law and a description of reasonable methods to achieve
4-6 compliance with state and federal law.
4-7 (c) The policy statement must:
4-8 (1) be updated annually;
4-9 (2) be reviewed by the state Commission on Human
4-10 Rights for compliance with Subsection (b) of this article; and
4-11 (3) be filed with the governor's office[, and other
4-12 personnel practices. The plan shall also include steps reasonably
4-13 designed to overcome any identified under-utilization of minorities
4-14 and women in the commission's work force and shall include
4-15 objectives and goals, timetables for achieving those objectives and
4-16 goals, and assignments of responsibility for their completion. The
4-17 plan shall be filed with the governor's office within 60 days after
4-18 the effective date of this section, cover an annual period, and be
4-19 updated at least annually. Progress reports shall be submitted to
4-20 the governor's office within 30 days of November 1 and April 1 of
4-21 each year and shall include the steps the commission has taken
4-22 within the reporting period to comply with this requirement of this
4-23 section].
4-24 Art. 6447c. CONFLICT OF INTEREST. (a) In this section,
4-25 "Texas trade association" means a cooperative and voluntarily
4-26 joined association of business or professional competitors in this
5-1 state designed to assist its members and its industry or profession
5-2 in dealing with mutual business or professional problems and in
5-3 promoting their common interest.
5-4 (b) A person may not be an employee of the commission
5-5 employed in a "bona fide executive, administrative, or professional
5-6 capacity," as that phrase is used for purposes of establishing an
5-7 exemption to the overtime provisions of the federal Fair Labor
5-8 Standards Act of 1938 (29 U.S.C. Section 201 et seq.) and its
5-9 subsequent amendments, if:
5-10 (1) the person is an officer, employee, or paid
5-11 consultant of a Texas trade association in a business or industry
5-12 regulated by the commission; or
5-13 (2) the person's spouse is an officer, manager, or
5-14 paid consultant of a Texas [An employee of the commission may not
5-15 be an officer, employee, or paid consultant of a] trade association
5-16 in a business or industry regulated by the commission.
5-17 (c) [(b)] A person who is required to register as a lobbyist
5-18 under Chapter 305, Government Code, may not act as the general
5-19 counsel to the commission.
5-20 (d) [(c)] The commission[, as often as necessary,] shall
5-21 provide to members of the commission and to agency employees, as
5-22 often as necessary, information regarding the requirements for
5-23 office or employment under this chapter, including information
5-24 regarding a person's [employees'] responsibilities under applicable
5-25 laws relating to standards of conduct for state officers or
5-26 employees.
6-1 Art. 6447h. COMPLAINTS. (a) The commission shall maintain
6-2 a [keep an information] file on [about] each written complaint
6-3 filed with the commission. The file must include:
6-4 (1) the name of the person who filed the complaint;
6-5 (2) the date the complaint is received by the
6-6 commission;
6-7 (3) the subject matter of the complaint;
6-8 (4) the name of each person contacted in relation to
6-9 the complaint;
6-10 (5) a summary of the results of the review or
6-11 investigation of the complaint; and
6-12 (6) an explanation of the reason the file was closed,
6-13 if the commission closed the file without taking action other than
6-14 to investigate the complaint.
6-15 (b) The commission shall provide to the person filing the
6-16 complaint and to each person who is a subject of the complaint a
6-17 copy of the commission's policies and procedures relating to
6-18 complaint investigation and resolution.
6-19 (c) The [relating to a person who has a license, permit, or
6-20 certificate of public convenience and necessity from the
6-21 commission.]
6-22 [(b) If a written complaint is filed with the commission
6-23 relating to a person who has a license, permit, or certificate of
6-24 public convenience and necessity from the] commission, at least [as
6-25 frequently as] quarterly [and] until final disposition of the
6-26 complaint, [the commission] shall notify the person filing [parties
7-1 to] the complaint and each person who is a subject of the complaint
7-2 of the status of the investigation [complaint] unless the notice
7-3 would jeopardize an undercover investigation. [This section does
7-4 not apply to complaints under Chapter 91, Natural Resources Code.]
7-5 SECTION 2. Title 112, Revised Statutes, is amended by adding
7-6 Articles 6447k, 6447l, 6447m, and 6447n to read as follows:
7-7 Art. 6447k. SEPARATION OF POLICY-MAKING AND MANAGEMENT
7-8 RESPONSIBILITIES. The commission shall develop and implement
7-9 policies that clearly separate the policy-making responsibilities
7-10 of the members of the commission and the management
7-11 responsibilities of the staff of the commission.
7-12 Art. 6447l. PUBLIC PARTICIPATION. The commission shall
7-13 develop and implement policies that provide the public with a
7-14 reasonable opportunity to appear before the commission and to speak
7-15 on any issue under the jurisdiction of the commission.
7-16 Art. 6447m. EMPLOYEE INCENTIVE PROGRAM. The commission
7-17 shall provide to commission employees information and training on
7-18 the benefits and methods of participation in the state employee
7-19 incentive program.
7-20 Art. 6447n. METHOD OF MAKING PAYMENTS TO COMMISSION.
7-21 (a) The commission may authorize payment, as prescribed by the
7-22 commission, of regulatory fees, fines, penalties, and charges for
7-23 goods and services by means of an electronic payment method or a
7-24 credit card issued by a financial institution chartered by a state
7-25 or the United States or issued by a nationally recognized credit
7-26 organization approved by the commission. A payment by the
8-1 authorized method may be made in person, by telephone, or through
8-2 the Internet.
8-3 (b) The commission may require a person who makes a payment
8-4 to the commission by means of an electronic payment method or
8-5 credit card to pay a discount or service charge in an amount
8-6 reasonable and necessary to reimburse the commission for the costs
8-7 involved in processing the payment.
8-8 (c) The commission may adopt rules as necessary to implement
8-9 this article.
8-10 SECTION 3. Section 81.0521, Natural Resources Code, is
8-11 amended by amending Subsection (a) and adding Subsection (c) to
8-12 read as follows:
8-13 (a) With each application for an exception to any commission
8-14 rule contained in Chapter 3 of Part I of Title 16 of the Texas
8-15 Administrative Code, the applicant shall submit to the commission a
8-16 fee of $150 [$50].
8-17 (c) Two-thirds of the proceeds from this fee, including any
8-18 penalties collected in connection with the fee, shall be deposited
8-19 to the oil-field cleanup fund as provided by Section 91.111.
8-20 SECTION 4. Subsection (a), Section 81.0522, Natural
8-21 Resources Code, is amended to read as follows:
8-22 (a) With each Natural Gas Policy Act (15 U.S.C. Sections
8-23 3301-3432) application, the applicant shall submit to the
8-24 commission a fee [of $50]. The commission shall set the
8-25 application fee in an amount necessary to cover the cost of the
8-26 commission's well category determination program but not to exceed
9-1 $150.
9-2 SECTION 5. Section 81.0531, Natural Resources Code, is
9-3 amended by amending Subsections (c) and (d) and adding Subsection
9-4 (e) to read as follows:
9-5 (c) In determining the amount of the penalty, the commission
9-6 shall consider the permittee's history of previous violations, the
9-7 seriousness of the violation, any hazard to the health or safety of
9-8 the public, and the demonstrated good faith of the person charged.
9-9 In determining the amount of the penalty for a violation of a
9-10 provision of this title or a rule, order, license, permit, or
9-11 certificate that relates to pipeline safety, the commission shall
9-12 consider the guidelines adopted under Subsection (d).
9-13 (d) The commission by rule shall adopt guidelines to be used
9-14 in determining the amount of the penalty for a violation of a
9-15 provision of this title or a rule, order, license, permit, or
9-16 certificate that relates to pipeline safety. The guidelines shall
9-17 include a penalty calculation worksheet that specifies the typical
9-18 penalty for certain violations, circumstances justifying
9-19 enhancement of a penalty and the amount of the enhancement, and
9-20 circumstances justifying a reduction in a penalty and the amount of
9-21 the reduction. The guidelines shall take into account:
9-22 (1) the permittee's history of previous violations,
9-23 including the number of previous violations;
9-24 (2) the seriousness of the violation and of any
9-25 pollution resulting from the violation;
9-26 (3) any hazard to the health or safety of the public;
10-1 (4) the degree of culpability;
10-2 (5) the demonstrated good faith of the person charged;
10-3 and
10-4 (6) any other factor the commission considers
10-5 relevant.
10-6 (e) A penalty collected under this section shall be
10-7 deposited to the credit of the oil-field cleanup fund.
10-8 SECTION 6. Subchapter C, Chapter 81, Natural Resources Code,
10-9 is amended by adding Sections 81.055 and 81.056 to read as follows:
10-10 Sec. 81.055. PIPELINE SYSTEM FINANCIAL RESPONSIBILITY
10-11 REQUIREMENTS. (a) Not later than March 1, 2002, the legislature
10-12 may:
10-13 (1) study the desirability of requiring an owner,
10-14 operator, or manager of a pipeline system to obtain liability
10-15 insurance coverage, a bond, or other evidence of financial
10-16 responsibility in order to protect the public from the costs
10-17 resulting from a discharge from the pipeline system; and
10-18 (2) report its findings to the legislature and make
10-19 the report available to the public.
10-20 (b) If the legislature finds that adoption of such a
10-21 requirement is desirable, the commission by rule may require an
10-22 owner, operator, or manager of a pipeline system to obtain evidence
10-23 of financial responsibility. The rules must specify the
10-24 appropriate form and amount of that evidence and may require
10-25 evidence of financial responsibility in different amounts for
10-26 different pipeline systems, taking into consideration whether the
11-1 pipeline system:
11-2 (1) has a history of discharges or other violations of
11-3 regulatory requirements; or
11-4 (2) is located over a public drinking water supply, a
11-5 natural resource, or a critical groundwater resource or near a
11-6 school or populated area.
11-7 Sec. 81.056. PIPELINE CONSTRUCTION AND OPERATION PUBLIC
11-8 NOTIFICATION REQUIREMENTS. (a) This section applies only to a new
11-9 pipeline system, or the extension of an existing pipeline system,
11-10 that crosses more than three counties and for which construction
11-11 began after September 1, 2001.
11-12 (b) A pipeline operator must publish notice in a newspaper
11-13 of general circulation in each county with a population greater
11-14 than 10,000 that contains part of the proposed route of the
11-15 pipeline system. The notice shall be published in the form
11-16 prescribed by the commission and include the location of the
11-17 beginning and end points of the proposed part of the system and a
11-18 listing of each state or federal highway that will be crossed by
11-19 the proposed part of the system. The notice must be published at
11-20 least 30 days but no more than one year before the start of
11-21 construction.
11-22 (c) Before approving any permit for the operation of a
11-23 pipeline required by this chapter or the rules adopted under it,
11-24 the commission must:
11-25 (1) certify that at least 90 days but no more than one
11-26 year before the date the commission approves the permit the person
12-1 requesting the permit has provided a copy of the application to:
12-2 (A) the county judge and commissioners of each
12-3 county that contains part of the proposed route;
12-4 (B) the county fire marshal in each county that
12-5 contains part of the proposed route, if such office has been
12-6 established by that county; and
12-7 (C) the regional water planning group
12-8 established by Section 16.053, Water Code, in each regional water
12-9 planning area that contains part of the proposed route; and
12-10 (2) review and consider comments from members of the
12-11 public regarding the project for which the permit is being
12-12 requested.
12-13 (d) The duty to consider comments under Subsection (c)(2) is
12-14 not intended to unreasonably delay action on the permit application
12-15 or to require the commission to consider factors other than those
12-16 criteria provided by law or commission rule for determining whether
12-17 to award the permit.
12-18 SECTION 7. Subsection (a), Section 81.116, Natural Resources
12-19 Code, is amended to read as follows:
12-20 (a) An oil-field cleanup regulatory fee is imposed on crude
12-21 petroleum produced in this state in the amount of five-eighths
12-22 [five-sixteenths] of one cent on each barrel of 42 standard
12-23 gallons.
12-24 SECTION 8. Subsection (a), Section 81.117, Natural Resources
12-25 Code, is amended to read as follows:
12-26 (a) An oil-field cleanup regulatory fee is imposed on gas
13-1 initially produced and saved in this state in the amount of
13-2 one-fifteenth [one-thirtieth] of one cent for each thousand cubic
13-3 feet.
13-4 SECTION 9. Sections 85.161 and 85.2021, Natural Resources
13-5 Code, are amended to read as follows:
13-6 Sec. 85.161. WELL OWNERS AND OPERATORS CERTIFICATES. The
13-7 owner or operator of any [an oil or gas] well subject to the
13-8 jurisdiction of the commission[, before connecting with any oil or
13-9 gas pipeline,] shall secure from the commission a certificate
13-10 showing compliance with the oil or gas conservation laws of the
13-11 state and conservation rules and orders of the commission.
13-12 Sec. 85.2021. DRILLING PERMIT FEE. (a) With each
13-13 application or materially amended application for a permit to
13-14 drill, deepen, plug back, or reenter a well, the applicant shall
13-15 submit to the commission a nonrefundable fee of:
13-16 (1) $200 [$100] if the total depth of the well is
13-17 2,000 feet or less;
13-18 (2) $225 [$125] if the total depth of the well is
13-19 greater than 2,000 feet but less than or equal to 4,000 feet;
13-20 (3) $250 [$150] if the total depth of the well is
13-21 greater than 4,000 feet but less than or equal to 9,000 feet;
13-22 (4) $300 [$200] if the total depth of the well is
13-23 greater than 9,000 feet.
13-24 (b) An applicant shall submit an additional nonrefundable
13-25 fee of $200 when a Rule 37 spacing or a Rule 38 density exception
13-26 review is required.
14-1 (c) An applicant shall submit an additional nonrefundable
14-2 fee of $150 [$50] when requesting that the commission expedite the
14-3 application for a permit to drill, deepen, plug back, or reenter a
14-4 well.
14-5 (d) [(c)] With each application for an extension of time to
14-6 plug a well pursuant to commission rules, an applicant shall submit
14-7 to the commission a nonrefundable fee of $300 [$100], unless the
14-8 applicant has filed a bond, letter of credit, or cash deposit under
14-9 Section 91.104(b)(1), (2), or (3) [under Section 91.1041 or Section
14-10 91.1042 of this code].
14-11 (e) [(d)] All fees collected under this section shall be
14-12 deposited in the state oil-field cleanup fund.
14-13 SECTION 10. Effective September 1, 2004, Section 85.2021,
14-14 Natural Resources Code, is amended to read as follows:
14-15 Sec. 85.2021. DRILLING PERMIT FEE. (a) With each
14-16 application or materially amended application for a permit to
14-17 drill, deepen, plug back, or reenter a well, the applicant shall
14-18 submit to the commission a nonrefundable fee of:
14-19 (1) $200 [$100] if the total depth of the well is
14-20 2,000 feet or less;
14-21 (2) $225 [$125] if the total depth of the well is
14-22 greater than 2,000 feet but less than or equal to 4,000 feet;
14-23 (3) $250 [$150] if the total depth of the well is
14-24 greater than 4,000 feet but less than or equal to 9,000 feet;
14-25 (4) $300 [$200] if the total depth of the well is
14-26 greater than 9,000 feet.
15-1 (b) An applicant shall submit an additional nonrefundable
15-2 fee of $200 when a Rule 37 spacing or a Rule 38 density exception
15-3 review is requested.
15-4 (c) An applicant shall submit an additional nonrefundable
15-5 fee of $150 [$50] when requesting that the commission expedite the
15-6 application for a permit to drill, deepen, plug back, or reenter a
15-7 well.
15-8 [(c) With each application for an extension of time to plug
15-9 a well pursuant to commission rules, an applicant shall submit to
15-10 the commission a nonrefundable fee of $100, unless the applicant
15-11 has filed a bond under Section 91.1041 or Section 91.1042 of this
15-12 code.]
15-13 (d) All fees collected under this section shall be deposited
15-14 in the state oil-field cleanup fund.
