CHAPTER 81. RAILROAD COMMISSION OF TEXAS

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NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE A. ADMINISTRATION

CHAPTER 81. RAILROAD COMMISSION OF TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 81.001. DEFINITIONS. In this chapter:

(1) "Commission" means the Railroad Commission of Texas.

(2) "Commissioner" means any member of the Railroad Commission

of Texas.

Acts 1977, 65th Leg., p. 2508, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Text of section effective on April 01, 2011

Sec. 81.002. DEFINITION OF PERSON FOR CERTAIN PROVISIONS. In

this chapter:

(1) "person" includes a corporation, as provided by Section

312.011, Government Code; and

(2) the definition of "person" assigned by Section 311.005,

Government Code, does not apply.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.01, eff. April 1, 2011.

SUBCHAPTER B. ADMINISTRATIVE PROVISIONS

Text of section effective on April 01, 2011

Sec. 81.01001. SUNSET PROVISION. The Railroad Commission of

Texas is subject to Chapter 325, Government Code (Texas Sunset

Act). Unless continued in existence as provided by that chapter,

the commission is abolished September 1, 2011.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01002. CHAIRMAN. The commissioners shall elect one

commissioner as the chairman.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01003. QUALIFICATIONS FOR OFFICE. A commissioner must

be:

(1) a qualified voter under the constitution and laws; and

(2) at least 25 years of age.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01004. PERSONAL FINANCIAL DISCLOSURE, STANDARDS OF

CONDUCT, AND CONFLICT OF INTEREST. A commissioner is subject to

the provisions of Chapter 572, Government Code, that apply to

elected officers, including the requirements governing personal

financial statements, standards of conduct, and conflicts of

interest.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01005. NAME AND SEAL. (a) The commissioners are known

collectively as the "Railroad Commission of Texas."

(b) The seal of the commission contains a star of five points

with the words "Railroad Commission of Texas" engraved on it.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01006. PROCEDURAL RULES. The commissioners may adopt

all rules necessary for the commission's government and

proceedings.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01007. SUPPLIES. The commissioners shall be furnished

necessary furniture, stationery, supplies, and expenses, to be

paid for on the order of the governor.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01008. SESSIONS. The commission may hold sessions at

any place in this state when considered necessary.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01009. RECORDS RESEARCH FEE. The commission shall

charge a person who requests an examination or search of

commission records $5 for each half hour or fraction of a half

hour that a commission employee spends in the examination or

search unless the person requesting the search represents this

state or a county.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01010. FEE FOR COPIES. (a) The commission may charge a

fee for copies of papers provided by the commission to a person

other than a department of this state.

(b) The fee for a copy of a paper, document, or record in the

commission's office, including the certificate and seal to be

applied by the secretary, is 15 cents for each 100 words.

person a fee for a tariff sheet for the person's own use if the

tariff sheet is in effect.

(d) The fees charged and collected under this section shall be

accounted for by the secretary of the commission and paid into

the treasury as provided by Chapter 603, Government Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01011. METHOD OF MAKING PAYMENTS TO COMMISSION. (a)

The commission may authorize payment, as prescribed by the

commission, of a regulatory fee, fine, penalty, or charge for

goods and services by means of an electronic payment method or a

credit card issued by a financial institution chartered by a

state or the United States or issued by a nationally recognized

credit organization approved by the commission. A payment by the

authorized method may be made in person, by telephone, or through

the Internet.

(b) The commission may require a person who makes a payment to

the commission by means of an electronic payment method or credit

card to pay a discount or service charge in an amount reasonable

and necessary to reimburse the commission for the costs involved

in processing the payment.

this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01012. GIFTS, GRANTS, AND DONATIONS. (a) In this

section, "contested case" has the meaning assigned by Section

2001.003, Government Code.

(b) The commission may apply for, request, solicit, contract

for, receive, accept, and administer gifts, grants, and donations

of money or other assistance from any source to carry out any

commission purpose or power.

or donation of money or of property from a party in a contested

case during the period from the inception of the contested case

until the 30th day after the date a final order is signed in the

contested case.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01013. CONFLICT OF INTEREST. (a) In this section,

"Texas trade association" means a cooperative and voluntarily

joined association of business or professional competitors in

this state designed to assist its members and its industry or

profession in dealing with mutual business or professional

problems and in promoting their common interest.

