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H.B. No. 2161
AN ACT
relating to the power of the Railroad Commission of Texas to adopt
and enforce safety standards and practices applicable to the
transportation by pipeline of certain substances and to certain
pipeline facilities, the provision of severance tax credits and
exemptions and other incentives and procedures for producing oil or
gas from certain wells or plugging wells, and the procedure for
computing severance taxes in connection with certain gas sales;
imposing an administrative penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 81.116(d), Natural Resources Code, is
amended to read as follows:
(d) The comptroller shall suspend collection of the fee in
the manner provided by Section 91.111 [of this code]. The
exemptions and reductions set out in Sections 202.052, 202.054,
202.056, 202.057, [and] 202.059, and 202.060, Tax Code, do not
affect the fee imposed by this section.
SECTION 2. Section 81.117(d), Natural Resources Code, is
amended to read as follows:
(d) The comptroller shall suspend collection of the fee in
the manner provided by Section 91.111 [of this code]. The
exemptions and reductions set out in Sections 201.053, 201.057,
[and] 201.058, and 202.060, Tax Code, do not affect the fee imposed
by this section.
SECTION 3. Section 89.044, Natural Resources Code, is
amended to read as follows:
Sec. 89.044. RIGHT TO ENTER ON LAND. (a) The commission or
its employees or agents, the operator, or the nonoperator, on
proper identification, may enter the land of another for the
purpose of plugging or replugging a well that has not been properly
plugged.
(b) A prospective operator who has been authorized under
Section 89.047 to conduct a surface inspection of a well, on proper
identification, may enter the land of another for the sole purpose
of conducting the inspection.
SECTION 4. Subchapter C, Chapter 89, Natural Resources
Code, is amended by adding Sections 89.047 and 89.048 to read as
follows:
Sec. 89.047. ORPHANED WELL REDUCTION PROGRAM. (a) In this
section:
(1) "Depth of the well" means the vertical depth of a
well as measured in linear feet from the surface to the lowest
perforation of the casing of the well that is within the
commission-designated correlative interval for the field for which
the well is issued a permit.
(2) "Operator in good standing" means an operator who:
(A) has a commission-approved organization
report;
(B) is the designated operator of at least one
well within the jurisdiction of the commission;
(C) has filed with the commission under Section
91.104 a bond, letter of credit, or cash deposit in an amount
sufficient to qualify to operate one or more additional wells; and
(D) is not the subject of a commission or court
order regarding a violation of a commission rule with which the
operator has not complied or a complaint that has been docketed by
the commission alleging a violation of a commission rule.
(3) "Orphaned well" means a well:
(A) for which the commission has issued a permit;
(B) for which production of oil or gas or another
activity under the jurisdiction of the commission has not been
reported to the commission for the preceding 12 months; and
(C) whose operator's commission-approved
organization report has lapsed.
(4) "Producing well" means a well classified by the
commission as an oil or gas well in accordance with commission
rules.
(5) "Service well" means a well for which the
commission has issued a permit that is not a producing well. The
term includes an injection, disposal, or brine mining well.
(b) A person who is considering assumption of operatorship
and regulatory responsibility for an orphaned well may nominate the
well under consideration by filing a request on a form prescribed by
the commission notifying the commission that the person seeks
authority to conduct a surface inspection of the well to determine
whether the person desires to be designated by the commission as the
operator of the well.
(c) If the person is an operator in good standing and the
well is not already subject to a nomination, the commission shall
accept the nomination and issue a written confirmation to the
person of the person's authority to conduct a surface inspection of
the nominated well for a stated period not to exceed 30 days.
(d) A person to whom a confirmation is issued under
Subsection (c) may conduct a surface inspection of the well. The
person must deliver written notice to the owner of record of the
surface estate and any occupant of the tract on which the well is
located at least three days before the date of the inspection. The
notice must:
(1) identify the orphaned well;
(2) state the name, address, and telephone number of
the person;
(3) state the date the person intends to conduct the
surface inspection;
(4) state the name of at least one representative of
the person who will participate in the surface inspection; and
(5) state that the person intends to inspect the
orphaned well in accordance with this section for the purpose of
assessing the current status and viability of the well.
(e) In conducting a surface inspection of the orphaned well,
the person may visually inspect the well and all related equipment,
tanks, and other facilities and may conduct noninvasive testing
such as using a gauge to determine the pressure present at the
wellhead but may not produce oil or gas from the well, reenter the
well, pull tubing from or perform any other type of downhole work on
the well, conduct a salvage operation on the well, or remove any
tangible item from the well site.
(f) The commission shall designate the person as the
operator of the well if the person files with the commission:
(1) a factually supported claim based on a recognized
legal theory to a continuing possessory right in the mineral estate
accessed by the well, such as evidence of a current oil and gas
lease or a recorded deed conveying a fee interest in the mineral
estate;
(2) a completed certificate of compliance; and
(3) a nonrefundable fee in the amount of $250.
(g) A fee collected under Subsection (f) shall be deposited
to the credit of the general revenue fund and may be appropriated
only to the commission to be used to enforce the laws and rules
concerning oil and gas conservation and waste and pollution
prevention.
(h) A person who is designated as the operator of an
orphaned well on or after January 1, 2006, and not later than
December 31, 2007, is entitled to receive:
(1) a nontransferable exemption from severance taxes
for all future production from the well as provided by Section
202.060, Tax Code;
(2) a nontransferable exemption from the fees provided
by Sections 81.116 and 81.117 for all future production from the
well; and
(3) a payment from the commission in an amount equal to
the depth of the well multiplied by 50 cents for each foot of well
depth if, not later than the third anniversary of the date the
commission designates the person as the operator of the well, the
person brings the well back into continuous active operation or
plugs the well in accordance with commission rules.
(i) A well is considered to be in continuous active
operation for purposes of Subsection (h)(3) if:
(1) the well is a producing well and the well has
produced at least 10 barrels of oil or 100 mcf of gas per month for
at least three consecutive months as shown in the records of the
commission and as authorized by a permit issued by the commission;
or
(2) the well is a service well and the well has been
used for the disposal or injection of oil and gas wastes or another
purpose related to the production of oil or gas for at least three
consecutive months as shown in the records of the commission and as
authorized by a permit issued by the commission.
(j) The commission shall make payments to operators under
Subsection (h)(3) annually in the same order the commission
determines the operators to be entitled to the payments. The
aggregate amount of payments in a state fiscal year under that
subsection may not exceed $500,000. An operator may not receive:
(1) more than one payment under that subsection for
the same well; or
(2) cumulative payments in an amount that exceeds the
amount of the bond, letter of credit, or cash deposit the operator
has filed with the commission under Section 91.104.
Sec. 89.048. PLUGGING OF WELL BY SURFACE ESTATE OWNER. (a)
In this section, "orphaned well" has the meaning assigned by
Section 89.047.
(b) The owner of an interest in the surface estate of a tract
of land on which an orphaned well is located may contract with a
commission-approved well plugger to plug the well.
(c) If the surface estate owner enters into a contract under
Subsection (b), the well plugger shall:
(1) not later than the 30th day before the date the
well is plugged, mail notice of its intent to plug the well to the
operator of the well at the operator's address as shown by the
records of the commission;
(2) assume responsibility for the physical operation
and control of the well as shown by a form the person files with the
commission and the commission approves;
(3) file a bond, letter of credit, or cash deposit
covering the well as required by Section 91.107; and
(4) plug the well in accordance with commission rules.
(d) On successful plugging of the well by the well plugger,
the surface estate owner may submit documentation to the commission
of the cost of the well-plugging operation. The commission shall
reimburse the surface estate owner from money in the oil-field
cleanup fund in an amount not to exceed 50 percent of the lesser of:
(1) the documented well-plugging costs; or
(2) the average cost incurred by the commission in the
preceding 24 months in plugging similar wells located in the same
general area.
(e) The commission shall adopt any rules reasonably
necessary to implement this section.
SECTION 5. Section 91.112(a), Natural Resources Code, is
amended to read as follows:
(a) Money in the fund may be used by the commission or its
employees or agents for:
(1) conducting a site investigation or environmental
assessment to determine:
(A) the nature and extent of contamination caused
by oil and gas wastes or other substances or materials regulated by
the commission under Section 91.101; and
(B) the measures that should be taken to control
or clean up the wastes, substances, or materials described in
Paragraph (A);
(2) controlling or cleaning up oil and gas wastes or
other substances or materials regulated by the commission under
Section 91.101 that are causing or are likely to cause the pollution
of surface or subsurface water, consistent with Section 91.113;
(3) plugging abandoned wells and administering or
enforcing permits, orders, and rules relating to the commission's
authority to prevent pollution under this chapter, Chapter 89, or
any other law administered or enforced by the commission under
Title 3;
(4) implementing Subchapter N and enforcing rules,
orders, and permits adopted or issued under that subchapter;
(5) implementing the voluntary cleanup program under
Subchapter O; [and]
(6) preparing the report required under Subsection
(b);
(7) making payments to eligible operators under
Section 89.047; and
(8) making payments to eligible surface estate owners
under Section 89.048.
