UTILITIES CODE
SUBTITLE B. REGULATION OF TRANSPORTATION AND USE
CHAPTER 121. GAS PIPELINES
SUBCHAPTER A. GAS UTILITY DEFINED
§ 121.001. DEFINITION OF GAS UTILITY. (a) In this
chapter, "gas utility" means a person who owns, manages, operates,
leases, or controls in this state property or equipment or a
pipeline, plant, facility, franchise, license, or permit for a
business that:
(1) transports, conveys, distributes, or delivers
natural gas:
(A) for public use or service for compensation;
(B) for sale to municipalities or persons engaged
in distributing or selling natural gas to the public, in a situation
described by Subdivision (3);
(C) for sale or delivery to a person operating
under a franchise or contract with a political subdivision of this
state; or
(D) for sale or delivery to the public for
domestic or other use;
(2) owns, operates, or manages a pipeline:
(A) that is for transporting or carrying natural
gas, whether for public hire or not; and
(B) for which the right-of-way has been or is
hereafter acquired by exercising the right of eminent domain; or
(3) produces or purchases natural gas and transports
or causes the transportation of natural gas by a pipeline to or near
the limits of a municipality in which the gas is received and
distributed or sold to the public by another gas utility or by the
municipality in a situation in which the business is the only or
practically the only agency of supply of natural gas to the gas
utility or municipality.
(b) In this subchapter, "person" means an individual,
company, limited liability company, or private corporation and
includes a lessee, trustee, or receiver of an individual, company,
limited liability company, or private corporation.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 11, § 2, eff. May 3, 1999.
§ 121.002. AFFILIATE OF GAS UTILITY EXCLUDED. A person
is not a gas utility solely because the person is an affiliate of a
gas utility.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.003. AGRICULTURAL SERVICE EXCLUDED. (a) The act
or acts of transporting, delivering, selling, or otherwise making
available natural gas for fuel, either directly or indirectly, to
an owner of an irrigation well, or the sale, transportation, or
delivery of natural gas for any other direct use in an agricultural
activity, does not make a person a gas utility or make the person
subject to the jurisdiction, control, and regulation of the
railroad commission as a gas utility.
(b) In order for a person furnishing natural gas to qualify
for the exemption under Subsection (a), the person to whom the gas
was furnished under Subsection (a) shall use the gas exclusively to
pump water for farm and other agricultural purposes.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.004. TRANSPORTATION OF GAS SOLELY FOR INTERSTATE
COMMERCE EXCLUDED. Except as provided by Section 121.001(a)(2), a
person is not a gas utility if the person certifies to the railroad
commission that the person transports natural or synthetic gas, for
sale, for hire, or otherwise, solely in, or in the vicinity of, the
field or fields where the gas is produced, to another person for
transportation or sale in interstate commerce.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.005. TRANSPORTATION OF GAS IN VICINITY OF PLACE OF
PRODUCTION EXCLUDED. (a) Except as provided by Section
121.001(a)(2), a person is not a gas utility if the person certifies
to the railroad commission that the person transports natural or
synthetic gas, for sale, for hire, or otherwise, solely:
(1) in, or in the vicinity of, the field or fields
where the gas is produced to a gas processing plant or treating
facility;
(2) from the outlet of a gas processing plant or
treating facility described by Subdivision (1) to a person:
(A) at, or in the vicinity of, the plant or
treating facility; or
(B) described by Subdivision (3) or Section
121.004; or
(3) to another person in, or in the vicinity of, the
field or fields where the gas is produced for transportation or sale
in intrastate commerce.
(b) A person is not a gas utility because the person
delivers or sells gas:
(1) for lease use, compressor fuel, processing plant
fuel, or a similar use;
(2) under a lease or right-of-way agreement;
(3) in, or in the vicinity of, the field where the gas
is produced; or
(4) at a processing plant outlet.
(c) Subsection (b) does not exclude as a gas utility a
pipeline that:
(1) transmits or distributes to end users of gas,
other than:
(A) those described by Subsection (b); or
(B) a person who qualifies for the exemption
provided by Section 121.003; or
(2) makes city-gate deliveries for local
distribution.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.006. VEHICLE FUEL EXCLUDED. A person is not a gas
utility to the extent that the person:
(1) sells natural gas for use as vehicle fuel;
(2) sells natural gas to a person who later sells the
natural gas for use as vehicle fuel; or
(3) owns or operates equipment or facilities to sell
or transport the natural gas for ultimate use as vehicle fuel.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER B. PUBLIC POLICY
§ 121.051. GAS UTILITY: PUBLIC INTEREST AND
JURISDICTION OF RAILROAD COMMISSION. (a) A gas utility,
including a business described by Section 121.001(a)(3), is
affected with a public interest.
(b) A business described by Section 121.001(a)(3) is a
virtual monopoly.
(c) A business described by Section 121.001(a)(3) and the
property of the business used in this state is subject to the
jurisdiction, control, and regulation of the railroad commission as
provided by this chapter.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.052. PIPELINES: MONOPOLIES SUBJECT TO RAILROAD
COMMISSION. (a) The operation of a pipeline for buying, selling,
transporting, producing, or otherwise dealing in natural gas is a
business which in its nature and according to the established
method of conducting the business is a monopoly.
(b) A business described by this section may not be
conducted unless the gas pipeline used in connection with the
business is subject to the jurisdiction conferred by this chapter
on the railroad commission.
(c) The attorney general shall enforce this section by
injunction or other remedy.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER C. DUTIES OF GAS UTILITIES AND PIPELINES
§ 121.101. MAINTENANCE OF OFFICE AND RECORDS IN THIS
STATE. (a) A gas utility shall maintain an office in this state
in a county in which some part of the gas utility's property is
located. The gas utility shall keep in this office all books,
accounts, papers, records, vouchers, and receipts that the railroad
commission requires.
(b) A book, account, paper, record, receipt, voucher, or
other item of information required by the railroad commission to be
kept in this state may not be removed from this state except as
prescribed by the railroad commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.102. OPERATOR'S REPORT. The railroad commission
may require a person or corporation that owns, controls, or
operates a pipeline subject to this chapter to make to the
commission a sworn report of any matter relating to the business of
the person or corporation that the commission determines to be
pertinent, including:
(1) the total quantity of gas distributed by the
pipelines;
(2) the total quantity of gas held in storage;
(3) the source of supply of gas;
(4) the number of wells from which the person or
corporation draws its supply;
(5) the amount of pipeline pressure maintained; and
(6) the amount and character and description of the
equipment used.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.103. DUTY TO SERVE CERTAIN USERS
EXTINGUISHED. (a) A gas utility that provides gas to a customer
does not have an obligation to serve the customer or to maintain the
gas supply or physical capacity to serve the customer if the
customer:
(1) is a transportation, industrial, commercial, or
other similar large-volume contract customer;
(2) is an end-use customer of the gas utility;
(3) reduces or ceases the purchase of natural gas or
natural gas service from the gas utility; and
(4) purchases natural gas or natural gas service from
another supplier or purchases an alternate form of energy.
(b) Subsection (a) does not apply to the extent that:
(1) the customer continues to purchase natural gas or
natural gas service of any class from the gas utility; or
(2) the gas utility has a written contract to provide
natural gas or natural gas service of any class to the customer.
(c) This section does not prevent the railroad commission
from requiring a gas utility to comply with an order of the railroad
commission in apportioning gas under a curtailment plan and order.
(d) Notwithstanding Subsection (a), a gas utility that has
provided gas to a commercial customer is obligated to serve that
customer if the gas utility has a sufficient gas supply and physical
capacity to do so without reducing service to its other customers.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 2001, 77th Leg., ch. 1233, § 69, eff. Sept. 1, 2001.
§ 121.104. DISCRIMINATION IN SERVICE AND CHARGES
PROHIBITED. (a) A pipeline gas utility may not:
(1) discriminate in favor of or against any person or
place in:
(A) apportioning the supply of natural gas; or
(B) charging for natural gas; or
(2) directly or indirectly charge, demand, collect, or
receive from anyone a greater or lesser compensation for a service
provided than the compensation charged, demanded, or received from
another for a similar and contemporaneous service.
(b) This section does not limit the right of the railroad
commission to prescribe:
(1) different rates and rules for the use of natural
gas for manufacturing and similar purposes; or
(2) rates and rules for service from or to other or
different places.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER D. REGULATION BY RAILROAD COMMISSION
§ 121.151. RAILROAD COMMISSION REGULATION OF GAS
PIPELINES. The railroad commission shall:
(1) establish and enforce the adequate and reasonable
price of gas and fair and reasonable rates of charges and rules for
transporting, producing, distributing, buying, selling, and
delivering gas by pipelines subject to this chapter in this state;
(2) establish fair and equitable rules for the full
control and supervision of the pipelines subject to this chapter
and all their holdings pertaining to the gas business in all their
relations to the public, as the railroad commission determines to
be proper;
(3) establish a fair and equitable division of the
proceeds of the sale of gas between the companies transporting or
producing the gas and the companies distributing or selling it;
(4) prescribe and enforce rules for the government and
control of pipelines subject to this chapter in respect to their
pipelines and producing, receiving, transporting, and distributing
facilities;
(5) regulate and apportion the supply of gas between
municipalities and between municipalities and corporations; and
(6) prescribe fair and reasonable rules requiring
pipelines subject to this chapter to augment their supply of gas,
when:
(A) the supply of gas controlled by any gas
pipeline is inadequate; and
(B) the railroad commission determines that
augmentation is practicable.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.152. INITIATION OF REGULATORY PROCEEDING. The
railroad commission shall exercise power under Section 121.151:
(1) on:
(A) its own motion;
(B) the petition of a person or county
commissioner's precinct showing a substantial interest in the
subject;
(C) the petition of the attorney general; or
(D) the petition of a district or county attorney
of a county in which any portion of a business subject to this
chapter is conducted; and
(2) after notice has been given.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.153. RAILROAD COMMISSION REVIEW OF GAS PIPELINE
ORDERS AND AGREEMENTS. The railroad commission, after notice to a
person or corporation owning, controlling, or operating a pipeline
subject to this chapter and after a hearing, may review, revise, and
regulate an order or agreement that is made by the person or
corporation and establishes a price, rate, rule, regulation, or
condition of service.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.154. REFUND OF EXCESS CHARGES. (a) On a
complaint against a person or corporation owning or operating a
pipeline business subject to this chapter filed by any person
authorized by Section 121.152 to file a petition and complaint and
sustained in whole or in part by the railroad commission, each
customer of the pipeline is entitled to reparation for or
reimbursement of a rate or charge made or adopted by the pipeline
for a purpose relating to the operation of that business, including
a rate or charge for gas, service, or meter rental, or in the event
of an inadequate supply of gas or inadequate service in any respect.
(b) The amount recoverable under Subsection (a) is the
amount paid after the filing of the complaint in excess of the
proper rate or charge of the pipeline as finally determined by the
railroad commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.155. RATE REDUCTION OR DETERMINATION BY
MUNICIPALITY AND APPEAL. A gas utility the rates of which have
been reduced by a municipality may appeal the municipal order,
decision, regulation, or ordinance to the railroad commission. The
appeal is initiated by filing with the railroad commission in the
manner and on the conditions that the railroad commission may
direct a petition for review and a bond. The appeal is de novo. The
railroad commission shall set a hearing and may make any order or
decision in relation to the matter appealed that the commission
considers just and reasonable. To change a rate, rental, or charge,
a gas utility that is a local distributing company or concern and
the rates of which have been established by a municipality must
submit an application to the municipality in which the utility is
located. The municipality shall make a determination on an
application not later than the 60th day after the date the
application is filed. If the municipality rejects the application
or fails or refuses to act on the application on or before the
deadline prescribed by this section, the gas utility may appeal to
the railroad commission as provided by this section. The railroad
commission shall make a determination on the appeal not later than
the 60th day after the date the appeal is filed unless the gas
utility agrees in writing to a longer period. The rates established
by the municipality remain in effect until changed by the railroad
commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.157. RAILROAD COMMISSION EMPLOYEES. (a) The
railroad commission may employ or appoint persons as necessary to:
(1) inspect and audit records or receipts,
disbursements, vouchers, prices, payrolls, time cards, and books;
(2) inspect the property and records of a gas utility
subject to this chapter; and
(3) perform other services as directed by, or under
the authority of, the railroad commission.
(b) The railroad commission shall set the amount of
compensation for persons employed by the railroad commission.
(c) The chief supervisor of the oil and gas division of the
railroad commission shall assist the railroad commission in the
performance of the railroad commission's duties under this chapter,
as directed by, and under the rules of, the railroad commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.158. PAYMENT FROM THE GENERAL REVENUE FUND. All
expenses, including witness fees and mileage, employee wages and
fees, and the salary and expenses of the chief supervisor of the oil
and gas division of the railroad commission incurred by or under
authority of the railroad commission or a railroad commissioner in
administering and enforcing, or exercising a power under, this
chapter shall be paid from the general revenue fund.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER E. PIPELINE SAFETY
§ 121.201. SAFETY RULES: RAILROAD COMMISSION
POWER. (a) The railroad commission by rule may:
(1) adopt safety standards for the transportation of
gas and for gas pipeline facilities;
(2) 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) require record maintenance and reports;
(4) inspect records and facilities to determine
compliance with adopted safety standards;
(5) make certifications and reports;
(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) take any other requisite action in accordance with
49 U.S.C. Section 60101 et seq., or a succeeding law.
(b) The power granted by Subsection (a) does not apply to
the transportation of gas or to gas facilities subject to the
exclusive control of the United States but applies to the
transportation of gas and gas pipeline facilities in this state to
the maximum degree permissible under 49 U.S.C. Section 60101 et
seq., or a succeeding law.
(c) A term that is used in this section and defined by
Chapter 601, Title 49, United States Code (49 U.S.C. Section 60101
et seq.), or a succeeding law has the meaning assigned by that
chapter or the succeeding law.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 62, § 18.12(a), eff. Sept. 1, 1999;
Acts 1999, 76th Leg., ch. 1272, § 1, eff. June 18, 1999.
§ 121.2015. REQUIRED SAFETY RULES. (a) The railroad
commission shall adopt rules regarding:
(1) public education and awareness relating to gas
pipeline facilities; and
(2) community liaison for responding to an emergency
relating to a gas pipeline facility.
(b) The railroad commission shall require operators or
their designated representatives to communicate and conduct
liaison activities with fire, police, and other appropriate public
emergency response officials. The liaison activities must be
conducted by meetings in person except as provided by this section.
An operator or the operator's representative may conduct required
community liaison activities as provided by Subsection (c) only if
the operator or the operator's representative has made an effort to
conduct a community liaison meeting in person with the officials by
one of the following methods:
(1) mailing a written request for a meeting in person
to the appropriate officials by certified mail, return receipt
requested;
(2) sending a request for a meeting in person to the
appropriate officials by facsimile transmission; or
(3) making one or more telephone calls or e-mail
message transmissions to the appropriate officials to request a
meeting in person.
(c) If the operator or operator's representative cannot
arrange a meeting in person after complying with Subsection (b),
the operator or the operator's representative shall make an effort
to conduct community liaison activities by means of a telephone
conference call with the officials by one of the following methods:
(1) mailing a written request for a telephone
conference to the appropriate officials by certified mail, return
receipt requested;
(2) sending a request for a telephone conference to
the appropriate officials by facsimile transmission; or
(3) making one or more telephone calls or e-mail
message transmissions to the appropriate officials to request a
telephone conference.
(d) If the operator or the operator's representative has
made the efforts required by Subsections (b) and (c) but has not
successfully arranged a meeting in person or a telephone
conference, the community liaison information required to be
conveyed may be delivered by mailing the information by certified
mail, return receipt requested.
Added by Acts 1999, 76th Leg., ch. 62, § 18.12(b), eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1233, § 70, eff.
Sept. 1, 2001.
§ 121.202. MUNICIPAL AND COUNTY AUTHORITY. (a) A
municipality or a county may not adopt or enforce an ordinance that
establishes a safety standard or practice applicable to a facility
that is regulated under this subchapter, another state law, or a
federal law.
(b) Except as provided by Subsection (a), this subchapter
does not reduce, limit, or impair:
(1) a power vested by law in:
(A) a county in relation to a county road; or
(B) a municipality; or
(2) the ability of a municipality to:
(A) adopt an ordinance that establishes
conditions for mapping, inventorying, installing, or relocating
pipelines over, under, along, or across a public street or alley or
private residential area in the boundaries of the municipality; or
(B) establish conditions for mapping or taking an
inventory in an area in a municipality's extraterritorial
jurisdiction.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.203. ENFORCEMENT: INJUNCTION. The attorney
general, on behalf of the railroad commission, is entitled to
injunctive relief to restrain a violation of a safety standard
adopted under this subchapter, including an injunction that
restrains the transportation of gas or the operation of a pipeline
facility.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.204. CIVIL PENALTY. Each day of each violation of
a safety standard adopted under this subchapter is subject to a
civil penalty of not more than $25,000, except that the maximum
penalty that may be assessed for any related series of violations
may not exceed $500,000. The penalty is payable to the state.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.205. SETTLEMENT BY ATTORNEY GENERAL. A civil
penalty under Section 121.204 may be compromised by the attorney
general who in determining a compromise shall consider:
(1) the appropriateness of the penalty in relation to
the size of the business of the person charged;
(2) the gravity of the violation; and
(3) the good faith of the person charged in attempting
to achieve compliance after notification of the violation.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.206. ADMINISTRATIVE PENALTY FOR VIOLATION OF
PIPELINE SAFETY STANDARD OR RULE. (a) The railroad commission
may assess an administrative penalty against a person who violates
Section 121.201 or Subchapter I or a safety standard or rule
relating to the transportation of gas and gas pipeline facilities
adopted under those provisions.
(b) The penalty for each violation may not exceed $10,000.
Each day a violation continues may be considered a separate
violation for the purpose of penalty assessment.
(c) In determining the amount of the penalty, the railroad
commission shall consider the guidelines adopted under Subsection
(d).
(d) The railroad commission by rule shall adopt guidelines
to be used in determining the amount of a penalty under this
subchapter. 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 person's history of previous violations of
Section 121.201 or a safety standard or rule relating to the
transportation of gas and gas pipeline facilities adopted under
that section, 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.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 62, § 18.13(b), eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 1233, § 71, eff. Sept. 1, 2001.
§ 121.207. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
ASSESSMENT PROCEDURE. (a) An administrative penalty may be
assessed only after a person charged under Section 121.206 has been
given an opportunity for a public hearing.
