82R10002 PMO-D

By: Simpson H.B. No. 2356

A BILL TO BE ENTITLED

AN ACT

relating to the exercise of the power of eminent domain by certain private entities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 111.019(b), Natural Resources Code, is amended to read as follows:

(b) In the exercise of the power of eminent domain granted under the provisions of Subsection (a) of this section, a common carrier:

(1) may enter on and condemn the land, rights-of-way, easements, and property of any person or corporation necessary for the construction, maintenance, or operation of the common carrier pipeline and only to transport commodities authorized under this chapter; and

(2) may not enter on or condemn the land, rights-of-way, easements, and property of any person or corporation:

(A) only for business administration or management purposes;

(B) to explore for, produce, or process commodities authorized to be transported under this chapter by the common carrier; or

(C) to transport or dispose of oil and gas waste as defined by Section 91.1011.

SECTION 2. Section 111.0192(b), Natural Resources Code, is amended to read as follows:

(b) The right of eminent domain granted under this chapter to any pipeline transporting coal in whatever form shall not include the power to take land or any interest in land, by exercise of the power of eminent domain, for the purpose of drilling for, mining, or producing any oil, gas, geothermal, geothermal/geopressured, lignite, coal, sulphur, uranium, plutonium, or other mineral. Subject to Section 111.019(b), [but] this provision does not impair the right of any such entity to acquire title to real property for pipelines, including cooling ponds and related surface installations and equipment.

SECTION 3. Section 161.121, Utilities Code, is amended to read as follows:

Sec. 161.121. GENERAL POWERS. An electric cooperative may:

(1) sue and be sued in its corporate name;

(2) adopt and alter a corporate seal and use the seal or a facsimile of the seal as required by law;

(3) acquire, own, hold, maintain, exchange, or use property or an interest in property, including plants, buildings, works, machinery, supplies, equipment, apparatus, and transmission and distribution lines or systems that are necessary, convenient, or useful, except as provided by Section 161.125;

(4) dispose of, mortgage, or lease as lessor any of its property or assets;

(5) borrow money and otherwise contract indebtedness, issue obligations for its indebtedness, and secure the payment of indebtedness by mortgage, pledge, or deed of trust on any or all of its property or revenue;

(6) accept gifts or grants of money, services, or property;

(7) make any contracts necessary or convenient for the exercise of the powers granted by this chapter;

(8) conduct its business and have offices inside or outside this state;

(9) adopt and amend bylaws not inconsistent with the articles of incorporation for the administration and regulation of the affairs of the cooperative; and

(10) except as provided by Section 161.125, perform any other acts for the cooperative or its members or for another electric cooperative or its members, and exercise any other power, that may be necessary, convenient, or appropriate to accomplish the purpose for which the cooperative is organized, including other or additional purposes that benefit members and nonmembers, either directly or through affiliates, described in Sections 2.002 and 22.051, Business Organizations Code [Section A, Article 2.01, Texas Non-Profit Corporation Act (Article 1396-2.01, Vernon's Texas Civil Statutes)].

SECTION 4. Section 161.125, Utilities Code, is amended to read as follows:

Sec. 161.125. EMINENT DOMAIN. (a) An electric cooperative may exercise the power of eminent domain:

(1) to acquire real property only to transmit or distribute electric energy; and

(2) in the manner provided by state law for acquiring private property for public use.

(b) An electric cooperative may not exercise the power of eminent domain to acquire real property to generate or accumulate electric energy.

(c) The power does not apply to state property or property of a political subdivision in this state.

SECTION 5. Section 163.013(a), Utilities Code, is amended to read as follows:

(a) A participating entity may:

(1) use its means and assets to plan, acquire, construct, own, operate, and maintain its interest in an electric facility;

(2) issue bonds and other securities to raise money for a purpose described by Subdivision (1) in the same manner and to the same extent and subject to the same conditions as would be applicable if the entity had sole ownership of the electric facility;

(3) acquire, for the use and benefit of each participating entity, land, easements, and property for an electric facility by purchase or by exercising the power of eminent domain, except as provided by Section 163.014; and

(4) transfer or otherwise convey the acquired land, property, or property interest or otherwise cause the land, property, or interest to become vested in other participating entities to the extent to which and in the manner in which the participating entities agree.

SECTION 6. Section 163.014, Utilities Code, is amended by adding Subsection (f) to read as follows:

(f) A participating private entity may not exercise the power of eminent domain to acquire real property for a purpose other than to transmit or distribute electric energy.

SECTION 7. Sections 181.004, 181.007, and 181.008, Utilities Code, are amended to read as follows:

Sec. 181.004. CONDEMNATION OF PROPERTY. A gas or electric corporation has the right and power to enter on, condemn, and appropriate the land, right-of-way, easement, or other property of any person or corporation only to transport, transmit, or distribute gas, electric current, or power.

Sec. 181.007. AUTHORITY TO HOLD LAND OR OTHER PROPERTY. Except as provided by Section 181.004, a [A] gas or electric corporation has the power to own, hold, or use land, a right-of-way, an easement, a franchise, or a building or other structure as necessary for the purpose of the corporation.

Sec. 181.008. AUTHORITY RELATING TO TRANSPORT OR SALE. (a) Except as provided by Section 181.004, a [A] gas or electric corporation has the power to generate, make, manufacture, transport, and sell gas, electric current, and power to an individual, the public, or a municipality for any purpose.

(b) A gas or electric corporation may:

(1) impose reasonable charges for an action taken under Subsection (a); and

(2) except as provided by Section 181.004, construct, maintain, and operate power plants and substations and any machinery, apparatus, pipe, pole, wire, device, or arrangements as necessary to operate its lines in this state.

SECTION 8. The changes in law made by this Act to Sections 111.019 and 111.0192, Natural Resources Code, and Sections 161.121, 161.125, 163.013, 163.014, 181.004, 181.007, and 181.008, Utilities Code, apply only to a condemnation proceeding in which the petition is filed on or after the effective date of this Act and to any property condemned through the proceeding. A condemnation proceeding in which the petition is filed before the effective date of this Act and any property condemned through the proceeding is governed by the law in effect immediately before that date, and that law is continued in effect for that purpose.

SECTION 9. This Act takes effect September 1, 2011.