86R2617 JXC-D
	By: Wilson	H.B. No. 509

	A BILL TO BE ENTITLED
	AN ACT
	relating to the regulation of aggregate production operations by
	the Railroad Commission of Texas; authorizing a fee; providing
	administrative penalties and other civil remedies; creating
	criminal offenses.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Title 4, Natural Resources Code, is amended by
	adding Chapter 135 to read as follows:
	CHAPTER 135. AGGREGATE PRODUCTION OPERATIONS
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 135.0001.  DEFINITIONS. In this chapter:
	(1)  "Aggregate production operation" means an
	extraction operation at an aggregate production operation site
	described by Section 28A.001(1), Water Code.
	(2)  "Commission" means the Railroad Commission of
	Texas.
	SUBCHAPTER B. POWERS AND DUTIES OF COMMISSION
	Sec. 135.0051.  GENERAL AUTHORITY OF COMMISSION. To
	accomplish the purposes of this chapter, the commission may:
	(1)  adopt, amend, and enforce rules pertaining to
	aggregate production operations consistent with this chapter;
	(2)  issue permits under this chapter;
	(3)  conduct hearings under this chapter and Chapter
	2001, Government Code;
	(4)  issue orders requiring a person to take actions
	necessary to comply with this chapter or rules adopted under this
	chapter;
	(5)  issue orders modifying previous orders;
	(6)  issue a final order revoking the permit of a person
	who has not complied with a commission order to take action required
	by this chapter or rules adopted under this chapter;
	(7)  hire employees, adopt standards for employment,
	and hire or authorize the hiring of outside contractors to assist in
	carrying out this chapter;
	(8)  accept, receive, and administer grants, gifts,
	loans, or other money made available from any source for the
	purposes of this chapter; and
	(9)  perform any other duty or act required by or
	provided for in this chapter.
	Sec. 135.0052.  MONITORING, REPORTING, AND INSPECTIONS. (a)
	The commission may:
	(1)  require monitoring and reporting;
	(2)  enter and inspect aggregate production
	operations; and
	(3)  take other actions necessary to administer,
	enforce, or evaluate the administration of this chapter.
	(b)  For purposes of this section, the commission or its
	authorized representative:
	(1)  without advance notice and on presentation of
	appropriate credentials, has the right to enter:
	(A)  an aggregate production operation; or
	(B)  premises on which records required to be
	maintained are located; and
	(2)  at reasonable times and without delay, may have
	access to and copy records required under this chapter or rules
	adopted under this chapter or inspect any monitoring equipment or
	method of operation required under this chapter or rules adopted
	under this chapter.
	Sec. 135.0053.  COORDINATION BETWEEN AGENCIES. (a) To
	avoid duplication, the commission shall establish a process for
	coordinating the review and issuance of permits under this chapter
	for aggregate production operations with the review and issuance of
	any other federal or state authorizations required for the proposed
	operations.
	(b)  In cooperation with the appropriate units of local
	government and other state agencies, the commission shall
	coordinate and streamline procedures under this chapter to the
	extent possible.
	(c)  The commission may enter into a memorandum of
	understanding with the Texas Commission on Environmental Quality,
	the Texas Department of Transportation, or another state agency to
	implement and administer this chapter or other state law applicable
	to aggregate production operations.
	SUBCHAPTER C. PERMIT
	Sec. 135.0101.  PERMIT REQUIRED. A person may not conduct an
	aggregate production operation in this state without first
	obtaining a permit for that operation from the commission under
	this chapter.