15-15 SECTION 11. Effective September 1, 2004, Subdivision (2),
15-16 Subsection (a), Section 89.002, Natural Resources Code, is amended
15-17 to read as follows:
15-18 (2) "Operator" means a person who assumes
15-19 responsibility for the physical operation and control of a well as
15-20 shown by a form the person files with the commission and the
15-21 commission approves. The commission may not require a person to
15-22 assume responsibility for a well as a condition to being permitted
15-23 to assume responsibility for another well. In the event of a sale
15-24 or conveyance of an unplugged well or the right to operate an
15-25 unplugged well, a person ceases being the operator for the purpose
15-26 of Section 89.011 only if the well was in compliance with
16-1 commission rules relating to safety or the prevention or control of
16-2 pollution at the time of sale or conveyance and once the person who
16-3 acquires the well or right to operate the well:
16-4 (A) specifically identifies the well as a well
16-5 for which the person assumes plugging responsibility on forms
16-6 required and approved by the commission;
16-7 (B) has a commission-approved organization
16-8 report as required by Section 91.142;
16-9 (C) has a commission-approved bond, letter of
16-10 credit, or cash deposit [or other form of financial security] under
16-11 Sections 91.103-91.107 covering the well; and
16-12 (D) places the well in compliance with
16-13 commission rules.
16-14 SECTION 12. Section 89.011, Natural Resources Code, is
16-15 amended to read as follows:
16-16 Sec. 89.011. DUTY OF OPERATOR. (a) The operator of a well
16-17 shall properly plug the well when required and in accordance with
16-18 the commission's rules that are in effect at the time of the
16-19 plugging.
16-20 (b) If useable quality water zones are present, the operator
16-21 shall verify the placement of the plug at the base of the deepest
16-22 fresh water zone required to be protected. The well is considered
16-23 to have been properly plugged only when the verification is
16-24 satisfactory and meets commission requirements.
16-25 (c) If, for the use of the surface owner, the operator of
16-26 the well plugs the well back to produced fresh water, the duty of
17-1 the operator to properly plug the well ends only when:
17-2 (1) the well has been properly plugged in accordance
17-3 with commission requirements; and
17-4 (2) the surface owner has obtained a permit for the
17-5 well from the groundwater conservation district, if applicable.
17-6 (d) Subsections (b) and (c) apply only to wells plugged on
17-7 or after the effective date of this Act.
17-8 (e) The duty of a person to plug an unplugged well that has
17-9 ceased operation ends only if the person's interest in the well is
17-10 sold or conveyed while the well is in compliance with rules of the
17-11 commission relating to safety or the prevention or control of
17-12 pollution and the provisions of Sections 89.002(a)(2)(A)-(D) have
17-13 been met. The person acquiring the seller's interest through such
17-14 a sale or conveyance succeeds the seller as the operator of the
17-15 well for the purpose of plugging responsibility once the provisions
17-16 of Sections 89.002(a)(2)(A)-(D) have been met.
17-17 SECTION 13. Subsection (c), Section 89.043, Natural
17-18 Resources Code, is amended to read as follows:
17-19 (c) Not later than [On or before] the 30th day before the
17-20 date the commission enters into a contract to plug a delinquent
17-21 inactive well, the commission shall send a notice by certified mail
17-22 to the operator of the well at the address last reported to the
17-23 commission as required by Section 91.142 and commission rules. The
17-24 notice shall direct the operator to plug the well and shall state
17-25 that:
17-26 (1) the commission may plug the well and foreclose its
18-1 statutory lien under Section 89.083 unless the operator requests a
18-2 hearing not later than the 10th day after the date the operator
18-3 receives the notice;
18-4 (2) if the commission forecloses its statutory lien
18-5 under Section 89.083 [plugs the well], all well-site equipment will
18-6 be presumed to have been abandoned and the commission may dispose
18-7 of the equipment and hydrocarbons from the well as provided by
18-8 Section 89.085;
18-9 (3) if the commission plugs the well, the commission:
18-10 (A) by order may require the operator to
18-11 reimburse the commission for the plugging costs; or
18-12 (B) may request the attorney general to file
18-13 suit against the operator to recover those costs; [and]
18-14 (4) the commission has a statutory lien on all
18-15 well-site equipment under Section 89.083; and
18-16 (5) the lien described by Subdivision (4) is
18-17 foreclosed by operation of law if the commission does not receive a
18-18 valid and timely request for a hearing before the 15th day after
18-19 the date the notice is mailed.
18-20 SECTION 14. Subsection (c), Section 89.083, Natural
18-21 Resources Code, is amended to read as follows:
18-22 (c) The lien may be foreclosed by judicial action or
18-23 commission order at any time after notice and an opportunity for a
18-24 hearing. If notice is mailed under Section 89.043 and if the lien
18-25 is not previously foreclosed, the lien is foreclosed by operation
18-26 of law on the 15th day after the date the notice is mailed unless
19-1 the commission has received a valid and timely request for a
19-2 hearing before that date. [The commission may foreclose on the
19-3 lien by entering into a plugging contract.] The commission is not
19-4 required to give notice or an opportunity for a hearing to
19-5 subordinate lienholders or nonoperators before foreclosing the lien
19-6 [entering into a plugging contract].
19-7 SECTION 15. Subsections (a), (g), and (h), Section 89.085,
19-8 Natural Resources Code, are amended to read as follows:
19-9 (a) When the commission forecloses its lien under Section
19-10 89.083 on [enters into a contract to plug] a delinquent inactive
19-11 well, well-site equipment and any amount of hydrocarbons from the
19-12 well that is stored on the lease are presumed to have been
19-13 abandoned and may be disposed of by the commission in a
19-14 commercially reasonable manner by either or both of the following
19-15 methods:
19-16 (1) entering into a plugging contract that provides
19-17 [may provide] that the person plugging or cleaning up pollution, or
19-18 both, will take title to well-site equipment, hydrocarbons from the
19-19 well that are stored on the lease, or hydrocarbons recovered during
19-20 the plugging operation in exchange for a sum of money deducted as a
19-21 credit from the contract price; or
19-22 (2) selling the well-site equipment, hydrocarbons from
19-23 the well that are stored on the lease, or hydrocarbons recovered
19-24 during the plugging operation [may be sold] at a public auction or
19-25 a public or private sale.
19-26 (g) The notice required by Subsection (f) of this section
20-1 must include [shall state]:
20-2 (1) the lease name;
20-3 (2) the well number;
20-4 (3) the county in which the well is located;
20-5 (4) the abstract number of the property on which the
20-6 lease is situated;
20-7 (5) the commission lease or gas well identification
20-8 number or drilling permit number;
20-9 (6) a list of the property disposed of under this
20-10 section; and
20-11 (7) a statement that any person who has a legal or
20-12 equitable ownership or security interest in the equipment or
20-13 hydrocarbons that was in existence on the date the commission
20-14 foreclosed its statutory lien [entered into a contract to plug or
20-15 clean up the well] may file a claim with the commission.
20-16 (h) Not later than the 180th day after the date the
20-17 well-site equipment or hydrocarbons are disposed of under this
20-18 section, the commission shall publish a notice that states:
20-19 (1) the lease name;
20-20 (2) the well number;
20-21 (3) the county in which the well is located;
20-22 (4) the commission lease or gas well identification
20-23 number or drilling permit number; and
20-24 (5) that equipment or hydrocarbons if applicable from
20-25 the well and lease were disposed of under this section and that any
20-26 person who has a legal or equitable ownership or security interest
21-1 in the equipment or hydrocarbons that was in existence on the date
21-2 the commission foreclosed its statutory lien [entered into a
21-3 contract to plug or clean up the well] may file a claim with the
21-4 commission.
21-5 SECTION 16. Subsections (a) and (c), Section 89.086, Natural
21-6 Resources Code, are amended to read as follows:
21-7 (a) A person with a legal or equitable ownership or security
21-8 interest in well-site equipment or hydrocarbons disposed of under
21-9 Section 89.085 of this code may make a claim against the oil-field
21-10 cleanup fund unless an element of the transaction giving rise to
21-11 the interest occurs after the commission forecloses its statutory
21-12 lien under Section 89.083 [enters into a plugging contract].
21-13 (c) A claimant must identify the well-site equipment or
21-14 hydrocarbons in which the claimant has an interest and state the
21-15 amount of the property interest as of the date the commission
21-16 foreclosed its statutory lien under Section 89.083 [entered into
21-17 the plugging contract].
21-18 SECTION 17. Subsections (a) and (b), Section 91.1013,
21-19 Natural Resources Code, are amended to read as follows:
21-20 (a) With each application for a fluid injection well permit,
21-21 the applicant shall submit to the commission a nonrefundable fee of
21-22 $200 [$100]. In this section, "fluid injection well" means any
21-23 well used to inject fluid or gas into the ground in connection with
21-24 the exploration or production of oil or gas other than an oil and
21-25 gas waste disposal well regulated by the commission pursuant to
21-26 Chapter 27, Water Code.
22-1 (b) With each application for a permit to discharge to
22-2 surface water under this chapter and commission rules, other than a
22-3 permit for a discharge that meets National Pollutant Discharge
22-4 Elimination System requirements for agricultural or wildlife use,
22-5 the applicant shall submit to the commission a nonrefundable fee of
22-6 $300 [$200].
22-7 SECTION 18. Effective September 1, 2004, Section 91.103,
22-8 Natural Resources Code, is amended to read as follows:
22-9 Sec. 91.103. PERSONS REQUIRED TO EXECUTE BOND, LETTER OF
22-10 CREDIT, OR CASH DEPOSIT [OR ALTERNATE FORM OF FINANCIAL SECURITY].
22-11 Any person, including any firm, partnership, joint stock
22-12 association, corporation, or other organization, required to file
22-13 an organization report under Section 91.142 of this code shall
22-14 execute and file with the commission a bond, letter of credit, or
22-15 cash deposit [or alternate form of financial security].
22-16 SECTION 19. Subsections (b) and (c), Section 91.104, Natural
22-17 Resources Code, are amended to read as follows:
22-18 (b) A person required to file a bond or alternate form of
22-19 financial security under Section 91.103 may choose to file:
22-20 (1) an individual bond as provided under Section
22-21 91.1041;
22-22 (2) a blanket bond as provided under Section 91.1042;
22-23 (3) a letter of credit or cash deposit in the same
22-24 amount as required for an individual bond under Section 91.1041 or
22-25 a blanket bond under Section 91.1042;
22-26 (4) a nonrefundable annual fee of $1,000 [$100], if:
23-1 (A) the commission determines that individual
23-2 and blanket bonds as specified by Subdivisions (1) and (2) are not
23-3 obtainable at reasonable prices; and
23-4 (B) the person can demonstrate to the commission
23-5 an acceptable record of compliance with all commission rules,
23-6 orders, licenses, permits, or certificates that relate to safety or
23-7 the prevention or control of pollution for the previous 48 months
23-8 and the person and, if a firm, partnership, joint stock
23-9 association, corporation, or other organization, its officers,
23-10 directors, general partners, or owners of more than 25 percent
23-11 ownership interest or any trustee:
23-12 (i) [(A)] has no outstanding violations of
23-13 such commission rules, orders, licenses, permits, or certificates;
23-14 (ii) [(B)] has paid all administrative,
23-15 civil, and criminal penalties, if any, relating to any violation of
23-16 such commission rules, orders, licenses, permits, or certificates;
23-17 and
23-18 (iii) [(C)] has paid all reimbursements of
23-19 any costs and expenses incurred by the commission in relation to
23-20 any violation of such commission rules, orders, licenses, permits,
23-21 or certificates; or
23-22 (5) [(4)] a nonrefundable annual fee equal to 12-1/2
23-23 [three] percent of the bond that otherwise would be required[; or]
23-24 [(5) to give a first lien on tangible personal
23-25 property associated with oil and gas production whose salvage value
23-26 equals the value of an individual bond under Section 91.1041 or the
24-1 value of a blanket bond under Section 91.1042 that otherwise would
24-2 be required].
24-3 (c) A person who chooses to file a form of financial
24-4 security other than a bond, letter of credit, or cash deposit shall
24-5 also submit a fee of $300 [$100] for each application to extend the
24-6 time to plug a well in accordance with Section 85.2021 [of this
24-7 code].
24-8 SECTION 20. Effective September 1, 2004, Section 91.104,
24-9 Natural Resources Code, is amended to read as follows:
24-10 Sec. 91.104. BONDS, LETTERS OF CREDIT, AND CASH DEPOSITS
24-11 [AND ALTERNATE FORMS OF FINANCIAL SECURITY]. (a) The commission
24-12 shall require a bond, letter of credit, or cash deposit [or an
24-13 alternate form of financial security] to be filed with the
24-14 commission as provided by Subsection (b) of this section.
24-15 (b) A person required to file a bond, letter of credit, or
24-16 cash deposit under Section 91.103 who is an inactive operator or
24-17 who operates one or more wells and is not involved in any other
24-18 activities that require the filing of a bond, letter of credit, or
24-19 cash deposit must, at the time of filing or renewing an
24-20 organization report required by Section 91.142, [may choose to]
24-21 file:
24-22 (1) an individual bond as provided under Section
24-23 91.1041;
24-24 (2) a blanket bond as provided under Section 91.1042;
24-25 or
24-26 (3) a letter of credit or cash deposit in the same
25-1 amount as required for an individual bond under Section 91.1041 or
25-2 a blanket bond under Section 91.1042 [nonrefundable annual fee of
25-3 $100, if the person can demonstrate to the commission an acceptable
25-4 record of compliance with all commission rules, orders, licenses,
25-5 permits, or certificates that relate to safety or the prevention or
25-6 control of pollution for the previous 48 months and the person and,
25-7 if a firm, partnership, joint stock association, corporation, or
25-8 other organization, its officers, directors, general partners, or
25-9 owners of more than 25 percent ownership interest or any trustee:]
25-10 [(A) has no outstanding violations of such
25-11 commission rules, orders, licenses, permits, or certificates;]
25-12 [(B) has paid all administrative, civil, and
25-13 criminal penalties, if any, relating to any violation of such
25-14 commission rules, orders, licenses, permits, or certificates; and]
25-15 [(C) has paid all reimbursements of any costs
25-16 and expenses incurred by the commission in relation to any
25-17 violation of such commission rules, orders, licenses, permits, or
25-18 certificates;]
25-19 [(4) a nonrefundable annual fee equal to three percent
25-20 of the bond that otherwise would be required; or]
25-21 [(5) to give a first lien on tangible personal
25-22 property associated with oil and gas production whose salvage value
25-23 equals the value of an individual bond under Section 91.1041 or the
25-24 value of a blanket bond under Section 91.1042 that otherwise would
25-25 be required].
25-26 [(c) A person who chooses to file a form of financial
26-1 security other than a bond shall also submit a fee of $100 for each
26-2 application to extend the time to plug a well in accordance with
26-3 Section 85.2021 of this code.]
26-4 SECTION 21. Section 91.1041, Natural Resources Code, is
26-5 amended to read as follows:
26-6 Sec. 91.1041. INDIVIDUAL BOND. (a) A person required to
26-7 file a bond or alternate form of financial security under Section
26-8 91.103 who operates one or more wells may file a bond in an amount
26-9 equal to $2 for each foot of well depth for each well.
26-10 (b) Notwithstanding Subsection (a), the commission by rule
26-11 shall set the amount of the bond for an operator of one or more bay
26-12 or offshore wells at a reasonable amount that exceeds the amount
26-13 provided by Subsection (a).
26-14 SECTION 22. Effective September 1, 2004, Section 91.1041,
26-15 Natural Resources Code, is amended to read as follows:
26-16 Sec. 91.1041. INDIVIDUAL BOND. (a) A person required to
26-17 file a bond, letter of credit, or cash deposit under Section 91.103
26-18 who operates one or more wells may file a bond in an amount equal
26-19 to $2 for each foot of well depth for each well.
26-20 (b) Notwithstanding Subsection (a), the commission by rule
26-21 shall set the amount of the bond for an operator of one or more bay
26-22 or offshore wells at a reasonable amount that exceeds the amount
26-23 provided by Subsection (a).
26-24 SECTION 23. Section 91.1042, Natural Resources Code, is
26-25 amended to read as follows:
26-26 Sec. 91.1042. BLANKET BOND. (a) A person required to file
27-1 a bond or alternate form of financial security under Section 91.103
27-2 may file a blanket bond to cover all wells and operations for which
27-3 a bond or alternate form of financial security is required as
27-4 follows:
27-5 (1) a person who operates 10 or fewer wells or
27-6 performs other operations shall file a $25,000 blanket bond;
27-7 (2) a person who operates more than 10 but fewer than
27-8 100 wells shall file a $50,000 blanket bond; and
27-9 (3) a person who operates 100 or more wells shall file
27-10 a $250,000 blanket bond.
27-11 (b) Notwithstanding Subsection (a), the commission by rule
27-12 shall set the amount of the bond for an operator of bay or offshore
27-13 wells at a reasonable amount that exceeds the amount provided by
27-14 Subsection (a)(1), (2), or (3), as applicable.
