S.B. 619 78(R)    BILL ANALYSIS


S.B. 619
By: Armbrister
Energy Resources
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

The Oil Spill Prevention and Response Act of 1991 ("OSPRA") (Chapter 40,
Natural Resources Code) established the General Land Office as the lead
agency for prevention of and response to oil spills in Texas coastal
waters.  OSPRA's policy statement specifies that the "legislature declares
that it is the intent of this chapter to support and complement the Oil
Pollution Act of 1990 (Pub. L. 101380) and other federal law, specifically
those provisions relating to the national contingency plan for cleanup of
oil and hazardous substance spills and discharges."  Since OSPRA was
enacted, the Land Office has coordinated its implementation of the statute
in keeping with the above mandate.  The agency works very closely with the
U.S. Coast Guard to implement the statute in a manner that supports and
complements efforts at the federal level to prevent and respond to
accidental discharges of oil into coastal waters. 

In implementing the Oil Pollution Act, the Coast Guard has used Area
Contingency Plans to guide its oil spill response planning.  The Land
Office has participated in the development and implementation of these
Area Contingency Plans, which are part of the National Contingency Plan.
The Land Office has not promulgated a state discharge contingency plan
because the Area Contingency Plans, which cover the entire Texas coast,
have served the same purpose. 

By current statute, the Railroad Commission is responsible for crude oil
or condensate spills of 240 barrels or less, and the General Land Office
is responsible for spills that exceed 240 barrels. 
In Fiscal year 2002, the General Land Office conducted 868 maritime oil
spill responses and the Railroad Commission responded to 17 maritime oil
spills. Approximately 98% of all coastal oil spills fall within the
General Land Office's jurisdiction, and only 2% are in the jurisdiction of
the Railroad Commission. 

In implementing more cost effective government, SB 619 provides for the
consolidation of all oil spill clean-up duties and allows the General Land
Office to assume the responsibilities including that of the Railroad
Commission' jurisdiction over coastal spills from exploration and
production facilities of 240 barrels or less. This provision will require
no additional FTE's to the General Land Office.  SB 619 will allow the
General Land Office to respond more efficiently and effectively to oil
spills and it will create less confusion. 

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 1. Section 40.002(c), Natural Resources Code. 

Section 40.002 (c)  amends this section by deleting references to the
state coastal discharge contingency plan through planning and coordination
with Texas Natural Resources Conservation Commission (TNRCC) to protect
coastal water from all types of spills and discharge. 

SECTION 2.  Sections 40.003(13),  (17), (22),  Natural Resources Code.

 Sections 40.003 (13), (17), (22) make conforming changes by changing the
name of the Texas Natural Resource Conservation Commission (TNRCC) to the
Texas Commission on Environmental Quality (TCEQ). 

SECTION 3. Section 40.005, Natural Resources Code.

Section 40.005. ADMINISTRATION OF HAZARDOUS SUBSTANCE SPILL  RESPONSE
AND CLEANUP.  
                          
Makes conforming changes by changing the name of the TNRCC to the TCEQ,
and deletes references to the state coastal discharge contingency plan.  

SECTION 4. Section 40.052, Natural Resources Code.

Section 40.052. HAZARDOUS SUBSTANCE DISCHARGE.

Makes conforming changes by changing the name of the TNRCC to the TCEQ,
and                       deletes references to the state coastal
discharge contingency plan.  

SECTION 5. Section 40.101(c), Natural Resources Code.

Section 40.101(c) makes conforming changes by changing the name of the
TNRCC to the TCEQ. 

SECTION 6. Section 40.103(b), Natural Resources Code.

Section 40.103(b) deletes references to the state coastal discharge
contingency plan.  

SECTION 7. Section 40.104, Natural Resources Code.
 
Section 40.104. QUALIFIED IMMUNITY FOR RESPONSE ACTIONS.
                       
(a) and (b) deletes references to the state coastal discharge contingency
plan.  

SECTION 8. Section 40.107 (a)(1) , Natural Resources Code. 

Section 40.107 (a)(1), deletes references to the state coastal discharge
contingency plan.  

SECTION 9. Sections 40.107 (c)(1) and (4), Natural Resources Code.

Section 40.107 (c)(1) deletes references that the inventory shall be
incorporated into the state coastal discharge contingency plan after
public review and comment. 

Section 40.107 (c)(4) deletes references to the coastal discharge
contingency plan.  

SECTION 10. Section 40.116, Natural Resources Code.

Section 40.116 AUDITS, INSPECTIONS, and DRILLS.

Deletes a phrase which indicates the Land Office may assert authority to
deny a                              vessel entry into port. The amended
section still allows the Land Office to
conduct audits, inspections, and drills of vessels, but these are not
related to                                   vessels being allowed entry
into Texas ports.  

SECTION 11. Section 40.151(b), Natural Resources Code.

Section 40.151(b) is amended by adding that interest or income on the
Coastal Protection Fund will be credited to the fund.  

SECTION 12. Section 40.152(a) Natural Resources Code.
 
Section 40.152(a)(8) deletes a provision dealing with inventory under
Section 40.107, to be completed by September 1, 1995, in an amount not to
exceed $6 million. This Section provides Subsection(10) that allows the
General Land Office work in conjunction with the Railroad Commission to
plug abandoned or orphaned wells located on state-owned  submerged lands. 

SECTION 13. Section 40.152(b), Natural Resources Code.

Section 40.152(b) deletes the provision in Sec. 40.152(b) which
appropriated $2.5 million from the Coastal Protection Fund to the GLO for
the agency's administrative cost. The section also adds language to Sec.
40.152(b) to appropriate funds to the GLO for implementing Section.
40.152(a), Subsections. (2), (3), (4), and (7).  

SECTION 14. Section 40.254 (g)(3), Natural Resources Code.

Section 40.254 (g)(3) removes references to the requirement that a party
seeking judicial review of an administrative penalty assessment submit the
penalty or a supersedeas bond to the Land Office as a prerequisite to
judicial review. 

SECTION 15. Section 40.254 (h)(l), Natural Resources Code.

Section 40.254 (h)(l) deletes the provision that allows the commissioner
to execute a release of the bond if a superseadeas bond has been posted.  

SECTION 16. Section 40.258(a)(1), (2), and (3), Natural Resources Code.

Section 40.258(a)(1), (2), and (3), deletes references to the state
coastal discharge contingency plan. 

SECTION 17. repeals Sections 40.006, 40.053, 40.110(f), 40.115, 40.117(b),
40.151(e), 40.254(g)(2), and 40.303, Natural Resources Code. 

SECTION 18. This Act takes effect September 1, 2003.

EFFECTIVE DATE

This Act takes effect September 1, 2003