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A BILL TO BE ENTITLED
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AN ACT
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relating to the inspection, purchase, sale, possession, storage, |
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transportation, and disposal of petroleum products, oil and gas |
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equipment, and oil and gas waste; creating criminal offenses and |
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increasing the punishment for an existing criminal offense. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Article 47.07, Code of Criminal Procedure, is |
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amended to read as follows: |
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Art. 47.07. OWNER MAY RECOVER. The real owner of the |
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property sold under [the provisions of] Article 47.06 or 47.13 may |
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recover the proceeds from the sale of the [such] property under the |
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same terms as prescribed in Subsection (e) of Article 18.17 [of this |
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Code]. |
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SECTION 2. Chapter 47, Code of Criminal Procedure, is |
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amended by adding Article 47.13 to read as follows: |
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Art. 47.13. PETROLEUM PRODUCT. (a) In this article, |
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"petroleum product" means crude oil or condensate. |
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(b) Notwithstanding any other provision of this chapter, an |
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officer who takes custody of a petroleum product alleged to have |
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been stolen shall immediately arrange for the total amount of the |
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petroleum product to be sold at a price that is equal to: |
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(1) in the case of crude oil, the price of the same |
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quantity of West Texas Intermediate crude oil, as calculated based |
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on that crude oil's closing price recorded on the New York |
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Mercantile Exchange (NYMEX) on the date preceding the date of sale; |
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or |
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(2) in the case of condensate, the price of the same |
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quantity of natural gas liquids as calculated based on the U.S. |
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natural gas liquid composite price recorded on the New York |
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Mercantile Exchange (NYMEX) on the date preceding the date of sale. |
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(c) The proceeds of the sale may be deposited in the manner |
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prescribed by Article 18.183 for seized money and disposed of in |
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accordance with this chapter and Chapter 18. |
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(d) A law enforcement agency may contract with a private |
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entity to sell a petroleum product in accordance with this article. |
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SECTION 3. Subchapter A, Chapter 411, Government Code, is |
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amended by adding Section 411.0185 to read as follows: |
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Sec. 411.0185. AUTHORIZED INSPECTION OF CARGO TANKS |
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CONTAINING CERTAIN PETROLEUM PRODUCTS. (a) In this section: |
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(1) "Cargo tank" has the meaning assigned by Section |
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162.001, Tax Code. |
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(2) "Crime laboratory" and "forensic analysis" have |
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the meanings assigned by Article 38.35, Code of Criminal Procedure. |
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(3) "Petroleum product" means crude oil or condensate. |
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(b) A commissioned officer of the department who receives |
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training described by Subsection (c) may conduct a comprehensive |
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inspection of any cargo tank used or suspected of being used to |
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transport a petroleum product on a public road or railroad in this |
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state. An officer who conducts an inspection under this subsection |
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may obtain a sample of the petroleum product or suspected petroleum |
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product being transported in the cargo tank and submit the sample to |
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a crime laboratory for forensic analysis. |
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(c) The commission by rule shall develop a training program |
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for commissioned officers to perform comprehensive inspections |
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described by Subsection (b). The training program must include |
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instruction regarding the proper method for an officer to safely |
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obtain a sample of a petroleum product from a cargo tank. |
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(d) The department may accept gifts and grants from any |
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source to fund forensic analyses of petroleum products under this |
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section. |
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SECTION 4. Section 31.19, Penal Code, is amended to read as |
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follows: |
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Sec. 31.19. THEFT OF PETROLEUM PRODUCT OR OIL AND GAS |
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EQUIPMENT. (a) In this section: |
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(1) "Oil and gas equipment" means machinery, drilling |
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equipment, welding equipment, pipeline equipment, fittings, pumps, |
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vehicles, or other equipment and materials that are part of or |
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incident to the exploration, development, maintenance, and |
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operation of oil and gas properties, including oil and gas wells, |
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oil and gas leases, gasoline plants, and refineries. |
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(2) "Petroleum [, "petroleum] product" means crude |
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oil, natural gas, or condensate. |
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(b) A person commits an offense if the person: |
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(1) unlawfully appropriates a petroleum product with |
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intent to deprive the owner of the petroleum product by: |
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(A) [(1)] possessing, removing, delivering, |
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receiving, purchasing, selling, moving, concealing, or |
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transporting the petroleum product; or |
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(B) [(2)] making or causing a connection to be |
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made with, or drilling or tapping or causing a hole to be drilled or |
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tapped in, a pipe, pipeline, or tank used to store or transport a |
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petroleum product; |
