79R2557 CBH-F

By:  Nixon                                                        H.B. No. 1301



A BILL TO BE ENTITLED

AN ACT

relating to reimbursement of costs incurred in certain proceedings 
before the Railroad Commission of Texas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 81, Natural Resources 
Code, is amended by adding Section 81.058 to read as follows:
	Sec. 81.058.  REIMBURSEMENT OF CERTAIN COSTS.  (a) To the 
extent provided by this section, in any proceeding brought under 
this code or the Utilities Code to set a transportation or gathering 
rate for natural gas, the commission may order a party or parties to 
reimburse another party for the amount of the reasonable costs the 
other party actually incurred and paid in relation to the 
proceeding.  A party is eligible for reimbursement under this 
section only if the party requesting reimbursement, before the date 
the commission entered a final order in the proceeding, made a 
written settlement offer of terms to settle the dispute.  A written 
settlement counteroffer made under this section is considered a 
written settlement offer for purposes of this section.
	(b)  The party to whom a written settlement offer is sent 
shall acknowledge in writing receipt of the offer not later than the 
third business day after the date the party receives the offer.  If 
the receiving party does not provide a timely written 
acknowledgment, the offering party may notify the receiving party 
that the offering party intends to file the written settlement 
offer in the records of the proceeding.  The offering party must 
provide that notice at least seven business days before the date the 
party intends to file the written settlement offer.  If the 
receiving party acknowledges in writing the receipt of the written 
settlement offer before the end of that seven-day period, the 
offering party may not file the offer in the record of the 
proceeding.
	(c)  A written settlement offer made under this section is 
confidential and, except as provided by this subsection, may not be 
disclosed to any other person during or after the conclusion of the 
proceeding.  The written settlement offer may be disclosed to the 
commission as necessary for the commission to determine whether a 
party is eligible to receive an award of costs under this section. 
Disclosure to the commission does not affect the confidentiality of 
the written settlement offer or make the offer subject to 
disclosure under Chapter 552, Government Code.
	(d)  If the party that made a written settlement offer is a 
gas utility and the transportation or gathering rate set by the 
commission's final order is equal to or greater than the rate 
contained in the offer, the commission shall issue an order 
requiring a party or parties to reimburse the gas utility for the 
utility's reasonable costs.  The commission may not require 
reimbursement under this subsection if the rate set in the final 
order is lower than the rate contained in the gas utility's written 
settlement offer.
	(e)  If the party that made a written settlement offer is a 
person that filed a complaint relating to a gas utility's 
transportation or gathering rate and the rate set by the 
commission's final order is equal to or less than the rate contained 
in the offer, the commission shall issue an order requiring a party 
or parties to reimburse the complaining party for the complaining 
party's reasonable costs.  The commission may not require 
reimbursement under this subsection if the rate set in the final 
order is higher than the rate contained in the complaining party's 
written settlement offer.
	(f)  Costs for which a party may receive reimbursement under 
this section include any reasonable costs a party actually incurred 
after the date the party made a written settlement offer and that 
the party paid.  Reimbursable costs include reasonable attorney's 
fees but do not include an amount related to a contingency fee 
agreed to by that party.  This subsection does not affect the amount 
of litigation expenses a party may be entitled to recover under any 
other law or under a rule adopted by the commission.
	(g)  This section does not apply to a proceeding:                       
		(1)  initiated under Chapter 103, Utilities Code, or 
Subchapter C or G, Chapter 104, Utilities Code; or
		(2)  regarding the rates, services, or practices of a 
gas utility that is not docketed by the commission.
	SECTION 2.  This Act applies only to a proceeding in which 
the Railroad Commission of Texas has not issued a final order before 
the effective date of this Act.
	SECTION 3.  This Act takes effect September 1, 2005.