(b) If a public hearing is held, the railroad commission
shall make findings of fact and shall issue a written decision as to
the occurrence of the violation and the penalty amount warranted by
the violation, incorporating, if appropriate, an order requiring
that the penalty be paid.
(c) If appropriate, the railroad commission shall
consolidate the hearings with other proceedings under Section
121.206.
(d) If a person charged under Section 121.206 fails to take
advantage of the opportunity for a public hearing, an
administrative penalty may be assessed by the railroad commission
after it has determined:
(1) that a violation occurred; and
(2) the penalty amount warranted by the violation.
(e) After assessing an administrative penalty, the railroad
commission shall issue an order requiring the penalty to be paid.
(f) Not later than the 30th day after the date an order is
issued finding that a violation described under Section 121.206
occurred, the railroad commission shall inform the person found in
violation of the amount of the penalty.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.208. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
PAYMENT OF PENALTY. Not later than the 30th day after the date the
railroad commission's decision or order imposing an administrative
penalty becomes final as provided by Section 2001.144, Government
Code, the person charged with the violation shall:
(1) pay the penalty in full; or
(2) if the person seeks judicial review of either the
amount of the penalty or the fact of the violation, or both:
(A) pay the penalty to the railroad commission
for placement in an escrow account; or
(B) give to the railroad commission a supersedeas
bond in a form approved by the railroad commission for the amount of
the penalty that is effective until all judicial review of the order
or decision is final.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.209. PIPELINE SAFETY ADMINISTRATIVE PENALTY:
REFUND OF PAYMENT OR RELEASE OF BOND. If through judicial review
of a decision or order regarding an administrative penalty it is
determined that a violation did not occur or that the amount of the
penalty should be reduced or not assessed, the railroad commission
shall, not later than the 30th day after the date of that
determination:
(1) remit the appropriate amount to the person, with
accrued interest if the utility paid the penalty to the railroad
commission; or
(2) execute a release of the bond if the utility posted
a supersedeas bond.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.210. RECOVERY BY ATTORNEY GENERAL. An
administrative penalty owed under Sections 121.206-121.208 may be
recovered in a civil action brought by the attorney general at the
request of the railroad commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.211. PIPELINE SAFETY FEES. (a) The railroad
commission by rule may adopt an inspection fee to be assessed
annually against operators of natural gas distribution pipelines
and their pipeline facilities and natural gas master metered
pipelines and their pipeline facilities subject to this chapter.
(b) The railroad commission by rule shall establish the
method by which the fee will be calculated and assessed. In
adopting a fee structure, the railroad commission may consider any
factors necessary to provide for the equitable allocation among
operators of the costs of administering the railroad commission's
pipeline safety program under this chapter.
(c) The total amount of fees estimated to be collected under
rules adopted by the railroad commission under this section may not
exceed the amount estimated by the railroad commission to be
necessary to recover the costs of administering the railroad
commission's pipeline safety program under this chapter, excluding
costs that are fully funded by federal sources.
(d) The commission may assess each investor-owned and each
municipally owned natural gas distribution system subject to this
chapter an annual inspection fee not to exceed 50 cents for each
service line reported by the system on the Distribution Annual
Report, Form RSPA F7100.1-1, due on March 15 of each year. The fee
is due March 15 of each year.
(e) The commission may assess each operator of a natural gas
master metered system subject to this chapter an annual inspection
fee not to exceed $100 for each master metered system. The fee is
due June 30 of each year.
(f) The commission may assess a late payment penalty of 10
percent of the total assessment due under Subsection (d) or (e) that
is not paid within 30 days after the annual due date established by
the applicable subsection.
(g) Each investor-owned and municipally owned natural gas
distribution company and each natural gas master meter operator
shall recover as a surcharge to its existing rates the amounts paid
to the commission under this section. Amounts collected under this
subsection by an investor-owned natural gas distribution company
shall not be included in the revenue or gross receipts of the
company for the purpose of calculating municipal franchise fees or
any tax imposed under Subchapter B, Chapter 182, Tax Code, or under
Chapter 122. Those amounts are not subject to a sales and use tax
imposed by Chapter 151, Tax Code, or Chapters 321 through 327, Tax
Code.
(h) A fee collected under this section shall be deposited to
the credit of the general revenue fund to be used for the pipeline
safety program.
Added by Acts 2003, 78th Leg., ch. 200, § 12(a), eff. Sept. 1,
2003; Acts 2003, 78th Leg., ch. 520, § 1, eff. Sept. 1, 2003.
SUBCHAPTER F. GAS SAFETY
§ 121.251. RAILROAD COMMISSION TO INVESTIGATE USE OF GAS
MALODORANTS. The railroad commission shall investigate the use of
malodorants by a person, firm, or corporation in the business of:
(1) handling, storing, selling, or distributing
natural or liquefied petroleum gases, including butane and other
odorless gases, for private or commercial uses; or
(2) supplying these products to a public building or
the general public.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.252. REGULATION OF USE OF MALODORANTS. (a) The
railroad commission, by rule as necessary to carry out the purposes
of this section, may:
(1) require a person, firm, or corporation subject to
Section 121.251 to odorize the gas by using a malodorant agent that
indicates the presence of gas by a distinctive odor;
(2) regulate the method of the use of malodorants; and
(3) direct and approve the use of containers and other
equipment used in connection with malodorants.
(b) A required malodorant agent must be:
(1) nontoxic and noncorrosive; and
(2) not harmful to leather diaphragms in gas
equipment.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.253. INTERSTATE TRANSPORTATION OF GAS
EXCLUDED. This subchapter does not apply to gas transported out of
this state.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER G. ENFORCEMENT REMEDIES
§ 121.301. RECEIVERSHIP. (a) On application of the
railroad commission, a court having jurisdiction to appoint a
receiver may appoint a receiver to control and manage, under the
direction of the court, the property of a pipeline subject to this
chapter if the person or corporation owning, operating, or
controlling the pipeline violates this chapter or a rule of the
railroad commission.
(b) The railroad commission may apply for a receivership
only if the railroad commission determines that the public interest
requires a receivership.
(c) The grounds for the appointment of a receiver under this
section are in addition to any other ground provided by law.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.302. CIVIL PENALTY. (a) A gas utility is subject
to a civil penalty if the gas utility:
(1) violates this chapter;
(2) fails to perform a duty imposed by this chapter;
or
(3) fails to comply with an order of the railroad
commission if the order is not stayed or suspended by a court order.
A penalty under this section is payable to the state and shall be
not less than $100 and not more than $1,000 for each violation or
failure.
(b) Each violation and each day that the failure continues
is subject to a separate penalty.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.303. PENALTY RECOVERABLE BY VICTIM OF
DISCRIMINATION. (a) A penalty of not less than $100 and not more
than $1,000 for each violation is recoverable by any person against
whom discrimination prohibited by Section 121.104 is committed.
(b) A suit to collect a penalty under this section must be
brought in the name of and for the benefit of the person aggrieved.
(c) A person who recovers a penalty under this section is
also entitled to reasonable attorney's fees.
(d) The penalty under this section is in addition to a
penalty under Section 121.302.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.304. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
PENALTY. (a) The railroad commission may assess an
administrative penalty against a gas utility that violates this
chapter, fails to perform a duty imposed by this chapter, or fails
to comply with an order of the railroad commission issued under this
chapter and applicable to the gas utility if the violation:
(1) results in pollution of the air or water of this
state; or
(2) poses a threat to the public safety.
(b) The penalty for each violation or failure may not exceed
$10,000 a day. Each day a violation continues may be considered a
separate violation for purposes of penalty assessment.
(c) In determining the amount of the penalty, the railroad
commission shall consider:
(1) the gas utility's history of previous violations
of this chapter;
(2) the seriousness of the violation; and
(3) any hazard to the health or safety of the public.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.305. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
PENALTY: ASSESSMENT PROCEDURE. (a) An administrative penalty
may be assessed under Section 121.304 only after a gas utility
charged under Section 121.304 has been given an opportunity for a
public hearing.
(b) If a public hearing is held, the railroad commission
shall make findings of fact and shall issue a written decision as to
the occurrence of the violation and the penalty amount warranted by
the violation, incorporating, if appropriate, an order requiring
that the penalty be paid.
(c) If appropriate, the railroad commission shall
consolidate the hearings with other proceedings under Section
121.304.
(d) If a gas utility charged under Section 121.304 fails to
take advantage of the opportunity for a public hearing, an
administrative penalty may be assessed by the railroad commission
after it has determined:
(1) that a violation occurred; and
(2) the penalty amount warranted by the violation.
(e) After assessing an administrative penalty, the railroad
commission shall issue an order requiring the penalty to be paid.
(f) Not later than the 30th day after the date an order is
issued finding that a violation described under Section 121.304
occurred, the railroad commission shall inform the gas utility
found in violation of the amount of the penalty.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.306. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
PENALTY: PAYMENT OF PENALTY. (a) Not later than the 30th day
after the date the railroad commission's decision or order imposing
an administrative penalty becomes final as provided by Section
2001.144, Government Code, the gas utility charged with the
violation shall:
(1) pay the penalty in full; or
(2) if the gas utility seeks judicial review of either
the amount of the penalty or the fact of the violation, or both:
(A) pay the penalty to the railroad commission
for placement in an escrow account; or
(B) except as provided by Subsection (b), give to
the railroad commission a supersedeas bond, in the amount of the
penalty and in the form approved by the railroad commission, to stay
the collection of the penalty until all judicial review of the order
or decision is final.
(b) If the gas utility is appealing a second or subsequent
decision or order assessing an administrative penalty against the
gas utility, regardless of the finality of judicial review of any
previous decision or order, the railroad commission may, but is not
required to, accept a supersedeas bond.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.307. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
PENALTY: APPEALS. (a) The district courts of Travis County have
exclusive jurisdiction of the appeal of an order or decision of the
railroad commission assessing an administrative penalty under
Section 121.304.
(b) Subchapter G, Chapter 2001, Government Code, and the
substantial evidence rule apply to an appeal under this section.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.308. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
PENALTY: REFUND OF PAYMENT OR RELEASE OF BOND. If through
judicial review of a decision or order regarding an administrative
penalty it is determined that a violation did not occur or that the
amount of the penalty should be reduced or not assessed, the
railroad commission shall, not later than the 30th day after the
date of that determination:
(1) remit the appropriate amount to the gas utility
with accrued interest if the utility paid the penalty to the
railroad commission; or
(2) execute a release of the bond if the utility posted
a supersedeas bond.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.309. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE
PENALTY: RECOVERY. An administrative penalty owed under Sections
121.304-121.308 may be recovered in a civil action brought by the
attorney general at the request of the railroad commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.310. CRIMINAL PENALTY. (a) A person commits an
offense if:
(1) the person is an owner, officer, director, agent,
or employee of a person or corporation owning, operating, or
controlling a pipeline of a gas utility; and
(2) the person wilfully violates this chapter or
Chapter 122.
(b) An offense under this section is punishable by a fine of
not less than $50 and not more than $1,000. In addition to the fine,
the offense may be punishable by confinement in jail for not less
than 10 days nor more than six months.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER H. APPEALS
§ 121.401. APPEAL TO COURT. (a) A gas utility or other
party at interest may appeal to a court a decision of any rate,
classification, rule, charge, order, or act adopted by the railroad
commission by filing a petition against the railroad commission as
defendant and specifying each particular reason for objection.
(b) An action under this section is tried and determined as
are other civil causes in the court except as provided by Section
121.402.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.402. APPEAL: BURDEN AND STANDARD OF PROOF. In a
trial under this subchapter, the burden of proof is on the
plaintiff, who must show by clear and satisfactory evidence that
the rate, rule, order, classification, act, or charge that is the
subject of the complaint is unreasonable and unjust to the
plaintiff.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 121.403. APPEAL FROM TRIAL COURT. An appeal from an
action under Section 121.402:
(1) is at once returnable to the appellate court; and
(2) has precedence in the appellate court over each
other pending cause of a different character.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER I. SOUR GAS PIPELINE FACILITIES
§ 121.451. DEFINITIONS. In this subchapter:
(1) "Affected party" means the owner or occupant of
real property located in the radius of exposure, as computed in
accordance with a methodology approved by the railroad commission,
of the proposed route of a sour gas pipeline facility.
(2) "Construction" includes any activity conducted
during the initial construction of a pipeline, including the
removal of earth, vegetation, or obstructions along the proposed
pipeline right-of-way. The term does not include:
(A) surveying or acquiring the right-of-way; or
(B) clearing the right-of-way with the consent of
the owner.
(3) "Low-pressure gathering system" means a pipeline
that operates at a working pressure of less than 50 pounds per
square inch.
(4) "Sour gas pipeline facility" means a pipeline
facility that contains a concentration of 100 parts per million or
more of hydrogen sulfide.
Added by Acts 1999, 76th Leg., ch. 62, § 18.13(a), eff. Sept. 1,
1999.
§ 121.452. APPLICABILITY. This subchapter does not
apply to:
(1) an extension of an existing sour gas pipeline
facility that is in compliance with the railroad commission's rules
for oil, gas, or geothermal resource operation in a hydrogen
sulfide area if:
(A) the extension is not longer than five miles;
(B) the nominal pipe size is not larger than six
inches in diameter; and
(C) the railroad commission is given notice of
the construction of the extension not later than 24 hours before the
start of construction;
(2) a new or an extension of a low-pressure gathering
system; or
(3) an interstate gas pipeline facility, as defined by
49 U.S.C. Section 60101, that is used for the transportation of sour
gas.
Added by Acts 1999, 76th Leg., ch. 62, § 18.13(a), eff. Sept. 1,
1999.
§ 121.453. PERMIT APPLICATION. (a) A person may not
begin construction of a sour gas pipeline facility before the
person obtains from the railroad commission a permit to construct
the facility.
(b) An applicant for a permit to construct a sour gas
pipeline facility must:
(1) publish notice of the application in a form
determined by the railroad commission in a newspaper of general
circulation in each county that contains part of the proposed route
of the sour gas pipeline facility; and
(2) provide a copy of the application to the county
clerk of each county that contains part of the proposed route.
Added by Acts 1999, 76th Leg., ch. 62, § 18.13(a), eff. Sept. 1,
1999.
§ 121.454. RAILROAD COMMISSION APPROVAL OR
DENIAL. (a) The railroad commission by order may approve an
application for a permit to construct a sour gas pipeline facility
if the railroad commission finds that the materials to be used in
and method of construction and operation of the facility comply
with the rules and safety standards adopted by the railroad
commission.
(b) The railroad commission may issue an order under this
section without holding a hearing unless an affected party files a
written protest with the railroad commission not later than the
30th day after the date notice is published under Section 121.453.
If an affected party files a written protest, the railroad
commission shall:
(1) hold a hearing not later than the 60th day after
the date the protest is filed; and
(2) issue an order:
(A) approving the permit application; or
(B) denying the application and stating the
reasons for the denial.
Added by Acts 1999, 76th Leg., ch. 62, § 18.13(a), eff. Sept. 1,
1999.
SUBCHAPTER J. TESTING OF NATURAL GAS PIPING SYSTEMS IN SCHOOL
FACILITIES
§ 121.5005. APPLICABILITY. This subchapter applies to
a facility of a public elementary or secondary school, including a
charter school, or a private elementary or secondary school, but
does not apply to a home school.
Added by Acts 2001, 77th Leg., ch. 1233, § 73, eff. Sept. 1,
2001.
§ 121.501. DEFINITION. In this subchapter, "supplier"
means an individual or company that sells and delivers natural gas
to a school facility. If more than one individual or company sells
and delivers natural gas to a school facility, each individual or
company is a supplier for purposes of this subchapter.
Added by Acts 1999, 76th Leg., ch. 62, § 18.14(a), eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1233, § 74, eff.
Sept. 1, 2001.
§ 121.502. DUTY TO PRESSURE TEST. (a) A person
responsible for a school facility shall perform biennial pressure
tests on the natural gas piping system in the school facility. The
tests must be performed before the beginning of the school year.
(b) A person responsible for more than one school facility
may perform the tests on a two-year cycle under which the person
pressure tests the natural gas piping system in approximately
one-half of the facilities each year.
(c) If the person responsible for one or more school
facilities operates the facilities on a year-round calendar, the
pressure test in each of those facilities must be conducted and
reported not later than July 1 of the year in which the pressure
test is performed.
(d) A natural gas piping pressure test performed under a
municipal code satisfies the pressure testing requirements
prescribed by this section.
Added by Acts 1999, 76th Leg., ch. 62, § 18.14(a), eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1233, § 74, eff.
Sept. 1, 2001.
§ 121.503. REQUIREMENTS OF TEST. (a) The person
responsible for a school facility shall perform the pressure test
to determine whether the natural gas piping downstream of the
school facility's meter holds at least normal operating pressure
over a specified period determined by the railroad commission.
(b) During the pressure test, each system supply inlet and
outlet in the school facility must be closed.
(c) At the request of a person responsible for a school
facility, the railroad commission shall assist the person in
developing a procedure for conducting the test.
Added by Acts 1999, 76th Leg., ch. 62, § 18.14(a), eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1233, § 74, eff.
Sept. 1, 2001.
§ 121.504. NOTICE OF TEST. (a) A person responsible
for a school facility shall provide written notice to the school's
supplier specifying the date and result of each pressure test or
other inspection.
(b) The supplier shall maintain a copy of the notice until
at least the first anniversary of the date on which the supplier
received the notice.
Added by Acts 1999, 76th Leg., ch. 62, § 18.14(a), eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1233, § 74, eff.
Sept. 1, 2001.
§ 121.505. TERMINATION OF SERVICE. (a) A supplier
shall terminate service to a school facility if:
(1) the supplier receives official notification from
the firm or individual conducting the test of a hazardous natural
gas leakage in the facility piping system; or
(2) a test or other inspection at the facility is not
performed as required by this subchapter.
(b) A supplier is not liable for any damages that result
from a failure to terminate service as required by Subsection
(a)(2) for a facility other than a school district facility.
Added by Acts 1999, 76th Leg., ch. 62, § 18.14(a), eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1233, § 74, eff.
Sept. 1, 2001.
§ 121.506. REPORT OF LEAKAGE. An identified natural gas
leakage in a school district facility must be reported to the board
of trustees of the district in which the facility is located. An
identified natural gas leakage in another school facility must be
reported to the person responsible for the school facility.
Added by Acts 1999, 76th Leg., ch. 62, § 18.14(a), eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1233, § 74, eff.
Sept. 1, 2001.
§ 121.507. ENFORCEMENT. The railroad commission shall
enforce this subchapter.
Added by Acts 1999, 76th Leg., ch. 62, § 18.14(a), eff. Sept. 1,
1999.