(b) A person may not be an employee of the commission employed

in a "bona fide executive, administrative, or professional

capacity," as that phrase is used for purposes of establishing an

exemption to the overtime provisions of the federal Fair Labor

Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:

(1) the person is an officer, employee, or paid consultant of a

Texas trade association in a business or industry regulated by

the commission; or

(2) the person's spouse is an officer, manager, or paid

consultant of a Texas trade association in a business or industry

regulated by the commission.

Chapter 305, Government Code, may not act as the general counsel

to the commission.

(d) The commission shall provide to commissioners and to agency

employees, as often as necessary, information regarding the

requirements for office or employment under this chapter,

including information regarding a person's responsibilities under

applicable laws relating to standards of conduct for state

officers or employees.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01014. EQUAL EMPLOYMENT OPPORTUNITY. (a) The

commission shall prepare and maintain a written policy statement

that implements a program of equal employment opportunity to

ensure that all personnel decisions are made without regard to

race, color, disability, sex, religion, age, or national origin.

(b) The policy statement must include:

(1) personnel policies, including policies relating to

recruitment, evaluation, selection, training, and promotion of

personnel, that show the intent of the commission to avoid the

unlawful employment practices described by Chapter 21, Labor

Code; and

(2) an analysis of the extent to which the composition of the

commission's personnel is in accordance with state and federal

law and a description of reasonable methods to achieve compliance

with state and federal law.

(1) be updated annually;

(2) be reviewed by the Texas Workforce Commission civil rights

division for compliance with Subsection (b); and

(3) be filed with the governor's office.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01015. EMPLOYEE INCENTIVE PROGRAM. The commission shall

provide to commission employees information and training on the

benefits and methods of participation in the state employee

incentive program.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.01016. SEPARATION OF RESPONSIBILITIES. The commission

shall develop and implement policies that clearly separate the

policy-making responsibilities of the commissioners and the

management responsibilities of the staff of the commission.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Sec. 81.011. CHIEF SUPERVISOR. (a) The commission shall employ

a chief supervisor of its oil and gas division to assist the

commission in enforcing the laws relating to the production,

transportation, and conservation of oil and gas and rules and

orders of the commission adopted under these laws.

(b) The chief supervisor also shall perform the duties of the

pipeline expert as provided in the pipeline laws of this state.

Acts 1977, 65th Leg., p. 2508, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.012. QUALIFICATIONS OF CHIEF SUPERVISOR. In addition to

other qualifications that may be required by the commission, a

person appointed chief supervisor must have had at least five

years' experience in some line of the oil or gas business, or in

some other business or profession that would provide the

necessary knowledge and experience for the performance of his

duties.

Acts 1977, 65th Leg., p. 2508, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.013. DEPUTY SUPERVISORS, ASSISTANTS, AND CLERICAL

PERSONNEL. The commission may appoint a chief deputy supervisor,

deputy supervisors, assistants, and clerical personnel necessary

to execute the laws relating to oil and gas.

Acts 1977, 65th Leg., p. 2509, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.014. QUALIFICATIONS OF CHIEF DEPUTY SUPERVISOR. A

person appointed chief deputy supervisor must have had at least

three years' experience in oil and gas field work.

Acts 1977, 65th Leg., p. 2509, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.015. QUALIFICATIONS OF DEPUTY SUPERVISORS. Any person

appointed deputy supervisor must have had at least two years'

experience in oil and gas field work, including substantial

experience in drilling or production.

Acts 1977, 65th Leg., p. 2509, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.016. SALARIES. The salary of the chief supervisor, the

chief deputy supervisor, and the deputy supervisors shall be the

same as that provided in the General Appropriations Act.

Acts 1977, 65th Leg., p. 2509, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Text of section effective on April 01, 2011

Sec. 81.0165. SALARY OF SECRETARY. The salary of the secretary

of the commission shall be the amount appropriated for that

purpose by the legislature.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.02, eff. April 1, 2011.

Sec. 81.017. ADDITIONAL EMPLOYEES. The commission may employ

gaugers, inspectors, investigators, supervisors, and clerical

employees. These employees shall include a chief engineer, chief

petroleum engineer, and an administrative chief, and their

salaries shall be paid in the amounts provided in the General

Appropriations Act.

Acts 1977, 65th Leg., p. 2509, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 144, ch. 65,

Sec. 1, eff. Sept. 1, 1981.

Sec. 81.018. PAYMENT OF SALARIES AND OTHER EXPENSES. (a)

Salaries and other expenses necessary in the administration and

enforcement of the oil and gas laws shall be paid by warrants

drawn by the comptroller on the State Treasury from funds

provided under Section 81.112 of this code.

