H.B. 2654 78(R)    BILL ANALYSIS


H.B. 2654
By: Farabee
Energy Resources
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, Section 118.002 of the Natural Resources Code allows the
Railroad Commission of Texas to require operators of pipelines, to file
for Commission approval a plan for assessment or testing of their
pipelines.  The current law could allow the Commission to also impose
these requirements on gathering lines that are outside of populated areas.
House Bill 2654 would exclude gathering lines outside of populated areas
or residential or commercial areas from the application of this law. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 118.002, Natural Resources Code, PIPELINES FOR WHICH PLAN MAY BE
REQUIRED 

This section amends Subsection (a) in Section 118.002 of  the Natural
Resources Code by creating an exception that exempts gathering lines
situated outside of populated, residential or commercial areas from the
application of the law.  

New language is added in Subsection (b) of Section 118.002 of the Natural
Resources Code to read as follows: 

(b) Exempted rom the application of this chapter are gathering lines
outside: 

 (i) the limits of an incorporated or unincorporated city or village; 

 (ii) of any designated residential or commercial area such as residential
subdivisions, businesses, shopping centers, or community development. 

EFFECTIVE DATE

This Act takes effect immediately if it receives a vote of two-thirds of
all members elected to each house, as provided by Section 39, Article III,
Texas Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2003.