SECTION 6. Section 117.012, Natural Resources Code, is
amended by amending Subsection (a) and adding Subsections (n), (o),
and (p) to read as follows:
(a) The commission shall adopt rules that include safety
standards for and practices applicable to the intrastate
transportation of hazardous liquids or carbon dioxide by pipeline
and intrastate hazardous liquid or carbon dioxide pipeline
facilities, including safety standards related to the prevention of
damage to such a facility resulting from the movement of earth by a
person in the vicinity of the facility, other than movement by
tillage that does not exceed a depth of 16 inches.
(n) In this subsection, "telecommunications service" and
"information service" have the meanings assigned by 47 U.S.C.
Section 153. Notwithstanding Subsection (a), this title does not
grant the commission jurisdiction or right-of-way management
authority over a provider of telecommunications service or
information service. A provider of telecommunications service or
information service shall comply with all applicable safety
standards, including those provided by Subchapter G, Chapter 756,
Health and Safety Code.
(o) The power granted by Subsection (a) does not apply to:
(1) surface mining operations; or
(2) other entities or occupations if the commission
determines in its rulemaking process that exempting those entities
or occupations from rules adopted under that subsection:
(A) is in the public interest; or
(B) is not likely to cause harm to the safety and
welfare of the public.
(p) The commission may not implement rules adopted under
Subsection (a) regulating the movement of earth by a person in the
vicinity of a facility until September 1, 2007. This subsection
expires September 1, 2008.
SECTION 7. Section 201.053, Tax Code, is amended to read as
follows:
Sec. 201.053. GAS NOT TAXED. The tax imposed by this
chapter does not apply to gas:
(1) injected into the earth in this state, unless sold
for that purpose;
(2) produced from oil wells with oil and lawfully
vented or flared;
(3) used for lifting oil, unless sold for that
purpose; or
(4) produced in this state from a well that qualifies
under Section 202.056 or 202.060.
SECTION 8. Section 201.058(a), Tax Code, is amended to read
as follows:
(a) The exemptions described by Sections 202.056, 202.057,
[and] 202.059, and 202.060 apply to the taxes imposed by this
chapter as authorized by and subject to the certifications and
approvals required by those sections.
SECTION 9. Subchapter B, Chapter 201, Tax Code, is amended
by adding Section 201.059 to read as follows:
Sec. 201.059. CREDITS FOR QUALIFYING LOW-PRODUCING WELLS.
(a) In this section:
(1) "Commission" means the Railroad Commission of
Texas.
(2) "Mcf" means 1,000 cubic feet of gas as measured in
accordance with Section 91.052, Natural Resources Code.
(3) "Qualifying low-producing well" means a gas well
whose production during a three-month period is no more than 90 mcf
per day, excluding gas flared pursuant to the rules of the
commission. For purposes of qualifying a gas well, production per
well per day is determined by computing the average daily
production from the well using the monthly well production report
made to the commission.
(b) Each month, the comptroller shall certify the average
taxable price of gas, adjusted to 2005 dollars, during the previous
three months based on various price indices available to producers,
including prices reported by Henry Hub, Houston Ship Channel,
Mississippi Barge Transport, New York Mercantile Exchange, or other
spot prices, as applicable. The comptroller shall publish
certifications under this subsection in the Texas Register.
(c) An operator of a qualifying low-producing well is
entitled to a 25 percent credit on the tax otherwise due on gas
produced and saved from that well during a month if the average
taxable price of gas certified by the comptroller under Subsection
(b) for the previous three-month period is more than $3 per mcf but
not more than $3.50 per mcf.
(d) An operator of a qualifying low-producing well is
entitled to a 50 percent credit on the tax otherwise due on gas
produced and saved from that well during a month if the average
taxable price of gas certified by the comptroller under Subsection
(b) for the previous three-month period is more than $2.50 per mcf
but not more than $3 per mcf.
