NATURAL RESOURCES CODE
TITLE 3. OIL AND GAS
SUBTITLE A. ADMINISTRATION
CHAPTER 81. RAILROAD COMMISSION OF TEXAS
SUBCHAPTER A. GENERAL PROVISIONS
§ 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, § 1, eff. Sept. 1,
1977.
SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1981, 67th Leg., p. 144, ch. 65, § 1, eff.
Sept. 1, 1981.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 81.021. DELEGATED PURCHASES. The commission is
delegated the authority to purchase goods and services under
Section 2155.132(a), Government Code, if the purchase does not
exceed $300,000.
Added by Acts 2003, 78th Leg., ch. 1272, § 1, eff. Sept. 1, 2003.
SUBCHAPTER C. JURISDICTION, POWERS, AND DUTIES
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1977, 65th Leg., p. 2694, ch. 871, art. II,
§ 5, eff. Sept. 1, 1977.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1979, 66th Leg., p. 19, ch. 12, § 1, eff.
March 15, 1979.
§ 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.
(c) Two-thirds of the proceeds from this 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.
Added by Acts 1985, 69th Leg., ch. 239, § 73, eff. Sept. 1, 1985.
Amended by Acts 2001, 77th Leg., ch. 1233, § 3, eff. Sept. 1,
2001.
§ 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, § 73, eff. Sept. 1, 1985.
Amended by Acts 2001, 77th Leg., ch. 1233, § 4, eff. Sept. 1,
2001.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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.
(c) In determining the amount of the penalty, the commission
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, § 1, eff. Sept.
1, 1983. Amended by Acts 1999, 76th Leg., ch. 1089, § 1, eff.
Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1233, § 5, eff. Sept. 1,
2001.
§ 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.
(c) If appropriate, the commission shall consolidate the
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, § 1, eff. Sept.
1, 1983.
§ 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.
(c) If through judicial review of the decision or order it
is 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, § 1, eff. Sept.
1, 1983. Amended by Acts 1995, 74th Leg., ch. 76, § 5.95(53),
(59), eff. Sept. 1, 1995.
§ 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, § 1, eff. Sept.
1, 1983.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1995, 74th Leg., ch. 310, § 5, eff. Aug.
28, 1995.
§ 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, § 6, eff. Sept. 1, 2001.
§ 81.057. EXEMPTION FROM CERTAIN PURCHASING RULES. The
commission is not required to follow any purchasing procedures
prescribed by or under the following laws when the commission makes
a purchase in connection with the remediation of surface locations
or well plugging:
(1) Subchapter E, Chapter 2155, Government Code;
(2) Section 2161.003 or 2161.004, Government Code;
(3) Subchapters D and F, Chapter 2161, Government
Code; and
(4) Subchapters B and C, Chapter 2177, Government
Code.
Added by Acts 2003, 78th Leg., ch. 1272, § 2, eff. Sept. 1, 2003.
SUBCHAPTER D. WITNESSES
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
SUBCHAPTER E. TAX
§ 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.
(c) Chapter 202, Tax Code, as amended, applies to the
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, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 1024, ch. 235, art. 5,
§ 3(a), eff. Sept. 1, 1983.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1981, 67th Leg., p. 144, ch. 65, § 1, eff.
Sept. 1, 1981.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1981, 67th Leg., p. 144, ch. 65, § 1, eff.
Sept. 1, 1981.
§ 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.
(c) Except as provided by Subsection (d) of this section,
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 of this code. The exemptions
and reductions set out in Sections 202.052, 202.054, 202.056,
202.057, and 202.059, 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, § 2, eff. Sept. 1, 1991.
Amended by Acts 2001, 77th Leg., ch. 1233, § 7, eff. Sept. 1,
2001; Acts 2003, 78th Leg., ch. 200, § 17, eff. Sept. 1, 2003.
§ 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.
(c) Except as provided by Subsection (d), the
administration, 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 of this code. The exemptions
and reductions set out in Sections 201.053, 201.057, and 201.058,
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, § 2, eff. Sept. 1, 1991.
Amended by Acts 2001, 77th Leg., ch. 1233, § 8, eff. Sept. 1,
2001; Acts 2003, 78th Leg., ch. 200, § 18, eff. Sept. 1, 2003.
SUBCHAPTER F. CAMPAIGNING
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1981, 67th Leg., p. 799, ch. 291, § 91,
eff. Sept. 1, 1981.
