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