BILL ANALYSIS |
C.S.H.B. 2982 |
By: Keffer |
Energy Resources |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Industry authorities explain that gathering lines run from a well site to a compressor station and other well sites and note that such lines located before the point of sale are not regulated and are not subject to construction specifications. Gathering lines can be located outside a municipality or within the city limits of a designated residential or commercial area, and some concerns have been raised about the condition of many of these lines. For example, interested parties point out that a Class I gathering line in Eastland County was repurposed from crude to natural gas and that this line goes through Lake Leon, which is the major source of water for Eastland County. As a result, the parties are concerned that the line is in poor condition and needs to be inspected. To address certain safety issues, C.S.H.B. 2982 establishes provisions relating to the power of the Railroad Commission of Texas to adopt and enforce safety standards applicable to the transportation by pipeline of hazardous liquids, carbon dioxide, and natural gas in rural locations.
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RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is expressly granted to the Railroad Commission of Texas in SECTIONS 2, 4, and 5 of this bill.
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ANALYSIS
C.S.H.B. 2982 amends the Natural Resources Code to specify that the Railroad Commission of Texas is required to adopt rules that include safety standards applicable to, rather than 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. The bill authorizes the railroad commission to adopt such rules that apply to the intrastate transportation of hazardous liquids and carbon dioxide by gathering pipelines in rural locations and intrastate hazardous liquid and carbon dioxide gathering pipeline facilities in rural locations based only on the risks the transportation and the facilities present to the public safety. The bill removes language exempting the movement of hazardous liquids or carbon dioxide through gathering lines in rural locations from rules that adopt safety standards. The bill, in a provision requiring the railroad commission to require operators or their designated representatives to communicate and conduct liaison activities with fire, police, and other appropriate public emergency response officials, specifies as such operators and representatives operators of hazardous liquid and carbon dioxide pipeline facilities and the designated representatives of such operators.
C.S.H.B. 2982 amends the Utilities Code to authorize the railroad commission, to the extent consistent with federal law, by rule to establish safety standards and practices for gathering facilities and transportation activities in Class 1 locations, as defined by certain federal regulations, based on the risks the facilities and activities present to the public safety.
C.S.H.B. 2982 requires the railroad commission to adopt rules to implement the bill's provisions not later than December 1, 2013. The bill authorizes the railroad commission, before September 1, 2015, to implement the bill's provisions only to require operators to make reports to the railroad commission, including telephonic reports, the railroad commission determines are necessary to investigate accidents, leaks, incidents, or complaints.
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EFFECTIVE DATE
September 1, 2013.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 2982 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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