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A BILL TO BE ENTITLED
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AN ACT
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relating to the remedies available in connection with certain |
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disputes between producers of natural gas and persons who gather or |
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transport the gas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 85, Natural Resources |
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Code, is amended by adding Section 85.065 to read as follows: |
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Sec. 85.065. INFORMAL COMPLAINT PROCESS REGARDING LOSS OF |
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OR INABILITY TO ACCOUNT FOR NATURAL GAS GATHERED OR TRANSPORTED. |
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(a) A producer may submit a written request to a person who gathers |
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or transports gas for the producer for an explanation of any loss of |
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or inability to account for the gas tendered to the person by the |
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producer. The request may ask the person to provide any or all of |
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the information that would be required to be included in an |
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accounting under Subsection (c). Not later than the 30th day after |
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the date the person receives the request from the producer, the |
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person must provide the producer a written explanation of any loss |
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of or inability to account for the gas tendered to the person by the |
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producer. The response must include any relevant information |
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requested by the producer that is available to the person and that |
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would be required to be included in an accounting under Subsection |
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(c). |
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(b) If a producer submits a request under Subsection (a) to |
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a person who gathers or transports gas for the producer and the |
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person provides an inadequate explanation of any loss of or |
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inability to account for the gas, or fails to provide any |
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explanation of any loss of or inability to account for the gas by |
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the deadline provided by that subsection, the producer may file |
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with the commission an informal complaint against the person. An |
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informal complaint may not be filed before the 30th day after the |
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end of the production period covered by the complaint. An informal |
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complaint must: |
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(1) specify the production period covered by the |
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complaint; |
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(2) state that at least 30 days have elapsed since the |
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end of the production period covered by the complaint; and |
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(3) if the producer metered the volume of gas tendered |
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to the person who gathered or transported the gas: |
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(A) describe the type of meter used; and |
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(B) state the date the meter was last calibrated. |
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(c) Not later than the 14th day after the date the complaint |
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is filed, the person who gathered or transported the gas shall |
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provide to the producer and the commission an accounting of the gas |
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tendered to the person by the producer for gathering or transport |
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during the production period covered by the complaint. The |
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accounting may be provided on a thousand cubic feet or a million |
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British thermal unit basis, as applicable, and must include the |
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information the commission determines to be necessary to resolve an |
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informal complaint under this section, which may include: |
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(1) the amount of gas tendered by the producer from |
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each well that has a meter; |
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(2) a laboratory analysis of the composition and |
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heating value of the gas and other substances tendered by the |
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producer, if such an analysis has been performed; |
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(3) if available, a schematic drawing of the person's |
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system for gathering or transporting gas that shows: |
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(A) each meter type; |
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(B) the date each meter was last calibrated; |
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(C) the accuracy of each meter; and |
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(D) all equipment that alters, disposes of, or |
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otherwise consumes any of the gas tendered to the person; |
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(4) the estimated amount of gas used for fuel, flared, |
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or vented for construction, repair, maintenance, or other |
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operational uses and, if the information is available, the location |
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of that use; |
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(5) the estimated amount of contaminants or other |
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impurities removed from the gas and the location at which the |
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impurities were removed; |
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(6) the estimated amount of liquid hydrocarbons and |
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condensate removed from the gas and the location at which the liquid |
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hydrocarbons and condensate were removed; |
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(7) the estimated amount of gas lost and the location |
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at which the gas was lost; |
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(8) the estimated amount of gas redelivered by the |
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person, including the amount of gas sold that was allocated to the |
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producer, and the location at which the redelivery of the gas |
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occurred; |
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(9) any amount of gas received from the producer by the |
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person that remains unaccounted for; and |
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(10) any other information the person who gathered or |
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transported the gas considers relevant to the resolution of the |
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complaint. |
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(d) The commission may grant an extension of time to the |
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person who gathered or transported the gas to provide the |
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accounting required by Subsection (c). An extension may not permit |
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the accounting to be provided later than the 45th day after the date |
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the informal complaint was filed. |
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(e) If the person who gathered or transported the gas does |
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not have the information necessary to provide the accounting |
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required by Subsection (c), the person must provide to the producer |
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and to the commission a written explanation of the reason the person |
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does not have the information. |
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(f) If the person who gathered or transported the gas fails |
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to provide the accounting required by Subsection (c) or the |
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explanation required by Subsection (e), the informal complaint |
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filed by the producer is considered to be valid. |
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(g) If Subsection (f) applies or the commission determines |
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that the person who gathered or transported the gas committed |
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waste, the commission may take any action it considers appropriate, |
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including issuing an order in a formal proceeding to prevent waste |
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by the person who gathered or transported the gas. |
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(h) This subsection applies only to a producer and a person |
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who gathers or transports gas for the producer under a contract |
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between the producer and that person that is entered into or renewed |
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on or after September 1, 2007. On written request, the producer is |
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entitled to audit the books and records of the person that pertain |
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to the contract between the producer and the person for the purpose |
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of verifying whether any gas tendered to the person by the producer |
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that the person has lost or is unable to account for has been |
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allocated to the volume of gas tendered to the person by the |
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producer as required by the contract. A producer is not entitled to |
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conduct an audit under this subsection more frequently than |
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annually. |
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SECTION 2. Section 85.065, Natural Resources Code, as added |
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by this Act, applies only to the loss of or inability to account for |
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natural gas that is tendered by a producer to a gatherer or |
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transporter of gas on or after the effective date of this Act. The |
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loss of or inability to account for natural gas that is tendered by |
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a producer to a gatherer or transporter of gas before the effective |
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date of this Act is governed by the law in effect on the date the gas |
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is tendered, and the former law remains in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2007. |