(e) An operator of a qualifying low-producing well is
entitled to a 100 percent credit on the tax otherwise due on gas
produced and saved from that well during a month if the average
taxable price of gas certified by the comptroller under Subsection
(b) for the previous three-month period is not more than $2.50 per
mcf.
(f) If the tax is paid on gas at the full rate provided by
Section 201.052, the person paying the tax is entitled to a credit
against taxes imposed by this chapter or Chapter 202 on the amount
overpaid. To receive the credit, the person must apply to the
comptroller for the credit not later than the expiration of the
applicable period for filing a tax refund under Section 111.104.
(g) This section expires September 1, 2007.
SECTION 10. Section 201.102, Tax Code, is amended to read as
follows:
Sec. 201.102. CASH SALES. If gas is sold for cash only, the
tax shall be computed on the producer's gross cash receipts.
Payments from a purchaser of gas to a producer for the purpose of
reimbursing the producer for taxes due under this chapter are not
part of the gross cash receipts [unless the reimbursement amount
for taxes due under this chapter is separately stated in the sales
contract].
SECTION 11. Section 202.052(c), Tax Code, is amended to
read as follows:
(c) The exemptions described by Sections 202.056, [and]
202.059, and 202.060 apply to oil produced in this state from a well
that qualifies under Section 202.056, [or] 202.059, or 202.060,
subject to the certifications and approvals required by those
sections.
SECTION 12. Subchapter B, Chapter 202, Tax Code, is amended
by adding Sections 202.058, 202.060, and 202.061 to read as
follows:
Sec. 202.058. CREDITS FOR QUALIFYING LOW-PRODUCING OIL
LEASES. (a) In this section:
(1) "Commission" means the Railroad Commission of
Texas.
(2) "Qualifying low-producing oil lease" means a well
classified as an oil well that is part of a lease whose production
during a 90-day period is less than:
(A) 15 barrels of oil per day of production; or
(B) five percent recoverable oil per barrel of
produced water.
(b) For purposes of qualifying a lease, production per well
per day is determined by computing the average daily per well
production from the lease using the monthly lease production report
made to the commission. For purposes of qualifying a lease,
production per well per day is measured by dividing the sum of lease
production during the three-month period by the sum of the number of
well-days, where a well-day is one well producing for one day. The
operator of a lease that is eligible for a credit under this section
only on the basis of Subsection (a)(2)(B) must pay to the
comptroller a filing fee of $100 before the comptroller may
authorize the credit.
(c) Each month, the comptroller shall certify the average
taxable price of oil, adjusted to 2005 dollars, during the previous
three months based on various price indices available to producers,
including the reported Texas Panhandle Spot Price, West Texas
Intermediate Crude Spot Price, New York Mercantile Exchange, or
other spot prices, as applicable. The comptroller shall publish
certifications under this subsection in the Texas Register.
(d) An operator of a qualifying low-producing lease is
entitled to a 25 percent credit on the tax otherwise due on oil
produced from that lease during a month if the average taxable price
of oil certified by the comptroller under Subsection (c) for the
previous three-month period is more than $25 per barrel but not more
than $30 per barrel.
(e) An operator of a qualifying low-producing lease is
entitled to a 50 percent credit on the tax otherwise due on oil
produced from that lease during a month if the average taxable price
of oil certified by the comptroller under Subsection (c) for the
previous three-month period is more than $22 per barrel but not more
than $25 per barrel.
(f) An operator of a qualifying low-producing lease is
entitled to a 100 percent credit on the tax otherwise due on oil
produced from that lease during a month if the average taxable price
of oil certified by the comptroller under Subsection (c) for the
previous three-month period is not more than $22 per barrel.
(g) If the tax is paid on oil at the full rate provided by
Section 202.052, the person paying the tax is entitled to a credit
against taxes imposed by this chapter or Chapter 201 on the amount
overpaid. To receive the credit, the person must apply to the
comptroller for the credit not later than the expiration of the
applicable period for filing a tax refund under Section 111.104.
(h) This section expires September 1, 2007.
Sec. 202.060. EXEMPTION FOR OIL AND GAS FROM REACTIVATED
ORPHANED WELLS. (a) In this section:
(1) "Commission" means the Railroad Commission of
Texas.
(2) "Orphaned well" has the meaning assigned by
Section 89.047, Natural Resources Code.
