PDH S.B. 1070 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1070
By: Bivins
Energy Resources
4-19-1999
Engrossed



BACKGROUND AND PURPOSE 

Under current law, the Railroad Commission of Texas (commission) may seal
an oil or gas well after proper notice from the commission to the operator
of the well that a violation of conservation laws, rules, permits, or
orders of the commission has occurred.  Until the commission issues a new
certificate of compliance for a well, the owner of the well is prohibited
from producing or transporting oil or gas.  The commission, however, does
not have the authority to impose an administrative penalty on a person who
violates those rules.  S.B. 1070 authorizes the commission to impose an
administrative penalty on a person who breaks or tampers with a seal on a
well or who produces or transports oil or gas from a sealed well.      

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter K, Chapter 85, Natural Resources Code, by
adding Section 85.3855, as follows: 

Sec. 85.3855.  ADMINISTRATIVE PENALTY.  (a)  Authorizes the Railroad
Commission of Texas (commission) to impose an administrative penalty on a
person who violates Section 85.165 (Effect of Cancellation on Operator of
Pipeline or Other Carrier) or Section 85.155 (Effect of Cancellation on
Owner or Operator of Well) or a rule or order adopted under those sections.
Authorizes the commission to impose a penalty on a person who knowingly
destroys, breaks, removes, or otherwise tampers with, or attempts to
destroy, break, remove, or otherwise tamper with a cap, seal, or other
device placed by the commission on an oil well, gas well, oil and gas well,
or other associated oil or gas gathering equipment.     

(b)  Prohibits the amount of the penalty from exceeding $10,000 for each
violation. Requires the amount to be based on the seriousness of the
violation, the economic harm to property or the environment caused by the
violation, the history of previous violations, efforts to correct the
violation, and any other matter that justice may require.   

(c)  Authorizes the enforcement of the penalty to be stayed during the time
the order is under judicial review if the person pays the penalty to the
clerk of the court or files a supersedeas bond with the court in the amount
of the penalty.  Authorizes a person who cannot afford to pay the penalty
to stay the enforcement by filing an affidavit in the manner required by
the Texas Rules of Civil Procedure, subject to the right of the commission
to contest the affidavit as provided by those rules.   

(d)  Authorizes the attorney general to sue to collect the penalty.

(e)  Establishes that a proceeding to impose the penalty is considered to
be a contested case under Chapter 2001, Government Code (Administrative
Procedure).   

(f)  Specifies that an administrative penalty imposed under this section is
in addition to a  forfeiture provided by law or a penalty imposed by the
commission for contempt for violation of a commission rule or order.   

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Makes application of this Act prospective.  Provides that, for
purposes of this section, a violation occurs before the effective date of
this Act if any element of the violation occurs before that date.   

SECTION 4.  Emergency clause.