|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to the continuation, functions, and name of the Railroad |
|
Commission of Texas. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. The heading to Chapter 81, Natural Resources |
|
Code, is amended to read as follows: |
|
CHAPTER 81. TEXAS OIL AND GAS [RAILROAD] COMMISSION [OF TEXAS] |
|
SECTION 2. Section 81.001, Natural Resources Code, is |
|
amended to read as follows: |
|
Sec. 81.001. DEFINITIONS. In this chapter: |
|
(1) "Commission" means the Texas Oil and Gas |
|
[Railroad] Commission [of Texas]. |
|
(2) "Commissioner" means any member of the Texas Oil |
|
and Gas [Railroad] Commission [of Texas]. |
|
SECTION 3. Subchapter A, Chapter 81, Natural Resources |
|
Code, is amended by adding Section 81.003 to read as follows: |
|
Sec. 81.003. TEXAS OIL AND GAS COMMISSION. (a) The Railroad |
|
Commission of Texas is renamed the Texas Oil and Gas Commission. |
|
(b) A reference in law to: |
|
(1) the Railroad Commission of Texas means the Texas |
|
Oil and Gas Commission; and |
|
(2) a railroad commissioner or a member of the |
|
Railroad Commission of Texas means a member of the Texas Oil and Gas |
|
Commission. |
|
SECTION 4. Section 81.01001, Natural Resources Code, is |
|
amended to read as follows: |
|
Sec. 81.01001. SUNSET PROVISION. The Texas Oil and Gas |
|
[Railroad] Commission [of Texas] is subject to Chapter 325, |
|
Government Code (Texas Sunset Act). Unless continued in existence |
|
as provided by that chapter, the commission is abolished September |
|
1, 2023 [2011]. |
|
SECTION 5. Subchapter B, Chapter 81, Natural Resources |
|
Code, is amended by adding Section 81.010015 to read as follows: |
|
Sec. 81.010015. ELECTION AND TERMS OF COMMISSIONERS; |
|
CHAIRMAN. (a) The commission is composed of three commissioners |
|
elected at the general election for state and county officers. |
|
(b) Commissioners serve staggered terms of six years, with |
|
the term of one commissioner expiring December 31 of each |
|
even-numbered year. |
|
(c) The commissioner elected at the general election in 2012 |
|
and every sixth year after that year serves as the chairman of the |
|
commission. |
|
(d) The designation of the office of chairman of the |
|
commission under Subsection (c) identifies the office for all |
|
purposes, including identification on official ballots for primary |
|
and general elections. |
|
SECTION 6. Sections 81.01002 and 81.01004, Natural |
|
Resources Code, are amended to read as follows: |
|
Sec. 81.01002. DUTIES OF CHAIRMAN. The [commissioners
|
|
shall elect one commissioner as the] chairman of the commission |
|
shall ensure that the commission executes and implements the |
|
commission's administrative duties and responsibilities. |
|
Sec. 81.01004. PERSONAL FINANCIAL DISCLOSURE, STANDARDS OF |
|
CONDUCT, [AND] CONFLICT OF INTEREST, AND DISCLOSURE OF REASON FOR |
|
RECUSAL. (a) A commissioner is subject to the provisions of Chapter |
|
572, Government Code, that apply to elected officers, including the |
|
requirements governing personal financial statements, standards of |
|
conduct, and conflicts of interest. |
|
(b) A commissioner who voluntarily recuses the commissioner |
|
from a commission decision because the commissioner has a material |
|
interest in the matter shall disclose the material interest in |
|
writing. |
|
SECTION 7. Subchapter B, Chapter 81, Natural Resources |
|
Code, is amended by adding Sections 81.010045 and 81.010046 to read |
|
as follows: |
|
Sec. 81.010045. CERTAIN POLITICAL CONTRIBUTIONS |
|
RESTRICTED. (a) In this section, "political contribution" has the |
|
meaning assigned by Section 251.001, Election Code. |
|
(b) A commissioner may not knowingly accept a political |
|
contribution given or offered with the intention that it be used in |
|
connection with a campaign for or the holding of a statewide or |
|
federal office, other than the office of commissioner. |
|
(c) A commissioner may not knowingly accept a political |
|
contribution given or offered with the intention that it be used in |
|
connection with a campaign for the office of commissioner, except: |
|
(1) beginning one year before the date of the next |
|
general election at which any commissioner's office is filled; and |
|
(2) ending on the 30th day before the date the first |
|
regular legislative session after that general election convenes. |
|
(d) A person other than a commissioner may not knowingly |
|
accept a political contribution given or offered with the intention |
|
that it be used in connection with a campaign for the office of |
|
commissioner, except: |
|
(1) during the period: |
|
(A) beginning one year before the date of the |
|
next general election at which any commissioner's office is filled; |
|
and |
|
(B) ending on the 30th day before the date the |
|
first regular legislative session after that general election |
|
convenes; or |
|
(2) during the period beginning on the date a vacancy |
|
in the office of commissioner occurs and ending on the date that |
|
vacancy is filled. |
|
Sec. 81.010046. AUTOMATIC RESIGNATION. If a person who is a |
|
member of the commission announces the person's candidacy, or in |
|
fact becomes a candidate, in any general, special, or primary |
|
election for any office of profit or trust under the laws of this |
|
state or the United States other than the office of commissioner at |
|
any time when the unexpired term of the office then held by the |
|
person exceeds one year, that announcement or that candidacy |
|
constitutes an automatic resignation of the office of commissioner. |
|
SECTION 8. Sections 81.01005, 81.01008, and 81.017, Natural |
|
Resources Code, are amended to read as follows: |
|
Sec. 81.01005. NAME AND SEAL. (a) The commissioners are |
|
known collectively as the "Texas Oil and Gas [Railroad] Commission |
|
[of Texas]." |
|
(b) The seal of the commission contains a star of five |
|
points with the words "Texas Oil and Gas [Railroad] Commission [of
|
|
Texas]" engraved on it. |
|
Sec. 81.01008. PUBLIC HEARINGS [SESSIONS]. The commission |
|
may hold public hearings [sessions] at any place in this state when |
|
considered necessary. |
|
Sec. 81.017. ADDITIONAL EMPLOYEES. The commission may |
|
employ personnel necessary to perform its duties [gaugers,
|
|
inspectors, investigators, supervisors, and clerical employees.
|
|
These employees shall include a chief engineer, chief petroleum
|
|
engineer, and an administrative chief, and their salaries shall be
|
|
paid in the amounts provided in the General Appropriations Act]. |
|
SECTION 9. Section 81.0521(c), Natural Resources Code, is |
|
amended to read as follows: |
|
(c) The [Two-thirds of the] proceeds from this fee, |
|
excluding [including] any penalties collected in connection with |
|
the fee, shall be deposited to the credit of the oil and gas |
|
regulation and [oil-field] cleanup fund [as provided by Section
|
|
91.111]. |
|
SECTION 10. Sections 81.0531(c), (d), and (e), Natural |
|
Resources Code, are amended to read as follows: |
|
(c) In determining the amount of the penalty, the commission |
|
shall consider the [permittee's history of previous violations, the
|
|
seriousness of the violation, any hazard to the health or safety of
|
|
the public, and the demonstrated good faith of the person charged.
|
|
In determining the amount of the penalty for a violation of a
|
|
provision of this title or a rule, order, license, permit, or
|
|
certificate that relates to pipeline safety, the commission shall
|
|
consider the] guidelines adopted under Subsection (d). |
|
(d) The commission by rule shall adopt guidelines to be used |
|
in determining the amount of the penalty [for a violation of a
|
|
provision of this title or a rule, order, license, permit, or
|
|
certificate that relates to pipeline safety]. The guidelines shall |
|
include a penalty calculation worksheet that specifies the typical |
|
penalty for certain violations, circumstances justifying |
|
enhancement of a penalty and the amount of the enhancement, and |
|
circumstances justifying a reduction in a penalty and the amount of |
|
the reduction. The guidelines shall take into account: |
|
(1) the permittee's history of previous violations, |
|
including the number of previous violations; |
|
(2) the seriousness of the violation and of any |
|
pollution resulting from the violation; |
|
(3) any hazard to the health or safety of the public; |
|
(4) the degree of culpability; |
|
(5) the demonstrated good faith of the person charged; |
|
and |
|
(6) any other factor the commission considers |
|
relevant. |
|
(e) A penalty collected under this section shall be |
|
deposited to the credit of the general revenue [oil-field cleanup] |
|
fund. |
|
SECTION 11. Section 81.056(g), Natural Resources Code, is |
|
amended to read as follows: |
|
(g) The commission may use money in the oil and gas |
|
regulation and [oil-field] cleanup fund to implement this section. |
|
The amount of money in the fund the commission may use for that |
|
purpose may not exceed the amount of money in the fund that is |
|
derived from fees collected under Section 91.142 from common |
|
carriers or owners or operators of pipelines as determined annually |
|
by the commission. |
|
SECTION 12. Subchapter C, Chapter 81, Natural Resources |
|
Code, is amended by adding Sections 81.065, 81.066, 81.067, 81.068, |
|
81.069, 81.070, and 81.071 to read as follows: |
|
Sec. 81.065. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE |
|
RESOLUTION POLICY. (a) The commission shall develop and implement |
|
a policy to encourage the use of: |
|
(1) negotiated rulemaking procedures under Chapter |
|
2008, Government Code, for the adoption of commission rules; and |
|
(2) appropriate alternative dispute resolution |
|
procedures under Chapter 2009, Government Code, to assist in the |
|
resolution of internal and external disputes under the commission's |
|
jurisdiction. |
|
(b) The commission's procedures relating to alternative |
|
dispute resolution must conform, to the extent possible, to any |
|
model guidelines issued by the State Office of Administrative |
|
Hearings for the use of alternative dispute resolution by state |
|
agencies. |
|
(c) The commission shall: |
|
(1) coordinate the implementation of the policy |
|
adopted under Subsection (a); |
|
(2) provide training as needed to implement the |
|
procedures for negotiated rulemaking or alternative dispute |
|
resolution; and |
|
(3) collect data concerning the effectiveness of those |
|
procedures. |
|
(d) The commission's alternative dispute resolution |
|
procedures do not apply to the resolution of an informal complaint |
|
described by Section 81.058 or filed under Section 85.065. |
|
Sec. 81.066. ENFORCEMENT POLICY. (a) The commission by |
|
rule shall adopt an enforcement policy to guide the employees of the |
|
commission in evaluating violations of the provisions of this title |
|
that pertain to safety or the prevention or control of pollution or |
|
the provisions of a rule, order, license, permit, or certificate |
|
that pertains to safety or the prevention or control of pollution |
|
and is issued under this title. |
|
(b) The enforcement policy adopted under this section must |
|
include: |
|
(1) a specific process for classifying violations |
|
based on: |
|
(A) the seriousness of any pollution resulting |
|
from the violation; and |
|
(B) any hazard to the health or safety of the |
|
public; and |
|
(2) standards to provide guidance to commission |
|
employees on which violations may be dismissed once the permittee |
|
comes into compliance and which violations must be forwarded for |
|
enforcement. |
|
(c) The standards adopted under Subsection (b)(2) must |
|
require a commission employee to take into account the permittee's |
|
history of previous violations in determining whether to dismiss a |
|
violation once the permittee comes into compliance or forward the |
|
violation for enforcement. |
|
Sec. 81.067. OIL AND GAS REGULATION AND CLEANUP FUND. |
|
(a) The oil and gas regulation and cleanup fund is created as a |
|
special fund in the state treasury. |
|
(b) The commission shall certify to the comptroller the date |
|
on which the balance in the fund equals or exceeds $20 million. The |
|
oil-field cleanup regulatory fees on oil and gas may not be |
|