(b) Warrants for expenses shall be issued only on duly verified

statements of the persons entitled to the funds and on approval

of the chairman of the commission.

Acts 1977, 65th Leg., p. 2509, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.019. DUTIES OF CHIEF SUPERVISOR, CHIEF DEPUTY

SUPERVISOR, DEPUTY SUPERVISORS, AND OTHER EMPLOYEES. The chief

supervisor, chief deputy supervisor, deputy supervisors, and

other employees shall perform the duties prescribed by the

commission in conformity with rules of the commission relating to

the production, transportation, and conservation of crude oil and

natural gas.

Acts 1977, 65th Leg., p. 2509, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.020. ADDITIONAL DUTIES OF CHIEF SUPERVISOR AND HIS

DEPUTIES. (a) The chief supervisor and his deputies shall

supervise the plugging of all abandoned wells and the shooting of

wells and shall follow the rules of the commission relating to

the production and conservation of oil and gas.

(b) The chief supervisor shall gather information and assist the

commission in the performance of its duties under this title.

Acts 1977, 65th Leg., p. 2509, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

SUBCHAPTER C. JURISDICTION, POWERS, AND DUTIES

Sec. 81.051. JURISDICTION OF COMMISSION. (a) The commission

has jurisdiction over all:

(1) common carrier pipelines defined in Section 111.002 of this

code in Texas;

(2) oil and gas wells in Texas;

(3) persons owning or operating pipelines in Texas; and

(4) persons owning or engaged in drilling or operating oil or

gas wells in Texas.

(b) Persons listed in Subsection (a) of this section and their

pipelines and oil and gas wells are subject to the jurisdiction

conferred by law on the commission.

Acts 1977, 65th Leg., p. 2510, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1977, 65th Leg., p. 2694, ch. 871,

art. II, Sec. 5, eff. Sept. 1, 1977.

Sec. 81.052. RULES. The commission may adopt all necessary

rules for governing and regulating persons and their operations

under the jurisdiction of the commission as set forth in Section

81.051, including such rules as the commission may consider

necessary and appropriate to implement state responsibility under

any federal law or rules governing such persons and their

operations.

Acts 1977, 65th Leg., p. 2510, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 19, ch. 12,

Sec. 1, eff. March 15, 1979.

Sec. 81.0521. FEE FOR APPLICATION FOR EXCEPTION TO RAILROAD

COMMISSION RULE. (a) With each application for an exception to

any commission rule contained in Chapter 3 of Part I of Title 16

of the Texas Administrative Code, the applicant shall submit to

the commission a fee of $150.

(b) The application fee for an exception to any commission rule

may not be refunded.

penalties collected in connection with the fee, shall be

deposited to the oil-field cleanup fund as provided by Section

91.111.

Added by Acts 1985, 69th Leg., ch. 239, Sec. 73, eff. Sept. 1,

1985. Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 3, eff.

Sept. 1, 2001.

Sec. 81.0522. NATURAL GAS POLICY ACT APPLICATION FEE. (a) With

each Natural Gas Policy Act (15 U.S.C. Sections 3301-3432)

application, the applicant shall submit to the commission a fee.

The commission shall set the application fee in an amount

necessary to cover the cost of the commission's well category

determination program but not to exceed $150.

(b) The fee for any Natural Gas Policy Act application may not

be refunded.

Added by Acts 1985, 69th Leg., ch. 239, Sec. 73, eff. Sept. 1,

1985. Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 4, eff.

Sept. 1, 2001.

Sec. 81.053. COMMISSION POWERS. In the discharge of its duties

and the enforcement of its jurisdiction under this title, the

commission shall:

(1) institute suits;

(2) hear and determine complaints;

(3) require the attendance of witnesses and pay their expenses

out of funds provided for that purpose;

(4) obtain the issuance of writs and process which may be

necessary for the enforcement of its orders; and

(5) punish for contempt or disobedience of its orders in the

manner provided for the district courts.

Acts 1977, 65th Leg., p. 2510, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.0531. ADMINISTRATIVE PENALTY. (a) If a person violates

provisions of this title which pertain to safety or the

prevention or control of pollution or the provisions of a rule,

order, license, permit, or certificate which pertain to safety or

the prevention or control of pollution and are issued under this

title, the person may be assessed a civil penalty by the

commission.

(b) The penalty may not exceed $10,000 a day for each violation.

Each day a violation continues may be considered a separate

violation for purposes of penalty assessments.

shall consider the permittee's history of previous violations,

the seriousness of the violation, any hazard to the health or

safety of the public, and the demonstrated good faith of the

person charged. In determining the amount of the penalty for a

violation of a provision of this title or a rule, order, license,

permit, or certificate that relates to pipeline safety, the

commission shall consider the guidelines adopted under Subsection

(d).

(d) The commission by rule shall adopt guidelines to be used in

determining the amount of the penalty for a violation of a

provision of this title or a rule, order, license, permit, or

certificate that relates to pipeline safety. 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 permittee's history of previous violations, 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.

(e) A penalty collected under this section shall be deposited to

the credit of the oil-field cleanup fund.

Added by Acts 1983, 68th Leg., p. 1407, ch. 286, Sec. 1, eff.

Sept. 1, 1983. Amended by Acts 1999, 76th Leg., ch. 1089, Sec. 1,

eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1233, Sec. 5, eff.

Sept. 1, 2001.

Sec. 81.0532. PENALTY ASSESSMENT PROCEDURE. (a) A civil

penalty may be assessed only after the person charged with a

violation described under Section 81.0531 of this code has been

given an opportunity for a public hearing.

(b) If a public hearing has been held, the commission shall make

findings of fact, and it shall issue a written decision as to the

occurrence of the violation and the amount of the penalty that is

warranted, incorporating, when appropriate, an order requiring

that the penalty be paid.

hearings with other proceedings.

(d) If the person charged with the violation fails to avail

himself of the opportunity for a public hearing, a civil penalty

may be assessed by the commission after it has determined that a

violation did occur and the amount of the penalty that is

warranted.

(e) The commission shall then issue an order requiring that the

penalty be paid.

Added by Acts 1983, 68th Leg., p. 1407, ch. 286, Sec. 1, eff.

Sept. 1, 1983.

Sec. 81.0533. PAYMENT OF PENALTY; REFUND. (a) On the issuance

of an order finding that a violation has occurred, the commission

shall inform the person charged within 30 days of the amount of

the penalty.

(b) Within the 30-day period immediately following the day on

which the decision or order is final as provided in Subchapter F,

Chapter 2001, Government Code, the person charged with the

penalty 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) forward the amount to the commission for placement in an

escrow account; or

(B) in lieu of payment into escrow, post with the commission a

supersedeas bond in a form approved by the commission for the

amount of the penalty, such bond to be effective until all

judicial review of the order or decision is final.

determined that no violation occurred or that the amount of the

penalty should be reduced or not assessed, the commission shall,

within the 30-day period immediately following that

determination, if the penalty has been paid to the commission,

remit the appropriate amount to the person, with accrued

interest, or where a supersedeas bond has been posted, the

commission shall execute a release of such bond.

(d) Failure to forward the money to the commission within the

time provided by Subsection (b) of this section results in a

waiver of all legal rights to contest the violation or the amount

of the penalty.

(e) Judicial review of the order or decision of the commission

assessing the penalty shall be under the substantial evidence

rule and shall be instituted by filing a petition with the

district court of Travis County, Texas, and not elsewhere, as

provided for in Subchapter G, Chapter 2001, Government Code.

Added by Acts 1983, 68th Leg., p. 1407, ch. 286, Sec. 1, eff.

Sept. 1, 1983. Amended by Acts 1995, 74th Leg., ch. 76, Sec.

5.95(53), (59), eff. Sept. 1, 1995.

Sec. 81.0534. RECOVERY OF PENALTY. Civil penalties owed under

Sections 81.0531-81.0533 of this code may be recovered in a civil

action brought by the attorney general at the request of the

commission.

Added by Acts 1983, 68th Leg., p. 1407, ch. 286, Sec. 1, eff.

Sept. 1, 1983.

Sec. 81.054. ENFORCEMENT BY ATTORNEY GENERAL. (a) The attorney

general shall enforce the provision of this title by injunction

or other adequate remedy and as otherwise provided by law.

(b) If an action is instituted by the attorney general under

this section alleging a violation of an NPDES permit or the

failure to obtain an NPDES permit under Chapter 91 or Chapter 141

of the Natural Resources Code, the attorney general may not

oppose intervention by a person who has standing to intervene, as

provided by Rule 60, Texas Rules of Civil Procedure.

Acts 1977, 65th Leg., p. 2510, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1995, 74th Leg., ch. 310, Sec. 5,

eff. Aug. 28, 1995.