(b) The commission shall issue a certificate to a person who
is designated by the commission under Section 89.047, Natural
Resources Code, as the operator of an orphaned well. The
certificate must identify the operator to whom and the well for
which the certificate is issued.
(c) Hydrocarbons produced from the well identified in the
certificate qualify for a severance tax exemption.
(d) The commission shall adopt all rules necessary to
administer this section.
(e) To qualify for the tax exemption provided by this
section, the person responsible for paying the tax must apply to the
comptroller. The application must include a copy of the
certificate issued by the commission. The comptroller shall
approve the application if the person demonstrates that the
hydrocarbon production is eligible for a tax exemption. The
comptroller may require a person applying for the tax exemption to
provide any relevant information necessary to administer this
section. The comptroller may establish procedures to comply with
this section.
(f) The exemption takes effect on the first day of the month
following the month in which the comptroller approves the
application.
(g) If the person to whom the certificate is issued ceases
to be the operator of the well as shown by the records of the
commission, the commission shall notify the comptroller. The
exemption expires on the date the notice is received.
(h) A person who makes or subscribes an application, report,
or other document and submits it to the commission to form the basis
for an application for a tax exemption under this section, knowing
that the application, report, or other document is untrue in a
material fact, is subject to the penalties imposed by Chapters 85
and 91, Natural Resources Code.
(i) A person is liable to the state for a civil penalty if
the person applies or attempts to apply the tax exemption
authorized by this section for a well after the person to whom the
certificate for the well was issued ceases to be the operator of the
well as shown by the records of the commission. The amount of the
penalty may not exceed the sum of:
(1) $10,000; and
(2) the difference between the amount of taxes paid or
attempted to be paid and the amount of taxes due.
(j) The attorney general may recover a penalty under
Subsection (i) in a suit brought on behalf of the state. Venue for
the suit is in Travis County.
Sec. 202.061. TAX CREDIT FOR ENHANCED EFFICIENCY EQUIPMENT.
(a) In this section:
(1) "Enhanced efficiency equipment" means equipment
used in the production of oil that reduces the energy used to
produce a barrel of fluid by 10 percent or more when compared to
commonly available alternative equipment. The term does not
include a motor or downhole pump. Equipment does not qualify as
enhanced efficiency equipment unless an institution of higher
education approved by the comptroller that is located in this state
and that has an accredited petroleum engineering program evaluated
the equipment and determined that the equipment does produce the
required energy reduction.
(2) "Marginal well" means an oil well that produces 10
barrels of oil or less per day on average during a month.
(b) The taxpayer responsible for the payment of severance
taxes on the production from a marginal well in this state on which
enhanced efficiency equipment is installed and used is entitled to
a credit in an amount equal to 10 percent of the cost of the
equipment, provided that:
(1) the cumulative total of all severance tax credits
authorized by this section may not exceed $1,000 for any marginal
well;
(2) the enhanced efficiency equipment installed in a
qualifying marginal well must have been purchased and installed not
earlier than September 1, 2005, or later than September 1, 2009;
(3) the taxpayer must file an application with the
comptroller for the credit and must demonstrate to the comptroller
that the enhanced efficiency equipment has been purchased and
installed in the marginal well within the period prescribed by
Subdivision (2);
(4) the number of applications the comptroller may
approve each state fiscal year may not exceed a number equal to one
percent of the producing marginal wells in this state on September 1
of that state fiscal year, as determined by the comptroller; and
(5) the manufacturer of the enhanced efficiency
equipment must obtain an evaluation of the product under Subsection
(a).
(c) The taxpayer may carry any unused credit forward until
the credit is used.
SECTION 13. Section 121.201, Utilities Code, is amended by
amending Subsections (a) and (b) and adding Subsections (d), (e),
and (f) to read as follows:
(a) The railroad commission [by rule] may:
(1) by rule prescribe or adopt safety standards for
the transportation of gas and for gas pipeline facilities,
including safety standards related to the prevention of damage to
such a facility resulting from the movement of earth by a person in
the vicinity of the facility, other than movement by tillage that
does not exceed a depth of 16 inches;
(2) by rule 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) by rule require record maintenance and reports;
(4) inspect records and facilities to determine
compliance with [adopted] safety standards prescribed or adopted
under Subdivision (1);
(5) make certifications and reports from time to time;
(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) by rule 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):
(1) 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; and
(2) is granted to provide exclusive state control over
safety standards and practices applicable to the transportation of
gas and gas pipeline facilities within the borders of this state to
the maximum degree permissible under that law.