27-15 SECTION 24. Effective September 1, 2004, Section 91.1042,
27-16 Natural Resources Code, is amended to read as follows:
27-17 Sec. 91.1042. BLANKET BOND. (a) A person required to file
27-18 a bond, letter of credit, or cash deposit under Section 91.103 may
27-19 file a blanket bond to cover all wells [and operations] for which a
27-20 bond, letter of credit, or cash deposit is required as follows:
27-21 (1) a person who operates 10 or fewer wells [or
27-22 performs other operations] shall file a $25,000 blanket bond;
27-23 (2) a person who operates more than 10 but fewer than
27-24 100 wells shall file a $50,000 blanket bond; and
27-25 (3) a person who operates 100 or more wells shall file
27-26 a $250,000 blanket bond.
28-1 (b) Notwithstanding Subsection (a), the commission by rule
28-2 shall set the amount of the bond for an operator of bay or offshore
28-3 wells at a reasonable amount that exceeds the amount provided by
28-4 Subsection (a)(1), (2), or (3), as applicable.
28-5 SECTION 25. Effective immediately, Section 91.107, Natural
28-6 Resources Code, is amended to read as follows:
28-7 Sec. 91.107. NEW BOND [OR ALTERNATE FORM OF FINANCIAL
28-8 SECURITY]. Notwithstanding Section 91.104, if an active or
28-9 inactive [If a] well [covered by a bond or alternate form of
28-10 financial security] is transferred, sold, or assigned by its
28-11 operator, the commission shall require the party acquiring the well
28-12 to file a new bond [or alternate form of financial security] as
28-13 provided by Section 91.104(b)(1) or (2) [this subchapter], and the
28-14 [bond or alternate form of] financial security of the prior
28-15 operator shall continue to be required and to remain in effect, and
28-16 the commission may not approve the transfer of operatorship, until
28-17 the new bond [or alternate form of financial security] is provided
28-18 or the commission determines that the bond [financial security]
28-19 previously submitted to the commission by the person acquiring the
28-20 well complies with this subchapter. A transfer of a well from one
28-21 entity to another entity under common ownership is a transfer for
28-22 purposes of this section.
28-23 SECTION 26. Effective September 1, 2001, Section 91.107,
28-24 Natural Resources Code, is amended to read as follows:
28-25 Sec. 91.107. NEW BOND, LETTER OF CREDIT, OR CASH DEPOSIT [OR
28-26 ALTERNATE FORM OF FINANCIAL SECURITY]. Notwithstanding Section
29-1 91.104, if an active or inactive [If a] well [covered by a bond or
29-2 alternate form of financial security] is transferred, sold, or
29-3 assigned by its operator, the commission shall require the party
29-4 acquiring the well to file a new bond, letter of credit, or cash
29-5 deposit [or alternate form of financial security] as provided by
29-6 Section 91.104(b)(1), (2), or (3) [this subchapter], and the [bond
29-7 or alternate form of] financial security of the prior operator
29-8 shall continue to be required and to remain in effect, and the
29-9 commission may not approve the transfer of operatorship, until the
29-10 new bond, letter of credit, or cash deposit [or alternate form of
29-11 financial security] is provided or the commission determines that
29-12 the bond, letter of credit, or cash deposit [financial security]
29-13 previously submitted to the commission by the person acquiring the
29-14 well complies with this subchapter. A transfer of a well from one
29-15 entity to another entity under common ownership is a transfer for
29-16 purposes of this section.
29-17 SECTION 27. Effective September 1, 2004, Section 91.107,
29-18 Natural Resources Code, is amended to read as follows:
29-19 Sec. 91.107. NEW BOND, LETTER OF CREDIT, OR CASH DEPOSIT [OR
29-20 ALTERNATE FORM OF FINANCIAL SECURITY]. If an active or inactive
29-21 [a] well [covered by a bond or alternate form of financial
29-22 security] is transferred, sold, or assigned by its operator, the
29-23 commission shall require the party acquiring the well to file a new
29-24 bond, letter of credit, or cash deposit [or alternate form of
29-25 financial security] as provided by Section 91.104(b) [this
29-26 subchapter], and the [bond or alternate form of] financial security
30-1 of the prior operator shall continue to be required and to remain
30-2 in effect, and the commission may not approve the transfer of
30-3 operatorship, until the new bond, letter of credit, or cash deposit
30-4 [or alternate form of financial security] is provided or the
30-5 commission determines that the bond, letter of credit, or cash
30-6 deposit [financial security] previously submitted to the commission
30-7 by the person acquiring the well complies with this subchapter. A
30-8 transfer of a well from one entity to another entity under common
30-9 ownership is a transfer for purposes of this section.
30-10 SECTION 28. Section 91.108, Natural Resources Code, is
30-11 amended to read as follows:
30-12 Sec. 91.108. DEPOSIT AND USE OF FUNDS. Subject to the
30-13 refund provisions of Section 91.1091 [of this code], proceeds from
30-14 bonds and other financial security required pursuant to this
30-15 chapter shall be deposited in the oil-field cleanup fund and,
30-16 notwithstanding Sections 91.112 and 91.113, may be used only for
30-17 actual well plugging and surface remediation.
30-18 SECTION 29. Effective September 1, 2004, Section 91.109,
30-19 Natural Resources Code, is amended to read as follows:
30-20 Sec. 91.109. FINANCIAL SECURITY FOR PERSONS INVOLVED IN
30-21 ACTIVITIES OTHER THAN OPERATION OF WELLS [DISPOSAL SITE BOND].
30-22 (a) A person applying for or acting under a commission permit to
30-23 store, handle, treat, reclaim, or dispose of oil and gas waste may
30-24 be required by the commission to maintain a performance bond or
30-25 other form of financial security conditioned that the permittee
30-26 will operate and close the storage, handling, treatment,
31-1 reclamation, or disposal site in accordance with state law,
31-2 commission rules, and the permit to operate the site. However,
31-3 this section does not authorize the commission to require a bond or
31-4 other form of financial security for saltwater disposal pits,
31-5 emergency saltwater storage pits (including blow-down pits),
31-6 collecting pits, or skimming pits provided that such pits are used
31-7 in conjunction with the operation of an individual oil or gas
31-8 lease. Subject to the refund provisions of Section 91.1091 of this
31-9 code, proceeds from any bond or other form of financial security
31-10 required by this section shall be placed in the oil-field cleanup
31-11 fund. Each bond or other form of financial security shall be
31-12 renewed and continued in effect until the conditions have been met
31-13 or release is authorized by the commission.
31-14 (b) In addition to the financial security requirements of
31-15 Subsection (a) and Section 91.104(b), a person required to file a
31-16 bond, letter of credit, or cash deposit under Section 91.103 who is
31-17 involved in activities other than the operation of wells must file
31-18 the bond, letter of credit, or cash deposit at the time of filing
31-19 or renewing an organization report required by Section 91.142 in an
31-20 amount equal to:
31-21 (1) $250,000; or
31-22 (2) a lesser amount determined by the commission if
31-23 the person is able to demonstrate that the risk associated with an
31-24 operation or group of operations warrants a lesser amount.
31-25 SECTION 30. Section 91.111, Natural Resources Code, is
31-26 amended by amending Subsections (b) and (c) and adding Subsection
32-1 (e) to read as follows:
32-2 (b) The commission shall certify to the comptroller the date
32-3 on which the balance in the fund equals or exceeds $20 [$10]
32-4 million. The oil-field cleanup regulatory fees on oil and gas
32-5 shall not be collected or required to be paid on or after the first
32-6 day of the second month following the certification, except that
32-7 the comptroller shall resume collecting the fees on receipt of a
32-8 commission certification that the fund has fallen below $10 [$6]
32-9 million. The comptroller shall continue collecting the fees until
32-10 collections are again suspended in the manner provided by this
32-11 subsection.
32-12 (c) The fund consists of:
32-13 (1) penalties imposed under Section 85.381 for
32-14 violation of a law, order, or rule relating to well plugging
32-15 requirements;
32-16 (2) proceeds from bonds and other financial assurances
32-17 required by this chapter, subject to the refund provisions of
32-18 Section 91.1091;
32-19 (3) private contributions, including contributions
32-20 made under Section 89.084;
32-21 (4) expenses collected under Section 89.083;
32-22 (5) fees imposed under Section 85.2021;
32-23 (6) civil penalties collected for violations of
32-24 Chapter 89 or of rules or orders relating to plugging that are
32-25 adopted under this code;
32-26 (7) proceeds collected under Sections 89.085 and
33-1 91.115;
33-2 (8) interest earned on the funds deposited in the
33-3 fund;
33-4 (9) fees collected under Section 91.104;
33-5 (10) civil penalties or costs recovered under Section
33-6 91.457 or 91.459;
33-7 (11) oil and gas waste hauler permit application fees
33-8 collected under Section 29.015, Water Code;
33-9 (12) costs recovered under Section 91.113(f);
33-10 (13) hazardous oil and gas waste generation fees
33-11 collected under Section 91.605;
33-12 (14) oil-field cleanup regulatory fees on oil
33-13 collected under Section 81.116;
33-14 (15) oil-field cleanup regulatory fees on gas
33-15 collected under Section 81.117;
33-16 (16) fees for a reissued certificate collected under
33-17 Section 85.167;
33-18 (17) fees collected under Section 91.1013;
33-19 (18) fees collected under Section 89.088;
33-20 (19) penalties collected under Section 81.0531; [and]
33-21 (20) fees collected under Section 91.142;
33-22 (21) fees collected under Section 91.654;
33-23 (22) costs recovered under Sections 91.656 and 91.657;
33-24 (23) two-thirds of the fees collected under Section
33-25 81.0521; and
33-26 (24) legislative appropriations.
34-1 (e) The commission, through the legislative appropriations
34-2 request process, shall establish specific performance goals for the
34-3 oil-field cleanup fund for the next biennium, including goals for
34-4 the number of:
34-5 (1) site investigations and environmental assessments
34-6 to be conducted;
34-7 (2) abandoned wells to be plugged; and
34-8 (3) surface locations to be remediated.
34-9 SECTION 31. Section 91.112, Natural Resources Code, is
34-10 amended to read as follows:
34-11 Sec. 91.112. PURPOSE OF THE FUND. (a) Money in the fund
34-12 may be used by the commission or its employees or agents for:
34-13 (1) conducting a site investigation or environmental
34-14 assessment to determine:
34-15 (A) the nature and extent of contamination
34-16 caused by oil and gas wastes or other substances or materials
34-17 regulated by the commission under Section 91.101; and
34-18 (B) the measures that should be taken to control
34-19 or clean up the wastes, substances, or materials described in
34-20 Paragraph (A);
34-21 (2) controlling or cleaning up oil and gas wastes or
34-22 other substances or materials regulated by the commission under
34-23 Section 91.101 that are causing or are likely to cause the
34-24 pollution of surface or subsurface water, consistent with Section
34-25 91.113;
34-26 (3) plugging abandoned wells and administering or
35-1 enforcing permits, orders, and rules relating to the commission's
35-2 authority to prevent pollution under this chapter, Chapter 89, or
35-3 any other law administered or enforced by the commission under
35-4 Title 3;
35-5 (4) implementing Subchapter N and enforcing rules,
35-6 orders, and permits adopted or issued under that subchapter; [and]
35-7 (5) implementing the voluntary cleanup program under
35-8 Subchapter O; and
35-9 (6) preparing the report required under Subsection
35-10 (b).
35-11 (b) The commission shall submit to the legislature and make
35-12 available to the public, annually, a report that reviews the extent
35-13 to which money provided under Section 91.111 has enabled the
35-14 commission to better protect the environment and enhance the income
35-15 of the oil-field cleanup fund. The report shall include:
35-16 (1) the number of wells plugged, by region;
35-17 (2) the number of wells abandoned, by region;
35-18 (3) the number of inactive wells not currently in
35-19 compliance with commission rules, by region;
35-20 (4) the status of enforcement proceedings for all
35-21 wells in violation of commission rules and the time period during
35-22 which the wells have been in violation, by region in which the
35-23 wells are located;
35-24 (5) the number of surface locations remediated, by
35-25 region;
35-26 (6) a detailed accounting of expenditures of money in
36-1 the fund, including expenditures for site investigations and
36-2 environmental assessments, plugging of abandoned wells, remediation
36-3 of surface locations, and staff salaries and other administrative
36-4 expenses;
36-5 (7) the method by which the commission sets priorities
36-6 by which it determines the order in which abandoned wells are
36-7 plugged;
36-8 (8) [(6)] a projection of the amount of money needed
36-9 for the next biennium for conducting site investigations and
36-10 environmental assessments, plugging abandoned wells, and
36-11 remediating surface locations; [and]
36-12 (9) [(7)] the status of implementation of the
36-13 provisions of Section 89.085 relating to possession and sale of
36-14 equipment to recover plugging costs; and
36-15 (10) the number of sites successfully remediated under
36-16 the voluntary cleanup program under Subchapter O, by region.
36-17 SECTION 32. Subchapter D, Chapter 91, Natural Resources
36-18 Code, is amended by adding Sections 91.1131, 91.1132, and 91.1135
36-19 to read as follows:
36-20 Sec. 91.1131. RISK ASSESSMENT STANDARDS. (a) The
36-21 commission by rule may establish risk assessment as the guide for:
36-22 (1) conducting site investigations and environmental
36-23 assessments; and
36-24 (2) controlling and cleaning up oil and gas wastes and
36-25 other substances and materials.
36-26 (b) Rules adopted under this section must provide for:
37-1 (1) determining whether an actual or potential risk
37-2 exists at a site;
37-3 (2) screening contaminants at the site to identify
37-4 those that pose a risk;
37-5 (3) developing cleanup standards based on
37-6 contamination levels that are protective of human health and the
37-7 environment; and
37-8 (4) establishing a reporting mechanism for informing
37-9 the commission regarding specific remediation activities.
37-10 Sec. 91.1132. PRIORITIZATION OF HIGH-RISK WELLS. The
37-11 commission by rule shall develop a system for:
37-12 (1) identifying abandoned wells that pose a high risk
37-13 of contaminating surface water or groundwater;
37-14 (2) periodically testing high-risk wells by conducting
37-15 a fluid level test or, if necessary, a pressure test; and
37-16 (3) giving priority to plugging high-risk wells with
37-17 compromised casings.
37-18 Sec. 91.1135. OIL-FIELD CLEANUP FUND ADVISORY COMMITTEE.
37-19 (a) In this section, "committee" means the Oil-Field Cleanup Fund
37-20 Advisory Committee.
37-21 (b) The committee is composed of 10 members as follows:
37-22 (1) the presiding officer of the senate committee with
37-23 primary jurisdiction over matters affecting natural resources;
37-24 (2) the presiding officer of the house committee with
37-25 primary jurisdiction over matters affecting energy resources;
37-26 (3) one public member appointed by the governor;
38-1 (4) one member appointed by the lieutenant governor
38-2 from the academic field of geology or economics;
38-3 (5) one member appointed by the speaker of the house
38-4 of representatives from the academic field of geology or economics;
38-5 and
38-6 (6) the executive officer, or a person designated by
38-7 the executive officer, of each of the following organizations:
38-8 (A) the Texas Oil and Gas Association;
38-9 (B) the Texas Independent Producers and Royalty
38-10 Owners Association;
38-11 (C) the Panhandle Producers and Royalty Owners
38-12 Association;
38-13 (D) the Permian Basin Petroleum Association; and
38-14 (E) the Alliance of Energy Producers.
38-15 (c) An appointed member of the committee serves at the will
38-16 of the authority that appointed the member.
38-17 (d) The committee shall:
38-18 (1) meet at least quarterly with the commission;
38-19 (2) receive information about rules proposed by the
38-20 commission relating to the oil-field cleanup fund;
38-21 (3) review recommendations for legislation proposed by
38-22 the commission; and
38-23 (4) monitor the effectiveness of the oil-field cleanup
38-24 fund.
38-25 (e) The commission shall provide quarterly reports to the
38-26 committee and the Legislative Budget Board that include:
39-1 (1) the following information with respect to the
39-2 period since the last report was provided as well as cumulatively:
39-3 (A) the amount of money deposited in the
39-4 oil-field cleanup fund;
39-5 (B) the amount of money spent from the fund;
39-6 (C) the balance of the fund;
39-7 (D) the number of wells plugged with money from
39-8 the fund;
39-9 (E) the number of sites remediated with money
39-10 from the fund; and
39-11 (F) the number of wells abandoned; and
39-12 (2) any additional information or data requested in
39-13 writing by the committee.