collected or required to be paid on or after the first day of the |
|
second month following the certification, except that the |
|
comptroller shall resume collecting the fees on receipt of a |
|
commission certification that the fund has fallen below $10 |
|
million. The comptroller shall continue collecting the fees until |
|
collections are again suspended in the manner provided by this |
|
subsection. |
|
(c) The fund consists of: |
|
(1) proceeds from bonds and other financial security |
|
required by this chapter and benefits under well-specific plugging |
|
insurance policies described by Section 91.104(c) that are paid to |
|
the state as contingent beneficiary of the policies, subject to the |
|
refund provisions of Section 91.1091, if applicable; |
|
(2) private contributions, including contributions |
|
made under Section 89.084; |
|
(3) expenses collected under Section 89.083; |
|
(4) fees imposed under Section 85.2021; |
|
(5) costs recovered under Section 91.457 or 91.459; |
|
(6) proceeds collected under Sections 89.085 and |
|
91.115; |
|
(7) interest earned on the funds deposited in the |
|
fund; |
|
(8) oil and gas waste hauler permit application fees |
|
collected under Section 29.015, Water Code; |
|
(9) costs recovered under Section 91.113(f); |
|
(10) hazardous oil and gas waste generation fees |
|
collected under Section 91.605; |
|
(11) oil-field cleanup regulatory fees on oil |
|
collected under Section 81.116; |
|
(12) oil-field cleanup regulatory fees on gas |
|
collected under Section 81.117; |
|
(13) fees for a reissued certificate collected under |
|
Section 91.707; |
|
(14) fees collected under Section 91.1013; |
|
(15) fees collected under Section 89.088; |
|
(16) fees collected under Section 91.142; |
|
(17) fees collected under Section 91.654; |
|
(18) costs recovered under Sections 91.656 and 91.657; |
|
(19) fees collected under Section 81.0521; |
|
(20) fees collected under Sections 89.024 and 89.026; |
|
(21) legislative appropriations; and |
|
(22) any surcharges collected under Section 81.071. |
|
(d) All revenues and balances in the oil and gas regulation |
|
and cleanup fund created in this section are exempt from Section |
|
403.095(b), Government Code. |
|
Sec. 81.068. PURPOSE OF OIL AND GAS REGULATION AND CLEANUP |
|
FUND. Money in the oil and gas regulation and cleanup fund may be |
|
used by the commission or its employees or agents for any purpose |
|
related to the regulation of oil and gas development, including oil |
|
and gas monitoring and inspections, oil and gas remediation, oil |
|
and gas well plugging, public information and services related to |
|
those activities, and administrative costs and state benefits for |
|
personnel involved in those activities. |
|
Sec. 81.069. REPORTING ON PROGRESS IN MEETING PERFORMANCE |
|
GOALS FOR THE OIL AND GAS REGULATION AND CLEANUP FUND. (a) The |
|
commission, through the legislative appropriations request |
|
process, shall establish specific performance goals for the oil and |
|
gas regulation and cleanup fund for the next fiscal biennium, |
|
including goals for each quarter of each state fiscal year of the |
|
fiscal biennium for the number of: |
|
(1) orphaned wells to be plugged with state-managed |
|
funds; |
|
(2) abandoned sites to be investigated, assessed, or |
|
cleaned up with state funds; and |
|
(3) surface locations to be remediated. |
|
(b) The commission shall provide quarterly reports to the |
|
Legislative Budget Board and the Oil and Gas Regulation and Cleanup |
|
Fund Advisory Committee that include: |
|
(1) the following information with respect to the |
|
period since the last report was provided as well as cumulatively: |
|
(A) the amount of money deposited in the oil and |
|
gas regulation and cleanup fund; |
|
(B) the amount of money spent from the fund for |
|
the purposes described by Subsection (a); |
|
(C) the balance of the fund; |
|
(D) the commission's progress in meeting the |
|
quarterly performance goals established under Subsection (a) and, |
|
if the number of orphaned wells plugged with state-managed funds, |
|
abandoned sites investigated, assessed, or cleaned up with state |
|
funds, or surface locations remediated is at least five percent |
|
less than the number projected in the applicable goal established |
|
under Subsection (a), an explanation of the reason for the |
|
variance; |
|
(E) the total number of permits issued by the |
|
commission; |
|
(F) the average amount of time taken by the |
|
commission to complete the process for issuing a permit; and |
|
(G) the average amount of time taken by the |
|
commission to rule on a contested case; and |
|
(2) any additional information requested in writing by |
|
the Legislative Budget Board or the Oil and Gas Regulation and |
|
Cleanup Fund Advisory Committee. |
|
(c) The commission shall submit to the legislature and the |
|
Oil and Gas Regulation and Cleanup Fund Advisory Committee and make |
|
available to the public annually a report that reviews the extent to |
|
which money provided under Section 81.067 has enabled the |
|
commission to better protect the environment through oil-field |
|
cleanup activities. The report must include: |
|
(1) the performance goals established under |
|
Subsection (a) for that state fiscal year, the commission's |
|
progress in meeting those performance goals, and, if the number of |
|
orphaned wells plugged with state-managed funds, abandoned sites |
|
investigated, assessed, or cleaned up with state funds, or surface |
|
locations remediated is at least five percent less than the number |
|
projected in the applicable goal established under Subsection (a), |
|
an explanation of the reason for the variance; |
|
(2) the number of orphaned wells plugged with |
|
state-managed funds, by region; |
|
(3) the number of wells orphaned, by region; |
|
(4) the number of inactive wells not currently in |
|
compliance with commission rules, by region; |
|
(5) the status of enforcement proceedings for all |
|
wells in violation of commission rules and the period during which |
|
the wells have been in violation, by region in which the wells are |
|
located; |
|
(6) the number of surface locations remediated, by |
|
region; |
|
(7) a detailed accounting of expenditures of money in |
|
the fund for oil-field cleanup activities, including expenditures |
|
for plugging of orphaned wells, investigation, assessment, and |
|
cleaning up of abandoned sites, and remediation of surface |
|
locations; |
|
(8) the method by which the commission sets priorities |
|
by which it determines the order in which orphaned wells are |
|
plugged; |
|
(9) a projection of the amount of money needed for the |
|
next fiscal biennium for plugging orphaned wells, investigating, |
|
assessing, and cleaning up abandoned sites, and remediating surface |
|
locations; and |
|
(10) the number of sites successfully remediated under |
|
the voluntary cleanup program under Subchapter O, Chapter 91, by |
|
region. |
|
Sec. 81.070. OIL AND GAS REGULATION AND CLEANUP FUND |
|
ADVISORY COMMITTEE. (a) In this section, "committee" means the Oil |
|
and Gas Regulation and Cleanup Fund Advisory Committee. |
|
(b) The committee is composed of 10 members as follows: |
|
(1) one member of the senate appointed by the |
|
lieutenant governor; |
|
(2) the presiding officer of the house committee with |
|
primary jurisdiction over matters affecting energy resources; |
|
(3) one public member appointed by the governor; |
|
(4) one member appointed by the lieutenant governor |
|
from the academic field of geology or economics; |
|
(5) one member appointed by the speaker of the house of |
|
representatives from the academic field of geology or economics; |
|
and |
|
(6) the executive officer, or a person designated by |
|
the executive officer, of each of the following organizations: |
|
(A) the Texas Oil & Gas Association; |
|
(B) the Texas Independent Producers and Royalty |
|
Owners Association; |
|
(C) the Panhandle Producers & Royalty Owners |
|
Association; |
|
(D) the Permian Basin Petroleum Association; and |
|
(E) the Texas Alliance of Energy Producers. |
|
(c) An appointed member of the committee serves at the will |
|
of the authority that appointed the member. |
|
(d) The committee shall: |
|
(1) meet with the commission at the call of the |
|
chairman of the commission; and |
|
(2) monitor the effectiveness of the oil and gas |
|
regulation and cleanup fund, including by reviewing the reports |
|
submitted to the committee under Sections 81.069(b) and (c). |
|
(e) The commission shall provide quarterly reports to the |
|
committee and the Legislative Budget Board that include: |
|
(1) the following information with respect to the |
|
period since the last report was provided as well as cumulatively: |
|
(A) the amount of money deposited in the oil and |
|
gas regulation and cleanup fund; |
|
(B) the amount of money spent from the fund; |
|
(C) the balance of the fund; |
|
(D) the number of wells plugged with money from |
|
the fund; |
|
(E) the number of sites remediated with money |
|
from the fund; and |
|
(F) the number of wells abandoned; and |
|
(2) any additional information or data requested in |
|
writing by the committee. |
|
(f) The committee may: |
|
(1) submit to the commission comments of the committee |
|
regarding proposed rules relating to the oil and gas regulation and |
|
cleanup fund; and |
|
(2) request reports and other information from the |
|
commission as necessary to implement this section. |
|
(g) Not later than November 15 of each even-numbered year, |
|
the committee shall report to the governor, lieutenant governor, |
|
and speaker of the house of representatives on the committee's |
|
activities. The report must include: |
|
(1) an analysis of any problems with the |
|
administration of the oil and gas regulation and cleanup fund; and |
|
(2) recommendations for any legislation needed to |
|
address any problems identified with the administration of the fund |
|
or otherwise needed to further the purposes of the fund. |
|
Sec. 81.071. IMPOSITION OF SURCHARGES ON FEES. (a) Except |
|
as provided by Subsection (b), the commission by rule shall provide |
|
for the imposition of reasonable surcharges as necessary on fees |
|
imposed by the commission that are required to be deposited to the |
|
credit of the oil and gas regulation and cleanup fund in amounts |
|
sufficient to enable the commission to recover the costs of |
|
performing the functions specified by Section 81.068 from those |
|
fees and surcharges. |
|
(b) The commission may not impose a surcharge on an |
|
oil-field cleanup regulatory fee on oil collected under Section |
|
81.116 or an oil-field cleanup regulatory fee on gas collected |
|
under Section 81.117. |
|
(c) The commission by rule shall establish a methodology for |
|
determining the amount of a surcharge that takes into account: |
|
(1) the time required for regulatory work associated |
|
with the activity in connection with which the surcharge is |
|
imposed; |
|
(2) the number of individuals or entities from which |
|
the commission's costs may be recovered; |
|
(3) the effect of the surcharge on operators of all |
|
sizes, as measured by the number of oil or gas wells operated; |
|
(4) the balance in the oil and gas regulation and |
|
cleanup fund; and |
|
(5) any other factors the commission determines to be |
|
important to the fair and equitable imposition of the surcharge. |
|
(d) The commission shall collect a surcharge on a fee at the |
|
time the fee is collected. |
|
(e) A surcharge collected under this section shall be |
|
deposited to the credit of the oil and gas regulation and cleanup |
|
fund. |
|
SECTION 13. Section 81.115, Natural Resources Code, is |
|
amended to read as follows: |
|
Sec. 81.115. APPROPRIATIONS [PAYMENTS] TO COMMISSION FOR |
|
OIL AND GAS REGULATION AND CLEANUP PURPOSES [OIL AND GAS DIVISION]. |
|
Money appropriated to the [oil and gas division of the] commission |
|