Sec. 81.055. PIPELINE SYSTEM FINANCIAL RESPONSIBILITY

REQUIREMENTS. (a) Not later than March 1, 2002, the legislature

may:

(1) study the desirability of requiring an owner, operator, or

manager of a pipeline system to obtain liability insurance

coverage, a bond, or other evidence of financial responsibility

in order to protect the public from the costs resulting from a

discharge from the pipeline system; and

(2) report its findings to the legislature and make the report

available to the public.

(b) If the legislature finds that adoption of such a requirement

is desirable, the commission by rule may require an owner,

operator, or manager of a pipeline system to obtain evidence of

financial responsibility. The rules must specify the appropriate

form and amount of that evidence and may require evidence of

financial responsibility in different amounts for different

pipeline systems, taking into consideration whether the pipeline

system:

(1) has a history of discharges or other violations of

regulatory requirements; or

(2) is located over a public drinking water supply, a natural

resource, or a critical groundwater resource or near a school or

populated area.

Added by Acts 2001, 77th Leg., ch. 1233, Sec. 6, eff. Sept. 1,

2001.

Sec. 81.056. CONTAMINATION REPORT. (a) In this section:

(1) "Common carrier" has the meaning assigned by Section

111.002.

(2) "Owner of the land" or "landowner" means the first person

who is shown on the appraisal roll of the appraisal district

established for the county in which a tract of land is located as

owning an interest in the surface estate of the land at the time

a contamination report is required to be made under this section.

(b) If in the process of placing, repairing, replacing, or

maintaining a pipeline a common carrier or an owner or operator

of a pipeline observes or detects any petroleum-based

contamination of soil or water in proximity to the pipeline, the

common carrier or pipeline owner or operator shall report the

contamination to the commission and the owner of the land on

which the pipeline is located. Petroleum-based contamination of

soil or water that is observed or detected is required to be

reported under this subsection if:

(1) hydrocarbons are present on the surface of the water;

(2) at least five linear yards of soil have been affected by

hydrocarbons; or

(3) soil affected by hydrocarbons extends beyond the face of the

excavation in which the contamination is observed or detected.

(1) must be made not later than 24 hours after the common

carrier or pipeline owner or operator observes or detects the

contamination;

(2) must include the global positioning satellite coordinates of

the location of the contamination; and

(3) may be made by telephone, facsimile, or electronic mail.

(d) Not later than the third business day after the date the

commission receives the contamination report, a person authorized

by the commission shall withdraw a soil sample from the

contaminated land. The person is entitled to enter the land for

the purpose of withdrawing the sample.

(e) A common carrier or pipeline owner or operator that makes a

contamination report under this section is released from all

liability for the contamination or the cleanup of the

contamination covered by the report, except for any contamination

caused by the common carrier or pipeline owner or operator.

(f) The commission shall adopt rules to implement this section.

(g) The commission may use money in the oil-field cleanup fund

to implement this section. The amount of money in the fund the

commission may use for that purpose may not exceed the amount of

money in the fund that is derived from fees collected under

Section 91.142 from common carriers or owners or operators of

pipelines as determined annually by the commission.

Added by Acts 2005, 79th Leg., Ch.

339, Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

166, Sec. 1, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

166, Sec. 2, eff. September 1, 2009.

Sec. 81.057. EXEMPTION FROM CERTAIN PURCHASING RULES. The

commission is not required to follow any purchasing procedures

prescribed by or under Subchapter E, Chapter 2155, Government

Code, when the commission makes a purchase in connection with the

remediation of surface locations or well plugging.

Added by Acts 2003, 78th Leg., ch. 1272, Sec. 2, eff. Sept. 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

514, Sec. 2, eff. September 1, 2005.

Acts 2009, 81st Leg., R.S., Ch.

393, Sec. 3.06, eff. September 1, 2009.

Sec. 81.058. ADMINISTRATIVE PENALTY FOR CERTAIN NATURAL

GAS-RELATED ACTIVITIES. (a) The commission, after notice and

opportunity for hearing, may impose an administrative penalty

against a purchaser, transporter, gatherer, shipper, or seller of

natural gas, a person described by Section 81.051(a) or

111.081(a), or any other entity under the jurisdiction of the

commission under this code that the commission determines has:

(1) violated a commission rule adopting standards or a code of

conduct for entities in the natural gas industry prohibiting

unlawful discrimination; or

(2) unreasonably discriminated against a seller of natural gas

in the purchase of natural gas from the seller.