39-14 (f) The committee may:
39-15 (1) submit to the commission comments of the committee
39-16 regarding proposed rules relating to the oil-field cleanup fund;
39-17 and
39-18 (2) request reports and other information from the
39-19 commission as necessary to implement this section.
39-20 (g) Not later than November 15 of each even-numbered year,
39-21 the committee shall report to the governor, lieutenant governor,
39-22 and speaker of the house of representatives on the committee's
39-23 activities. The report must include:
39-24 (1) an analysis of any problems with the
39-25 administration of the oil-field cleanup fund; and
39-26 (2) recommendations for any legislation needed to
40-1 address any problems identified with the administration of the fund
40-2 or otherwise needed to further the purposes of the fund.
40-3 SECTION 33. Section 91.142, Natural Resources Code, is
40-4 amended by adding Subsection (g) to read as follows:
40-5 (g) An organization report filed under this section must be
40-6 accompanied by the following fee:
40-7 (1) for an operator of not more than 25 wells, $300;
40-8 (2) for an operator of more than 25 but not more than
40-9 100 wells, $500;
40-10 (3) for an operator of more than 100 wells, $1,000;
40-11 (4) for an operator of one or more natural gas
40-12 pipelines as classified by the commission, $100;
40-13 (5) for an operator of one or more service activities
40-14 or facilities, including liquids pipelines as classified by the
40-15 commission, who does not operate any wells, an amount determined by
40-16 the commission but not less than $300 or more than $500;
40-17 (6) for an operator of one or more service activities
40-18 or facilities, including liquids pipelines as classified by the
40-19 commission, who also operates one or more wells, an amount
40-20 determined by the commission based on the sum of the amounts
40-21 provided by the applicable subdivisions of this subsection but not
40-22 less than $300 or more than $1,000; and
40-23 (7) for an entity not currently performing operations
40-24 under the jurisdiction of the commission, $300.
40-25 SECTION 34. Chapter 91, Natural Resources Code, is amended
40-26 by adding Subchapter O to read as follows:
41-1 SUBCHAPTER O. RAILROAD COMMISSION VOLUNTARY CLEANUP PROGRAM
41-2 Sec. 91.651. DEFINITIONS. In this subchapter:
41-3 (1) "Contaminant" includes a waste, pollutant, or
41-4 substance regulated by, or that results from an activity under the
41-5 jurisdiction of, the commission under this chapter, Chapter 141 of
41-6 this code, or Chapter 27, Water Code.
41-7 (2) "Environmental assessment" means the assessment
41-8 described by Section 91.654.
41-9 (3) "Response action" means the cleanup or removal of
41-10 a contaminant from the environment.
41-11 (4) "Voluntary cleanup" means a response action taken
41-12 under and in compliance with this subchapter.
41-13 Sec. 91.652. PURPOSE. The purpose of the voluntary cleanup
41-14 program is to provide an incentive to remediate property by
41-15 removing the liability to the state of lenders, developers, owners,
41-16 and operators who did not cause or contribute to contamination
41-17 released at the site covered by the certificate. The program does
41-18 not replace other voluntary actions and is restricted to voluntary
41-19 actions.
41-20 Sec. 91.653. ELIGIBILITY FOR VOLUNTARY CLEANUP PROGRAM.
41-21 (a) Any site that is contaminated with a contaminant is eligible
41-22 for participation in the voluntary cleanup program except the
41-23 portion of a site that may be subject to a commission order.
41-24 (b) A person electing to participate in the voluntary
41-25 cleanup program must:
41-26 (1) enter into a voluntary cleanup agreement as
42-1 provided by Section 91.656; and
42-2 (2) pay all costs of commission oversight of the
42-3 voluntary cleanup.
42-4 Sec. 91.654. APPLICATION TO PARTICIPATE IN VOLUNTARY CLEANUP
42-5 PROGRAM. (a) A person who desires to participate in the voluntary
42-6 cleanup program under this subchapter must submit to the commission
42-7 an application and an application fee as prescribed by this
42-8 section.
42-9 (b) An application submitted under this section must:
42-10 (1) be on a form provided by the commission;
42-11 (2) contain:
42-12 (A) general information concerning:
42-13 (i) the person and the person's
42-14 capability, including the person's financial capability, to perform
42-15 the voluntary cleanup;
42-16 (ii) the site; and
42-17 (iii) the name, address, and telephone
42-18 number of all surface and mineral owners;
42-19 (B) other background information requested by
42-20 the commission;
42-21 (C) an environmental assessment of the actual or
42-22 threatened release of the contaminant at the site; and
42-23 (D) if the person applying is not the surface
42-24 owner, written authorization from the surface owner agreeing to the
42-25 applicant's participation in the program;
42-26 (3) be accompanied by an application fee of $1,000;
43-1 and
43-2 (4) be submitted according to schedules set by the
43-3 commission.
43-4 (c) The environmental assessment required by Subsection (b)
43-5 must include:
43-6 (1) a legal description of the site;
43-7 (2) a description of the physical characteristics of
43-8 the site;
43-9 (3) the operational history of the site to the extent
43-10 that history is known by the applicant;
43-11 (4) information of which the applicant is aware
43-12 concerning the nature and extent of any relevant contamination or
43-13 release at the site and immediately contiguous to the site, or
43-14 wherever the contamination came to be located; and
43-15 (5) relevant information of which the applicant is
43-16 aware concerning the potential for human exposure to contamination
43-17 at the site.
43-18 (d) An application shall be processed in the order in which
43-19 it is received.
43-20 (e) Fees collected under this section shall be deposited to
43-21 the credit of the oil-field cleanup fund under Section 91.111.
43-22 Sec. 91.655. REJECTION OF APPLICATION. (a) The commission
43-23 may reject an application submitted under Section 91.654 if:
43-24 (1) a state or federal enforcement action is pending
43-25 that concerns the remediation of the contaminant described in the
43-26 application;
44-1 (2) a federal grant requires an enforcement action at
44-2 the site;
44-3 (3) the application is incomplete or inaccurate; or
44-4 (4) the site is ineligible under Section 91.653.
44-5 (b) If an application is rejected because it is incomplete
44-6 or inaccurate, the commission, not later than the 45th day after
44-7 receipt of the application, shall provide the person with a list of
44-8 all information needed to make the application complete or
44-9 accurate. A person may resubmit an application once without
44-10 submitting an additional application fee if the person resubmits
44-11 the application not later than the 45th day after the date the
44-12 commission issues notice that the application has been rejected.
44-13 (c) If the commission rejects the application, the
44-14 commission shall:
44-15 (1) notify the person that the application has been
44-16 rejected;
44-17 (2) explain the reasons for rejection of the
44-18 application; and
44-19 (3) inform the person that the commission will refund
44-20 half the person's application fee unless the person indicates a
44-21 desire to resubmit the application.
44-22 Sec. 91.656. VOLUNTARY CLEANUP AGREEMENT. (a) Before the
44-23 commission evaluates any plan or report detailing the remediation
44-24 goals and proposed methods of remediation, the person desiring to
44-25 participate in the voluntary cleanup program must enter into a
44-26 voluntary cleanup agreement that sets forth the terms and
45-1 conditions of the evaluation of the reports and the implementation
45-2 of work plans.
45-3 (b) A voluntary cleanup agreement must provide for:
45-4 (1) recovery by the commission of all reasonable
45-5 costs:
45-6 (A) incurred by the commission in review and
45-7 oversight of the person's work plan and reports and as a result of
45-8 the commission's field activities;
45-9 (B) attributable to the voluntary cleanup
45-10 agreement; and
45-11 (C) in excess of the amount of fees submitted by
45-12 the applicant under Section 91.654;
45-13 (2) a schedule of payments to the commission to be
45-14 made by the person for recovery of all commission costs fairly
45-15 attributable to the voluntary cleanup program, including direct and
45-16 indirect costs of overhead, salaries, equipment, and utilities, and
45-17 legal, management, and support costs; and
45-18 (3) appropriate tasks, deliverables, and schedules.
45-19 (c) The voluntary cleanup agreement shall:
45-20 (1) identify all statutes and rules with which the
45-21 person must comply;
45-22 (2) describe any work plan or report to be submitted
45-23 for review by the commission, including a final report that
45-24 provides all information necessary to verify that all work
45-25 contemplated by the voluntary cleanup agreement has been completed;
45-26 (3) include a schedule for submitting the information
46-1 required by Subdivision (2); and
46-2 (4) state the technical standards to be applied in
46-3 evaluating the work plans and reports, with reference to the
46-4 proposed future land use to be achieved.
46-5 (d) If an agreement is not reached between a person desiring
46-6 to participate in the voluntary cleanup program and the commission
46-7 on or before the 30th day after good faith negotiations have begun:
46-8 (1) the person or the commission may withdraw from the
46-9 negotiations; and
46-10 (2) the commission retains the person's application
46-11 fee.
46-12 (e) The commission may not initiate an enforcement action
46-13 against a person who is in compliance with this section for the
46-14 contamination or release that is the subject of the voluntary
46-15 cleanup agreement or for activity that resulted in the
46-16 contamination or release.
46-17 Sec. 91.657. TERMINATION OF AGREEMENT; COST RECOVERY.
46-18 (a) The commission or the person in its sole discretion may
46-19 terminate the agreement by giving 15 days' advance written notice
46-20 to the other. Only those costs incurred or obligated by the
46-21 commission before notice of termination of the agreement are
46-22 recoverable under the agreement if the agreement is terminated.
46-23 (b) Termination of the agreement does not affect any right
46-24 the commission has under other law to recover costs.
46-25 (c) If the person does not pay to the commission the state's
46-26 costs associated with the voluntary cleanup before the 31st day
47-1 after the date the person receives notice that the costs are due
47-2 and owing, the attorney general, at the request of the commission,
47-3 shall bring an action in the name of the state in Travis County to
47-4 recover the amount owed and reasonable legal expenses, including
47-5 attorney's fees, witness costs, court costs, and deposition costs.
47-6 Sec. 91.658. VOLUNTARY CLEANUP WORK PLANS AND REPORTS.
47-7 (a) After signing a voluntary cleanup agreement, the person shall
47-8 prepare and submit the appropriate work plans and reports to the
47-9 commission.
47-10 (b) The commission shall review and evaluate the work plans
47-11 and reports for accuracy, quality, and completeness. The
47-12 commission may approve a voluntary cleanup work plan or report or,
47-13 if a work plan or report is not approved, notify the person
47-14 concerning additional information or commitments needed to obtain
47-15 approval.
47-16 (c) At any time during the evaluation of a work plan or
47-17 report, the commission may request the person to submit additional
47-18 or corrected information.
47-19 (d) After considering future land use, the commission may
47-20 approve work plans and reports submitted under this section that do
47-21 not require removal or remedy of all discharges, releases, and
47-22 threatened releases at a site if the partial response actions for
47-23 the property:
47-24 (1) will be completed in a manner that protects human
47-25 health and the environment;
47-26 (2) will not cause, contribute, or exacerbate
48-1 discharges, releases, or threatened releases that are not required
48-2 to be removed or remedied under the work plan; and
48-3 (3) will not interfere with or substantially increase
48-4 the cost of response actions to address the remaining discharges,
48-5 releases, or threatened releases.
48-6 Sec. 91.659. CERTIFICATE OF COMPLETION. (a) If the
48-7 commission determines that a person has successfully completed a
48-8 voluntary cleanup approved under this subchapter, the commission
48-9 shall certify that the action has been completed by issuing the
48-10 person a certificate of completion.
48-11 (b) The certificate of completion must:
48-12 (1) acknowledge the protection from liability provided
48-13 by Section 91.660;
48-14 (2) indicate the proposed future land use; and
48-15 (3) include a legal description of the site and the
48-16 name of the site's surface and mineral owner and mineral operator
48-17 at the time the application to participate in the voluntary cleanup
48-18 program was filed.
48-19 (c) If the commission determines that the person has not
48-20 successfully completed a voluntary cleanup approved under this
48-21 subchapter, the commission shall notify of this determination the
48-22 person who undertook the voluntary cleanup and the current surface
48-23 and mineral owner and mineral operator of the site that is the
48-24 subject of the cleanup.
48-25 Sec. 91.660. PERSONS RELEASED FROM LIABILITY. (a) A person
48-26 who is not a responsible person under Section 91.113 at the time
49-1 the person applies to perform a voluntary cleanup:
49-2 (1) does not become a responsible person solely
49-3 because the person signs the application; and
49-4 (2) is released, on certification under Section
49-5 91.659, from all liability to the state for cleanup of areas of the
49-6 site covered by the certification, except for releases and
49-7 consequences that the person causes.
49-8 (b) A person who is not a responsible person under Section
49-9 91.113 at the time the commission issues a certificate of
49-10 completion under Section 91.659 is released, on issuance of the
49-11 certificate, from all liability to the state for cleanup of areas
49-12 of the site covered by the certificate, except for releases and
49-13 consequences that the person causes.
49-14 (c) The release from liability provided by this section does
49-15 not apply to a person who:
49-16 (1) caused or contributed to the contamination at the
49-17 site covered by the certificate;
49-18 (2) acquires a certificate of completion by fraud,
49-19 misrepresentation, or knowing failure to disclose material
49-20 information;
49-21 (3) knows at the time the person acquires an interest
49-22 in the site for which the certificate of completion was issued that
49-23 the certificate was acquired in a manner provided by Subdivision
49-24 (2); or
49-25 (4) changes land use from the use specified in the
49-26 certificate of completion if the new use may result in increased
50-1 risks to human health or the environment.
50-2 Sec. 91.661. PERMIT NOT REQUIRED. (a) A state or local
50-3 permit is not required for removal or remedial action conducted on
50-4 a site as part of a voluntary cleanup under this subchapter. A
50-5 person shall coordinate a voluntary cleanup with ongoing federal
50-6 and state waste programs.
50-7 (b) The commission by rule shall require that the person
50-8 conducting the voluntary cleanup comply with any federal or state
50-9 standard, requirement, criterion, or limitation to which the
50-10 remedial action would otherwise be subject if a permit were
50-11 required.
50-12 SECTION 35. Sections 113.011, 113.014, 113.015, 113.0511,
50-13 and 113.082, Natural Resources Code, are amended to read as
50-14 follows:
50-15 Sec. 113.011. REGULATION OF LIQUEFIED PETROLEUM GAS
50-16 ACTIVITIES. The commission shall administer and enforce the laws
50-17 of this state and the rules and standards of the commission
50-18 relating to liquefied petroleum gas [DIVISION. There is created
50-19 and organized a separate and distinct division of the commission
50-20 known as the liquefied petroleum gas division or the LPG division].
50-21 Sec. 113.014. EMPLOYEES. Sufficient employees shall be
50-22 provided [to the LPG division] for the enforcement of this chapter.
50-23 Sec. 113.015. FUNDS FOR FINANCING REGULATION OF LPG
50-24 ACTIVITIES [DIVISION]. The commission shall look only to the
50-25 revenue derived from the operation of this chapter and appropriated
50-26 by the legislature for expenses of regulating [conducting the]
51-1 liquefied petroleum gas activities [division] and administering
51-2 this chapter. [The LPG examination fund is established in the
51-3 state treasury to be used to pay the costs of training, including
51-4 examinations, seminars, and continuing education programs,
51-5 administered or sponsored by the commission pursuant to Sections
51-6 113.087 and 113.088 of this code. All fees collected pursuant to
51-7 Sections 113.088 and 113.090(c) of this code relating to training
51-8 or registration for qualification to perform LPG-related activities
51-9 shall be credited to this fund. There is hereby appropriated from
51-10 the fund to the commission all such fees collected.]
51-11 Sec. 113.0511. LIMITATIONS ON RULEMAKING AUTHORITY.
51-12 (a) The commission may not adopt rules restricting advertising or
51-13 competitive bidding [or advertising] by a licensee [person
51-14 regulated by the commission] except to prohibit false, misleading,
51-15 or deceptive practices [by the person].
51-16 (b) In its [The commission may not include in any] rules to
51-17 prohibit false, misleading, or deceptive practices, the commission
51-18 may not include [by a person regulated by the commission] a rule
51-19 that:
51-20 (1) restricts the [person's] use of any medium for
51-21 advertising;
51-22 (2) restricts the use of a licensee's [person's]
51-23 personal appearance or [use of his] voice in an advertisement;
51-24 (3) relates to the size or duration of an
51-25 advertisement by the licensee [person]; or
51-26 (4) restricts the licensee's [person's] advertisement
52-1 under a trade name.
52-2 Sec. 113.082. CATEGORIES OF LPG ACTIVITIES [LICENSEE]; FEES.
52-3 (a) A prospective licensee in LPG may apply to the commission [LPG
52-4 division] for a license to engage in any one or more of the
52-5 following categories of LPG activities:
52-6 (1) [(A)] container manufacturers/fabricators: the
52-7 manufacture, fabrication, assembly, repair, installation,
52-8 subframing, testing, and sale of LPG containers, including LPG
52-9 motor or mobile fuel containers and systems, and the repair and
52-10 installation of transport and transfer systems[; and the category
52-11 "A" application and original license fee is an amount not to exceed
52-12 $1,000 as determined by the commission; the annual renewal license
52-13 fee is an amount not to exceed $600 as determined by the
52-14 commission];
52-15 (2) [(B)] transport outfitters: the subframing,
52-16 testing, and sale of LPG transport containers, the testing of LPG
52-17 storage containers, the installation, testing, and sale of LPG
52-18 motor or mobile fuel containers and systems, and the installation
52-19 and repair of transport systems, and motor or mobile fuel systems[;
52-20 the category "B" application and original license fee is an amount
52-21 not to exceed $400 as determined by the commission; the annual
52-22 renewal license fee is an amount not to exceed $200 as determined
52-23 by the commission];
52-24 (3) [(C)] carriers: the transportation of LPG by
52-25 transport, including the loading and unloading of LPG, and the
52-26 installation and repair of transport systems[; the category "C"
53-1 application and original license fee is an amount not to exceed
53-2 $1,000 as determined by the commission; the annual renewal license
53-3 fee is an amount not to exceed $300 as determined by the
53-4 commission];
53-5 (4) [(D)] general installers and repairmen: the sale,
53-6 service, and installation of containers, excluding motor fuel
53-7 containers, and the service, installation, and repair of piping,
53-8 certain appliances as defined by rule, excluding recreational
53-9 vehicle appliances and LPG systems, excluding motor fuel and
53-10 recreational vehicle systems[; the category "D" application and
53-11 original license fee is an amount not to exceed $100 as determined
53-12 by the commission; the annual renewal license fee is an amount not
53-13 to exceed $70 as determined by the commission];
53-14 (5) [(E)] retail and wholesale dealers: the storage,
53-15 sale, transportation, and distribution of LPG at retail and
53-16 wholesale, and all other activities included in this section except
53-17 the manufacture, fabrication, assembly, repair, subframing, and
53-18 testing of LPG containers, and except the sale and installation of
53-19 LPG motor or mobile fuel systems that have an engine with a rating
53-20 of more than 25 horsepower[; the category "E" application and
53-21 original license fee is an amount not to exceed $750 as determined
53-22 by the commission; the annual renewal license fee is an amount not
53-23 to exceed $300 as determined by the commission];
53-24 (6) [(F)] cylinder filling: the operation of a
53-25 cylinder-filling facility, including cylinder filling, the sale of
53-26 LPG in cylinders, and the replacement of a cylinder valve[; the
54-1 category "F" application and original license fee is an amount not
54-2 to exceed $100 as determined by the commission; the annual renewal
54-3 license fee is an amount not to exceed $50 as determined by the
54-4 commission];
54-5 (7) [(G)] service station: the operation of an LPG
54-6 service station filling ASME containers designed for motor and
54-7 mobile fuel[; the category "G" application and original license fee
54-8 is an amount not to exceed $100 as determined by the commission;
54-9 the annual renewal license fee is an amount not to exceed $50 as
54-10 determined by the commission];
54-11 (8) [(H)] cylinder dealers: the transportation and
54-12 sale of LPG in cylinders[; the category "H" application and
54-13 original license fee is an amount not to exceed $1,000 as
54-14 determined by the commission; the annual renewal license fee is an
54-15 amount not to exceed $300 as determined by the commission];
54-16 (9) [(I)] service station and cylinder filling: any
54-17 service station and cylinder activity set out in Subdivisions (6)
54-18 and (7) [categories "F" and "G" of this section; the category "I"
54-19 application and original license fee is an amount not to exceed
54-20 $150 as determined by the commission; the annual renewal license
54-21 fee is an amount not to exceed $70 as determined by the
54-22 commission];
54-23 (10) [(J)] service station and cylinder facilities:
54-24 the operation of a cylinder-filling facility, including cylinder
54-25 filling and the sale, transportation, installation, and connection
54-26 of LPG in cylinders, the replacement of cylinder valves, and the
55-1 operation of an LPG service station as set out in Subdivision (7)
55-2 [category "G"; the category "J" application and original license
55-3 fee is an amount not to exceed $1,000 as determined by the
55-4 commission; the annual renewal license fee is an amount not to
55-5 exceed $300 as determined by the commission];
55-6 (11) [(K)] distribution system: the sale and
55-7 distribution of LPG through mains or pipes and the installation and
55-8 repair of LPG systems[; the category "K" application and original
55-9 license fee is an amount not to exceed $1,000 as determined by the
55-10 commission; the annual renewal license fee is an amount not to
55-11 exceed $300 as determined by the commission];
55-12 (12) [(L)] engine fuel: the sale and installation of
55-13 LPG motor or mobile fuel containers, and the sale and installation
55-14 of LPG motor or mobile fuel systems[; the category "L" application
55-15 and original license fee is an amount not to exceed $100 as
55-16 determined by the commission; the annual renewal license fee is an
55-17 amount not to exceed $50 as determined by the commission];
55-18 (13) [(M)] recreational vehicle installers and
55-19 repairmen: the sale, service, and installation of recreational
55-20 vehicle containers, and the installation, repair, and service of
55-21 recreational vehicle appliances, piping, and LPG systems, including
55-22 recreational vehicle motor or mobile fuel systems and containers[;
55-23 the category "M" application and original license fee is an amount
55-24 not to exceed $100 as determined by the commission; the annual
55-25 renewal license fee is an amount not to exceed $70 as determined by
55-26 the commission];
56-1 (14) [(N)] manufactured housing installers and
56-2 repairmen: the service and installation of containers that supply
56-3 fuel to manufactured housing, and the installation, repair, and
56-4 service of appliances and piping systems for manufactured housing[;
56-5 the category "N" application and original license fee is an amount
56-6 not to exceed $100 as determined by the commission; the annual
56-7 renewal license fee is an amount not to exceed $70 as determined by
56-8 the commission];
56-9 (15) [(O)] testing laboratory: the testing of an
56-10 LP-gas container, LP-gas motor fuel systems or mobile fuel systems,
56-11 transfer systems, and transport systems for the purpose of
56-12 determining the safety of the container or systems for LP-gas
56-13 service, including the necessary installation, disconnection,
56-14 reconnecting, testing, and repair of LPG motor fuel systems or
56-15 mobile fuel systems, transfer systems, and transport systems
56-16 involved in the testing of containers; [the category "O"
56-17 application and original license fee is an amount not to exceed
56-18 $400 as determined by the commission; the annual renewal license
56-19 fee is an amount not to exceed $100 as determined by the
56-20 commission;] or
56-21 (16) [(P)] portable cylinder exchange: the operation
56-22 of a portable cylinder exchange service, where the sale of LP-gas
56-23 is within a portable cylinder with an LP-gas capacity not to exceed
56-24 21 pounds; the portable cylinders are not filled on site, and no
56-25 other LP-gas activity requiring a license is conducted[; the
56-26 category "P" application and original license fee is an amount not
57-1 to exceed $100 as determined by the commission; the annual renewal
57-2 license fee is an amount not to exceed $50 as determined by the
57-3 commission].
57-4 (b) The commission by rule shall establish reasonable
57-5 application and original license fees and renewal fees for each
57-6 type of license listed in this section.
57-7 SECTION 36. Subsections (b) and (c), Section 113.084,
57-8 Natural Resources Code, are amended to read as follows:
57-9 (b) A prospective licensee shall submit the required
57-10 application together with the original nonrefundable license fee
57-11 established by the commission under [required by] Section 113.082
57-12 [of this code] for each type of license [category] for which an [a
57-13 license] application is made. The applicant shall submit
57-14 additional information and data with each application as the
57-15 commission may reasonably require.
57-16 (c) A licensee shall submit the nonrefundable renewal fee
57-17 for each type of [category for which] license [is] sought along
57-18 with information and data the commission may reasonably require.
57-19 SECTION 37. Section 113.087, Natural Resources Code, is
57-20 amended by amending Subsections (b), (c), and (i) through (m) and
57-21 adding Subsections (n) and (o) to read as follows:
57-22 (b) Before license issuance, the commission shall require
57-23 the individual designated as the licensee's representative to the
57-24 commission to provide good and sufficient proof through examination
57-25 prepared and administered by the commission of working knowledge of
57-26 this chapter and rules of the commission which affect the type
58-1 [category] of license for which application is made. Thereafter,
58-2 each licensee shall maintain a qualified representative at all
58-3 times.
58-4 (c) Each individual who will be actively supervising those
58-5 operations requiring any license under this chapter at any outlet
58-6 or location, as designated by the commission, shall be required to
58-7 provide good and sufficient proof through examination prepared and
58-8 administered by the commission that the supervisor has a working
58-9 knowledge of the safety requirements and penalties in this chapter
58-10 and the rules of the commission which apply to that type [category]
58-11 of license.
58-12 (i) Not later than the 30th day after the date a person
58-13 takes a licensing [on which an] examination [is administered] under
58-14 this chapter [section], the commission shall notify the person
58-15 [each examinee] of the results of the examination.
58-16 (j) If the examination is graded or reviewed by a testing
58-17 service:
58-18 (1) the commission shall notify the person of the
58-19 results of the examination not later than the 14th day after the
58-20 date the commission receives the results from the testing service;
58-21 and
58-22 (2) if notice of the examination results will be
58-23 delayed for longer than 90 days after the examination date, the
58-24 commission shall notify the person [examinee] of the reason for the
58-25 delay before the 90th day.
58-26 (k) The commission may require a testing service to notify a
59-1 person of the results of the person's examination.
59-2 (l) [(j)] If requested in writing by a person who fails a
59-3 [the] licensing examination administered under this chapter
59-4 [section], the commission shall furnish the person with an analysis
59-5 of the person's performance on the examination.
59-6 (m) [(k)] The commission, by appropriate rule, shall [may]
59-7 require, in addition to examination requirements as set out in
59-8 Subsections (b), (c), and (d) of this section:
59-9 (1) an examination for technical competence that is
59-10 validated by a recognized educational testing organization or
59-11 similar organization; or
59-12 (2) attendance at approved academic, trade,
59-13 professional, or commission-sponsored seminars, other continuing
59-14 education programs, and periodic reexaminations.
59-15 (n) [(l)] Prior to qualifying an individual to perform
59-16 LP-gas work, the commission may establish by rule an initial course
59-17 of instruction for any person who has not yet passed the [category
59-18 of] examination for the LPG activity for which the person seeks
59-19 qualification; for any person who has not maintained qualified
59-20 status, as defined by rule; and for any person whose certification
59-21 has been revoked pursuant to Subchapter F of this code. If an
59-22 initial course of instruction is established by the commission, it
59-23 shall be available at least once every 180 [90] days.
59-24 (o) [(m)] The commission by rule may exempt from any
59-25 provision of this section:
59-26 (1) a journeyman or master plumber licensed by the
60-1 Texas State Board of Plumbing Examiners;
60-2 (2) a person licensed under the Air Conditioning and
60-3 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
60-4 Civil Statutes); or
60-5 (3) company representatives, operations supervisors,
60-6 or employees of a testing laboratory that was registered under
60-7 Section 113.135 prior to the effective date of this subsection.
60-8 SECTION 38. Subsections (a) and (c), Section 113.089,
60-9 Natural Resources Code, are amended to read as follows:
60-10 (a) If application is made for a license under [category "E"
60-11 of] Section 113.082(a)(5) [113.082 of this code] or for any other
60-12 type of license [category] specified by commission rule, the
60-13 commission, in addition to other requirements, shall have an actual
60-14 inspection conducted of any and all facilities, bulk storage
60-15 equipment, transportation equipment, and dispensing equipment of
60-16 the applicant to verify satisfactory compliance with all current
60-17 safety laws, rules, and practices. The inspection may be waived by
60-18 the commission on an application resulting solely from a change in
60-19 legal entities under which a current licensee operates.
60-20 (c) A [category "E"] license under Section 113.082(a)(5) and
60-21 any other type of license specified by commission rule shall not be
60-22 issued until the inspection under Subsection (a) of this section
60-23 verifies the applicant to be in satisfactory compliance with all
60-24 current safety laws, rules, and practices.
60-25 SECTION 39. Subsections (a) and (b), Section 113.090,
60-26 Natural Resources Code, are amended to read as follows:
61-1 (a) The commission by rule may establish reasonable fees for
61-2 the review of site applications [examination of plans and
61-3 specifications] related to the installation of containers when site
61-4 applications [plans and specifications] are reviewed by the
61-5 commission before such installation is placed into LP-gas service.
61-6 (b) The commission by rule may establish reasonable fees for
61-7 recording the location of containers at public buildings and
61-8 commercial installations when prior approval of site applications
61-9 [plans and specifications] is not required.
61-10 SECTION 40. Subsections (b), (c), and (d), Section 113.091,
61-11 Natural Resources Code, are amended to read as follows:
61-12 (b) Within 30 days of the notice of denial, an applicant for
61-13 license under this chapter who is denied a license may request a
61-14 hearing to determine whether or not the applicant has complied in
61-15 all respects with the licensing procedure applicable to each type
61-16 [the category or categories] of license sought. The applicant's
61-17 request for hearing must be in writing and delivered to the
61-18 commission [director of the LP-gas division].
61-19 (c) A hearing to determine an applicant's compliance with
61-20 the licensing procedure applicable to each type [the category or
61-21 categories] of license sought must be scheduled within 30 days
61-22 following receipt of a request under Subsection (b) of this
61-23 section.
61-24 (d) If the record made at the hearing supports the
61-25 applicant's claim, the commission shall enter an order in its
61-26 records to that effect, noting each type of license to [the
62-1 category or categories for] which the applicant is found entitled
62-2 [to be licensed], and the commission shall have the license or
62-3 licenses issued. If the applicant is found unqualified, the
62-4 commission shall likewise enter an order in its records to that
62-5 effect, and no license may be issued to the applicant.
62-6 SECTION 41. Section 113.093, Natural Resources Code, is
62-7 amended to read as follows:
62-8 Sec. 113.093. LICENSE RENEWAL. (a) A person who is
62-9 otherwise eligible to renew a license may renew an unexpired
62-10 license by paying the required [issued pursuant to this chapter is
62-11 renewable on the timely payment or tender of the] renewal [license]
62-12 fee to the commission before the expiration date of the license
62-13 [each year]. A person whose license has expired may not engage in
62-14 activities that require a license until the license has been
62-15 renewed.
62-16 (b) A person whose [If a person's] license has been expired
62-17 for [not longer than] 90 days or less[, the person] may renew the
62-18 license by paying to the commission a [the required] renewal fee
62-19 that is equal to 1-1/2 times the normally required [and a fee that
62-20 is one-half of the amount of the] renewal fee [for the license].
62-21 (c) A person whose [If a person's] license has been expired
62-22 for more [longer] than 90 days but less than one year [two years,
62-23 the person] may renew the license by paying to the commission a
62-24 [all unpaid] renewal [fees and a] fee that is equal to two times
62-25 the normally required [the amount of the unpaid] renewal fee [fees
62-26 for the license].
63-1 (d) A person whose [If a person's] license has been expired
63-2 for one year [two years] or more [longer, the person] may not renew
63-3 the license. The person may obtain a new license by complying with
63-4 the requirements and procedures, including the examination
63-5 requirements, for obtaining an original license.
63-6 (e) A person who was licensed in this state, moved to
63-7 another state, and is currently licensed and has been in practice
63-8 in the other state for the two years preceding the date of
63-9 application may obtain a new license without reexamination. The
63-10 person must pay to the commission a fee that is equal to two times
63-11 the normally required renewal fee for the license.
63-12 (f) Not later than the 30th day before the date a person's
63-13 license is scheduled to expire, the commission shall send written
63-14 notice of the impending expiration to the person at the person's
63-15 last known address according to the records of the commission.
