Bill Text: TX SB1872 | 2023-2024 | 88th Legislature | Comm Sub
Bill Title: Relating to certain contracts for the sale, transportation, or gathering of natural gas.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2023-05-15 - Co-author authorized [SB1872 Detail]
Download: Texas-2023-SB1872-Comm_Sub.html
| By: Schwertner, Zaffirini | S.B. No. 1872 | |
| (In the Senate - Filed March 8, 2023; March 20, 2023, read | ||
| first time and referred to Committee on Business & Commerce; | ||
| May 1, 2023, reported adversely, with favorable Committee | ||
| Substitute by the following vote: Yeas 10, Nays 1; May 1, 2023, | ||
| sent to printer.) | ||
| COMMITTEE SUBSTITUTE FOR S.B. No. 1872 | By: Schwertner | |
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| relating to certain contracts for the sale, transportation, or | ||
| gathering of natural gas. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 81.060, Natural Resources Code, is | ||
| amended by adding Subsections (c) and (d) to read as follows: | ||
| (c) A confidentiality provision may not be required in a | ||
| contract between the owner or operator of a pipeline and a shipper | ||
| for the sale, transportation, or gathering of natural gas that is | ||
| entered into on or after September 1, 2023, unless the inclusion of | ||
| the confidentiality provision is requested in writing by one of the | ||
| parties to the contract before the execution of the contract. | ||
| (d) A confidentiality provision in a contract between the | ||
| owner or operator of a pipeline and a shipper for the sale, | ||
| transportation, or gathering of natural gas that was entered into | ||
| before September 1, 2023, becomes unenforceable on the date the | ||
| term of the contract expires, unless the continuation of the | ||
| confidentiality provision is requested in writing by one of the | ||
| parties to the contract before the date the term of the contract | ||
| expires. | ||
| SECTION 2. Subchapter C, Chapter 86, Natural Resources | ||
| Code, is amended by adding Section 86.045 to read as follows: | ||
| Sec. 86.045. INVESTIGATION OF USE OF FORCE MAJEURE. (a) | ||
| During a weather emergency, a purchaser of natural gas that | ||
| receives a notice from a person with which the purchaser contracted | ||
| to receive natural gas that the person can no longer make natural | ||
| gas available for delivery to the purchaser due to force majeure may | ||
| report to the commission that: | ||
| (1) the purchaser received the notice; and | ||
| (2) the purchaser reasonably believes that the person | ||
| sold the natural gas that would have otherwise been available for | ||
| delivery to the purchaser to a different purchaser at a higher price | ||
| than that provided in the original purchaser's contract. | ||
| (b) On receiving the report under Subsection (a), the | ||
| commission may investigate to determine whether a person providing | ||
| natural gas service has made a sale described by Subsection (a)(2) | ||
| in a manner that violates state law. If the commission determines | ||
| that the person has made a sale described by Subsection (a)(2) in a | ||
| manner that violates state law, the commission may notify the | ||
| attorney general. The attorney general may initiate a suit to | ||
| recover any penalties authorized by law. | ||
| SECTION 3. This Act takes effect September 1, 2023. | ||
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