(b) The commission, after notice and opportunity for hearing,

may impose an administrative penalty against a purchaser,

transporter, or gatherer of natural gas if the commission

determines that the person engaged in prohibited discrimination

against a shipper or seller of natural gas because the shipper or

seller filed a formal or informal complaint with the commission

against the person relating to the person's purchase,

transportation, or gathering of the gas.

may impose an administrative penalty against a purchaser,

transporter, gatherer, shipper, or seller of natural gas who is a

party to an informal complaint resolution proceeding and is

determined by the commission to have:

(1) failed to participate in the proceeding; or

(2) failed to provide information requested by a mediator in the

proceeding.

(d) An administrative penalty imposed under this section may not

exceed $5,000 a day for each violation. Each day a violation

continues or occurs is a separate violation for purposes of

imposing a penalty under this section.

(e) If the commission determines after notice and opportunity

for hearing that an entity has engaged in prohibited

discrimination for which a penalty may be imposed under this

section, the commission may issue any order necessary and

reasonable to prevent the discrimination from continuing.

(f) The remedy provided by this section is cumulative of any

other remedy the commission may order.

Added by Acts 2007, 80th Leg., R.S., Ch.

757, Sec. 1, eff. September 1, 2007.

Sec. 81.059. APPOINTMENT OF MEDIATORS FOR INFORMAL COMPLAINTS.

(a) The commission may provide for the appointment of a

commission staff member as the mediator of an informal complaint

filed with the commission, or the parties may agree to employ and

pay an independent mediator for the purpose of mediating the

complaint.

(b) If the parties request that the mediation be conducted at a

location other than the offices of the commission in Austin, the

parties shall reimburse the commission for the commission's costs

related to travel to those other locations.

that the parties participate in a formal complaint resolution

proceeding.

(d) At least annually, the commission shall notify oil and gas

producers of the existence of any informal complaint resolution

process provided for by the commission.

(e) Filing an informal complaint is not a prerequisite for

filing a formal complaint.

Added by Acts 2007, 80th Leg., R.S., Ch.

757, Sec. 1, eff. September 1, 2007.

Text of section effective on April 01, 2011

Sec. 81.0591. COMPLAINTS. (a) The commission shall maintain a

file on each written complaint filed with the commission. The

file must include:

(1) the name of the person who filed the complaint;

(2) the date the complaint is received by the commission;

(3) the subject matter of the complaint;

(4) the name of each person contacted in relation to the

complaint;

(5) a summary of the results of the review or investigation of

the complaint; and

(6) an explanation of the reason the file was closed, if the

commission closed the file without taking action other than to

investigate the complaint.

(b) The commission shall provide to the person filing the

complaint and to each person who is a subject of the complaint a

copy of the commission's policies and procedures relating to

complaint investigation and resolution.

of the complaint, shall notify the person filing the complaint

and each person who is a subject of the complaint of the status

of the investigation unless the notice would jeopardize an

undercover investigation.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.03, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.0592. CONSUMER INTEREST INFORMATION. (a) The

commission shall prepare information of consumer interest

describing the regulatory functions of the commission and the

procedures by which consumer complaints are filed with and

resolved by the commission.

(b) The commission shall make the information available to the

public and appropriate state agencies.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.03, eff. April 1, 2011.

Sec. 81.060. CONFIDENTIALITY PROVISIONS. (a) A confidentiality

provision may not be required in a contract to which a producer

is a party for the sale, transportation, or gathering of natural

gas that is entered into on or after September 1, 2007.

(b) A confidentiality provision in a contract to which a

producer is a party for the sale, transportation, or gathering of

natural gas that was entered into before September 1, 2007,

becomes unenforceable on the date the term of the contract

expires.

Added by Acts 2007, 80th Leg., R.S., Ch.

757, Sec. 1, eff. September 1, 2007.

Sec. 81.061. AUTHORITY TO ESTABLISH MARKET-BASED RATES. (a)

This section does not apply to rates established under Chapter

103, Utilities Code, or Subchapter C or G, Chapter 104, of that

code.

(b) The commission may use a cost-of-service method or a

market-based rate method in setting a rate in a formal rate

proceeding.

natural gas, the commission may set a transportation or gathering

rate in a formal rate proceeding if the commission determines

that the rate is necessary to remedy unreasonable discrimination

in the provision of transportation or gathering services. The

commission may set a rate regardless of whether the transporter

or gatherer is classified as a utility by other law.

Added by Acts 2007, 80th Leg., R.S., Ch.

757, Sec. 1, eff. September 1, 2007.

