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A BILL TO BE ENTITLED
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AN ACT
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relating to a limitation on the amount of natural gas that a |
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gatherer or transporter of gas may lose or be unable to account for. |
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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. LIMITATION ON LOSS OF NATURAL GAS GATHERED OR |
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TRANSPORTED. (a) A person who gathers or transports gas may not in |
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any month lose or be unable to account for more than five percent of |
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the amount of gas, as determined on the basis of the heating value |
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of the gas, tendered to the person in that month by a producer. A |
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violation of this subsection is considered to be waste for purposes |
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of Section 85.046. |
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(b) On written application by a person who proposes to enter |
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into or has entered into a contract to gather or transport gas for a |
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producer, the commission may approve a contractual provision that |
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would violate Subsection (a) if the commission determines that the |
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person, because of extenuating circumstances beyond the person's |
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control, is likely to be unable to gather or transport the gas |
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without violating Subsection (a). |
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(c) As a condition precedent to the filing of an informal |
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complaint set out in Subsection (d), the producer shall send a |
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written request to the person who gathers or transports gas for an |
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explanation of the amounts and uses of gas by the person who gathers |
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or transports the gas and the person who gathers or transports gas |
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shall respond in writing within 30 days of receipt of the written |
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request to the producer with an explanation of the amounts and uses |
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of gas. |
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(d) A producer may file an informal complaint with the |
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commission alleging a violation of this section by a person who |
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gathered or transported gas tendered to the person by the producer. |
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Not later than the 15th day after the date the complaint is filed, |
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the person who gathered or transported the gas shall provide to the |
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producer and the commission an accounting of the gas tendered to the |
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person by the producer for gathering or transport during the period |
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covered by the complaint. The accounting shall show on the basis of |
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the heating value of the substance as stated in terms of million |
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British thermal units: |
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(1) the amount of gas received as shown by the gas |
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meters; |
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(2) the amount of oil and other liquid hydrocarbons |
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received as shown by the oil/liquid hydrocarbon meters; |
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(3) the amount of gas delivered for sale; |
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(4) the amount of oil and other liquid hydrocarbons |
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delivered for sale; |
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(5) the amount of gas used as residue fuel; |
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(6) the amount of gas used as raw gas fuel; |
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(7) the actual or estimated amount of gas flared; |
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(8) the amount of gas injected; |
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(9) the amount of hydrogen sulfide removed from the |
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gas; |
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(10) the amount of gas lost because of leaks; |
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(11) the amount of gas lost because of vents; and |
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(12) the amount of gas that has been lost or that the |
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person is unable to account for. |
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(e) On written request, a producer is entitled to audit the |
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books and records of a person who gathers or transports gas for the |
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producer to verify that the person is in compliance with this |
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section. A producer is not entitled to conduct an audit under this |
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subsection more frequently than annually. |
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SECTION 2. Section 85.065(a), Natural Resources Code, as |
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added by this Act, applies only to natural gas that is tendered by a |
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producer to a gatherer or transporter of gas on or after the |
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effective date of this Act. Natural gas that is tendered by a |
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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. |