63-16 (g) A renewal license will be issued to a licensee as soon
63-17 as is practicable after compliance with this section, and
63-18 fulfillment of insurance, examination, and seminar requirements
63-19 established by this chapter, and submission of any information and
63-20 data the commission may reasonably require.
63-21 (h) [(f)] Renewal [license] fees shall be nonrefundable.
63-22 [(g) At least 15 days before the expiration of a person's
63-23 license the commission shall notify the person in writing of the
63-24 impending license expiration and shall attempt to obtain from the
63-25 person a signed receipt confirming receipt of the notice.]
63-26 SECTION 42. Subchapter D, Chapter 113, Natural Resources
64-1 Code, is amended by adding Section 113.096 to read as follows:
64-2 Sec. 113.096. PROVISIONAL LICENSE. (a) The commission may
64-3 issue a provisional license to an applicant currently licensed in
64-4 another jurisdiction who seeks a license in this state and who:
64-5 (1) has been licensed in good standing for at least
64-6 two years in another jurisdiction, including a foreign country,
64-7 that has licensing requirements substantially equivalent to the
64-8 requirements of this chapter;
64-9 (2) has passed a national or other examination
64-10 recognized by the commission relating to the activities regulated
64-11 under this chapter; and
64-12 (3) is sponsored by a person licensed by the
64-13 commission under this chapter with whom the provisional license
64-14 holder will practice during the time the person holds a provisional
64-15 license.
64-16 (b) The commission may waive the requirement of Subsection
64-17 (a)(3) for an applicant if the commission determines that
64-18 compliance with that subsection would be a hardship to the
64-19 applicant.
64-20 (c) A provisional license is valid until the date the
64-21 commission approves or denies the provisional license holder's
64-22 application for a license. The commission shall issue a license
64-23 under this chapter to the provisional license holder if:
64-24 (1) the provisional license holder is eligible to be
64-25 licensed under Section 113.095; or
64-26 (2) the provisional license holder:
65-1 (A) passes the part of the examination under
65-2 Section 113.087 that relates to the applicant's knowledge and
65-3 understanding of the laws and rules relating to the activities
65-4 regulated under this chapter in this state;
65-5 (B) meets the academic and experience
65-6 requirements for a license under this chapter; and
65-7 (C) satisfies any other licensing requirements
65-8 under this chapter.
65-9 (d) The commission must approve or deny a provisional
65-10 license holder's application for a license not later than the 180th
65-11 day after the date the provisional license is issued. The
65-12 commission may extend the 180-day period if the results of an
65-13 examination have not been received by the commission before the end
65-14 of that period.
65-15 (e) The commission may establish a fee for provisional
65-16 licenses in an amount reasonable and necessary to cover the cost of
65-17 issuing the license.
65-18 SECTION 43. Subsections (d) and (h), Section 113.097,
65-19 Natural Resources Code, are amended to read as follows:
65-20 (d) Each [category "C," "E," "H," or "J"] licensee under
65-21 Section 113.082(a)(3), (5), (8), or (10) must carry motor vehicle
65-22 bodily injury and property damage liability coverage on each motor
65-23 vehicle, including trailers and semitrailers, used to transport
65-24 LP-gas. The commission shall establish by rule a reasonable amount
65-25 of coverage to be maintained, except that coverage shall not be
65-26 less than the amounts required as evidence of financial
66-1 responsibility under Chapter 601, Transportation Code.
66-2 (h) As required by commission rule, a [category "A," "B,"
66-3 "C," "E," or "O"] licensee under Section 113.082(a)(1), (2), (3),
66-4 (5), or (15) must carry completed operations or products liability
66-5 insurance, or both, in a reasonable amount, based on the type or
66-6 types of licensed activities.
66-7 SECTION 44. Subsections (a) and (c), Section 113.098,
66-8 Natural Resources Code, are amended to read as follows:
66-9 (a) As evidence that required insurance has been secured and
66-10 is in force, certificates of insurance which are approved by the
66-11 commission [division] shall be filed with the commission [division]
66-12 before licensing, license renewal, and during the entire period
66-13 that the license is in effect. Any document filed with the
66-14 commission [division] in a timely manner which is not completed in
66-15 accordance with the instructions indicated on the insurance
66-16 certificate forms supplied by the commission [division], but which
66-17 complies with the substantive requirements of this section and with
66-18 the rules adopted under this section may be considered by the
66-19 commission [division] to be evidence that required insurance has
66-20 been secured and is in force for a temporary period not to exceed
66-21 45 days. During this temporary period, a licensee shall file with
66-22 the commission [division] an amended certificate of insurance which
66-23 complies with all procedural and substantive requirements of this
66-24 section and the rules adopted hereunder.
66-25 (c) Cancellation of a certificate of insurance becomes
66-26 effective on the occurrence of any of the following events and not
67-1 before:
67-2 (1) commission [division] receipt of written notice
67-3 stating the insurer's intent to cancel a policy of insurance and
67-4 the passage of time equivalent to the notice period required by law
67-5 to be given the insured before the insurance cancellation;
67-6 (2) receipt by the commission [division] of an
67-7 acceptable replacement insurance certificate;
67-8 (3) voluntary surrender of a license and the rights
67-9 and privileges conferred by the license;
67-10 (4) commission [division] receipt of a statement made
67-11 by a licensee stating that the licensee is not actively engaging in
67-12 any operations which require a particular type of insurance and
67-13 will not engage in those operations unless and until all
67-14 certificates of required insurance applicable to those operations
67-15 are filed with the commission [division]; or
67-16 (5) written order of commission.
67-17 SECTION 45. Subsections (a) through (d), Section 113.099,
67-18 Natural Resources Code, are amended to read as follows:
67-19 (a) A [category "C," "E," "H," or "J"] licensee or an
67-20 applicant for a license under Section 113.082(a)(3), (5), (8), or
67-21 (10) that does not operate or contemplate the operation of a motor
67-22 vehicle equipped with an LP-gas cargo container and does not
67-23 transport or contemplate the transportation of LP-gas by vehicle in
67-24 any manner, may make and file with the commission [division] a
67-25 statement to that effect in lieu of filing a certificate of motor
67-26 vehicle bodily injury and property damage insurance.
68-1 (b) A licensee or an applicant for a license that does not
68-2 engage in or contemplate engaging in any operations which would be
68-3 covered by general liability insurance for a period of time may
68-4 make and file with the commission [division] a statement to that
68-5 effect in lieu of filing a certificate of general liability
68-6 insurance.
68-7 (c) A licensee or an applicant for a license that does not
68-8 employ or contemplate the hiring of an employee or employees to be
68-9 engaged in LPG-related activities in this state may make and file
68-10 with the commission [division] a statement to that effect in lieu
68-11 of filing evidence of coverage of workers' compensation or other
68-12 alternative form of coverage as provided in this subchapter.
68-13 (d) A [category "A," "B," "C," "E," or "O"] licensee or an
68-14 applicant for a license under Section 113.082(a)(1), (2), (3), (5),
68-15 or (15) that does not engage in or contemplate engaging in any
68-16 LP-gas operations which would be covered by completed operations or
68-17 products liability insurance, or both, for a period of time may
68-18 make and file with the commission [division] a statement to that
68-19 effect in lieu of filing a certificate of insurance.
68-20 SECTION 46. The heading to Subchapter F, Chapter 113,
68-21 Natural Resources Code, is amended to read as follows:
68-22 SUBCHAPTER F. DISCIPLINARY ACTION [SUSPENSION AND
68-23 REVOCATION OF LICENSES AND REGISTRATIONS]
68-24 SECTION 47. Subsection (e), Section 113.161, Natural
68-25 Resources Code, is amended to read as follows:
68-26 (e) If the commission [or division] determines that the
69-1 probable violation or noncompliance constitutes an immediate danger
69-2 to the public health, safety, and welfare, it shall require the
69-3 immediate cessation of the probable violation or noncompliance and
69-4 proceed with a hearing as provided in Section 113.162 [of this
69-5 code].
69-6 SECTION 48. Section 113.163, Natural Resources Code, is
69-7 amended to read as follows:
69-8 Sec. 113.163. FINDINGS AND JUDGMENT. (a) The [If the]
69-9 commission shall revoke, suspend, or refuse to renew a license or
69-10 registration or shall reprimand a licensee or registrant if the
69-11 commission finds that the licensee or registrant has violated or
69-12 failed to comply with or is violating or failing to comply with
69-13 this chapter or a rule or standard promulgated and adopted under
69-14 this chapter[, or both, the commission may suspend the license or
69-15 registration for a definite period not to exceed 90 days or may
69-16 revoke the license or registration. If the commission determines
69-17 that no violation has occurred or is occurring, its order shall so
69-18 state. Whenever a license or registration is revoked by order of
69-19 the commission, a new license or registration shall not be issued
69-20 for at least 90 days from the effective date of the order. Such
69-21 time period shall be stated in the order].
69-22 (b) The commission may place on probation a person whose
69-23 license or registration is [has been] suspended. If a license or
69-24 registration suspension is probated, the commission may require the
69-25 person:
69-26 (1) to report regularly to the commission on matters
70-1 that are the basis of the probation;
70-2 (2) to limit practice to the areas prescribed by the
70-3 commission; or
70-4 (3) to continue or review professional education until
70-5 the person attains a degree of skill satisfactory to the commission
70-6 in those areas that are the basis of the [under Subsection (a) of
70-7 this section for a definite period not to exceed one year, but if
70-8 the commission does place the licensee or registrant on probation
70-9 and does allow him to continue to operate, the fact that the
70-10 license or registration has been suspended and the licensee or
70-11 registrant has been put on probation shall appear in the records of
70-12 the commission relating to the suspension and] probation.
70-13 SECTION 49. Subsection (b), Section 113.233, Natural
70-14 Resources Code, is amended to read as follows:
70-15 (b) Any authorized representative of the commission [LP-Gas
70-16 Division] may enter any buildings or premises where an accident has
70-17 occurred in which LP-gas was a probable cause for purposes of
70-18 investigating the cause, origin, and circumstances of such
70-19 accident. The commission [LP-Gas Division] may request that any
70-20 state or local authority having jurisdiction take appropriate
70-21 action, to the extent permitted by law, as may be necessary for
70-22 preservation of property and premises.
70-23 SECTION 50. Subsection (b), Section 113.243, Natural
70-24 Resources Code, as amended by Section 2, Chapter 496, Acts of the
70-25 75th Legislature, Regular Session, 1997, is amended to read as
70-26 follows:
71-1 (b) The fund consists of money from:
71-2 (1) fees charged under this subchapter;
71-3 (2) the penalties for the late payment of the fee
71-4 charged under this subchapter;
71-5 (3) gifts, grants, or other assistance received by the
71-6 commission from any source for the purposes of this subchapter;
71-7 (4) interest earned on amounts in the fund;
71-8 (5) amounts collected by the commission under an
71-9 agreement with another state in accordance with Section 113.246(e);
71-10 [and]
71-11 (6) assessments, rebates on assessments, and other
71-12 money collected by the commission under the Propane Education and
71-13 Research Act of 1996 (15 U.S.C. Section 6401 et seq.) or other
71-14 applicable federal law; and
71-15 (7) fees, royalties, or other things of value received
71-16 from the items described by Subsections (f)(1)(A)-(D).
71-17 SECTION 51. Section 113.243, Natural Resources Code, is
71-18 amended by amending Subsections (c) and (d) and adding Subsections
71-19 (f) and (g) to read as follows:
71-20 (c) The fund may be used only by the commission to pay for
71-21 activities relating to the specific fuel from which the fee,
71-22 royalty, or other thing of value was derived or the specific fuel,
71-23 if any, for which the gift, grant, or other assistance is given,
71-24 including direct and indirect costs relating to:
71-25 (1) researching all possible uses of LPG and other
71-26 environmentally beneficial alternative fuels to enhance air
72-1 quality;
72-2 (2) researching, developing, and implementing
72-3 marketing, advertising, and informational programs relating to
72-4 alternative fuels to make alternative fuels more understandable and
72-5 readily available to consumers;
72-6 (3) developing and implementing conservation and
72-7 distribution plans to minimize the frequency and severity of
72-8 disruptions in the supply of alternative fuels;
72-9 (4) developing a public information plan that will
72-10 provide advisory services relating to alternative fuels to
72-11 consumers;
72-12 (5) developing voluntary participation plans to
72-13 promote the use of alternative fuels by federal, state, and local
72-14 agencies;
72-15 (6) implementing consumer incentive or rebate programs
72-16 developed pursuant to Section 113.2435 of this subchapter;
72-17 (7) other functions the commission determines are
72-18 necessary to add a program established by the commission for the
72-19 purpose of promoting the use of LPG or other environmentally
72-20 beneficial alternative fuels; and
72-21 (8) the administrative costs incurred by the
72-22 commission under this subchapter.
72-23 (d) If a specific fee, royalty, gift, grant, other thing of
72-24 value, or other assistance is designated for or collected from
72-25 discrete components of the alternative fuels industry, the fee,
72-26 royalty, gift, grant, other thing of value, or other assistance
73-1 shall be deposited in a separate account in the fund.
73-2 (f) The commission may:
73-3 (1) apply for, register, secure, hold, and protect
73-4 under the laws of a state, the United States, or a foreign country
73-5 a patent, copyright, trademark, or other evidence of protection or
73-6 exclusivity issued for an idea, publication, or other original
73-7 innovation fixed in a tangible medium, including:
73-8 (A) a logo;
73-9 (B) a service mark;
73-10 (C) a study;
73-11 (D) an engineering, architectural, or graphic
73-12 design;
73-13 (E) a manual;
73-14 (F) automated systems software;
73-15 (G) an audiovisual work; or
73-16 (H) a sound recording;
73-17 (2) enter into a license agreement with a third party
73-18 in return for a fee, royalty, or other thing of value; and
73-19 (3) waive or reduce the amount of a fee, royalty, or
73-20 other thing of value to be assessed if the commission determines
73-21 that the waiver will:
73-22 (A) further the goals and missions of the
73-23 commission's division responsible for alternative fuels research
73-24 and education; and
73-25 (B) result in a net benefit to the state.
73-26 (g) Money received under Subsection (f) shall be deposited
74-1 in a separate account in the fund as provided by Subsection (d),
74-2 except that any money received by the commission from the items
74-3 described by Subsections (f)(1)(E)-(H) shall be deposited in the
74-4 general revenue fund.
74-5 SECTION 52. Subchapter J, Chapter 113, Natural Resources
74-6 Code, as added by Chapter 80, Acts of the 73rd Legislature, Regular
74-7 Session, 1993, is redesignated as Subchapter K, and the heading to
74-8 that subchapter is amended to read as follows:
74-9 SUBCHAPTER K [J]. LIABILITY OF LICENSE HOLDER
74-10 SECTION 53. Chapter 113, Natural Resources Code, is amended
74-11 by adding Subchapter L to read as follows:
74-12 SUBCHAPTER L. TESTING OF LP-GAS SYSTEMS
74-13 IN SCHOOL FACILITIES
74-14 Sec. 113.351. DEFINITIONS. In this subchapter:
74-15 (1) "School district" means:
74-16 (A) an entity created under the laws of this
74-17 state and accredited by the Texas Education Agency under Subchapter
74-18 D, Chapter 39, Education Code;
74-19 (B) a private elementary or secondary school,
74-20 other than a school in a residence; or
74-21 (C) a state or regional school for the blind and
74-22 visually impaired or the deaf under Chapter 30, Education Code.
74-23 (2) "Supplier" means an individual or company that
74-24 sells and delivers liquefied petroleum gas to a school district
74-25 facility. If more than one individual or company sells and
74-26 delivers LP-gas to a facility of a school district, each individual
75-1 or company is a supplier for purposes of this subchapter.
75-2 Sec. 113.352. DUTY TO TEST FOR LEAKAGE. (a) Each school
75-3 district shall perform pressure tests for leakage on the LP-gas
75-4 piping system in each school district facility at least biennially.
75-5 The tests must be performed before the beginning of the school
75-6 year.
75-7 (b) The school district may perform the pressure tests on a
75-8 two-year cycle under which the tests are performed for the LP-gas
75-9 piping systems of approximately one-half of the facilities each
75-10 year.
75-11 (c) If a school district operates one or more school
75-12 district facilities on a year-round calendar, the pressure test in
75-13 each of those facilities must be conducted and reported not later
75-14 than July 1 of the year in which the test is performed.
75-15 (d) A test performed under a municipal code satisfies the
75-16 pressure testing requirements prescribed by this section.
