|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the powers and duties of the Railroad Commission of |
|
|
Texas; providing an administrative penalty. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter C, Chapter 81, Natural Resources |
|
|
Code, is amended by adding Sections 81.058, 81.059, 81.060, and |
|
|
81.061 to read as follows: |
|
|
Sec. 81.058. ADMINISTRATIVE PENALTY FOR CERTAIN NATURAL |
|
|
GAS-RELATED ACTIVITIES. (a) The commission, after notice and |
|
|
opportunity for hearing, may impose an administrative penalty |
|
|
against a purchaser, transporter, gatherer, shipper, or seller of |
|
|
natural gas, a person described by Section 81.051(a) or 111.081(a), |
|
|
or any other entity under the jurisdiction of the commission under |
|
|
this code that the commission determines has: |
|
|
(1) violated a commission rule adopting standards or a |
|
|
code of conduct for entities in the natural gas industry |
|
|
prohibiting unlawful discrimination; or |
|
|
(2) unreasonably discriminated against a seller of |
|
|
natural gas in the purchase of natural gas from the seller. |
|
|
(b) The commission, after notice and opportunity for |
|
|
hearing, may impose an administrative penalty against a purchaser, |
|
|
transporter, or gatherer of natural gas if the commission |
|
|
determines that the person engaged in prohibited discrimination |
|
|
against a shipper or seller of natural gas because the shipper or |
|
|
seller filed a formal or informal complaint with the commission |
|
|
against the person relating to the person's purchase, |
|
|
transportation, or gathering of the gas. |
|
|
(c) The commission, after notice and opportunity for |
|
|
hearing, may impose an administrative penalty against a purchaser, |
|
|
transporter, gatherer, shipper, or seller of natural gas who is a |
|
|
party to an informal complaint resolution proceeding and is |
|
|
determined by the commission to have: |
|
|
(1) failed to participate in the proceeding; or |
|
|
(2) failed to provide information requested by a |
|
|
mediator in the proceeding. |
|
|
(d) An administrative penalty imposed under this section |
|
|
may not exceed $5,000 a day for each violation. Each day a |
|
|
violation continues or occurs is a separate violation for purposes |
|
|
of imposing a penalty under this section. |
|
|
(e) If the commission determines after notice and |
|
|
opportunity for hearing that an entity has engaged in prohibited |
|
|
discrimination for which a penalty may be imposed under this |
|
|
section, the commission may issue any order necessary and |
|
|
reasonable to prevent the discrimination from continuing. |
|
|
(f) The remedy provided by this section is cumulative of any |
|
|
other remedy the commission may order. |
|
|
Sec. 81.059. APPOINTMENT OF MEDIATORS FOR INFORMAL |
|
|
COMPLAINTS. (a) The commission may provide for the appointment of |
|
|
a commission staff member as the mediator of an informal complaint |
|
|
filed with the commission, or the parties may agree to employ and |
|
|
pay an independent mediator for the purpose of mediating the |
|
|
complaint. |
|
|
(b) If the parties request that the mediation be conducted |
|
|
at a location other than the offices of the commission in Austin, |
|
|
the parties shall reimburse the commission for the commission's |
|
|
costs related to travel to those other locations. |
|
|
(c) This section does not prohibit the commission from |
|
|
requiring that the parties participate in a formal complaint |
|
|
resolution proceeding. |
|
|
(d) At least annually, the commission shall notify oil and |
|
|
gas producers of the existence of any informal complaint resolution |
|
|
process provided for by the commission. |
|
|
(e) Filing an informal complaint is not a prerequisite for |
|
|
filing a formal complaint. |
|
|
Sec. 81.060. CONFIDENTIALITY PROVISIONS. (a) A |
|
|
confidentiality provision may not be required in a contract to |
|
|
which a producer is a party for the sale, transportation, or |
|
|
gathering of natural gas that is entered into on or after September |
|
|
1, 2007. |
|
|
(b) A confidentiality provision in a contract to which a |
|
|
producer is a party for the sale, transportation, or gathering of |
|
|
natural gas that was entered into before September 1, 2007, becomes |
|
|
unenforceable on the date the term of the contract expires. |
|
|
Sec. 81.061. AUTHORITY TO ESTABLISH MARKET-BASED RATES. |
|
|
(a) This section does not apply to rates established under Chapter |
|
|
103, Utilities Code, or Subchapter C or G, Chapter 104, of that |
|
|
code. |
|
|
(b) The commission may use a cost-of-service method or a |
|
|
market-based rate method in setting a rate in a formal rate |
|
|
proceeding. |
|
|
(c) On the filing of a complaint by a shipper or seller of |
|
|
natural gas, the commission may set a transportation or gathering |
|
|
rate in a formal rate proceeding if the commission determines that |
|
|
the rate is necessary to remedy unreasonable discrimination in the |
|
|
provision of transportation or gathering services. The commission |
|
|
may set a rate regardless of whether the transporter or gatherer is |
|
|
classified as a utility by other law. |
|
|
SECTION 2. This Act takes effect September 1, 2007. |