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(2) transports to a waste disposal location a |
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petroleum product for which the person cannot identify the |
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petroleum product's initial owner; |
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(3) purchases a petroleum product from a person that |
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is not authorized by the Railroad Commission of Texas to sell the |
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petroleum product; or |
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(4) stores, purchases, or trades a petroleum product |
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for financial benefit by means of a method that is not authorized by |
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the Railroad Commission of Texas. |
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(b-1) A person commits an offense if the person unlawfully |
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appropriates oil and gas equipment with intent to deprive the owner |
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of the oil and gas equipment by possessing, removing, delivering, |
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receiving, purchasing, selling, moving, concealing, or |
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transporting the oil and gas equipment. |
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(c) Appropriation of a petroleum product or oil and gas |
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equipment is unlawful if it is without the owner's effective |
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consent. |
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(d) An offense under Subsection (b) [this section] is: |
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(1) a [state jail] felony of the third degree if the |
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total value of the petroleum product appropriated is less than |
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$10,000; |
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(2) a felony of the second [third] degree if the total |
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value of the petroleum product appropriated is $10,000 or more but |
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less than $100,000; or |
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(3) a felony of the first [second] degree if the total |
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value of the petroleum product appropriated is $100,000 or more |
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[but less than $300,000; or |
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[(4) a felony of the first degree if the total value of |
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the petroleum product appropriated is $300,000 or more]. |
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(e) An offense under Subsection (b-1) is: |
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(1) a felony of the third degree if the total value of |
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the oil and gas equipment appropriated is less than $10,000; |
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(2) a felony of the second degree if the total value of |
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the oil and gas equipment appropriated is $10,000 or more but less |
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than $100,000; or |
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(3) a felony of the first degree if the total value of |
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the oil and gas equipment appropriated is $100,000 or more. |
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(f) If conduct that constitutes an offense under this |
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section also constitutes an offense under any other law, the actor |
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may be prosecuted under this section or the other law, but not both. |
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SECTION 5. Section 27.031, Water Code, is amended to read as |
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follows: |
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Sec. 27.031. PERMIT FROM RAILROAD COMMISSION; CRIMINAL |
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PENALTY. (a) A [No] person commits an offense if the person |
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continues [may continue] using a disposal well or begins [begin] |
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drilling a disposal well or converting an existing well into a |
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disposal well to dispose of oil and gas waste without first |
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obtaining a permit from the railroad commission. |
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(b) An offense under this section is: |
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(1) a felony of the third degree if no oil and gas |
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waste has been disposed of or the total value of the oil and gas |
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waste disposed of is less than $10,000; |
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(2) a felony of the second degree if the total value of |
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the oil and gas waste disposed of is $10,000 or more but less than |
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$100,000; or |
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(3) a felony of the first degree if the total value of |
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the oil and gas waste disposed of is $100,000 or more. |
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(c) If conduct that constitutes an offense under this |
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section also constitutes an offense under any other law, the actor |
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may be prosecuted under this section or the other law, but not both. |
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SECTION 6. Article 47.07, Code of Criminal Procedure, as |
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amended by this Act, and Article 47.13, Code of Criminal Procedure, |
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as added by this Act, apply only to property seized on or after the |
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effective date of this Act. Property seized before the effective |
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date of this Act is governed by the law in effect on the date the |
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property was seized, and the former law is continued in effect for |
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that purpose. For purposes of this section, property was seized |
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before the effective date of this Act if any portion of the property |
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was seized before that date. |
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SECTION 7. Not later than January 1, 2026, the Public Safety |
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Commission shall adopt rules to implement Section 411.0185, |
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Government Code, as added by this Act. |
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SECTION 8. Except as provided by Section 6 of this Act, the |
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changes in law made by this Act apply only to an offense committed |
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on or after the effective date of this Act. An offense committed |
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before the effective date of this Act is governed by the law in |
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effect on the date the offense was committed, and the former law is |
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continued in effect for that purpose. For purposes of this section, |
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an offense was committed before the effective date of this Act if |
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any element of the offense was committed before that date. |
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SECTION 9. This Act takes effect September 1, 2025. |