75-17 Sec. 113.353. REQUIREMENTS OF TEST. (a) The school
75-18 district shall perform the pressure test to determine whether the
75-19 LP-gas piping system holds at least the amount of pressure
75-20 specified by the National Fire Protection Association 54, National
75-21 Fuel Gas Code.
75-22 (b) The pressure test must be conducted in accordance with
75-23 National Fire Protection Association 54.
75-24 (c) At the request of a school district, the commission
75-25 shall assist the district in providing for the certification of an
75-26 employee of the school district or school, as applicable, to
76-1 conduct the test and in developing a procedure for conducting the
76-2 test.
76-3 Sec. 113.354. NOTICE OF TEST. (a) A school district shall
76-4 provide written notice to the commission specifying the date and
76-5 the result of each pressure test or other inspection of the LP-gas
76-6 piping system.
76-7 (b) Before the introduction of any LP-gas into the LP-gas
76-8 piping system, the school district shall provide verification to
76-9 the district's supplier that the piping has been tested in
76-10 accordance with this subchapter.
76-11 (c) The commission shall maintain a copy of the notice
76-12 provided under Subsection (a) until at least the first anniversary
76-13 of the date the commission received the notice.
76-14 Sec. 113.355. TERMINATION OF SERVICE. A supplier shall
76-15 terminate service to a school district facility if:
76-16 (1) the supplier receives official notification from
76-17 the firm or individual conducting the test of a hazardous leakage
76-18 in the facility LP-gas piping system; or
76-19 (2) a test at the facility is not performed as
76-20 required by this subchapter.
76-21 Sec. 113.356. REPORT TO BOARD OF TRUSTEES. An identified
76-22 LP-gas leakage in a school district facility shall be reported to
76-23 the board of trustees of the district in which the facility is
76-24 located.
76-25 Sec. 113.357. ENFORCEMENT. The commission shall enforce
76-26 this subchapter.
77-1 SECTION 54. Subchapter B, Chapter 116, Natural Resources
77-2 Code, is amended by adding Section 116.016 to read as follows:
77-3 Sec. 116.016. LIMITATIONS ON RULEMAKING AUTHORITY. (a) The
77-4 commission may not adopt rules restricting advertising or
77-5 competitive bidding by a licensee or registrant except to prohibit
77-6 false, misleading, or deceptive practices.
77-7 (b) In its rules to prohibit false, misleading, or deceptive
77-8 practices, the commission may not include a rule that:
77-9 (1) restricts the use of any medium for advertising;
77-10 (2) restricts the use of a licensee or registrant's
77-11 personal appearance or voice in an advertisement;
77-12 (3) relates to the size or duration of an
77-13 advertisement by the licensee or registrant; or
77-14 (4) restricts the licensee or registrant's
77-15 advertisement under a trade name.
77-16 SECTION 55. Subsection (b), Section 116.032, Natural
77-17 Resources Code, is amended to read as follows:
77-18 (b) The commission by rule may establish reasonable fees for
77-19 each category of license. [A license fee may not exceed $1,000.]
77-20 SECTION 56. Section 116.033, Natural Resources Code, is
77-21 amended to read as follows:
77-22 Sec. 116.033. APPLICATION AND RENEWAL PROCEDURES. (a) The
77-23 commission shall adopt rules establishing procedures for submitting
77-24 and processing applications for issuance and renewal of licenses
77-25 and for registration.
77-26 (b) A person who is otherwise eligible to renew a license or
78-1 registration may renew an unexpired license or registration by
78-2 paying the required renewal fee to the commission before the
78-3 expiration date of the license or registration. A person whose
78-4 license or registration has expired may not engage in activities
78-5 that require a license or registration until the license or
78-6 registration has been renewed.
78-7 (c) A person whose license or registration has been expired
78-8 for 90 days or less may renew the license or registration by paying
78-9 to the commission a renewal fee that is equal to 1-1/2 times the
78-10 normally required renewal fee.
78-11 (d) A person whose license or registration has been expired
78-12 for more than 90 days but less than one year may renew the license
78-13 or registration by paying to the commission a renewal fee that is
78-14 equal to two times the normally required renewal fee.
78-15 (e) A person whose license or registration has been expired
78-16 for one year or more may not renew the license or registration.
78-17 The person may obtain a new license or registration by complying
78-18 with the requirements and procedures, including the examination
78-19 requirements, for obtaining an original license or registration.
78-20 (f) A person who was licensed or registered in this state,
78-21 moved to another state, and is currently licensed or registered and
78-22 has been in practice in the other state for the two years preceding
78-23 the date of application may obtain a new license or registration
78-24 without reexamination. The person must pay to the commission a fee
78-25 that is equal to two times the normally required renewal fee for
78-26 the license or registration.
79-1 (g) Not later than the 30th day before the date a person's
79-2 license or registration is scheduled to expire, the commission
79-3 shall send written notice of the impending expiration to the person
79-4 at the person's last known address according to the records of the
79-5 commission.
79-6 SECTION 57. Section 116.034, Natural Resources Code, is
79-7 amended by adding Subsections (d) through (h) to read as follows:
79-8 (d) Not later than the 30th day after the date a person
79-9 takes a licensing or registration examination under this chapter,
79-10 the commission shall notify the person of the results of the
79-11 examination.
79-12 (e) If the examination is graded or reviewed by a testing
79-13 service:
79-14 (1) the commission shall notify the person of the
79-15 results of the examination not later than the 14th day after the
79-16 date the commission receives the results from the testing service;
79-17 and
79-18 (2) if notice of the examination results will be
79-19 delayed for longer than 90 days after the examination date, the
79-20 commission shall notify the person of the reason for the delay
79-21 before the 90th day.
79-22 (f) The commission may require a testing service to notify a
79-23 person of the results of the person's examination.
79-24 (g) If requested in writing by a person who fails a
79-25 licensing or registration examination administered under this
79-26 chapter, the commission shall furnish the person with an analysis
80-1 of the person's performance on the examination.
80-2 (h) The commission shall recognize, prepare, or administer
80-3 continuing education programs for its licensees and registrants. A
80-4 licensee or registrant must participate in the programs to the
80-5 extent required by the commission to keep the person's license.
80-6 SECTION 58. Subchapter C, Chapter 116, Natural Resources
80-7 Code, is amended by adding Sections 116.0345 and 116.0346 to read
80-8 as follows:
80-9 Sec. 116.0345. LICENSE OR REGISTRATION BY ENDORSEMENT. The
80-10 commission may waive any prerequisite to obtaining a license or
80-11 registration for an applicant after reviewing the applicant's
80-12 credentials and determining that the applicant holds a license or
80-13 registration issued by another jurisdiction that has licensing
80-14 requirements substantially equivalent to those of this state.
80-15 Sec. 116.0346. PROVISIONAL LICENSE OR REGISTRATION.
80-16 (a) The commission may issue a provisional license or registration
80-17 to an applicant currently licensed or registered in another
80-18 jurisdiction who seeks a license or registration in this state and
80-19 who:
80-20 (1) has been licensed or registered in good standing
80-21 for at least two years in another jurisdiction, including a foreign
80-22 country, that has licensing or registration requirements
80-23 substantially equivalent to the requirements of this chapter;
80-24 (2) has passed a national or other examination
80-25 recognized by the commission relating to the activities regulated
80-26 under this chapter; and
81-1 (3) is sponsored by a person licensed or registered by
81-2 the commission under this chapter with whom the provisional license
81-3 or registration holder will practice during the time the person
81-4 holds a provisional license or registration.
81-5 (b) The commission may waive the requirement of Subsection
81-6 (a)(3) for an applicant if the commission determines that
81-7 compliance with that subsection would be a hardship to the
81-8 applicant.
81-9 (c) A provisional license or registration is valid until the
81-10 date the commission approves or denies the provisional license or
81-11 registration holder's application for a license or registration.
81-12 The commission shall issue a license or registration under this
81-13 chapter to the provisional license or registration holder if:
81-14 (1) the provisional license or registration holder is
81-15 eligible to be licensed or registered under Section 116.0345; or
81-16 (2) the provisional license or registration holder:
81-17 (A) passes the part of the examination under
81-18 Section 116.034 that relates to the applicant's knowledge and
81-19 understanding of the laws and rules relating to the activities
81-20 regulated under this chapter in this state;
81-21 (B) meets the academic and experience
81-22 requirements for a license or registration under this chapter; and
81-23 (C) satisfies any other licensing or
81-24 registration requirements under this chapter.
81-25 (d) The commission must approve or deny a provisional
81-26 license or registration holder's application for a license or
82-1 registration not later than the 180th day after the date the
82-2 provisional license or registration is issued. The commission may
82-3 extend the 180-day period if the results of an examination have not
82-4 been received by the commission before the end of that period.
82-5 (e) The commission may establish a fee for provisional
82-6 licenses or registrations in an amount reasonable and necessary to
82-7 cover the cost of issuing the license or registration.
82-8 SECTION 59. The heading to Section 116.037, Natural
82-9 Resources Code, is amended to read as follows:
82-10 Sec. 116.037. DISCIPLINARY ACTION [SUSPENSION AND REVOCATION
82-11 OF LICENSE].
82-12 SECTION 60. Section 116.037, Natural Resources Code, is
82-13 amended by amending Subsections (f) and (g) and adding Subsection
82-14 (h) to read as follows:
82-15 (f) The [If the] commission shall revoke, suspend, or refuse
82-16 to renew a license or registration or shall reprimand the licensee
82-17 or registrant if the commission finds that the licensee or
82-18 registrant has violated or failed to comply with or is violating or
82-19 failing to comply with this chapter or a rule adopted under this
82-20 chapter[, the commission may suspend the license or registration
82-21 for a definite period not to exceed 90 days or may revoke the
82-22 license].
82-23 (g) The commission may place on probation a person whose
82-24 license or registration is suspended. If a license or registration
82-25 suspension is probated, the commission may require the person:
82-26 (1) to report regularly to the commission on matters
83-1 that are the basis of the probation;
83-2 (2) to limit practice to the areas prescribed by the
83-3 commission; or
83-4 (3) to continue or review professional education until
83-5 the person attains a degree of skill satisfactory to the commission
83-6 in those areas that are the basis of the probation.
83-7 (h) Any party to a proceeding before the commission is
83-8 entitled to judicial review under the substantial evidence rule.
83-9 SECTION 61. Section 117.012, Natural Resources Code, is
83-10 amended by adding Subsections (h) through (k) to read as follows:
83-11 (h) The commission shall require operators or their
83-12 designated representatives to communicate and conduct liaison
83-13 activities with fire, police, and other appropriate public
83-14 emergency response officials. The liaison activities must be
83-15 conducted by meetings in person except as provided by this section.
83-16 An operator or the operator's representative may conduct required
83-17 community liaison activities as provided by Subsection (i) only if
83-18 the operator or the operator's representative has made the
83-19 following efforts to conduct a community liaison meeting in person
83-20 with the officials:
83-21 (1) mailing a written request for a meeting in person
83-22 to the appropriate officials by certified mail, return receipt
83-23 requested;
83-24 (2) sending a request for a meeting in person to the
83-25 appropriate officials by facsimile transmission; and
83-26 (3) making one or more telephone calls or e-mail
84-1 message transmissions to the appropriate officials to request a
84-2 meeting in person.
84-3 (i) If the operator or operator's representative cannot
84-4 arrange a meeting in person after complying with Subsection (h),
84-5 the operator or the operator's representative shall make the
84-6 following efforts to conduct community liaison activities by means
84-7 of a telephone conference call with the officials:
84-8 (1) mailing a written request for a telephone
84-9 conference to the appropriate officials by certified mail, return
84-10 receipt requested;
84-11 (2) sending a request for a telephone conference to
84-12 the appropriate officials by facsimile transmission; and
84-13 (3) making one or more telephone calls or e-mail
84-14 message transmissions to the appropriate officials to request a
84-15 telephone conference.
84-16 (j) If the operator or the operator's representative has
84-17 made the efforts required by Subsections (h) and (i) but has not
84-18 successfully arranged a meeting in person or a telephone
84-19 conference, the community liaison information required to be
84-20 conveyed may be delivered by mailing the information by certified
84-21 mail, return receipt requested.
84-22 (k) The commission by rule shall require the owner or
84-23 operator of each interstate or intrastate hazardous liquid or
84-24 carbon dioxide pipeline facility any part of which is located
84-25 within 1,000 feet of a public school to:
84-26 (1) develop an emergency response plan in consultation
85-1 with the fire department in whose jurisdiction the school is
85-2 located or another local emergency response entity; and
85-3 (2) present the plan:
85-4 (A) at the first annual budget meeting of the
85-5 board of trustees of the school district in which the school is
85-6 located after the plan is developed; and
85-7 (B) at subsequent annual budget meetings of the
85-8 board of trustees of the school district on the request of the
85-9 board.
85-10 SECTION 62. Subtitle D, Title 3, Natural Resources Code, is
85-11 amended by adding Chapter 118 to read as follows:
85-12 CHAPTER 118. PIPELINE ASSESSMENT AND TESTING
85-13 Sec. 118.001. AUTHORITY TO REQUIRE PLAN FOR PIPELINE
85-14 ASSESSMENT OR TESTING. (a) The Railroad Commission of Texas by
85-15 rule may require an operator to file for commission approval a plan
85-16 for assessment or testing of a pipeline if the commission finds
85-17 that:
85-18 (1) there is reason to believe that the pipeline may
85-19 present a hazard to public health or safety;
85-20 (2) the commission lacks adequate information to
85-21 assess the risk to public health or safety presented by the
85-22 pipeline; or
85-23 (3) a plan is necessary for the commission to initiate
85-24 or complete a pipeline safety investigation.
85-25 (b) The Railroad Commission of Texas may take enforcement
85-26 action against a person who fails to:
86-1 (1) submit a required plan; or
86-2 (2) participate in a pipeline safety investigation.
86-3 Sec. 118.002. PIPELINES FOR WHICH PLAN MAY BE REQUIRED. The
86-4 rules adopted under this chapter may apply to interstate pipelines,
86-5 intrastate pipelines, portions of pipeline systems the regulation
86-6 of which the federal government has temporarily delegated to the
86-7 Railroad Commission of Texas, or gathering lines, and to pipelines
86-8 for the transportation of any substance or material under the
86-9 jurisdiction of the commission, as specified by the commission.
86-10 Sec. 118.003. CONTENTS OF PLAN. The rules adopted under
86-11 this chapter may require that a plan include:
86-12 (1) an identification of risk factors associated with
86-13 a pipeline system, including population density;
86-14 (2) information about previous inspections and
86-15 maintenance;
86-16 (3) information about pressure tests;
86-17 (4) information about leaks;
86-18 (5) information about operating characteristics;
86-19 (6) information about corrosion protection methods;
86-20 and
86-21 (7) other information that may assist the Railroad
86-22 Commission of Texas in assessing the risk to public health or
86-23 safety presented by the pipeline.
86-24 Sec. 118.004. APPROVAL OF PLAN. The Railroad Commission of
86-25 Texas may approve a plan that complies with rules adopted under
86-26 this chapter.
87-1 Sec. 118.005. CONSEQUENCES OF PLAN APPROVAL. The approval
87-2 of a plan by the Railroad Commission of Texas does not constitute a
87-3 certification or representation that the pipeline is in compliance
87-4 with or exempt from applicable safety standards.
87-5 SECTION 63. Section 102.001, Utilities Code, is amended to
87-6 read as follows:
87-7 Sec. 102.001. RAILROAD COMMISSION JURISDICTION. (a) The
87-8 railroad commission has exclusive original jurisdiction over the
87-9 rates and services of a gas utility:
87-10 (1) that distributes [distributing] natural gas or
87-11 synthetic natural gas in:
87-12 (A) areas outside a municipality; and
87-13 (B) areas inside a municipality that surrenders
87-14 its jurisdiction to the railroad commission under Section 103.003;
87-15 and
87-16 (2) [. The railroad commission also has exclusive
87-17 original jurisdiction over the rates and services of a gas utility]
87-18 that transmits, transports, delivers, or sells natural gas or
87-19 synthetic natural gas to a gas utility that distributes the gas to
87-20 the public.
87-21 (b) The railroad commission has exclusive appellate
87-22 jurisdiction to review an order or ordinance of a municipality
87-23 exercising exclusive original jurisdiction as provided by this
87-24 subtitle.
