SRC-LBB H.B. 2006 78(R) BILL ANALYSIS
Senate Research Center H.B. 2006
By: Jones, Elizabeth/McReynolds (Fraser)
Infrastructure Development and Security
5/14/2003
Engrossed
DIGEST AND PURPOSE
Many railroads have turned their right-of-way over to outside management
companies. Utilities, pipeline and cable companies which need to build
facilities that cross the right-of-way or go alongside the right-of-way
have to deal with those management companies. A number of disputes have
arisen with the management companies and the demands those companies have
made with respect to existing facilities as well as proposed new
facilities.
H.B. 2006 creates a uniform process for gas companies, electrical
companies, telecommunication companies, cable companies and oil and gas
pipelines to construct and maintain facilities along, over, under, or
across a railroad right-of-way.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Provides the purpose of this Act.
SECTION 2. Amends Chapter 186, Utilities Code, by adding Subchapter E, as
follows:
SUBCHAPTER E. CONSTRUCTION AND MAINTENANCE OF FACILITIES
ALONG, OVER, UNDER, OR ACROSS RAILROAD RIGHT-OF-WAY
Sec. 186.051. DEFINITIONS. Defines "common carrier," "energy
transporter," "railroad," "railroad right-of-way," and "utility."
Sec. 186.052. EXEMPTIONS. Provides that the inclusion of an energy
transporter in this subchapter does not subject the transporter to
regulation as a utility or common carrier. Provides that the inclusion of
a common carrier in this subchapter does not subject the carrier to
regulation as a utility.
Sec. 186.053. CONSTRUCTION AND MAINTENANCE OF UTILITY, COMMON CARRIER,
AND ENERGY TRANSPORTER FACILITIES. (a) Provides that a utility, common
carrier, or energy transporter has the right to construct and maintain its
facilities over, under, or across a railroad or railroad right-of-way as
provided by this subchapter if the facilities:
(1) as they pass over, under, or across a railroad or railroad
right-of-way are not parallel to the railroad or railroad right-of-way; or
(2) before they pass along a railroad or railroad right-of-way are
parallel to the railroad or railroad right-of-way for a distance of not
more than 500 feet within any one-mile segment of the railroad or railroad
right-of-way.
(b) Provides that a utility, common carrier, or energy transporter:
(1) is required to:
(A) provide notice to the railroad within a reasonable period of any
proposed activity relating to the construction, maintenance, or operation
of the facilities; and
(B) comply with state and federal safety regulations applicable to
construction over, under, or across a railroad or railroad right-of-way;
and
(2) is prohibited from unreasonably interfering with railroad
operations.
(c) Authorizes a railroad to require a utility, common carrier, or energy
transporter to relocate any portion of the facility that is located in the
railroad right-of-way that is not in the public right-of-way under certain
conditions.
Sec. 186.054. DOCUMENTATION OF RIGHTS ACQUIRED. Requires a railroad, if
a railroad requires a utility, common carrier, or energy transporter to
obtain from the railroad a right to use a railroad right-of-way, to
produce, if requested, the documentation from the railroad's records
indicating the extent of the railroad's right, title, or interest in the
property sought to be used by the utility, common carrier, or energy
transporter. Requires the utility, common carrier, or energy transporter
to reimburse the railroad for the reasonable cost of producing the
documentation as required by this section. Prohibits the cost, including
internal costs, from exceeding $250. Provides that if the railroad has no
demonstrable real property interest in the property sought to be used or
no right to grant an easement along, over, under, or across the railroad
right-of-way, the utility, common carrier, or energy transporter does not
owe the railroad compensation for the use of the property.
Sec. 186.055. VALUATION OF RIGHTS ACQUIRED. (a) Authorizes a utility,
common carrier, or energy transporter, in the absence of an agreement for
the right to use a railroad right-of-way, to obtain the right to use the
right-of-way through the exercise of eminent domain under the procedures
provided by Chapter 21, Property Code.
(b) Provides that the award of damages due the railroad under an eminent
domain proceeding as provided by Subsection (a) is the market value of the
real property interest to be used. Provides that market value is
determined by measuring the value of the property interest immediately
before and immediately after the taking.
(c) Prohibits the property interest from being valued at more than the
valuation of the real property adjacent to the right-of-way.
(d) Authorizes the railroad to also recover:
(1) costs and expenses for interference with railroad operations,
including internal costs for providing flagging services; and
(2) the cost to repair any damage to its facilities caused by the
construction or maintenance of the utility, common carrier, or energy
transporter facilities.
(e) Provides that the payment by the utility, common carrier, or energy
transporter determined under this section is the only compensation due to
the railroad for the perpetual use of the interest obtained.
Sec. 186.056. RIGHT TO MAINTAIN FACILITIES. Prohibits, during the
pendency of the condemnation proceedings or good faith negotiations for
the purchase of the right to use a railroad right-of-way, the utility,
common carrier, or energy transporter from being required to remove any
existing facilities if the facilities were located on the railroad
right-of-way under the consent of the railroad.
Sec. 186.057. LICENSE AND RENEWAL. (a) Authorizes a utility, common
carrier, or energy transporter to obtain an original license or renew a
license for the right to use a railroad right-of-way for a one-time fee
paid based on:
(1) the agreement of the railroad and the utility, common carrier, or
energy transporter; or
(2) a mutually acceptable third-party determination of market value.
(b) Provides that a fee paid under this section is the only fee payment
required. Provides that the license remains in effect without the
requirement of additional fee payments for renewal of the license.
Sec. 186.058. PROHIBITED ACTS. Prohibits a railroad from:
(1) interfering with the right of a utility to cross a railroad
right-of-way using a public right-of-way that is not restricted; or
(2) requiring a utility to pay a fee to cross a railroad right-of-way on
a public right-of-way.
Sec. 186.059. PROHIBITED PROVISIONS IN AGREEMENTS. Provides that an
agreement between a railroad and a utility, common carrier, or energy
transporter relating to the sale, lease, license, or other use of a
railroad right-of-way, including a purchase agreement, deed, bill of sale,
lease, or license, is void to the extent the agreement requires the
utility, common carrier, or energy transporter to purchase insurance
providing coverage for the railroad or an employee, agent, or independent
contractor of the railroad against any loss, liability, or other damage.
Sec. 186.060. CUMULATIVE RIGHTS AND RESPONSIBILITIES. Provides that the
rights, privileges, and responsibilities provided by this subchapter are
in addition to and not in substitution for those rights granted by any
other state or federal law.
SECTION 3. Effective date: September 1, 2003.