82R9177 TRH-D By: Parker H.B. No. 2126 A BILL TO BE ENTITLED AN ACT relating to the amount and use of an administrative penalty imposed by the Railroad Commission of Texas for certain violations that occur in certain populous natural gas producing counties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 81.0531, Natural Resources Code, is amended by amending Subsections (a), (b), and (e) and adding Subsections (a-1), (b-1), (b-2), and (f) to read as follows: (a) In this section, "urban natural gas producing county" means a county: (1) with a population of 650,000 or more; and (2) in which there are more than 2,000 producing gas wells. (a-1) 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) Except as provided by Subsection (b-1), the [The] penalty may not exceed $10,000 a day for each violation. (b-1) The penalty may not exceed $20,000 a day for each violation that: (1) occurs in a county that is an urban natural gas producing county; and (2) is of a provision of this title that pertains to safety or the prevention or control of pollution. (b-2) Each day a violation continues may be considered a separate violation for purposes of penalty assessments. (e) Except as provided by Subsection (f), a [A] penalty collected under this section shall be deposited to the credit of the oil-field cleanup fund. (f) The portion of the amount of a penalty collected under this section for a violation described by Subsection (b-1) that exceeds $10,000 a day may be appropriated only to the commission to be used for activities and equipment related to the inspection of gas wells in urban natural gas producing counties. SECTION 2. Section 91.111(c), Natural Resources Code, is amended to read as follows: (c) The fund consists of: (1) penalties imposed under Section 85.381 for violation of a law, order, or rule relating to well plugging requirements; (2) proceeds from bonds and other financial security required by this chapter and benefits under well-specific plugging insurance policies described by Section 91.104(c) that are paid to the state as contingent beneficiary of the policies, subject to the refund provisions of Section 91.1091, if applicable; (3) private contributions, including contributions made under Section 89.084; (4) expenses collected under Section 89.083; (5) fees imposed under Section 85.2021; (6) civil penalties collected for violations of Chapter 89 or of rules or orders relating to plugging that are adopted under this code; (7) proceeds collected under Sections 89.085 and 91.115; (8) interest earned on the funds deposited in the fund; (9) civil penalties or costs recovered under Section 91.457 or 91.459; (10) oil and gas waste hauler permit application fees collected under Section 29.015, Water Code; (11) costs recovered under Section 91.113(f); (12) hazardous oil and gas waste generation fees collected under Section 91.605; (13) oil-field cleanup regulatory fees on oil collected under Section 81.116; (14) oil-field cleanup regulatory fees on gas collected under Section 81.117; (15) fees for a reissued certificate collected under Section 91.707; (16) fees collected under Section 91.1013; (17) fees collected under Section 89.088; (18) penalties collected under Section 81.0531, except as otherwise provided by that section; (19) fees collected under Section 91.142; (20) fees collected under Section 91.654; (21) costs recovered under Sections 91.656 and 91.657; (22) two-thirds of the fees collected under Section 81.0521; (23) fees collected under Sections 89.024 and 89.026; and (24) legislative appropriations. SECTION 3. The changes in law made by this Act apply only to a violation occurring on or after the effective date of this Act. A violation occurring before the effective date of this Act is subject to the law in effect on the date the violation occurred, and that law is continued in effect for that purpose. SECTION 4. This Act takes effect September 1, 2011.