Text of section effective on April 01, 2011

Sec. 81.062. PUBLIC PARTICIPATION. The commission shall develop

and implement policies that provide the public with a reasonable

opportunity to appear before the commission and to speak on any

issue under the jurisdiction of the commission.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.03, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.063. ISSUANCE, SUSPENSION, OR REVOCATION OF LICENSE,

PERMIT, OR CERTIFICATE. (a) If the commission proposes to

suspend or revoke a person's license, permit, or certificate of

public convenience and necessity, the person is entitled to a

hearing before the commission.

(b) The commission may not:

(1) refuse to issue a license, permit, or certificate to a

person because of the person's race, religion, color, sex, or

national origin; or

(2) revoke or suspend the license, permit, or certificate of a

person because of the person's race, religion, color, sex, or

national origin.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.03, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 81.064. POWERS OF COMMISSIONER OR DESIGNATED EMPLOYEE IN

CASES BEFORE COMMISSION. (a) In a case before the commission, a

commissioner, or an authorized commission employee, designated by

the commission for that purpose, in the same manner as if the

entire commission were present, may:

(1) hold a hearing;

(2) conduct an investigation;

(3) make a record of a hearing or investigation for the use and

benefit of the commission;

(4) administer an oath;

(5) certify to an official act; and

(6) compel the attendance of a witness and the production of

papers, books, accounts, and other pertinent documents and

testimony.

(b) The record of a hearing or investigation made under this

section that is certified to by the commissioner or employee has

the same effect as if made before the commission. The commission

shall determine a case in which the record is made under this

section in the same manner as if the record had been made before

the commission.

(1) refuses to comply with this section; or

(2) obstructs or attempts to obstruct a proceeding under this

section.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.03, eff. April 1, 2011.

SUBCHAPTER D. WITNESSES

Sec. 81.091. INCRIMINATING TESTIMONY. If a witness fails or

refuses to appear on being summoned, to answer any question he is

asked, or to produce any record or data required by subpoena, the

claim that the testimony may tend to incriminate the person

giving it does not excuse the witness from testifying or

producing the records and data, but the evidence or testimony may

not be used against the person on the trial of any criminal

proceeding.

Acts 1977, 65th Leg., p. 2510, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.092. FEE FOR EXECUTING PROCESS. The sheriff or

constable executing process shall receive the compensation

authorized by the commission.

Acts 1977, 65th Leg., p. 2510, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Text of section effective on April 01, 2011

Sec. 81.093. DEPOSITIONS. (a) In a matter pending for hearing

before the commission or a division of the commission, the

commission or an interested party may produce the testimony of a

witness by written or oral deposition instead of compelling the

personal attendance of the witness. For that purpose, the

commission may issue a commission or other process necessary to

take a deposition.

(b) The deposition shall be taken, to the extent applicable and

to the greatest extent possible, in accordance with the

provisions of the Texas Rules of Civil Procedure relating to

written and oral depositions.

Added by Acts 2009, 81st Leg., R.S., Ch.

85, Sec. 3.04, eff. April 1, 2011.

SUBCHAPTER E. TAX

Sec. 81.111. TAX LEVY. (a) A tax is levied on crude petroleum

produced in this state in the amount of three-sixteenths of one

cent on each barrel of 42 standard gallons.

(b) This tax is in addition to and shall be collected in the

same manner as the occupation tax on the production of crude

petroleum.

administration and collection of the tax imposed by this section,

and the penalties provided by that chapter apply to any person

who fails to pay or report the tax under this section.

Acts 1977, 65th Leg., p. 2510, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 1024, ch. 235,

art. 5, Sec. 3(a), eff. Sept. 1, 1983.

Sec. 81.112. DISPOSITION OF TAX PROCEEDS. The tax shall be

deposited in the General Revenue Fund.

Acts 1977, 65th Leg., p. 2511, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 144, ch. 65,

Sec. 1, eff. Sept. 1, 1981.

Sec. 81.113. USE OF TAX PROCEEDS. Proceeds from the tax shall

be used for the administration of the state's oil and gas

conservation laws.

Acts 1977, 65th Leg., p. 2511, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.114. PRODUCTION REPORTS. Producers of crude petroleum

shall make reports of production in the same manner and under the

same penalties as provided for the occupation tax on the

production of crude oil.

Acts 1977, 65th Leg., p. 2511, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.115. PAYMENTS TO OIL AND GAS DIVISION. Money

appropriated to the oil and gas division of the commission under

the General Appropriations Act shall be paid from the General

Revenue Fund.

