By: Keffer (Senate Sponsor - Fraser) H.B. No. 2571 (In the Senate - Received from the House April 29, 2013; May 2, 2013, read first time and referred to Committee on Natural Resources; May 8, 2013, reported favorably by the following vote: Yeas 10, Nays 0; May 8, 2013, sent to printer.) A BILL TO BE ENTITLED AN ACT relating to the inspection of certain information regarding the production, transportation, sale, and marketing of oil and gas from state land; imposing an administrative penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 52.135, Natural Resources Code, is amended by adding Subsections (a-1), (a-2), (a-3), (e), and (f) and amending Subsection (c) to read as follows: (a-1) Not later than the 60th day after the date of receipt of a request from the commissioner, the attorney general, or the governor for information described by Subsection (a), a lessee shall produce the requested information. (a-2) A lessee who is unable to produce requested information in the time required by Subsection (a-1) must, not later than the 30th day after the date of receipt of a request for the information, reply in writing to the requestor and state the reason for the inability to provide the information in the time required and when the information will be available. A requestor who receives a reply under this subsection may extend the deadline for the production of the requested information by written response to the lessee. If the requestor does not extend the deadline, the lessee shall produce the information not later than the later of: (1) the fifth day after the date of receipt of a written response from the requestor rejecting the extension; or (2) the 60th day after the date of receipt of the original request. (a-3) A lessee who withholds requested information on a good faith legal basis must, not later than the 60th day after the date of receipt of a request for the information, provide the requestor with a detailed explanation of the basis for withholding the information. (c) A [The] lessee shall have 30 days from the date of the receipt of an [such] audit billing notice under Subsection (b) or a notice of a penalty assessment under Subsection (e) in which to pay the [such] audit deficiency assessment or penalty or to request a hearing before the commissioner or the commissioner's [his] representative for redetermination of the [such] assessment or to challenge the assessment of the penalty. A statement of grounds setting out in detail the lessee's reasons for disagreement with the [such] assessment or penalty and the factual and legal grounds on which the claim is based must be submitted by a lessee with its request for a hearing. The [Such] hearing shall be conducted in accordance with the rules and procedures established by the commissioner. (e) Except as provided by Subsection (f), the commissioner may assess an administrative penalty against a lessee who fails to produce requested information in the time required under Subsection (a-1) or (a-2) by intentionally withholding information to which the land office is legally entitled. The penalty may not exceed: (1) $100 a day for each day after the deadline for producing the information that the lessee fails to produce the information until the 60th day after the deadline; and (2) $1,000 a day for each day after the 60th day after the deadline for producing the information that the lessee fails to produce the information. (f) The commissioner may not assess a penalty against a lessee who withholds information under Subsection (a-3) until the commissioner determines that the requestor is entitled to the information. SECTION 2. Section 52.135, Natural Resources Code, as amended by this Act, applies only to a request for information made under that section on or after the effective date of this Act. A request for information made under that section before the effective date of this Act is governed by the law in effect on the date of the request, and the former law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2013. * * * * *