87-25 SECTION 64. Subchapter A, Chapter 102, Utilities Code, is
87-26 amended by adding Section 102.006 to read as follows:
88-1 Sec. 102.006. POWERS AND DUTIES OF STATE OFFICE OF
88-2 ADMINISTRATIVE HEARINGS. (a) The utility division of the State
88-3 Office of Administrative Hearings shall conduct each hearing in a
88-4 contested case that is not conducted by one or more members of the
88-5 railroad commission. A hearing must be conducted in accordance
88-6 with the rules and procedures adopted by the railroad commission.
88-7 (b) The railroad commission may delegate to the utility
88-8 division of the State Office of Administrative Hearings the
88-9 authority to make a final decision and to issue findings of fact,
88-10 conclusions of law, and other necessary orders in a proceeding in
88-11 which there is not a contested issue of fact or law.
88-12 (c) The railroad commission by rule shall define the
88-13 procedures by which it delegates final decision-making authority
88-14 under Subsection (b).
88-15 (d) For purposes of judicial review, an administrative law
88-16 judge's final decision under Subsection (b) has the same effect as
88-17 a final decision of the railroad commission unless a member of the
88-18 commission requests formal review of the decision.
88-19 SECTION 65. Section 103.001, Utilities Code, is amended to
88-20 read as follows:
88-21 Sec. 103.001. MUNICIPAL JURISDICTION. To provide fair,
88-22 just, and reasonable rates and adequate and efficient services, the
88-23 governing body of a municipality has exclusive original
88-24 jurisdiction over the rates, operations, and services of a gas
88-25 utility within the municipality, subject to the limitations imposed
88-26 by this subtitle, unless the municipality surrenders its
89-1 jurisdiction to the railroad commission under Section 103.003.
89-2 SECTION 66. Subchapter A, Chapter 103, Utilities Code, is
89-3 amended by adding Section 103.003 to read as follows:
89-4 Sec. 103.003. SURRENDER OF MUNICIPAL JURISDICTION TO
89-5 RAILROAD COMMISSION; REINSTATEMENT OF JURISDICTION. (a) A
89-6 municipality may elect to have the railroad commission exercise
89-7 exclusive original jurisdiction over gas utility rates, operations,
89-8 and services in the municipality by ordinance or by submitting the
89-9 question of the surrender of its jurisdiction to the voters at a
89-10 municipal election.
89-11 (b) The governing body of a municipality shall submit at a
89-12 municipal election the question of surrendering its jurisdiction to
89-13 the railroad commission if the governing body receives a petition
89-14 signed by a number of qualified voters of the municipality equal to
89-15 at least the lesser of 20,000 or 10 percent of the number of voters
89-16 voting in the last preceding general election in the municipality.
89-17 (c) A municipality may not elect to surrender its
89-18 jurisdiction while a case involving the municipality is pending.
89-19 (d) A municipality that surrenders its jurisdiction to the
89-20 railroad commission may reinstate its jurisdiction. The provisions
89-21 of this section governing the surrender of jurisdiction apply to
89-22 the reinstatement of jurisdiction.
89-23 SECTION 67. Section 104.107, Utilities Code, is amended by
89-24 amending Subsection (b) and adding Subsection (c) to read as
89-25 follows:
89-26 (b) The 150-day period prescribed by Subsection (a)(2) shall
90-1 be extended for two days for each day the actual hearing on the
90-2 merits of the case exceeds 15 days.
90-3 (c) If the regulatory authority does not make a final
90-4 determination concerning a schedule of rates before expiration of
90-5 the applicable suspension period, the regulatory authority is
90-6 considered to have approved the schedule. This approval is subject
90-7 to the authority of the regulatory authority thereafter to continue
90-8 a hearing in progress.
90-9 SECTION 68. Subchapter F, Chapter 104, Utilities Code, is
90-10 amended by adding Section 104.2551 to read as follows:
90-11 Sec. 104.2551. ELECTRONIC BILLING. A gas utility or
90-12 municipally owned utility may transmit the utility's bill for
90-13 services through the Internet or by other electronic means instead
90-14 of through the United States mail on the request of a customer of
90-15 the gas utility or municipally owned utility.
90-16 SECTION 69. Section 121.103, Utilities Code, is amended by
90-17 amending Subsection (a) and adding Subsection (d) to read as
90-18 follows:
90-19 (a) A gas utility that provides gas to a customer does not
90-20 have an obligation to serve the customer or to maintain the gas
90-21 supply or physical capacity to serve the customer if the customer:
90-22 (1) is a transportation, industrial, commercial, or
90-23 other similar large-volume contract customer;
90-24 (2) is an end-use customer of the gas utility;
90-25 (3) reduces or ceases the purchase of natural gas or
90-26 natural gas service from the gas utility; and
91-1 (4) purchases natural gas or natural gas service from
91-2 another supplier or purchases an alternate form of energy.
91-3 (d) Notwithstanding Subsection (a), a gas utility that has
91-4 provided gas to a commercial customer is obligated to serve that
91-5 customer if the gas utility has a sufficient gas supply and
91-6 physical capacity to do so without reducing service to its other
91-7 customers.
91-8 SECTION 70. Section 121.2015, Utilities Code, is amended to
91-9 read as follows:
91-10 Sec. 121.2015. REQUIRED SAFETY RULES. (a) The railroad
91-11 commission shall adopt rules regarding:
91-12 (1) public education and awareness relating to gas
91-13 pipeline facilities; and
91-14 (2) community liaison for responding to an emergency
91-15 relating to a gas pipeline facility.
91-16 (b) The railroad commission shall require operators or their
91-17 designated representatives to communicate and conduct liaison
91-18 activities with fire, police, and other appropriate public
91-19 emergency response officials. The liaison activities must be
91-20 conducted by meetings in person except as provided by this section.
91-21 An operator or the operator's representative may conduct required
91-22 community liaison activities as provided by Subsection (c) only if
91-23 the operator or the operator's representative has made an effort to
91-24 conduct a community liaison meeting in person with the officials by
91-25 one of the following methods:
91-26 (1) mailing a written request for a meeting in person
92-1 to the appropriate officials by certified mail, return receipt
92-2 requested;
92-3 (2) sending a request for a meeting in person to the
92-4 appropriate officials by facsimile transmission; or
92-5 (3) making one or more telephone calls or e-mail
92-6 message transmissions to the appropriate officials to request a
92-7 meeting in person.
92-8 (c) If the operator or operator's representative cannot
92-9 arrange a meeting in person after complying with Subsection (b),
92-10 the operator or the operator's representative shall make an effort
92-11 to conduct community liaison activities by means of a telephone
92-12 conference call with the officials by one of the following methods:
92-13 (1) mailing a written request for a telephone
92-14 conference to the appropriate officials by certified mail, return
92-15 receipt requested;
92-16 (2) sending a request for a telephone conference to
92-17 the appropriate officials by facsimile transmission; or
92-18 (3) making one or more telephone calls or e-mail
92-19 message transmissions to the appropriate officials to request a
92-20 telephone conference.
92-21 (d) If the operator or the operator's representative has
92-22 made the efforts required by Subsections (b) and (c) but has not
92-23 successfully arranged a meeting in person or a telephone
92-24 conference, the community liaison information required to be
92-25 conveyed may be delivered by mailing the information by certified
92-26 mail, return receipt requested.
93-1 SECTION 71. Section 121.206, Utilities Code, is amended by
93-2 amending Subsection (c) and adding Subsection (d) to read as
93-3 follows:
93-4 (c) In determining the amount of the penalty, the railroad
93-5 commission shall consider the guidelines adopted under Subsection
93-6 (d).
93-7 (d) The railroad commission by rule shall adopt guidelines
93-8 to be used in determining the amount of a penalty under this
93-9 subchapter. The guidelines shall include a penalty calculation
93-10 worksheet that specifies the typical penalty for certain
93-11 violations, circumstances justifying enhancement of a penalty and
93-12 the amount of the enhancement, and circumstances justifying a
93-13 reduction in a penalty and the amount of the reduction. The
93-14 guidelines shall take into account:
93-15 (1) the person's history of previous violations of
93-16 Section 121.201 or a safety standard or rule relating to the
93-17 transportation of gas and gas pipeline facilities adopted under
93-18 that section, including the number of previous violations;
93-19 (2) the seriousness of the violation and of any
93-20 pollution resulting from the violation; [and]
93-21 (3) any hazard to the health or safety of the public;
93-22 (4) the degree of culpability;
93-23 (5) the demonstrated good faith of the person charged;
93-24 and
93-25 (6) any other factor the commission considers
93-26 relevant.
94-1 SECTION 72. The heading to Subchapter J, Chapter 121,
94-2 Utilities Code, is amended to read as follows:
94-3 SUBCHAPTER J. TESTING OF NATURAL GAS PIPING SYSTEMS IN
94-4 SCHOOL [DISTRICT] FACILITIES
94-5 SECTION 73. Subchapter J, Chapter 121, Utilities Code, is
94-6 amended by adding Section 121.5005 to read as follows:
94-7 Sec. 121.5005. APPLICABILITY. This subchapter applies to a
94-8 facility of a public elementary or secondary school, including a
94-9 charter school, or a private elementary or secondary school, but
94-10 does not apply to a home school.
94-11 SECTION 74. Sections 121.501 through 121.506, Utilities
94-12 Code, are amended to read as follows:
94-13 Sec. 121.501. DEFINITION. In this subchapter, "supplier"
94-14 means an individual or company that sells and delivers natural gas
94-15 to a school [district] facility. If more than one individual or
94-16 company sells and delivers natural gas to a school facility [of a
94-17 school district], each individual or company is a supplier for
94-18 purposes of this subchapter.
94-19 Sec. 121.502. DUTY TO PRESSURE TEST. (a) A person
94-20 responsible for a school facility [Each school district] shall
94-21 perform biennial pressure tests on the natural gas piping system in
94-22 the [each] school [district] facility. The [school district shall
94-23 perform the] tests must be performed before the beginning of the
94-24 school year.
94-25 (b) A person responsible for more than one school facility
94-26 [The school district] may perform the tests on a two-year cycle
95-1 under which the person [district] pressure tests the natural gas
95-2 piping system in approximately one-half of the facilities each
95-3 year.
95-4 (c) If the person responsible for [a school district
95-5 operates] one or more school facilities operates the [district]
95-6 facilities on a year-round calendar, the pressure test in each of
95-7 those facilities must be conducted and reported not later than July
95-8 1 of the year in which the pressure test is performed.
95-9 (d) A natural gas piping pressure test performed under a
95-10 municipal code satisfies the pressure testing requirements
95-11 prescribed by this section.
95-12 Sec. 121.503. REQUIREMENTS OF TEST. (a) The person
95-13 responsible for a school facility [school district] shall perform
95-14 the pressure test to determine whether the natural gas piping
95-15 downstream of the school facility's [district's] meter holds at
95-16 least normal operating pressure over a specified period determined
95-17 by the railroad commission.
95-18 (b) During the pressure test, each system supply inlet and
95-19 outlet in the school facility must be closed.
95-20 (c) At the request of a person responsible for a school
95-21 facility [school district], the railroad commission shall assist
95-22 the person [district] in developing a procedure for conducting the
95-23 test.
95-24 Sec. 121.504. NOTICE OF TEST. (a) A person responsible for
95-25 a school facility [school district] shall provide written notice to
95-26 the school's [district's natural gas] supplier specifying the date
96-1 and result of each pressure test or other inspection.
96-2 (b) The supplier shall maintain a copy of the notice until
96-3 at least the first anniversary of the date on which the supplier
96-4 received the notice.
96-5 Sec. 121.505. TERMINATION OF SERVICE. (a) A supplier shall
96-6 terminate service to a school [district] facility if:
96-7 (1) the supplier receives official notification from
96-8 the firm or individual conducting the test of a hazardous natural
96-9 gas leakage in the facility piping system; or
96-10 (2) [the district fails to perform] a test or other
96-11 inspection at the facility is not performed as required by this
96-12 subchapter.
96-13 (b) A supplier is not liable for any damages that result
96-14 from a failure to terminate service as required by Subsection
96-15 (a)(2) for a facility other than a school district facility.
96-16 Sec. 121.506. REPORT OF LEAKAGE [TO BOARD OF TRUSTEES]. An
96-17 identified natural gas leakage in a school district facility must
96-18 be reported to the board of trustees of the district in which the
96-19 facility is located. An identified natural gas leakage in another
96-20 school facility must be reported to the person responsible for the
96-21 school facility.
96-22 SECTION 75. Subchapter C, Chapter 2003, Government Code, is
96-23 amended by adding Section 2003.0491 to read as follows:
96-24 Sec. 2003.0491. RAILROAD COMMISSION HEARINGS. The utility
96-25 division shall conduct contested case hearings and may make final
96-26 decisions and issue findings of fact, conclusions of law, and other
97-1 necessary orders in other proceedings on behalf of the Railroad
97-2 Commission of Texas as provided by Section 102.006, Utilities Code.
97-3 Section 2003.049 applies to a proceeding under this section except
97-4 as otherwise provided by Section 102.006, Utilities Code.
97-5 SECTION 76. The following laws are repealed:
97-6 (1) Chapter 93, Natural Resources Code;
97-7 (2) Subdivision (2), Section 113.002, and Sections
97-8 113.012 and 113.013, Natural Resources Code;
97-9 (3) Subsection (b), Section 113.243, Natural Resources
97-10 Code, as amended by Section 1, Chapter 496, Acts of the 75th
97-11 Legislature, Regular Session, 1997; and
97-12 (4) Section 113.246, Natural Resources Code, as
97-13 amended by Section 6, Chapter 496, Acts of the 75th Legislature,
97-14 Regular Session, 1997.
97-15 SECTION 77. (a) Except as otherwise provided by this Act,
97-16 this Act takes effect September 1, 2001.
97-17 (b) The changes in law made by this Act relating to the
97-18 statutory lien on wells apply only to liens on wells for which the
97-19 Railroad Commission of Texas sends a notice under Section 89.043,
97-20 Natural Resources Code, as amended by this Act, on or after the
97-21 effective date of this Act. Liens on wells for which notice is
97-22 sent before the effective date of this Act are covered by the law
97-23 as it existed when the notice was sent, and that law is continued
97-24 in effect for that purpose.
97-25 (c) Section 25 of this Act takes effect immediately if this
97-26 Act receives a vote of two-thirds of all the members elected to
98-1 each house, as provided by Section 39, Article III, Texas
98-2 Constitution. If this Act does not receive the vote necessary for
98-3 immediate effect, that section does not take effect.
98-4 (d) The changes in law made by Sections 91.104, 91.107, and
98-5 91.109, Natural Resources Code, as amended by this Act, apply only
98-6 to a person required on or after the effective date of the
98-7 applicable amendment to file a bond or alternate form of financial
98-8 security. A person required to file a bond or alternate form of
98-9 financial security before that date is governed by the law in
98-10 effect on the date the bond or other security is required to be
98-11 filed, and the former law is continued in effect for that purpose.
98-12 (e) This Act prevails over any conflicting or inconsistent
98-13 provision of H.B. No. 1317, 77th Legislature, Regular Session,
98-14 2001, if that bill is enacted and becomes law.
98-15 (f) As soon as practicable on or after the effective date of
98-16 this Act, the governor, lieutenant governor, and speaker of the
98-17 house of representatives shall appoint members to the Oil-Field
98-18 Cleanup Fund Advisory Committee as provided by Section 91.1135,
98-19 Natural Resources Code, as added by this Act.
98-20 (g) Subchapter L, Chapter 113, Natural Resources Code, as
98-21 added by this Act, applies beginning with the 2002-2003 school
98-22 year, and each school district that uses liquefied petroleum gas
98-23 shall perform pressure tests as required by that subchapter.
98-24 (h) Section 102.006, Utilities Code, as added by this Act,
98-25 and Section 2003.0491, Government Code, as added by this Act, apply
98-26 only to a contested case filed at the Railroad Commission of Texas
S.B. No. 310
99-1 on or after the effective date of this Act. A contested case filed
99-2 at the commission before that date is governed by the law in effect
99-3 at the time the case is filed, and the former law is continued in
99-4 effect for that purpose.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 310 passed the Senate on
April 17, 2001, by a viva-voce vote; May 18, 2001, Senate refused
to concur in House amendments and requested appointment of
Conference Committee; May 21, 2001, House granted request of the
Senate; May 27, 2001, Senate adopted Conference Committee Report by
a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 310 passed the House, with
amendments, on May 16, 2001, by a non-record vote; May 21, 2001,
House granted request of the Senate for appointment of Conference
Committee; May 27, 2001, House adopted Conference Committee Report
by the following vote: Yeas 145, Nays 0, one present not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor