Bill Text: TX SB1639 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to certain exceptions and permits granted by the Railroad Commission.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-03-23 - Referred to Natural Resources [SB1639 Detail]
Download: Texas-2011-SB1639-Introduced.html
| By: Davis | S.B. No. 1639 | |
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| relating to certain exceptions and permits granted by the Railroad | ||
| Commission. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter C, Chapter 81, Natural Resources | ||
| Code, is amended by adding Section 81.05211 to read as follows: | ||
| Sec.81.05211 RAILROAD COMMISSION JURISDICTION AND RULES IN | ||
| CERTAIN COUNTIES. (a) This section applies only to a gas well | ||
| located in a county that is located wholly or partly above a | ||
| hydrocarbon-producing geological formation that underlies all or | ||
| part of two counties: | ||
| (1) that are adjacent to one another; and | ||
| (2) each of which has a population of more than 1.4 | ||
| million. | ||
| (b) This section shall be interpreted broadly regarding the | ||
| power of rules and permits granted under Sections 81.051,81.052 and | ||
| 81.0521 of this Subchapter. | ||
| (c) For any permit or exception to any rule derived from the | ||
| authority given to the Commission by this subchapter that would | ||
| allow a well for gas be drilled closer than the limits permitted by | ||
| Commission rules or applicable field rules, the applicant shall; | ||
| (1) provide a notice to each person the exception to | ||
| the rule or permit would affect. The notice shall be in plain | ||
| language and; | ||
| (A) shall identify the path of the proposed | ||
| wellbore and explain the method that will be used to recover | ||
| minerals from surrounding areas and adjacent properties, including | ||
| a surveyed drawing; | ||
| (B) shall explain that the person receiving | ||
| notice has the right to object to the applicant's exception or | ||
| permit and outline the procedure for the hearing including the | ||
| standards and burdens of proof; and, | ||
| (C) shall explain that not objecting to the | ||
| applicant's request may result in the depletion of minerals from | ||
| the property of the person receiving notice and could result in a | ||
| loss of compensation for their minerals and transfer of their | ||
| minerals to the operator or other mineral owners. | ||
| (2) The applicant must present in a hearing to the | ||
| Commission; | ||
| (A) that the exception or permit is necessary for | ||
| the most efficient process of collecting gas and not for the mere | ||
| convenience of the operator; | ||
| (B) the absence of feasible alternatives to the | ||
| proposed exception or permit; | ||
| (C) that all efforts were made to notify persons | ||
| affected by the exception or permit; and, | ||
| (D) the amount of minerals that would be depleted | ||
| from persons affected by the exception or permit and the | ||
| compensation that would be available to these persons if they had | ||
| been mineral interest pooled and to whom the minerals would be | ||
| transferred if produced. | ||
| (3) A hearing must take place before any exception or | ||
| permit is granted and the applicant shall bear the burden of proof. | ||
| (4) The commission shall hold the hearing in a county | ||
| located in the urban hydrocarbon-producing area in subsection (a) | ||
| of this section. | ||
| SECTION 2. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2011. | ||