Acts 1977, 65th Leg., p. 2511, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 144, ch. 65,

Sec. 1, eff. Sept. 1, 1981.

Sec. 81.116. OIL-FIELD CLEANUP REGULATORY FEE ON OIL. (a) An

oil-field cleanup regulatory fee is imposed on crude petroleum

produced in this state in the amount of five-eighths of one cent

on each barrel of 42 standard gallons.

(b) The fee is in addition to, and independent of any liability

for, the taxes imposed under Section 81.111 of this code and

Chapter 202, Tax Code.

Chapter 202, Tax Code, applies to the administration and

collection of the fee, and the penalties provided by that chapter

apply to any person who fails to pay or report the fee.

(d) The comptroller shall suspend collection of the fee in the

manner provided by Section 91.111. The exemptions and reductions

set out in Sections 202.052, 202.054, 202.056, 202.057, 202.059,

and 202.060, Tax Code, do not affect the fee imposed by this

section.

(e) Proceeds from the fee, including any penalties collected in

connection with the fee, shall be deposited to the oil-field

cleanup fund as provided by Section 91.111 of this code.

Added by Acts 1991, 72nd Leg., ch. 603, Sec. 2, eff. Sept. 1,

1991. Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 7, eff.

Sept. 1, 2001; Acts 2003, 78th Leg., ch. 200, Sec. 17, eff. Sept.

1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

267, Sec. 1, eff. January 1, 2006.

Sec. 81.117. OIL-FIELD CLEANUP REGULATORY FEE ON GAS. (a) An

oil-field cleanup regulatory fee is imposed on gas initially

produced and saved in this state in the amount of one-fifteenth

of one cent for each thousand cubic feet.

(b) The fee is in addition to, and independent of any liability

for, the tax imposed under Section 201.052, Tax Code.

collection, and enforcement of the fee is the same as for the tax

imposed under Section 201.052, Tax Code.

(d) The comptroller shall suspend collection of the fee in the

manner provided by Section 91.111. The exemptions and reductions

set out in Sections 201.053, 201.057, 201.058, and 202.060, Tax

Code, do not affect the fee imposed by this section.

(e) Proceeds from the fee, including any penalties collected in

connection with the fee, shall be deposited to the oil-field

cleanup fund as provided by Section 91.111 of this code.

Added by Acts 1991, 72nd Leg., ch. 603, Sec. 2, eff. Sept. 1,

1991. Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 8, eff.

Sept. 1, 2001; Acts 2003, 78th Leg., ch. 200, Sec. 18, eff. Sept.

1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

267, Sec. 2, eff. January 1, 2006.

SUBCHAPTER F. CAMPAIGNING

Sec. 81.151. PENALTY FOR CAMPAIGNING. A person who receives a

salary from funds provided under this title and who uses his time

or a state-owned automobile for campaign purposes or for the

purpose of furthering the candidacy of his employer or any other

candidate for state office is guilty of a misdemeanor and on

conviction shall be fined not less than $100 nor more than $500

and shall be confined in jail for not less than 30 nor more than

90 days.

Acts 1977, 65th Leg., p. 2511, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.152. DISCHARGE AND INELIGIBILITY. A person found guilty

under Section 81.151 of this code shall be discharged immediately

from his position and shall be ineligible for employment by the

state in the future.

Acts 1977, 65th Leg., p. 2511, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.153. SETTING CIVIL COMPLAINT FOR HEARING. If a citizen

of this state files a civil complaint with a district court in

Travis County charging an employee with use of his time or a

state-owned automobile for campaign purposes or to further the

candidacy of his employer or any other candidate for state

office, the court shall set the complaint for hearing at a time

not less than 10 nor more than 20 days after the day on which the

complaint is filed.

Acts 1977, 65th Leg., p. 2511, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.154. NOTICE TO EMPLOYEE. The court shall have notice of

the hearing served on the employee against whom the complaint was

filed at least five days before the date of the hearing.

Acts 1977, 65th Leg., p. 2511, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.155. COURT'S ORDER. At the hearing, if the court

determines that the employee has used his time or a state-owned

automobile as charged in the complaint, the court shall certify

the fact to the department, agency, or commission which employs

the person and order the employee's immediate discharge.

Acts 1977, 65th Leg., p. 2511, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 81.156. APPEAL. Any person against whom charges have been

filed is entitled to appeal to the court of appeals, but the

pendency of the appeal does not suspend his discharge.

Acts 1977, 65th Leg., p. 2512, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 799, ch. 291,

Sec. 91, eff. Sept. 1, 1981.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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