under the General Appropriations Act for the purposes described by |
|
Section 81.068 shall be paid from the oil and gas regulation and |
|
cleanup fund, except that the legislature may supplement money |
|
appropriated from that fund with money appropriated from the |
|
General Revenue Fund. |
|
SECTION 14. Sections 81.116(d) and (e), Natural Resources |
|
Code, are amended to read as follows: |
|
(d) The comptroller shall suspend collection of the fee in |
|
the manner provided by Section 81.067 [91.111]. The exemptions and |
|
reductions set out in Sections 202.052, 202.054, 202.056, 202.057, |
|
202.059, and 202.060, Tax Code, do not affect the fee imposed by |
|
this section. |
|
(e) Proceeds from the fee, excluding [including] any |
|
penalties collected in connection with the fee, shall be deposited |
|
to the credit of the oil and gas regulation and [oil-field] cleanup |
|
fund [as provided by Section 91.111 of this code]. |
|
SECTION 15. Sections 81.117(d) and (e), Natural Resources |
|
Code, are amended to read as follows: |
|
(d) The comptroller shall suspend collection of the fee in |
|
the manner provided by Section 81.067 [91.111]. The exemptions and |
|
reductions set out in Sections 201.053, 201.057, 201.058, and |
|
202.060, Tax Code, do not affect the fee imposed by this section. |
|
(e) Proceeds from the fee, excluding [including] any |
|
penalties collected in connection with the fee, shall be deposited |
|
to the credit of the oil and gas regulation and [oil-field] cleanup |
|
fund [as provided by Section 91.111 of this code]. |
|
SECTION 16. Section 85.2021(d), Natural Resources Code, is |
|
amended to read as follows: |
|
(d) All fees collected under this section shall be deposited |
|
in the oil and gas regulation and [state oil-field] cleanup fund. |
|
SECTION 17. Section 89.024(d), Natural Resources Code, is |
|
amended to read as follows: |
|
(d) An operator who files an abeyance of plugging report |
|
must pay an annual fee of $100 for each well covered by the report. |
|
A fee collected under this section shall be deposited in the oil and |
|
gas regulation and [oil-field] cleanup fund. |
|
SECTION 18. Section 89.026(d), Natural Resources Code, is |
|
amended to read as follows: |
|
(d) An operator who files documentation described by |
|
Subsection (a) must pay an annual fee of $50 for each well covered |
|
by the documentation. A fee collected under this section shall be |
|
deposited in the oil and gas regulation and [oil-field] cleanup |
|
fund. |
|
SECTION 19. Section 89.048(d), Natural Resources Code, is |
|
amended to read as follows: |
|
(d) On successful plugging of the well by the well plugger, |
|
the surface estate owner may submit documentation to the commission |
|
of the cost of the well-plugging operation. The commission shall |
|
reimburse the surface estate owner from money in the oil and gas |
|
regulation and [oil-field] cleanup fund in an amount not to exceed |
|
50 percent of the lesser of: |
|
(1) the documented well-plugging costs; or |
|
(2) the average cost incurred by the commission in the |
|
preceding 24 months in plugging similar wells located in the same |
|
general area. |
|
SECTION 20. Section 89.083(j), Natural Resources Code, is |
|
amended to read as follows: |
|
(j) Money collected in a suit under this section shall be |
|
deposited in the oil and gas regulation and [state oil-field] |
|
cleanup fund. |
|
SECTION 21. Section 89.085(d), Natural Resources Code, is |
|
amended to read as follows: |
|
(d) The commission shall deposit money received from the |
|
sale of well-site equipment or hydrocarbons under this section to |
|
the credit of the oil and gas regulation and [oil-field] cleanup |
|
fund. The commission shall separately account for money and credit |
|
received for each well. |
|
SECTION 22. The heading to Section 89.086, Natural |
|
Resources Code, is amended to read as follows: |
|
Sec. 89.086. CLAIMS AGAINST OIL AND GAS REGULATION AND [THE
|
|
OIL-FIELD] CLEANUP FUND. |
|
SECTION 23. Sections 89.086(a), (h), (i), (j), and (k), |
|
Natural Resources Code, are amended to read as follows: |
|
(a) A person with a legal or equitable ownership or security |
|
interest in well-site equipment or hydrocarbons disposed of under |
|
Section 89.085 [of this code] may make a claim against the oil and |
|
gas regulation and [oil-field] cleanup fund unless an element of |
|
the transaction giving rise to the interest occurs after the |
|
commission forecloses its statutory lien under Section 89.083. |
|
(h) The commission shall suspend an amount of money in the |
|
oil and gas regulation and [oil-field] cleanup fund equal to the |
|
amount of the claim until the claim is finally resolved. If the |
|
provisions of Subsection (k) [of this section] prevent suspension |
|
of the full amount of the claim, the commission shall treat the |
|
claim as two consecutively filed claims, one in the amount of funds |
|
available for suspension and the other in the remaining amount of |
|
the claim. |
|
(i) A claim made by or on behalf of the operator or a |
|
nonoperator of a well or a successor to the rights of the operator |
|
or nonoperator is subject to a ratable deduction from the proceeds |
|
or credit received for the well-site equipment to cover the costs |
|
incurred by the commission in removing the equipment or |
|
hydrocarbons from the well or in transporting, storing, or |
|
disposing of the equipment or hydrocarbons. A claim made by a |
|
person who is not an operator or nonoperator is subject to a ratable |
|
deduction for the costs incurred by the commission in removing the |
|
equipment from the well. If a claimant is a person who is |
|
responsible under law or commission rules for plugging the well or |
|
cleaning up pollution originating on the lease or if the claimant |
|
owes a penalty assessed by the commission or a court for a violation |
|
of a commission rule or order, the commission may recoup from or |
|
offset against a valid claim an expense incurred by the oil and gas |
|
regulation and [oil-field] cleanup fund that is not otherwise |
|
reimbursed or any penalties owed. An amount recouped from, |
|
deducted from, or offset against a claim under this subsection |
|
shall be treated as an invalid portion of the claim and shall remain |
|
suspended in the oil and gas regulation and [oil-field] cleanup |
|
fund in the manner provided by Subsection (j) [of this section]. |
|
(j) If the commission finds that a claim is valid in whole or |
|
in part, the commission shall pay the valid portion of the claim |
|
from the suspended amount in the oil and gas regulation and |
|
[oil-field] cleanup fund not later than the 30th day after the date |
|
of the commission's decision. If the commission finds that a claim |
|
is invalid in whole or in part, the commission shall continue to |
|
suspend in the oil and gas regulation and [oil-field] cleanup fund |
|
an amount equal to the invalid portion of the claim until the period |
|
during which the commission's decision may be appealed has expired |
|
or, if appealed, during the period the case is under judicial |
|
review. If on appeal the district court finds the claim valid in |
|
whole or in part, the commission shall pay the valid portion of the |
|
claim from the suspended amount in the oil and gas regulation and |
|
[oil-field] cleanup fund not later than 30 days after the date the |
|
court's judgment becomes unappealable. On the date the |
|
commission's decision is not subject to judicial review, the |
|
commission shall release from the suspended amount in the oil and |
|
gas regulation and [oil-field] cleanup fund the amount of the claim |
|
held to be invalid. |
|
(k) If the aggregate of claims paid and money suspended that |
|
relates to well-site equipment or hydrocarbons from a particular |
|
well equals the total of the actual proceeds and credit realized |
|
from the disposition of that equipment or those hydrocarbons, the |
|
oil and gas regulation and [oil-field] cleanup fund is not liable |
|
for any subsequently filed claims that relate to the same equipment |
|
or hydrocarbons unless and until the commission releases from the |
|
suspended amount money derived from the disposition of that |
|
equipment or those hydrocarbons. If the commission releases money, |
|
then the commission shall suspend money in the amount of |
|
subsequently filed claims in the order of filing. |
|
SECTION 24. Section 89.121(b), Natural Resources Code, is |
|
amended to read as follows: |
|
(b) Civil penalties collected for violations of this |
|
chapter or of rules relating to plugging that are adopted under this |
|
code shall be deposited in the general revenue [state oil-field
|
|
cleanup] fund. |
|
SECTION 25. Section 91.1013(c), Natural Resources Code, is |
|
amended to read as follows: |
|
(c) Fees collected under this section shall be deposited in |
|
the oil and gas regulation and [state oil-field] cleanup fund. |
|
SECTION 26. Section 91.108, Natural Resources Code, is |
|
amended to read as follows: |
|
Sec. 91.108. DEPOSIT AND USE OF FUNDS. Subject to the |
|
refund provisions of Section 91.1091, if applicable, proceeds from |
|
bonds and other financial security required pursuant to this |
|
chapter and benefits under well-specific plugging insurance |
|
policies described by Section 91.104(c) that are paid to the state |
|
as contingent beneficiary of the policies shall be deposited in the |
|
oil and gas regulation and [oil-field] cleanup fund and, |
|
notwithstanding Sections 81.068 [91.112] and 91.113, may be used |
|
only for actual well plugging and surface remediation. |
|
SECTION 27. Section 91.109(a), Natural Resources Code, is |
|
amended to read as follows: |
|
(a) A person applying for or acting under a commission |
|
permit to store, handle, treat, reclaim, or dispose of oil and gas |
|
waste may be required by the commission to maintain a performance |
|
bond or other form of financial security conditioned that the |
|
permittee will operate and close the storage, handling, treatment, |
|
reclamation, or disposal site in accordance with state law, |
|
commission rules, and the permit to operate the site. However, this |
|
section does not authorize the commission to require a bond or other |
|
form of financial security for saltwater disposal pits, emergency |
|
saltwater storage pits (including blow-down pits), collecting |
|
pits, or skimming pits provided that such pits are used in |
|
conjunction with the operation of an individual oil or gas lease. |
|
Subject to the refund provisions of Section 91.1091 [of this code], |
|
proceeds from any bond or other form of financial security required |
|
by this section shall be placed in the oil and gas regulation and |
|
[oil-field] cleanup fund. Each bond or other form of financial |
|
security shall be renewed and continued in effect until the |
|
conditions have been met or release is authorized by the |
|
commission. |
|
SECTION 28. Sections 91.113(a) and (f), Natural Resources |
|
Code, are amended to read as follows: |
|
(a) If oil and gas wastes or other substances or materials |
|
regulated by the commission under Section 91.101 are causing or are |
|
likely to cause the pollution of surface or subsurface water, the |
|
commission, through its employees or agents, may use money in the |
|
oil and gas regulation and [oil-field] cleanup fund to conduct a |
|
site investigation or environmental assessment or control or clean |
|
up the oil and gas wastes or other substances or materials if: |
|
(1) the responsible person has failed or refused to |
|
control or clean up the oil and gas wastes or other substances or |
|
materials after notice and opportunity for hearing; |
|
(2) the responsible person is unknown, cannot be |
|
found, or has no assets with which to control or clean up the oil and |
|
gas wastes or other substances or materials; or |
|
(3) the oil and gas wastes or other substances or |
|
materials are causing the pollution of surface or subsurface water. |
|
(f) If the commission conducts a site investigation or |
|
environmental assessment or controls or cleans up oil and gas |
|
wastes or other substances or materials under this section, the |
|
commission may recover all costs incurred by the commission from |
|
any person who was required by law, rules adopted by the commission, |
|
or a valid order of the commission to control or clean up the oil and |
|
gas wastes or other substances or materials. The commission by |
|
order may require the person to reimburse the commission for those |
|
costs or may request the attorney general to file suit against the |
|
person to recover those costs. At the request of the commission, |
|
the attorney general may file suit to enforce an order issued by the |
|
commission under this subsection. A suit under this subsection may |
|
be filed in any court of competent jurisdiction in Travis County. |
|
Costs recovered under this subsection shall be deposited to the |
|
credit of the oil and gas regulation and [oil-field] cleanup fund. |
|
SECTION 29. Section 91.264(c), Natural Resources Code, is |
|
amended to read as follows: |
|
(c) A penalty collected under this section shall be |
|
deposited to the credit of the general revenue [oil-field cleanup] |
|
fund [account]. |
|
SECTION 30. Section 91.457(b), Natural Resources Code, is |
|
amended to read as follows: |
|
(b) If a person ordered to close a saltwater disposal pit |
|
under Subsection (a) [of this section] fails or refuses to close the |
|
pit in compliance with the commission's order and rules, the |
|
commission may close the pit using money from the oil and gas |
|
regulation and [oil-field] cleanup fund and may direct the attorney |
|
general to file suits in any courts of competent jurisdiction in |
|
Travis County to recover applicable penalties and the costs |
|
incurred by the commission in closing the saltwater disposal pit. |
|
SECTION 31. Section 91.459(c), Natural Resources Code, is |
|
amended to read as follows: |
|
(c) Any [penalties or] costs recovered by the attorney |
|
general under this subchapter shall be deposited in the oil and gas |
|
regulation and [oil-field] cleanup fund. |
|
SECTION 32. Section 91.605(e), Natural Resources Code, is |
|
amended to read as follows: |
|
(e) The fees collected under this section shall be deposited |
|
in the oil and gas regulation and [oil-field] cleanup fund. |
|
SECTION 33. Section 91.654(e), Natural Resources Code, is |
|
amended to read as follows: |
|
(e) Fees collected under this section shall be deposited to |
|
the credit of the oil and gas regulation and [oil-field] cleanup |
|
fund [under Section 91.111]. |
|
SECTION 34. Section 91.707(b), Natural Resources Code, is |
|
amended to read as follows: |
|
(b) Fees collected under this section shall be deposited to |
|
the credit of the oil and gas regulation and [oil-field] cleanup |
|
fund. |
|
SECTION 35. Subchapter B, Chapter 102, Natural Resources |
|
Code, is amended by adding Sections 102.0125 and 102.0165 to read as |
|
follows: |
|
Sec. 102.0125. WITHDRAWAL AND REFILING OF APPLICATION. |
|
(a) The commission by rule shall: |
|
(1) provide procedures requiring an interested owner |
|
who applies to the commission for the pooling of mineral interests |
|
to give notice to the commission before withdrawing the application |
|
if a hearing on the application has been scheduled; and |
|
(2) require an applicant who refiles an application |
|
that was withdrawn without proper notice as required by rules |
|
adopted under Subdivision (1) to pay a filing fee that exceeds the |
|
amount of any fee required for filing the initial application. |
|
(b) Rules adopted under Subsection (a)(1) must specify the |
|
deadline for giving notice of withdrawal of the application before |
|
the hearing is held. |
|
Sec. 102.0165. LOCATION OF HEARING. (a) At the request of |
|
an interested party, the commission may hold the hearing on the |
|
application in person or by telephone at a location in the vicinity |
|
of the proposed unit. |
|
(b) The commission may contract with another state agency to |
|
hold hearings on applications for pooling of interests into a unit |
|
under the provisions of this chapter in person or by telephone at |
|
field offices of that agency. |
|
SECTION 36. Section 117.012(a), Natural Resources Code, is |
|
amended to read as follows: |
|
(a) The commission shall adopt rules that include: |
|
(1) safety standards for and practices applicable to |
|
the intrastate transportation of hazardous liquids or carbon |
|
dioxide by pipeline and intrastate hazardous liquid or carbon |
|
dioxide pipeline facilities; and |
|
(2) [, including] safety standards related to the |
|
prevention of damage to interstate and intrastate hazardous liquid |
|
or carbon dioxide pipeline facilities [such a facility] resulting |
|
from the movement of earth by a person in the vicinity of such a |
|
[the] facility, other than movement by tillage that does not exceed |
|
a depth of 16 inches. |
|
SECTION 37. Section 211.033(q), Natural Resources Code, is |
|
amended to read as follows: |
|
(q) A penalty collected under this section shall be remitted |
|
to the comptroller for [the] deposit to the credit of the general |
|
revenue [oil-field cleanup] fund. |
|
SECTION 38. Section 52.092(c), Election Code, is amended to |
|
read as follows: |
|
(c) Statewide offices of the state government shall be |
|
listed in the following order: |
|
(1) governor; |
|
(2) lieutenant governor; |
|
(3) attorney general; |
|
(4) comptroller of public accounts; |
|
(5) commissioner of the General Land Office; |
|
(6) commissioner of agriculture; |
|
(7) chairman of the Texas Oil and Gas Commission; |
|
(8) [railroad] commissioner of the Texas Oil and Gas |
|
Commission; |
|
(9) [(8)] chief justice, supreme court; |
|
(10) [(9)] justice, supreme court; |
|
(11) [(10)] presiding judge, court of criminal |
|
appeals; |
|
(12) [(11)] judge, court of criminal appeals. |
|
SECTION 39. Section 756.126, Health and Safety Code, is |
|
amended to read as follows: |
|
Sec. 756.126. SAFETY STANDARDS AND BEST PRACTICES. The |
|
Texas Oil and Gas [Railroad] Commission [of Texas] shall adopt and |
|
enforce safety standards and best practices, including those |
|
described by 49 U.S.C. Section 6105 et seq., relating to the |
|
prevention of damage by a person to a facility, including an |
|
interstate or intrastate pipeline facility, under the jurisdiction |
|
of the commission. |
|
SECTION 40. Section 121.201(a), Utilities Code, is amended |
|
to read as follows: |
|
(a) The railroad commission may: |
|
(1) by rule prescribe or adopt safety standards for |
|
the transportation of gas and for gas pipeline facilities, |
|
including safety standards related to the prevention of damage to |
|
an interstate or intrastate gas pipeline [such a] facility |
|
resulting from the movement of earth by a person in the vicinity of |
|
the facility, other than movement by tillage that does not exceed a |
|
depth of 16 inches; |
|
(2) by rule require an operator that does not file |
|
operator organization information under Section 91.142, Natural |
|
Resources Code, to provide the information to the commission in the |
|
form of an application; |
|
(3) by rule require record maintenance and reports; |
|
(4) inspect records and facilities to determine |
|
compliance with safety standards prescribed or adopted under |
|
Subdivision (1); |
|
(5) make certifications and reports from time to time; |
|
(6) seek designation by the United States secretary of |
|
transportation as an agent to conduct safety inspections of |
|
interstate gas pipeline facilities located in this state; and |
|
(7) by rule take any other requisite action in |
|
accordance with 49 U.S.C. Section 60101 et seq., or a succeeding |
|
law. |
|
SECTION 41. Section 29.015, Water Code, is amended to read |
|
as follows: |
|
Sec. 29.015. APPLICATION FEE. With each application for |
|
issuance, renewal, or material amendment of a permit, the applicant |
|
shall submit to the railroad commission a nonrefundable fee of |
|
$100. Fees collected under this section shall be deposited in the |
|
oil and gas regulation and [oil-field] cleanup fund. |
|
SECTION 42. The following provisions of the Natural |
|
Resources Code are repealed: |
|
(1) Section 91.111; |
|
(2) Section 91.112; |
|
(3) Section 91.1135; and |
|
(4) Subchapter I, Chapter 113. |
|
SECTION 43. On the effective date of this Act: |
|
(1) the oil-field cleanup fund and the alternative |
|
fuels research and education fund are abolished; |
|
(2) any money remaining in the oil-field cleanup fund |
|
is transferred to the oil and gas regulation and cleanup fund; |
|
(3) any money remaining in the alternative fuels |
|
research and education fund is transferred to the undedicated |
|
portion of the general revenue fund; |
|
(4) any claim against the oil-field cleanup fund is |
|
transferred to the oil and gas regulation and cleanup fund; |
|
(5) any claim against the alternative fuels research |
|
and education fund is transferred to the undedicated portion of the |
|
general revenue fund; |
|
(6) any amount required to be deposited to the credit |
|
of the oil-field cleanup fund shall be deposited to the credit of |
|
the oil and gas regulation and cleanup fund; and |
|
(7) any amount required to be deposited to the credit |
|
of the alternative fuels research and education fund shall be |
|
deposited to the credit of the undedicated portion of the general |
|
revenue fund. |
|
SECTION 44. (a) Effective January 1, 2012: |
|
(1) the name of the Railroad Commission of Texas is |
|
changed to the Texas Oil and Gas Commission, and all powers, duties, |
|
rights, and obligations of the Railroad Commission of Texas are the |
|
powers, duties, rights, and obligations of the Texas Oil and Gas |
|
Commission; |
|
(2) a member of the Railroad Commission of Texas is a |
|
member of the Texas Oil and Gas Commission; |
|
(3) the chairman of the Railroad Commission of Texas |
|
is the chairman of the Texas Oil and Gas Commission; and |
|
(4) any appropriation to the Railroad Commission of |
|
Texas is an appropriation to the Texas Oil and Gas Commission. |
|
(b) Effective January 1, 2012: |
|
(1) a reference in law to the Railroad Commission of |
|
Texas is a reference to the Texas Oil and Gas Commission; and |
|
(2) a reference in law to a railroad commissioner or a |
|
member of the Railroad Commission of Texas is a reference to a |
|
member of the Texas Oil and Gas Commission. |
|
(c) The Texas Oil and Gas Commission is the successor to the |
|
Railroad Commission of Texas in all respects. All personnel, |
|
equipment, data, documents, facilities, contracts, items, other |
|
property, rules, decisions, and proceedings of or involving the |
|
Railroad Commission of Texas are unaffected by the change in the |
|
name of the agency. |
|
(d) The Railroad Commission of Texas shall adopt a timetable |
|
for phasing in the change of the agency's name so as to minimize the |
|
fiscal impact of the name change. Until January 1, 2012, to allow |
|
for phasing in the change of the agency's name and in accordance |
|
with the timetable established as required by this section, the |
|
agency may perform any act authorized by law for the Railroad |
|
Commission of Texas as the Railroad Commission of Texas or as the |
|
Texas Oil and Gas Commission. Any act of the Railroad Commission of |
|
Texas acting as the Texas Oil and Gas Commission on or after the |
|
effective date of this Act and before January 1, 2012, is an act of |
|
the Railroad Commission of Texas. |
|
(e) The change in law made by this Act does not affect the |
|
election of the chairman of the Texas Oil and Gas Commission before |
|
the general election in 2012. |
|
(f) The office of chairman of the Texas Oil and Gas |
|
Commission exists for purposes of the primary and general election |
|
in 2012. |
|
SECTION 45. This Act takes effect September 1, 2011. |