SECTION 1. Section 111.002,
Natural Resources Code, is amended to read as follows:
Sec. 111.002. COMMON
CARRIERS UNDER CHAPTER. (a) Except as provided by Subsection (b), a
[A] person is a common carrier subject to the provisions of this
chapter if it:
(1) owns, operates, or
manages a pipeline or any part of a pipeline in the State of Texas for the
transportation of crude petroleum to or for the public for hire, or engages
in the business of transporting crude petroleum by pipeline;
(2) owns, operates, or
manages a pipeline or any part of a pipeline in the State of Texas for the
transportation of crude petroleum to or for the public for hire and the
pipeline is constructed or maintained on, over, or under a public road or
highway, or is an entity in favor of whom the right of eminent domain
exists;
(3) owns, operates, or
manages a pipeline or any part of a pipeline in the State of Texas for the
transportation of crude petroleum to or for the public for hire which is or
may be constructed, operated, or maintained across, on, along, over, or
under the right-of-way of a railroad, corporation, or other common carrier
required by law to transport crude petroleum as a common carrier;
(4) under lease, contract of
purchase, agreement to buy or sell, or other agreement or arrangement of
any kind, owns, operates, manages, or participates in ownership, operation,
or management of a pipeline or part of a pipeline in the State of Texas for
the transportation of crude petroleum, bought of others, from an oil field
or place of production within this state to any distributing, refining, or
marketing center or reshipping point within this state;
(5) owns, operates, or
manages, wholly or partially, pipelines for the transportation for hire of
coal in whatever form or of any mixture of substances including coal in
whatever form;
(6) owns, operates, or
manages, wholly or partially, pipelines for the transportation of carbon
dioxide or hydrogen in whatever form to or for the public for hire, but
only if such person files with the commission a written acceptance of the
provisions of this chapter expressly agreeing that, in consideration of the
rights acquired, it becomes a common carrier subject to the duties and
obligations conferred or imposed by this chapter; or
(7) owns, operates, or
manages a pipeline or any part of a pipeline in the State of Texas for the
transportation of feedstock for carbon gasification, the products of carbon
gasification, or the derivative products of carbon gasification, in
whatever form, to or for the public for hire, but only if the person files
with the commission a written acceptance of the provisions of this chapter
expressly agreeing that, in consideration of the rights acquired, it
becomes a common carrier subject to the duties and obligations conferred or
imposed by this chapter.
(b) A pipeline owner,
operator, or manager is not a common carrier subject to the provisions of
this chapter unless at least 10 percent
of the pipeline's capacity is used or is reasonably likely to be used to
transport one or more substances for one or more persons who are not:
(1) corporate parents of
the owner, operator, or manager;
(2) subsidiaries of the
owner, operator, or manager; or
(3) under common control
with the owner, operator, or manager.
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SECTION 1. Section 111.002,
Natural Resources Code, is amended to read as follows:
Sec. 111.002. COMMON
CARRIERS UNDER CHAPTER. (a) Except as provided by Subsection (b), a
[A] person is a common carrier subject to the provisions of this
chapter if it:
(1) owns, operates, or
manages a pipeline or any part of a pipeline in the State of Texas for the
transportation of crude petroleum to or for the public for hire, or engages
in the business of transporting crude petroleum by pipeline;
(2) owns, operates, or
manages a pipeline or any part of a pipeline in the State of Texas for the
transportation of crude petroleum to or for the public for hire and the
pipeline is constructed or maintained on, over, or under a public road or
highway, or is an entity in favor of whom the right of eminent domain
exists;
(3) owns, operates, or
manages a pipeline or any part of a pipeline in the State of Texas for the
transportation of crude petroleum to or for the public for hire which is or
may be constructed, operated, or maintained across, on, along, over, or
under the right-of-way of a railroad, corporation, or other common carrier
required by law to transport crude petroleum as a common carrier;
(4) under lease, contract of
purchase, agreement to buy or sell, or other agreement or arrangement of
any kind, owns, operates, manages, or participates in ownership, operation,
or management of a pipeline or part of a pipeline in the State of Texas for
the transportation of crude petroleum, bought of others, from an oil field
or place of production within this state to any distributing, refining, or
marketing center or reshipping point within this state;
(5) owns, operates, or
manages, wholly or partially, pipelines for the transportation for hire of
coal in whatever form or of any mixture of substances including coal in
whatever form;
(6) owns, operates, or
manages, wholly or partially, pipelines for the transportation of carbon
dioxide or hydrogen in whatever form to or for the public for hire, but
only if such person files with the commission a written acceptance of the
provisions of this chapter expressly agreeing that, in consideration of the
rights acquired, it becomes a common carrier subject to the duties and
obligations conferred or imposed by this chapter; or
(7) owns, operates, or
manages a pipeline or any part of a pipeline in the State of Texas for the
transportation of feedstock for carbon gasification, the products of carbon
gasification, or the derivative products of carbon gasification, in
whatever form, to or for the public for hire, but only if the person files
with the commission a written acceptance of the provisions of this chapter
expressly agreeing that, in consideration of the rights acquired, it
becomes a common carrier subject to the duties and obligations conferred or
imposed by this chapter.
