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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of natural gas pipelines and natural gas |
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gathering service. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 121.001(b), Utilities Code, is amended |
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to read as follows: |
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(b) In this subchapter, "person" means an individual, |
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company, limited liability company, master limited partnership, or |
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private corporation and includes a lessee, trustee, or receiver of |
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an individual, company, limited liability company, master limited |
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partnership, or private corporation. |
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SECTION 2. The heading to Section 121.005, Utilities Code, |
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is amended to read as follows: |
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Sec. 121.005. GATHERING [TRANSPORTATION] OF GAS IN VICINITY |
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OF PLACE OF PRODUCTION EXCLUDED. |
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SECTION 3. Section 121.005(a), Utilities Code, is amended |
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to read as follows: |
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(a) Except as provided by Section 121.001(a)(2), a person is |
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not a gas utility if the [person certifies to the] railroad |
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commission certifies that the person gathers [transports] natural |
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or synthetic gas, for sale, for hire, or otherwise, solely: |
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(1) in, or in the vicinity of, the field or fields |
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where the gas is produced to a gas processing plant or treating |
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facility; |
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(2) from the outlet of a gas processing plant or |
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treating facility described by Subdivision (1) to a person: |
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(A) at, or in the vicinity of, the plant or |
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treating facility; or |
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(B) described by Subdivision (3) or Section |
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121.004; or |
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(3) to another person in, or in the vicinity of, the |
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field or fields where the gas is produced for transportation or sale |
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in intrastate commerce. |
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SECTION 4. Subtitle B, Title 3, Utilities Code, is amended |
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by adding Chapter 125 to read as follows: |
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CHAPTER 125. NATURAL GAS GATHERING |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 125.001. NATURAL GAS GATHERING: PUBLIC INTEREST. (a) |
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The activity of natural gas gathering is an activity affected with a |
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public interest. |
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(b) A person engaged in the activity of natural gas |
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gathering may be a virtual monopoly. |
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Sec. 125.002. RAILROAD COMMISSION JURISDICTION. A person |
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engaged in the activity of natural gas gathering and the property of |
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the person used in this state is subject to the jurisdiction, |
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control, and regulation of the railroad commission as a common |
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purchaser under Subchapter D, Chapter 111, Natural Resources Code. |
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Sec. 125.003. RAILROAD COMMISSION CERTIFICATION. For the |
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purposes of certifying whether a person or the property of a person |
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is engaged in natural gas gathering the railroad commission shall |
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evaluate: |
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(1) the general business classification of the person; |
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(2) the length and diameter of the person's natural gas |
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pipelines; |
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(3) the location of the person's natural gas pipelines |
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to the central point in the field; |
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(4) the geographic configuration or pattern of the |
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person's natural gas pipelines; |
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(5) the location of compressors and processing plants, |
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particularly where the pipelines are located behind gas processing |
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plants; |
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(6) the location of wells along all or part of the |
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person's natural gas pipelines; and |
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(7) the operating pressure and volumes of gas |
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transmitted on the person's natural gas pipelines. |
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Sec. 125.004. DUTY TO PREVENT DISCRIMINATION. (a) The |
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railroad commission shall inquire into each field to determine if |
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gatherers are providing just, reasonable, and nondiscriminatory |
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fees, services, and purchases. |
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(b) This chapter may not be interpreted to require a person |
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to offer the identical natural gas gathering rates or fees to all |
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shippers. |
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(c) The railroad commission has all necessary authority, on |
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its own motion or on receipt of a complaint, to ensure that all |
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tariffs, charges, fares, tolls, rentals, classifications, contract |
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provisions, or other services that are directly or indirectly |
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demanded, observed, charged, collected, or offered to a shipper and |
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filed with the railroad commission are just, reasonable, and not |
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discriminatory. |
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Sec. 125.005. GAS GATHERER'S REPORT. The railroad |
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commission may require a person engaged in the activity of natural |
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gas gathering to make to the commission a sworn report of any matter |
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relating to the person's natural gas gathering activity that the |
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commission determines to be relevant, including: |
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(1) the total quantity of natural gas gathered by the |
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person; |
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(2) a scaled map indicating the county and survey |
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location of the person's natural gas gathering pipelines; |
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(3) the connection points and pressure of wells |
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supplying natural gas; |
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(4) the final delivery point or points of the person's |
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natural gas gathering pipelines; |
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(5) the average monthly pressure of the person's |
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natural gas gathering pipelines; and |
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(6) the amount, character, and description of the |
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equipment used by the person for natural gas gathering. |
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Sec. 125.006. MAINTENANCE OF OFFICE AND RECORDS IN THIS |
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STATE. A person engaged in natural gas gathering shall maintain an |
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office in this state in a county in which some part of the person's |
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natural gas gathering property is located. The person shall keep in |
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this office all books, accounts, papers, records, vouchers, and |
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receipts that the railroad commission requires. |
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SECTION 5. This Act takes effect September 1, 2007. |