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A BILL TO BE ENTITLED
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AN ACT
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relating to certain exceptions and permits granted by the Railroad |
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Commission. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 81, Natural Resources |
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Code, is amended by adding Section 81.05211 to read as follows: |
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Sec.81.05211 RAILROAD COMMISSION JURISDICTION AND RULES IN |
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CERTAIN COUNTIES. (a) This section applies only to a gas well |
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located in a county that is located wholly or partly above a |
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hydrocarbon-producing geological formation that underlies all or |
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part of two counties: |
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(1) that are adjacent to one another; and |
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(2) each of which has a population of more than 1.4 |
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million. |
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(b) This section shall be interpreted broadly regarding the |
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power of rules and permits granted under Sections 81.051,81.052 and |
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81.0521 of this Subchapter. |
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(c) For any permit or exception to any rule derived from the |
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authority given to the Commission by this subchapter that would |
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allow a well for gas be drilled closer than the limits permitted by |
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Commission rules or applicable field rules, the applicant shall; |
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(1) provide a notice to each person the exception to |
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the rule or permit would affect. The notice shall be in plain |
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language and; |
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(A) shall identify the path of the proposed |
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wellbore and explain the method that will be used to recover |
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minerals from surrounding areas and adjacent properties, including |
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a surveyed drawing; |
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(B) shall explain that the person receiving |
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notice has the right to object to the applicant's exception or |
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permit and outline the procedure for the hearing including the |
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standards and burdens of proof; and, |
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(C) shall explain that not objecting to the |
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applicant's request may result in the depletion of minerals from |
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the property of the person receiving notice and could result in a |
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loss of compensation for their minerals and transfer of their |
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minerals to the operator or other mineral owners. |
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(2) The applicant must present in a hearing to the |
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Commission; |
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(A) that the exception or permit is necessary for |
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the most efficient process of collecting gas and not for the mere |
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convenience of the operator; |
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(B) the absence of feasible alternatives to the |
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proposed exception or permit; |
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(C) that all efforts were made to notify persons |
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affected by the exception or permit; and, |
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(D) the amount of minerals that would be depleted |
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from persons affected by the exception or permit and the |
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compensation that would be available to these persons if they had |
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been mineral interest pooled and to whom the minerals would be |
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transferred if produced. |
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(3) A hearing must take place before any exception or |
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permit is granted and the applicant shall bear the burden of proof. |
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(4) The commission shall hold the hearing in a county |
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located in the urban hydrocarbon-producing area in subsection (a) |
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of this section. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |