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A BILL TO BE ENTITLED
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AN ACT
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relating to standards and procedures for determining whether a |
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person who owns, operates, or manages a pipeline is a common |
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carrier; authorizing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 111.002, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 111.002. COMMON CARRIERS UNDER CHAPTER. (a) Except as |
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provided by Subsection (b), a [A] person is a common carrier subject |
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to the provisions of this chapter if it: |
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(1) owns, operates, or manages a pipeline or any part |
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of a pipeline in the State of Texas for the transportation of crude |
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petroleum to or for the public for hire, or engages in the business |
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of transporting crude petroleum by pipeline; |
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(2) owns, operates, or manages a pipeline or any part |
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of a pipeline in the State of Texas for the transportation of crude |
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petroleum to or for the public for hire and the pipeline is |
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constructed or maintained on, over, or under a public road or |
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highway, or is an entity in favor of whom the right of eminent |
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domain exists; |
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(3) owns, operates, or manages a pipeline or any part |
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of a pipeline in the State of Texas for the transportation of crude |
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petroleum to or for the public for hire which is or may be |
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constructed, operated, or maintained across, on, along, over, or |
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under the right-of-way of a railroad, corporation, or other common |
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carrier required by law to transport crude petroleum as a common |
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carrier; |
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(4) under lease, contract of purchase, agreement to |
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buy or sell, or other agreement or arrangement of any kind, owns, |
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operates, manages, or participates in ownership, operation, or |
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management of a pipeline or part of a pipeline in the State of Texas |
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for the transportation of crude petroleum, bought of others, from |
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an oil field or place of production within this state to any |
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distributing, refining, or marketing center or reshipping point |
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within this state; |
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(5) owns, operates, or manages, wholly or partially, |
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pipelines for the transportation for hire of coal in whatever form |
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or of any mixture of substances including coal in whatever form; |
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(6) owns, operates, or manages, wholly or partially, |
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pipelines for the transportation of carbon dioxide or hydrogen in |
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whatever form to or for the public for hire, but only if such person |
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files with the commission a written acceptance of the provisions of |
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this chapter expressly agreeing that, in consideration of the |
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rights acquired, it becomes a common carrier subject to the duties |
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and obligations conferred or imposed by this chapter; or |
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(7) owns, operates, or manages a pipeline or any part |
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of a pipeline in the State of Texas for the transportation of |
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feedstock for carbon gasification, the products of carbon |
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gasification, or the derivative products of carbon gasification, in |
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whatever form, to or for the public for hire, but only if the person |
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files with the commission a written acceptance of the provisions of |
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this chapter expressly agreeing that, in consideration of the |
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rights acquired, it becomes a common carrier subject to the duties |
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and obligations conferred or imposed by this chapter. |
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(b) A pipeline owner, operator, or manager is not a common |
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carrier subject to the provisions of this chapter unless at least 10 |
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percent of the pipeline's capacity is used or is reasonably likely |
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to be used to transport one or more substances for one or more |
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persons who are not: |
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(1) corporate parents of the owner, operator, or |
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manager; |
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(2) subsidiaries of the owner, operator, or manager; |
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or |
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(3) under common control with the owner, operator, or |
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manager. |
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SECTION 2. Chapter 111, Natural Resources Code, is amended |
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by adding Subchapter B-1 to read as follows: |
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SUBCHAPTER B-1. COMMON CARRIER DETERMINATION HEARINGS |
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Sec. 111.041. COMMON CARRIER DETERMINATION. (a) A person |
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who owns, operates, or manages a pipeline may not exercise the power |
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of eminent domain granted by Section 111.019 to construct a |
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pipeline unless the State Office of Administrative Hearings |
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determines that the person is a common carrier as defined by Section |
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111.002 following one or more hearings conducted under this |
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subchapter. |
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(b) A person who owns, operates, or manages a pipeline may |
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submit a request to the commission for a determination of whether |
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the person is a common carrier. |
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Sec. 111.042. DUTIES OF COMMISSION. (a) The commission |
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shall: |
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(1) review a request submitted under Section 111.041 |
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for administrative completeness; and |
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(2) forward a complete request submitted under Section |
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111.041 to the State Office of Administrative Hearings. |
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(b) The commission shall charge a person who submits a |
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complete request under Section 111.041 a fee for making a common |
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carrier determination. |
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(c) The commission by rule shall establish the amount of the |
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fee to be charged under this section. The commission may establish a |
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fee schedule listing different amounts the commission may charge |
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for making a common carrier determination according to the location |
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and length of the pipeline at issue. |
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(d) The fee must be in an amount that covers the costs |
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incurred by the commission and the State Office of Administrative |
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Hearings in determining whether the person is a common carrier. The |
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commission shall consult with the State Office of Administrative |
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Hearings to determine the costs that the commission and the office |
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will incur in making determinations under this subchapter. |
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(e) Money collected by the commission under this section |
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shall be deposited in the general revenue fund to the credit of the |
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commission. |
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Sec. 111.043. DUTIES OF STATE OFFICE OF ADMINISTRATIVE |
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HEARINGS. (a) The State Office of Administrative Hearings shall |
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conduct a hearing on a request received by the office from the |
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commission under Section 111.042 to determine whether the person |
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who submitted the request is a common carrier as defined by Section |
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111.002. A hearing conducted under this subsection is a contested |
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case hearing under Chapter 2001, Government Code. |
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(b) The State Office of Administrative Hearings may not |
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conduct a hearing on a request until the person who submitted the |
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request pays the fee required by Section 111.042. |
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(c) Before issuing a final decision on a request, the State |
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Office of Administrative Hearings shall hold at least one public |
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hearing on the request in a county in which the pipeline is or will |
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be located. The office shall determine whether a public hearing in |
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more than one county is necessary based on the location and length |
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of the proposed pipeline. |
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(d) As soon as practicable after the hearing or hearings on |
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a request are concluded, the State Office of Administrative |
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Hearings shall issue a final determination as to whether the person |
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who submitted the request is a common carrier as defined by Section |
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111.002. |
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Sec. 111.044. INTERAGENCY CONTRACT. The commission and the |
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State Office of Administrative Hearings shall enter into an |
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interagency contract to pay the costs incurred by the office in |
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implementing this section. |
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SECTION 3. Not later than the 30th day after the effective |
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date of this Act, the Railroad Commission of Texas shall adopt rules |
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to implement the changes in law made by this Act to Chapter 111, |
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Natural Resources Code. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |