S.B. 1484 78(R)    BILL ANALYSIS


S.B. 1484 
By: Ogden
Energy Resources
Committee Report (Unamended)

BACKGROUND AND PURPOSE 

Currently, the Railroad Commission of Texas is prohibited from accepting
an organizational report or approving a permit application or certificate
compliance if a person in a position of ownership or control of an
organization has, within the past five years, held such a position with
another organization which violated certain items relating to safety or
prevention on control of pollution. As proposed Senate Bill 1484 allow the
Railroad Commission of Texas to require more organizations operating in
Texas to become complaint with the Railroad Commission of Texas rules and
to settle outstanding violators and fines before being permitted to
operate and prevents operators with known histories of non-compliance from
taking over wells and lease operations for an additional two years.  

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. Subsection (a), Section 91.114, Natural Resources Code.

(a) Except as provided by Subsection (d), the commission may not accept an
organizational report required  under Section 91.142 or an application for
a permit under this Chapter, Chapter 85, or Chapter 26, 27, or 29, Water
Code, or approve a certificate of compliance under Section 85.161 if: 

 (1) the organization that submitted the report, application, or
certificate violated a statute or commission rule, order, license,
certificate, or permit that relates to safety or the prevention or control
of pollution; or 

 (2) a person who holds a position of ownership or control in the
organization has, within the seven years preceding the date on which the
report, application, or certificate is filed, held a position of ownership
or control in another organizational and during that period of ownership
or control in another organization violated a statute or commission rule,
order, license, permit, or certificate that relates to safety or the
prevention or control pollution. 

SECTION 2. (a) 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. 
      
                      (b) The change in law made by this Act applies only
to an organizational report, permit application, or request for
certificate of compliance that is filed with the Railroad Commission of
Texas on or after the effective date of this Act. 


EFFECTIVE DATE

SECTION 2. (a) 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. 
      
                      (b) The change in law made by this Act applies only
to an organizational report, permit application, or request for
certificate of compliance that is filed with the Railroad Commission of
Texas on or after the effective date of this Act.