| TO: | Honorable Kip Averitt, Chair, Senate Committee on Natural Resources |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3273 by Crownover (Relating to the powers and duties of the Railroad Commission of Texas; providing an administrative penalty.), As Engrossed |
The bill would authorize the Railroad Commission, after notice and opportunity for a hearing, to impose an administrative penalty against a purchaser, transporter, gatherer, shipper, or seller of natural gas, and certain other persons, or any other entity under the commission's jurisdiction who has violated a commission rule adopting standards or a code of conduct for entities in the natural gas industry; or unreasonably discriminated against a seller of natural gas in the purchase of natural gas from the seller. The bill would also authorize the Railroad Commission to impose an administrative penalty against a purchaser, transporter, gatherer, shipper, or seller of natural gas if the commission would determine that the person discriminated against a shipper or seller because that person filed a formal or informal complaint with the commission and against a person who is party to an informal complaint resolution proceeding and is determined by commission to have failed to participate in the proceeding or failed to provide information requested by a mediator the proceeding. An administrative penalty would be limited to $5,000 a day for each violation.
The bill would authorize the Railroad Commission to provide for the appointment of an agency staff member as a mediator of an informal complaint filed with the commission, or the parties would be authorized to agree to employ and pay an independent mediator for the purpose of mediating the complaint. The bill would provide for reimbursment of Railroad Commission expenses, if a staff member were appointed as the mediator, and the parties request that the mediation be conducted at a location other than the agency offices in Austin.
The bill would allow the Railroad Commission to use a cost-of-service method or a market-based rate method in setting a rate in formal rate proceeding.
Any administrative costs to the Railroad Commission in implementing the provisions of the bill are not expected to be significant.
| Source Agencies: | 455 Railroad Commission
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| LBB Staff: | JOB, WK, TL
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