| TO: | Honorable Rick Hardcastle, Chair, House Committee on Energy 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 Introduced |
The bill would authorize the Railroad Commission, after notice and 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 who is a 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 Railroad Commission reports that the bill would not result in significant additional administrative expenses; nor would it result in a significant fiscal impact to the state.
| Source Agencies: | 455 Railroad Commission
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| LBB Staff: | JOB, WK, TL
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