(b) A pipeline owner,
operator, or manager is not a common carrier subject to the provisions of
this chapter unless at least 33 percent
of the pipeline's capacity is used or is reasonably likely to be used to
transport one or more substances for one or more persons who are not:
(1) corporate parents of
the owner, operator, or manager;
(2) subsidiaries of the
owner, operator, or manager; or
(3) under common control
with the owner, operator, or manager.
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SECTION 2. Chapter 111,
Natural Resources Code, is amended by adding Subchapter B-1 to read as
follows:
SUBCHAPTER B-1. COMMON
CARRIER DETERMINATION HEARINGS
Sec. 111.041. COMMON CARRIER
DETERMINATION. (a) A person who owns, operates, or manages a pipeline may
not exercise the power of eminent domain granted by Section 111.019 to
construct a pipeline unless the State Office of Administrative Hearings
determines that the person is a common carrier as defined by Section
111.002 following one or more hearings conducted under this subchapter.
(b) A person who owns,
operates, or manages a pipeline may submit a request to the commission for
a determination of whether the person is a common carrier.
Sec. 111.042. DUTIES OF
COMMISSION. (a) The commission shall:
(1) review a request
submitted under Section 111.041 for administrative completeness; and
(2) forward a complete
request submitted under Section 111.041 to the State Office of
Administrative Hearings.
(b) The commission shall
charge a person who submits a complete request under Section 111.041 a fee
for making a common carrier determination.
(c) The commission by
rule shall establish the amount of the fee to be charged under this
section. The commission may establish a fee schedule listing different
amounts the commission may charge for making a common carrier determination
according to the location and length of the pipeline at issue.
(d) The fee must be in an
amount that covers the costs incurred by the commission and the State
Office of Administrative Hearings in determining whether the person is a
common carrier. The commission shall consult with the State Office of
Administrative Hearings to determine the costs that the commission and the
office will incur in making determinations under this subchapter.
(e) Money collected by
the commission under this section shall be deposited in the general revenue
fund to the credit of the commission.
Sec. 111.043. DUTIES OF
STATE OFFICE OF ADMINISTRATIVE HEARINGS. (PART)
(a) The State Office of
Administrative Hearings shall conduct a hearing on a request received by
the office from the commission under Section 111.042 to determine whether
the person who submitted the request is a common carrier as defined by
Section 111.002. A hearing conducted under this subsection is a contested
case hearing under Chapter 2001, Government Code.
(b) The State Office of
Administrative Hearings may not conduct a hearing on a request until the
person who submitted the request pays the fee required by Section 111.042.
(c) Before issuing a
final decision on a request, the State Office of Administrative Hearings
shall hold at least one public hearing on the request in a county in which
the pipeline is or will be located. The office shall determine whether a
public hearing in more than one county is necessary based on the location
and length of the proposed pipeline.
No
equivalent provision.
Sec. 111.043. (PART)
(d) As soon as practicable after the hearing or
hearings on a request are concluded, the State Office of Administrative
Hearings shall issue a final determination as to whether the person who
submitted the request is a common carrier as defined by Section 111.002.
Sec. 111.044. INTERAGENCY
CONTRACT. The commission and the State Office of Administrative Hearings
shall enter into an interagency contract to pay the costs incurred by the
office in implementing this section.
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SECTION 2. Chapter 111,
Natural Resources Code, is amended by adding Subchapter B-1 to read as
follows:
SUBCHAPTER B-1. COMMON
CARRIER DETERMINATION HEARINGS
Sec. 111.041. COMMON
CARRIER DETERMINATION. (a) A person who owns, operates, or manages a
pipeline may not exercise the power of eminent domain granted by Section
111.019 to construct a pipeline unless the State Office of Administrative
Hearings determines that the person is a common carrier as defined by
Section 111.002 following one or more hearings conducted under this
subchapter.
(b) A person who owns,
operates, or manages a pipeline may submit a request to the commission for
a determination of whether the person is a common carrier.