	Sec. 135.0102.  CONTENTS OF PERMIT APPLICATION.  A permit
	application must be submitted in a manner satisfactory to the
	commission and must contain:
	(1)  the name and address of:
	(A)  the applicant;
	(B)  each owner of record of the property from
	which aggregates are to be produced;
	(C)  each holder of record of any leasehold
	interest in the property;
	(D)  the purchaser of record of the property under
	a real estate contract;
	(E)  the operator if the operator is not the
	applicant;
	(F)  the principals, officers, and resident agent
	of a person described by Paragraph (A), (B), (C), (D), or (E) if the
	person is a business entity other than a sole proprietor; and
	(G)  the owners of record of the property
	adjoining the permit area;
	(2)  additional information about ownership and
	management of the applicant or operator if required by commission
	rule;
	(3)  a copy of the notice required by Section 135.0106;
	(4)  a description of:
	(A)  the type and method of the existing or
	proposed aggregate production operation;
	(B)  the engineering techniques proposed or in
	use; and
	(C)  the equipment in use or proposed to be used;
	(5)  the anticipated or actual starting and termination
	dates of each phase of the aggregate production operation and
	number of acres of land to be affected;
	(6)  an accurate map or plan, to an appropriate scale,
	clearly showing:
	(A)  the land to be affected as of the date of the
	application; and
	(B)  the area of land in the permit area on which
	the applicant has the right to enter and begin aggregate production
	operations;
	(7)  the documents on which the applicant bases the
	applicant's right to enter and begin aggregate production
	operations on the affected area, including documentation of any
	required permit, license, safety certificate, registration, or
	other authorization issued by a federal agency, the Texas
	Commission on Environmental Quality, another state agency, or a
	political subdivision;
	(8)  a statement of whether the applicant's right to
	enter and begin aggregate production operations on the affected
	area is the subject of pending court litigation;
	(9)  a plan for constructing acceleration and
	deceleration lanes for egress from and ingress to the aggregate
	production operation to protect public safety;
	(10)  a description of the types of property
	surrounding the permit area and potential impacts of the aggregate
	production operation on any residents of the surrounding area;
	(11)  the distance of the permit area from the closest
	residential area;
	(12)  a description of the potential impacts of the
	aggregate production operation on the local economy near the permit
	area; and
	(13)  other data and maps the commission requires by
	rule.
	Sec. 135.0103.  ADDITIONAL PERMIT APPLICATION CONTENTS;
	HYDROLOGY ASSESSMENT.  (a)  In addition to the content required
	under Section 135.0102, a permit application must contain:
	(1)  the name of the watershed and location of the
	surface streams or tributaries into which surface and pit drainage
	will be discharged;
	(2)  a determination of the probable hydrologic
	consequences of the aggregate production operation, if any, both on
	and off the site, with respect to the hydrologic regime and the
	quantity and quality of water in surface-water systems and
	groundwater systems, including the dissolved and suspended solids
	under seasonal flow conditions; and
	(3)  sufficient data on the site and surrounding area
	for the commission to assess the probable cumulative impacts of all
	anticipated aggregate production operations in the area on the
	hydrology of the area, particularly on water availability.
	(b)  An applicant may submit the information and
	determination required to be included with a permit application
	under Subsection (a) separately from the other components of the
	application if information on the hydrology of the area is not
	available from the appropriate state agencies or political
	subdivisions at the time the other components are submitted.  A
	permit may not be approved until the information and determination
	required to be included with a permit application under Subsection
	(a) have been submitted to the commission.
	(c)  After receiving a complete permit application, the
	commission, in collaboration with the Texas Commission on
	Environmental Quality and any political subdivisions with relevant
	jurisdiction, shall:
	(1)  assess the applicant's hydrologic determination
	made under Subsection (a)(2);
	(2)  assess the probable cumulative impact that all
	anticipated aggregate production operations in the area will have
	on the hydrologic balance, using the information provided by the
	applicant under this section and any other information; and
	(3)  determine whether the operation proposed in the
	application has been designed to prevent material damage to the
	hydrologic balance outside the permit area.
	Sec. 135.0104.  APPLICATION FEES. (a) An application for an
	aggregate production operation permit or for revision of a permit
	must be accompanied by an application fee determined by the
	commission in accordance with a published fee schedule. The
	commission shall base the application fee as nearly as possible on
	the actual or anticipated cost of reviewing the application.
	(b)  The application fee may not be less than:
	(1)  $5,000 for an initial permit; or
	(2)  $500 for revision of a permit.
	Sec. 135.0105.  PUBLIC INSPECTION OF APPLICATION. (a) An
	applicant for an aggregate production operation permit shall file a
	copy of the application for public inspection with the county clerk
	of the county in which the production is proposed to occur.
	(b)  Copies of any records, reports, inspection materials,
	or information obtained under this chapter by the commission shall
	be made immediately available to the public at central and
	sufficient locations in the area of aggregate production so that
	they are conveniently available to residents in that area.
	Sec. 135.0106.  PUBLIC NOTICE BY APPLICANT. At the time the
	applicant submits a complete application for an aggregate
	production operation permit, the applicant shall publish an
	advertisement in a newspaper of general circulation in the locality
	of the proposed aggregate production operation at least once a week
	for four consecutive weeks that:
	(1)  shows the ownership and describes the location and
	boundaries of the proposed site sufficiently so that the proposed
	operation can be readily located; and
	(2)  states that the application is available for
	public inspection at the county courthouse of the county in which
	the property lies.
	Sec. 135.0107.  NOTIFICATION OF POLITICAL SUBDIVISIONS. (a)
	The commission shall send notice of a permit application to
	planning agencies, sewage and water treatment authorities, special
	districts with jurisdiction over water, municipalities, and any
	other political subdivisions with relevant jurisdiction in the
	locality of the proposed site.
	(b)  The notice must indicate the application number and the
	county courthouse in which a copy of the application can be
	inspected.
	(c)  To facilitate the commission's evaluation of the permit
	application content required under Section 135.0102(7), the
	commission shall include with the notice a request for the
	recipient of the notice to provide to the commission in a timely
	manner information on any authorizations or other documents that
	the applicant is required to obtain from the recipient before
	beginning the aggregate production operation.
	Sec. 135.0108.  COMMENTS ON LOCAL EFFECTS; OBJECTIONS.  (a)
	During a period established by the commission, a federal or state
	agency, a political subdivision, or any other affected person may
	submit to the commission written comments on the potential effects
	of the proposed aggregate production operation on the environment
	or economy of the locality of the operation.
	(b)  Not later than the 30th day after the date of the last
	publication of notice under Section 135.0106, a federal or state
	agency, a political subdivision, or any other affected person may
	submit to the commission written objections to the proposed
	aggregate production operation.
	(c)  The commission shall:
	(1)  immediately send the comments and objections to
	the applicant; and
	(2)  make the comments and objections available to the
	public at the same location as the aggregate production operation
	permit application.
	Sec. 135.0109.  REQUEST FOR PUBLIC HEARING; NOTICE. (a) Not
	later than the 45th day after the date of the last publication of
	notice under Section 135.0106, the applicant or an affected person
	may request a hearing on the application. The hearing shall be held
	not later than the 30th day after the date the commission receives
	the request.
	(b)  The commission shall publish notice of the date, time,
	and location of the public hearing in a local newspaper of general
	circulation in the locality of the proposed aggregate production
	operation at least once a week for three consecutive weeks before
	the scheduled hearing date.
	Sec. 135.0110.  PROCEDURE. Chapter 2001, Government Code,
	applies to a permit application under this chapter. Notice of
	hearing and appeal is governed by that chapter, except as provided
	by Section 135.0109.
	Sec. 135.0111.  NOTICE OF APPROVAL OR DENIAL. (a)  The
	commission shall notify the applicant and each person who submitted
	an objection under Section 135.0108 that the permit application has
	been approved or denied:
	(1)  within the time provided by Chapter 2001,
	Government Code, if a public hearing is held under Section
	135.0109; or
	(2)  not later than the 45th day after the date of the
	last publication of notice of application if a public hearing is not
	held.
	(b)  The notice provided to the applicant under this section
	must be written.
	Sec. 135.0112.  PERMIT APPROVAL OR DENIAL. (a) On the basis
	of a complete application for an aggregate production operation
	permit or a revision of a permit, as required by this chapter, the
	commission shall approve, require modification of, or deny a permit
	application.
	(b)  An applicant for a permit or a permit revision has the
	burden of establishing that the application complies with this
	chapter.
	(c)  Not later than the 10th day after the date the
	commission issues a permit, the commission shall notify the county
	judge in each county in which the land to be affected is located
	that a permit has been issued and shall describe the location of the
	land.
	(d)  The commission may deny a permit based on:
	(1)  a violation by the applicant of a provision of this
	chapter or a commission rule adopted under this chapter;
	(2)  a finding by another state agency that the
	applicant has violated a law or rule administered by that agency
	related to the proposed aggregate production operation;
	(3)  the failure of the applicant to obtain an
	authorization or document that the applicant is required to obtain
	from a federal or state agency or a political subdivision before
	beginning the aggregate production operation;
	(4)  a determination made under Section 135.0103(c)
	that the operation has not been designed to prevent material damage
	to the hydrologic balance outside the permit area;
	(5)  a comment or objection submitted under Section
	135.0108; or
	(6)  testimony given in a public hearing held under
	Section 135.0109.
	Sec. 135.0113.  WRITTEN FINDINGS REQUIRED. The commission
	may not approve an application for a permit or a permit revision
	unless it finds, in writing, using the information in the
	application or information otherwise available that will be
	documented in the approval and made available to the applicant,
	that:
	(1)  the application is accurate and complete and
	complies with this chapter; and
	(2)  the commission has determined under Section
	135.0103(c) that the proposed operation has been designed to
	prevent material damage to the hydrologic balance outside the
	permit area.
	Sec. 135.0114.  PERMIT REVISIONS. (a) The commission by
	rule shall require that a permit holder:
	(1)  notify the commission of any significant changes
	in a condition that the commission evaluated as part of the permit
	application process that occur after the permit was issued; and
	(2)  apply for a permit revision if the commission
	determines a revision is appropriate.
	(b)  The rules must require that, except for incidental
	boundary changes, a permit revision that involves extending the
	aggregate production operation beyond the boundaries authorized in
	the permit meet all standards applicable to a new permit
	application under this chapter.
	Sec. 135.0115.  WAIVER FOR CERTAIN OPERATIONS. (a)  Except
	as provided by Subsection (b), the requirements of this chapter are
	waived for an aggregate production operation that, on August 31,
	2019:
	(1)  is registered with the Texas Commission on
	Environmental Quality under Chapter 28A, Water Code; and
	(2)  has all permits, licenses, safety certificates,
	registrations, or other authorizations required by law for the
	operation of an aggregate production operation, including permits
	issued by the Texas Commission on Environmental Quality under
	Chapter 382, Health and Safety Code.
	(b)  The commission by rule shall require that a person
	operating an aggregate production operation described by
	Subsection (a):
	(1)  notify the commission of any significant changes
	in a condition that would have been evaluated as part of a permit
	application process if the operation had been required to obtain a
	permit under this chapter; and
	(2)  obtain a permit under this chapter if the
	commission determines that it is appropriate to require a permit.
	(c)  The commission, in consultation with the Texas
	Commission on Environmental Quality, shall publish a list of
	aggregate production operations that qualify for a waiver under
	this section and update the publication as necessary to provide
	information on permits issued under Subsection (b).
	SUBCHAPTER D. ENFORCEMENT
	Sec. 135.0151.  CIVIL OR ADMINISTRATIVE ENFORCEMENT.
	Subchapter H, Chapter 134, applies to the civil or administrative
	enforcement of this chapter or a rule, order, or permit adopted or
	issued under this chapter in the same manner as that subchapter
	applies to the civil or administrative enforcement of that chapter
	or a rule, order, or permit adopted or issued under that chapter.
	Sec. 135.0152.  CRIMINAL PENALTY FOR WILFUL AND KNOWING
	VIOLATION. (a) A person commits an offense if the person wilfully
	and knowingly violates a condition of a permit issued under this
	chapter or does not comply with an order issued under this chapter,
	except an order incorporated in a decision issued by the commission
	under Section 134.175, as applicable under Section 135.0151.
	(b)  An offense under this section is punishable by:
	(1)  a fine of not more than $10,000;
	(2)  imprisonment for not more than one year; or
	(3)  both the fine and the imprisonment.
	Sec. 135.0153.  CRIMINAL PENALTY FOR FALSE STATEMENT,
	REPRESENTATION, OR CERTIFICATION. (a) A person commits an offense
	if the person knowingly makes a false statement, representation, or
	certification, or knowingly fails to make a statement,
	representation, or certification, in an application, record,
	report, or other document filed or required to be maintained under
	this chapter or under an order of decision issued by the commission
	under this chapter.
	(b)  An offense under this section is punishable by:
	(1)  a fine of not more than $10,000;
	(2)  imprisonment for not more than one year; or
	(3)  both the fine and the imprisonment.
	SECTION 2.  This Act takes effect September 1, 2019.