SRC-JLB S.B. 1754 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1754
By: Estes
Natural Resources
4/11/2003
As Filed


DIGEST AND PURPOSE 

Under current law, rules of the Railroad Commission (RRC) require pipeline
operators to implement a set of complex and expensive pipeline integrity
assessment and testing protocols for high pressure pipelines and pipelines
in populated areas.  Testing is not required by RRC on gathering or flow
lines in rural areas, because gathering and flow lines in rural
unpopulated areas do not pose an apparent threat to public safety and the
implementation cost of the assessment and testing requirements could
result in the premature abandonment of oil and gas production leading to a
loss of energy reserves and severance tax revenue.  However, RRC could
impose these requirements upon gathering and flow lines in rural
unpopulated areas.  As proposed, S.B. 1754 exempts rural gathering and
flow lines from certain testing. 

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.  Amends Section 118.002, Natural Resources Code, as follows:
 
Sec. 118.002.  PIPELINES FOR WHICH PLAN MAY BE REQUIRED.  (a)  Authorizes
the rules adopted under this chapter, except as provided in Subsection
(b), to apply to interstate pipelines, intrastate pipelines, portions of
pipeline systems the regulation of which the federal government has
temporarily delegated to the Railroad Commission of Texas, or gathering
lines, and to pipelines for the transportation of any substance or
material under the jurisdiction of the commission, as specified by the
commission. 
 
(b)  Provides that exempted from the application of this chapter are
gathering lines outside the limits of an incorporated or unincorporated
city or village and of any designated residential or commercial area such
as residential subdivisions, businesses or shopping centers, or community
development. 
 
SECTION 2.  Effective date:  upon passage or September 1, 2003.