(c) If a person who has been determined to be a common carrier as
defined by Section 111.002 with regard to a pipeline transfers the permit
to operate the pipeline to another person, the person to whom the permit is
transferred may not own, operate, or manage the pipeline as a common
carrier as defined by that section unless the person is determined to be a
common carrier as defined by that section.
Sec. 111.042. DUTIES AND
POWERS OF COMMISSION. (a) The commission shall, not later than the fifth day after the date the commission receives
a request submitted under Section 111.041:
(1) review the request
for administrative completeness; and
(2) if the request is
complete, forward the request to the State Office of Administrative
Hearings.
(b) The commission shall
charge a person who submits a complete request under Section 111.041 a fee
for making a common carrier determination.
(c) The commission by
rule shall establish the amount of the fee to be charged under this
section. The commission may establish a fee schedule listing different
amounts the commission may charge for making a common carrier determination
according to the location and length of the pipeline at issue.
(d) The fee must be in an
amount that covers the costs incurred by the commission and the State
Office of Administrative Hearings in determining whether the person is a
common carrier. The commission shall consult with the State Office of
Administrative Hearings to determine the costs that the commission and the
office will incur in making determinations under this subchapter.
(e) Money collected by
the commission under this section shall be deposited in the general revenue
fund to the credit of the commission.
(f) The commission by rule may require that a person who submits a
request demonstrate to the commission or the State Office of Administrative
Hearings that the person has substantially complied with the notice
requirements of Section 111.044.
Sec. 111.043. DUTIES OF
STATE OFFICE OF ADMINISTRATIVE HEARINGS. (a)
Not later than the 10th day after the date the State Office of
Administrative Hearings receives a request from the commission under
Section 111.042, the office shall provide to the person who submitted the
request notice that the office has received the request and shall include
with the notice a proposed location, date, and time for a hearing or
hearings on the request. The proposed hearing date or dates must be not
earlier than the 15th day and not later than the 50th day after the date
the office sends the notice.
(b) The State Office of
Administrative Hearings shall conduct a hearing on the request to determine
whether the person who submitted the request is a common carrier as defined
by Section 111.002. A hearing conducted under this subsection is a
contested case hearing under Chapter 2001, Government Code.
(c) The State Office of
Administrative Hearings may not conduct a hearing on a request until the
person who submitted the request pays the fee required by Section 111.042.
(d) Before issuing a
final decision on a request, the State Office of Administrative Hearings
shall hold at least one public hearing on the request in a county in which
the pipeline is or will be located. The office shall determine whether a
public hearing in more than one county is necessary based on the location
and length of the proposed pipeline.
Sec. 111.044. NOTICE.
(a) After the State Office of Administrative Hearings provides notice
under Section 111.043, the person who submitted the request shall:
(1) publish notice of the
request for two consecutive weeks before the date of the first hearing in a
newspaper of general circulation in each county in which a portion of the
pipeline may be located; and
(2) in a manner that
provides a reasonable amount of time for receipt of the notice before the
date of the first hearing, mail or deliver notice of the request to:
(A) each owner of
property over which an easement or other property interest may be required
for the pipeline; and
(B) each owner of a house
or other habitable structure located within 300 feet of the centerline of
the route of the pipeline.
(b) The notice of the
request must include:
(1) a statement that the
person has filed a request for a determination that could provide eminent
domain authority for a pipeline and that the determination may affect
property located on or near the route of the pipeline;
(2) the proposed
location, date, and time of each hearing that the State Office of
Administrative Hearings will hold on the request;
(3) a statement that the
purpose of each hearing is to determine whether the person who submitted
the request is a common carrier, as defined by the laws of this state, and
not to determine the route of the pipeline; and
(4) a statement that a
person may attend each hearing and offer testimony on whether the person
who submitted the request is a common carrier as defined by the laws of
this state.
Sec. 111.045. DECISION;
JUDICIAL REVIEW. (a) Not later than the
15th day after the date the hearing or hearings on a request are
concluded, the State Office of Administrative Hearings shall issue a final decision
as to whether the person who submitted the request is a common carrier as
defined by Section 111.002.
(b) A final decision of the State Office of Administrative Hearings
under this section is subject to judicial review under Chapter 2001,
Government Code. The appeal is limited to a determination of whether there
is a reasonable probability that the person who submitted the request under
Section 111.041 that is the subject of the decision is a common carrier as
defined by Section 111.002 and may not include a review of the requestor's
compliance with the procedural requirements of this subchapter.
Sec. 111.046. INTERAGENCY
CONTRACT. The commission and the State Office of Administrative Hearings
shall enter into an interagency contract to pay the costs incurred by the
office in implementing this subchapter.
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