| 1 | 1 | | By: Schwertner, Zaffirini S.B. No. 1872 |
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| 2 | 2 | | (In the Senate - Filed March 8, 2023; March 20, 2023, read |
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| 3 | 3 | | first time and referred to Committee on Business & Commerce; |
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| 4 | 4 | | May 1, 2023, reported adversely, with favorable Committee |
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| 5 | 5 | | Substitute by the following vote: Yeas 10, Nays 1; May 1, 2023, |
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| 6 | 6 | | sent to printer.) |
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| 7 | 7 | | Click here to see the committee vote |
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| 8 | 8 | | COMMITTEE SUBSTITUTE FOR S.B. No. 1872 By: Schwertner |
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| 9 | 9 | | |
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| 10 | 10 | | |
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| 11 | 11 | | A BILL TO BE ENTITLED |
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| 12 | 12 | | AN ACT |
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| 13 | 13 | | relating to certain contracts for the sale, transportation, or |
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| 14 | 14 | | gathering of natural gas. |
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| 15 | 15 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 16 | 16 | | SECTION 1. Section 81.060, Natural Resources Code, is |
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| 17 | 17 | | amended by adding Subsections (c) and (d) to read as follows: |
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| 18 | 18 | | (c) A confidentiality provision may not be required in a |
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| 19 | 19 | | contract between the owner or operator of a pipeline and a shipper |
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| 20 | 20 | | for the sale, transportation, or gathering of natural gas that is |
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| 21 | 21 | | entered into on or after September 1, 2023, unless the inclusion of |
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| 22 | 22 | | the confidentiality provision is requested in writing by one of the |
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| 23 | 23 | | parties to the contract before the execution of the contract. |
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| 24 | 24 | | (d) A confidentiality provision in a contract between the |
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| 25 | 25 | | owner or operator of a pipeline and a shipper for the sale, |
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| 26 | 26 | | transportation, or gathering of natural gas that was entered into |
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| 27 | 27 | | before September 1, 2023, becomes unenforceable on the date the |
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| 28 | 28 | | term of the contract expires, unless the continuation of the |
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| 29 | 29 | | confidentiality provision is requested in writing by one of the |
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| 30 | 30 | | parties to the contract before the date the term of the contract |
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| 31 | 31 | | expires. |
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| 32 | 32 | | SECTION 2. Subchapter C, Chapter 86, Natural Resources |
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| 33 | 33 | | Code, is amended by adding Section 86.045 to read as follows: |
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| 34 | 34 | | Sec. 86.045. INVESTIGATION OF USE OF FORCE MAJEURE. (a) |
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| 35 | 35 | | During a weather emergency, a purchaser of natural gas that |
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| 36 | 36 | | receives a notice from a person with which the purchaser contracted |
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| 37 | 37 | | to receive natural gas that the person can no longer make natural |
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| 38 | 38 | | gas available for delivery to the purchaser due to force majeure may |
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| 39 | 39 | | report to the commission that: |
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| 40 | 40 | | (1) the purchaser received the notice; and |
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| 41 | 41 | | (2) the purchaser reasonably believes that the person |
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| 42 | 42 | | sold the natural gas that would have otherwise been available for |
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| 43 | 43 | | delivery to the purchaser to a different purchaser at a higher price |
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| 44 | 44 | | than that provided in the original purchaser's contract. |
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| 45 | 45 | | (b) On receiving the report under Subsection (a), the |
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| 46 | 46 | | commission may investigate to determine whether a person providing |
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| 47 | 47 | | natural gas service has made a sale described by Subsection (a)(2) |
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| 48 | 48 | | in a manner that violates state law. If the commission determines |
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| 49 | 49 | | that the person has made a sale described by Subsection (a)(2) in a |
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| 50 | 50 | | manner that violates state law, the commission may notify the |
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| 51 | 51 | | attorney general. The attorney general may initiate a suit to |
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| 52 | 52 | | recover any penalties authorized by law. |
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| 53 | 53 | | SECTION 3. This Act takes effect September 1, 2023. |
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| 54 | 54 | | * * * * * |
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