(d) In this subsection, "telecommunications service" and
"information service" have the meanings assigned by 47 U.S.C.
Section 153. Notwithstanding Subsection (a), this title does not
grant the railroad commission jurisdiction or right-of-way
management authority over a provider of telecommunications service
or information service. A provider of telecommunications service
or information service shall comply with all applicable safety
standards, including those provided by Subchapter G, Chapter 756,
Health and Safety Code.
(e) The power granted by Subsection (a) does not apply to:
(1) surface mining operations; or
(2) other entities or occupations if the railroad
commission determines in its rulemaking process that exempting
those entities or occupations from rules adopted under that
subsection:
(A) is in the public interest; or
(B) is not likely to cause harm to the safety and
welfare of the public.
(f) The railroad commission may not implement rules adopted
under Subsection (a) until September 1, 2007. This subsection
expires September 1, 2008.
SECTION 14. Sections 121.206(a) and (d), Utilities Code,
are amended to read as follows:
(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 other rule prescribed or
[relating to the transportation of gas and gas pipeline facilities]
adopted under that section [those provisions].
(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 other rule prescribed or
[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.
SECTION 15. (a) Sections 201.059 and 202.058, Tax Code, as
added by this Act, apply to gas and oil produced on or after the
effective date of this Act. Gas and oil produced before the
effective date of this Act are governed by the law in effect on the
date the gas and oil were produced, and that law is continued in
effect for that purpose.
(b) As soon as practicable after the effective date of this
Act, the comptroller shall perform the initial certification
determination required by Sections 201.059 and 202.058, Tax Code,
as added by this Act. The initial certification determination must
cover the three-month period beginning on June 1, 2005.
(c) Sections 201.059 and 202.058, Tax Code, as added by this
Act, do not affect tax liability accruing before the effective date
of this Act. That liability continues in effect as if this Act had
not been enacted, and the former law is continued in effect for the
collection of tax due and for civil and criminal enforcement of the
liability for those taxes.
SECTION 16. The changes made by this Act to Section 201.102,
Tax Code, apply to a refund claim or a determination under Chapter
111, Tax Code, for which the comptroller has not issued a final
order or decision on or before the effective date of this Act
without regard to whether the taxes that are the subject of the
refund claim or determination are due before, on, or after the
effective date of this Act.
SECTION 17. The Railroad Commission of Texas may not adopt
safety standards under Section 121.201(a), Utilities Code, or
Section 117.012(a), Natural Resources Code, as amended by this Act,
until the Pipeline and Hazardous Materials Safety Administration of
the United States Department of Transportation adopts the rules
published at 69 Fed. Reg. 35279 (2004) (to be codified at 49 C.F.R.
Parts 192 and 195) (proposed June 3, 2004) or other rules pertaining
to public education programs for hazardous liquid and gas pipeline
operators.
SECTION 18. (a) The change in law made by this Act to
Section 121.206, Utilities Code, applies only to a violation
committed on or after the effective date of this Act. For purposes
of this section, a violation is committed before the effective date
of this Act if any element of the violation occurred before that
date.
(b) A violation committed before the effective date of this
Act is covered by the law in effect when the violation was
committed, and the former law is continued in effect for that
purpose.
SECTION 19. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2005.
(b) The following provisions take effect January 1, 2006:
(1) Sections 81.116(d), 81.117(d), 89.044, and
91.112(a), Natural Resources Code, as amended by this Act;
(2) Sections 89.047 and 89.048, Natural Resources
Code, as added by this Act;
(3) Sections 201.053, 201.058(a), and 202.052(c), Tax
Code, as amended by this Act; and
(4) Section 202.060, Tax Code, as added by this Act.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2161 was passed by the House on April
27, 2005, by a non-record vote; that the House refused to concur in
Senate amendments to H.B. No. 2161 on May 27, 2005, and requested
the appointment of a conference committee to consider the
differences between the two houses; and that the House adopted the
conference committee report on H.B. No. 2161 on May 29, 2005, by a
non-record vote.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2161 was passed by the Senate, with
amendments, on May 25, 2005, by the following vote: Yeas 30, Nays
1; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
2161 on May 29, 2005, by the following vote: Yeas 20, Nays 0, 1
present, not voting.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor