CHAPTER 121. GAS PIPELINES

UTILITIES CODE

TITLE 3. GAS REGULATION

SUBTITLE B. REGULATION OF TRANSPORTATION AND USE

CHAPTER 121. GAS PIPELINES

SUBCHAPTER A. GAS UTILITY DEFINED

Sec. 121.001. DEFINITION OF GAS UTILITY. (a) In this chapter,

"gas utility" means a person who owns, manages, operates, leases,

or controls in this state property or equipment or a pipeline,

plant, facility, franchise, license, or permit for a business

that:

(1) transports, conveys, distributes, or delivers natural gas:

(A) for public use or service for compensation;

(B) for sale to municipalities or persons engaged in

distributing or selling natural gas to the public, in a situation

described by Subdivision (3);

(C) for sale or delivery to a person operating under a franchise

or contract with a political subdivision of this state; or

(D) for sale or delivery to the public for domestic or other

use;

(2) owns, operates, or manages a pipeline:

(A) that is for transporting or carrying natural gas, whether

for public hire or not; and

(B) for which the right-of-way has been or is hereafter acquired

by exercising the right of eminent domain; or

(3) produces or purchases natural gas and transports or causes

the transportation of natural gas by a pipeline to or near the

limits of a municipality in which the gas is received and

distributed or sold to the public by another gas utility or by

the municipality in a situation in which the business is the only

or practically the only agency of supply of natural gas to the

gas utility or municipality.

(b) In this subchapter, "person" means an individual, company,

limited liability company, or private corporation and includes a

lessee, trustee, or receiver of an individual, company, limited

liability company, or private corporation.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 11, Sec. 2, eff. May 3,

1999.

Sec. 121.002. AFFILIATE OF GAS UTILITY EXCLUDED. A person is

not a gas utility solely because the person is an affiliate of a

gas utility.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.003. AGRICULTURAL SERVICE EXCLUDED. (a) The act or

acts of transporting, delivering, selling, or otherwise making

available natural gas for fuel, either directly or indirectly, to

an owner of an irrigation well, or the sale, transportation, or

delivery of natural gas for any other direct use in an

agricultural activity, does not make a person a gas utility or

make the person subject to the jurisdiction, control, and

regulation of the railroad commission as a gas utility.

(b) In order for a person furnishing natural gas to qualify for

the exemption under Subsection (a), the person to whom the gas

was furnished under Subsection (a) shall use the gas exclusively

to pump water for farm and other agricultural purposes.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.004. TRANSPORTATION OF GAS SOLELY FOR INTERSTATE

COMMERCE EXCLUDED. Except as provided by Section 121.001(a)(2),

a person is not a gas utility if the person certifies to the

railroad commission that the person transports natural or

synthetic gas, for sale, for hire, or otherwise, solely in, or in

the vicinity of, the field or fields where the gas is produced,

to another person for transportation or sale in interstate

commerce.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.005. TRANSPORTATION OF GAS IN VICINITY OF PLACE OF

PRODUCTION EXCLUDED. (a) Except as provided by Section

121.001(a)(2), a person is not a gas utility if the person

certifies to the railroad commission that the person transports

natural or synthetic gas, for sale, for hire, or otherwise,

solely:

(1) in, or in the vicinity of, the field or fields where the gas

is produced to a gas processing plant or treating facility;

(2) from the outlet of a gas processing plant or treating

facility described by Subdivision (1) to a person:

(A) at, or in the vicinity of, the plant or treating facility;

or

(B) described by Subdivision (3) or Section 121.004; or

(3) to another person in, or in the vicinity of, the field or

fields where the gas is produced for transportation or sale in

intrastate commerce.

(b) A person is not a gas utility because the person delivers or

sells gas:

(1) for lease use, compressor fuel, processing plant fuel, or a

similar use;

(2) under a lease or right-of-way agreement;

(3) in, or in the vicinity of, the field where the gas is

produced; or

(4) at a processing plant outlet.

(c) Subsection (b) does not exclude as a gas utility a pipeline

that:

(1) transmits or distributes to end users of gas, other than:

(A) those described by Subsection (b); or

(B) a person who qualifies for the exemption provided by Section

121.003; or

(2) makes city-gate deliveries for local distribution.

(d) The railroad commission may review a certification made by a

person under Subsection (a). The railroad commission shall

invite a person whose certification is being reviewed to an

informal meeting to resolve the person's status under this

subsection. If the person's status remains unresolved after the

informal meeting and there is sufficient reason to move forward,

the railroad commission shall provide notice and an opportunity

for a hearing. After notice and an opportunity for a hearing, the

railroad commission may determine whether the person is eligible

for an exemption under this subsection.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

406, Sec. 1, eff. September 1, 2009.

Sec. 121.006. VEHICLE FUEL EXCLUDED. A person is not a gas

utility to the extent that the person:

(1) sells natural gas for use as vehicle fuel;

(2) sells natural gas to a person who later sells the natural

gas for use as vehicle fuel; or

(3) owns or operates equipment or facilities to sell or

transport the natural gas for ultimate use as vehicle fuel.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.007. TRANSPORTATION OF GAS TO AND FROM LIQUEFIED

NATURAL GAS MARINE TERMINAL EXCLUDED. (a) A person operating a

natural gas pipeline, a liquefied natural gas pipeline, or an

underground storage facility is not a gas utility if the person

certifies to the railroad commission that the person uses the

pipeline or underground storage facility solely to deliver

natural gas or liquefied natural gas or the constituents of

natural gas or liquefied natural gas:

(1) to a liquefied natural gas marine terminal;

(2) from a liquefied natural gas marine terminal to the owner of

the gas or another person on behalf of the owner of the gas;

(3) that is acquired, liquefied, or sold by the person as

necessary for the operation or maintenance of its facility that

is excluded as a gas utility under this section; or

(4) that has been stored for export.

(b) This section does not confer the power of eminent domain to

a pipeline or underground storage facility excluded as a gas

utility under this section.

Added by Acts 2007, 80th Leg., R.S., Ch.

709, Sec. 2, eff. June 15, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

406, Sec. 2, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

556, Sec. 1, eff. September 1, 2009.

SUBCHAPTER B. PUBLIC POLICY

Sec. 121.051. GAS UTILITY: PUBLIC INTEREST AND JURISDICTION OF

RAILROAD COMMISSION. (a) A gas utility, including a business

described by Section 121.001(a)(3), is affected with a public

interest.

(b) A business described by Section 121.001(a)(3) is a virtual

monopoly.

(c) A business described by Section 121.001(a)(3) and the

property of the business used in this state is subject to the

jurisdiction, control, and regulation of the railroad commission

as provided by this chapter.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.052. PIPELINES: MONOPOLIES SUBJECT TO RAILROAD

COMMISSION. (a) The operation of a pipeline for buying,

selling, transporting, producing, or otherwise dealing in natural

gas is a business which in its nature and according to the

established method of conducting the business is a monopoly.

(b) A business described by this section may not be conducted

unless the gas pipeline used in connection with the business is

subject to the jurisdiction conferred by this chapter on the

railroad commission.

(c) The attorney general shall enforce this section by

injunction or other remedy.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER C. DUTIES OF GAS UTILITIES AND PIPELINES

Sec. 121.101. MAINTENANCE OF OFFICE AND RECORDS IN THIS STATE.

(a) A gas utility shall maintain an office in this state in a

county in which some part of the gas utility's property is

located. The gas utility shall keep in this office all books,

accounts, papers, records, vouchers, and receipts that the

railroad commission requires.

(b) A book, account, paper, record, receipt, voucher, or other

item of information required by the railroad commission to be

kept in this state may not be removed from this state except as

prescribed by the railroad commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.102. OPERATOR'S REPORT. The railroad commission may

require a person or corporation that owns, controls, or operates

a pipeline subject to this chapter to make to the commission a

sworn report of any matter relating to the business of the person

or corporation that the commission determines to be pertinent,

including:

(1) the total quantity of gas distributed by the pipelines;

(2) the total quantity of gas held in storage;

(3) the source of supply of gas;

(4) the number of wells from which the person or corporation

draws its supply;

(5) the amount of pipeline pressure maintained; and

(6) the amount and character and description of the equipment

used.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.103. DUTY TO SERVE CERTAIN USERS EXTINGUISHED. (a) A

gas utility that provides gas to a customer does not have an

obligation to serve the customer or to maintain the gas supply or

physical capacity to serve the customer if the customer:

(1) is a transportation, industrial, commercial, or other

similar large-volume contract customer;

(2) is an end-use customer of the gas utility;

(3) reduces or ceases the purchase of natural gas or natural gas

service from the gas utility; and

(4) purchases natural gas or natural gas service from another

supplier or purchases an alternate form of energy.

(b) Subsection (a) does not apply to the extent that:

(1) the customer continues to purchase natural gas or natural

gas service of any class from the gas utility; or

(2) the gas utility has a written contract to provide natural

gas or natural gas service of any class to the customer.

(c) This section does not prevent the railroad commission from

requiring a gas utility to comply with an order of the railroad

commission in apportioning gas under a curtailment plan and

order.

(d) Notwithstanding Subsection (a), a gas utility that has

provided gas to a commercial customer is obligated to serve that

customer if the gas utility has a sufficient gas supply and

physical capacity to do so without reducing service to its other

customers.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 69, eff. Sept. 1,

2001.

Sec. 121.104. DISCRIMINATION IN SERVICE AND CHARGES PROHIBITED.

(a) A pipeline gas utility may not:

(1) discriminate in favor of or against any person or place in:

(A) apportioning the supply of natural gas; or

(B) charging for natural gas; or

(2) directly or indirectly charge, demand, collect, or receive

from anyone a greater or lesser compensation for a service

provided than the compensation charged, demanded, or received

from another for a similar and contemporaneous service.

(b) This section does not limit the right of the railroad

commission to prescribe:

(1) different rates and rules for the use of natural gas for

manufacturing and similar purposes; or

(2) rates and rules for service from or to other or different

places.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER D. REGULATION BY RAILROAD COMMISSION

Sec. 121.151. RAILROAD COMMISSION REGULATION OF GAS PIPELINES.

The railroad commission shall:

(1) establish and enforce the adequate and reasonable price of

gas and fair and reasonable rates of charges and rules for

transporting, producing, distributing, buying, selling, and

delivering gas by pipelines subject to this chapter in this

state;

(2) establish fair and equitable rules for the full control and

supervision of the pipelines subject to this chapter and all

their holdings pertaining to the gas business in all their

relations to the public, as the railroad commission determines to

be proper;

(3) establish a fair and equitable division of the proceeds of

the sale of gas between the companies transporting or producing

the gas and the companies distributing or selling it;

(4) prescribe and enforce rules for the government and control

of pipelines subject to this chapter in respect to their

pipelines and producing, receiving, transporting, and

distributing facilities;

(5) regulate and apportion the supply of gas between

municipalities and between municipalities and corporations; and

(6) prescribe fair and reasonable rules requiring pipelines

subject to this chapter to augment their supply of gas, when:

(A) the supply of gas controlled by any gas pipeline is

inadequate; and

(B) the railroad commission determines that augmentation is

practicable.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.152. INITIATION OF REGULATORY PROCEEDING. The railroad

commission shall exercise power under Section 121.151:

(1) on:

(A) its own motion;

(B) the petition of a person or county commissioner's precinct

showing a substantial interest in the subject;

(C) the petition of the attorney general; or

(D) the petition of a district or county attorney of a county in

which any portion of a business subject to this chapter is

conducted; and

(2) after notice has been given.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.153. RAILROAD COMMISSION REVIEW OF GAS PIPELINE ORDERS

AND AGREEMENTS. The railroad commission, after notice to a

person or corporation owning, controlling, or operating a

pipeline subject to this chapter and after a hearing, may review,

revise, and regulate an order or agreement that is made by the

person or corporation and establishes a price, rate, rule,

regulation, or condition of service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.154. REFUND OF EXCESS CHARGES. (a) On a complaint

against a person or corporation owning or operating a pipeline

business subject to this chapter filed by any person authorized

by Section 121.152 to file a petition and complaint and sustained

in whole or in part by the railroad commission, each customer of

the pipeline is entitled to reparation for or reimbursement of a

rate or charge made or adopted by the pipeline for a purpose

relating to the operation of that business, including a rate or

charge for gas, service, or meter rental, or in the event of an

inadequate supply of gas or inadequate service in any respect.

(b) The amount recoverable under Subsection (a) is the amount

paid after the filing of the complaint in excess of the proper

rate or charge of the pipeline as finally determined by the

railroad commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.155. RATE REDUCTION OR DETERMINATION BY MUNICIPALITY

AND APPEAL. A gas utility the rates of which have been reduced

by a municipality may appeal the municipal order, decision,

regulation, or ordinance to the railroad commission. The appeal

is initiated by filing with the railroad commission in the manner

and on the conditions that the railroad commission may direct a

petition for review and a bond. The appeal is de novo. The

railroad commission shall set a hearing and may make any order or

decision in relation to the matter appealed that the commission

considers just and reasonable. To change a rate, rental, or

charge, a gas utility that is a local distributing company or

concern and the rates of which have been established by a

municipality must submit an application to the municipality in

which the utility is located. The municipality shall make a

determination on an application not later than the 60th day after

the date the application is filed. If the municipality rejects

the application or fails or refuses to act on the application on

or before the deadline prescribed by this section, the gas

utility may appeal to the railroad commission as provided by this

section. The railroad commission shall make a determination on

the appeal not later than the 60th day after the date the appeal

is filed unless the gas utility agrees in writing to a longer

period. The rates established by the municipality remain in

effect until changed by the railroad commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.157. RAILROAD COMMISSION EMPLOYEES. (a) The railroad

commission may employ or appoint persons as necessary to:

(1) inspect and audit records or receipts, disbursements,

vouchers, prices, payrolls, time cards, and books;

(2) inspect the property and records of a gas utility subject to

this chapter; and

(3) perform other services as directed by, or under the

authority of, the railroad commission.

(b) The railroad commission shall set the amount of compensation

for persons employed by the railroad commission.

(c) The chief supervisor of the oil and gas division of the

railroad commission shall assist the railroad commission in the

performance of the railroad commission's duties under this

chapter, as directed by, and under the rules of, the railroad

commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.158. PAYMENT FROM THE GENERAL REVENUE FUND. All

expenses, including witness fees and mileage, employee wages and

fees, and the salary and expenses of the chief supervisor of the

oil and gas division of the railroad commission incurred by or

under authority of the railroad commission or a railroad

commissioner in administering and enforcing, or exercising a

power under, this chapter shall be paid from the general revenue

fund.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER E. PIPELINE SAFETY

Sec. 121.201. SAFETY RULES: RAILROAD COMMISSION POWER. (a) The

railroad commission may:

(1) by rule prescribe or adopt safety standards for the

transportation of gas and for gas pipeline facilities, including

safety standards related to the prevention of damage to such a

facility resulting from the movement of earth by a person in the

vicinity of the facility, other than movement by tillage that

does not exceed a depth of 16 inches;

(2) by rule require an operator that does not file operator

organization information under Section 91.142, Natural Resources

Code, to provide the information to the commission in the form of

an application;

(3) by rule require record maintenance and reports;

(4) inspect records and facilities to determine compliance with

safety standards prescribed or adopted under Subdivision (1);

(5) make certifications and reports from time to time;

(6) seek designation by the United States secretary of

transportation as an agent to conduct safety inspections of

interstate gas pipeline facilities located in this state; and

(7) by rule take any other requisite action in accordance with

49 U.S.C. Section 60101 et seq., or a succeeding law.

(b) The power granted by Subsection (a):

(1) does not apply to the transportation of gas or to gas

facilities subject to the exclusive control of the United States

but applies to the transportation of gas and gas pipeline

facilities in this state to the maximum degree permissible under

49 U.S.C. Section 60101 et seq., or a succeeding law; and

(2) is granted to provide exclusive state control over safety

standards and practices applicable to the transportation of gas

and gas pipeline facilities within the borders of this state to

the maximum degree permissible under that law.

(c) A term that is used in this section and defined by Chapter

601, Title 49, United States Code (49 U.S.C. Section 60101 et

seq.), or a succeeding law has the meaning assigned by that

chapter or the succeeding law.

(d) In this subsection, "telecommunications service" and

"information service" have the meanings assigned by 47 U.S.C.

Section 153. Notwithstanding Subsection (a), this title does not

grant the railroad commission jurisdiction or right-of-way

management authority over a provider of telecommunications

service or information service. A provider of telecommunications

service or information service shall comply with all applicable

safety standards, including those provided by Subchapter G,

Chapter 756, Health and Safety Code.

(e) The power granted by Subsection (a) does not apply to:

(1) surface mining operations; or

(2) other entities or occupations if the railroad commission

determines in its rulemaking process that exempting those

entities or occupations from rules adopted under that subsection:

(A) is in the public interest; or

(B) is not likely to cause harm to the safety and welfare of the

public.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.12(a), eff.

Sept. 1, 1999; Acts 1999, 76th Leg., ch. 1272, Sec. 1, eff. June

18, 1999.

Amended by:

Acts 2005, 79th Leg., Ch.

267, Sec. 13, eff. September 1, 2005.

Sec. 121.2015. REQUIRED SAFETY RULES. (a) The railroad

commission shall adopt rules regarding:

(1) public education and awareness relating to gas pipeline

facilities; and

(2) community liaison for responding to an emergency relating to

a gas pipeline facility.

(b) The railroad commission shall require operators or their

designated representatives to communicate and conduct liaison

activities with fire, police, and other appropriate public

emergency response officials. The liaison activities must be

conducted by meetings in person except as provided by this

section. An operator or the operator's representative may conduct

required community liaison activities as provided by Subsection

(c) only if the operator or the operator's representative has

made an effort to conduct a community liaison meeting in person

with the officials by one of the following methods:

(1) mailing a written request for a meeting in person to the

appropriate officials by certified mail, return receipt

requested;

(2) sending a request for a meeting in person to the appropriate

officials by facsimile transmission; or

(3) making one or more telephone calls or e-mail message

transmissions to the appropriate officials to request a meeting

in person.

(c) If the operator or operator's representative cannot arrange

a meeting in person after complying with Subsection (b), the

operator or the operator's representative shall conduct community

liaison activities by one of the following methods:

(1) holding a telephone conference with the appropriate

officials; or

(2) delivering the community liaison information required to be

conveyed by certified mail, return receipt requested.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.12(b), eff. Sept.

1, 1999. Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 70, eff.

Sept. 1, 2001.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1197, Sec. 1, eff. September 1, 2009.

Sec. 121.202. MUNICIPAL AND COUNTY AUTHORITY. (a) A

municipality or a county may not adopt or enforce an ordinance

that establishes a safety standard or practice applicable to a

facility that is regulated under this subchapter, another state

law, or a federal law.

(b) Except as provided by Subsection (a) and by Section

121.2025, this subchapter does not reduce, limit, or impair:

(1) a power vested by law in:

(A) a county in relation to a county road; or

(B) a municipality; or

(2) the ability of a municipality to:

(A) adopt an ordinance that establishes conditions for mapping,

inventorying, locating, or relocating pipelines over, under,

along, or across a public street or alley or private residential

area in the boundaries of the municipality; or

(B) establish conditions for mapping or taking an inventory in

an area in a municipality's extraterritorial jurisdiction.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by:

Acts 2005, 79th Leg., Ch.

530, Sec. 5, eff. June 17, 2005.

Acts 2005, 79th Leg., Ch.

720, Sec. 3, eff. September 1, 2005.

Sec. 121.2025. AUTHORITY OF MUNICIPALITY TO ASSESS CHARGES. (a)

Except as otherwise provided by this section or Section 182.025,

Tax Code, a municipality may not assess a charge for the

placement, construction, maintenance, repair, replacement,

operation, use, relocation, or removal of a gas pipeline facility

on, along, under, or across a public road, highway, street,

alley, stream, canal, or other public way.

(b) A municipality may:

(1) assess a reasonable annual charge for the placement,

construction, maintenance, repair, replacement, operation, use,

relocation, or removal by an owner or operator of a gas pipeline

facility on, along, or across the public roads, highways,

streets, alleys, streams, canals, or other public ways located

within the municipality and maintained by the municipality; and

(2) recover the reasonable cost of repairing damage to a public

road, highway, street, alley, stream, canal, or other public way

located within the municipality and maintained by the

municipality that is caused by the placement, construction,

maintenance, repair, replacement, operation, use, relocation, or

removal of a gas pipeline facility if the owner or operator of

the facility does not repair the damage in accordance with

generally applicable paving standards or other applicable

standards in the municipality.

(c) A charge authorized by Subsection (b)(1) may not exceed the

cost to the municipality of administering, supervising,

inspecting, and otherwise regulating the location of the gas

pipeline facility, including maintaining records and maps of the

location of the pipeline facility.

(d) The owner or operator of a gas pipeline facility may appeal

the assessment of a charge under Subsection (b)(1) to the

railroad commission. The railroad commission shall hear the

appeal de novo. Unless the municipality that assessed the charge

establishes that the charge is authorized by this section, the

railroad commission shall declare the charge invalid or reduce

the charge to an amount authorized by this section. The railroad

commission has exclusive jurisdiction to determine whether a

charge under Subsection (b)(1) is authorized by this section.

The owner or operator of the gas pipeline facility and the

municipality shall share equally the costs incurred by the

railroad commission in connection with the appeal.

(e) A municipality must file suit to collect a charge authorized

by Subsection (b)(1) not later than the fourth anniversary of the

date the charge becomes due. The running of the limitations

period under this subsection is tolled on the filing of an appeal

of the charge under Subsection (d) and begins running again on

the date the appeal is determined.

(f) This section may not be construed to prevent a municipality

from:

(1) recovering the reasonable cost of repairing damage to a

municipal facility, other than a public way, caused by acts of

the owner or operator of a gas pipeline facility; or

(2) requiring the owner or operator of a gas pipeline facility

to relocate the pipeline facility, at the owner's or operator's

expense, to permit the construction, maintenance, modification,

or alteration of a municipal facility.

(g) Notwithstanding Subsection (f)(2), the municipality shall

pay the cost of relocating a gas pipeline facility if the

pipeline facility is authorized by a property right that has

priority over the municipality's right to use the public way for

the municipal facility.

Added by Acts 2005, 79th Leg., Ch.

530, Sec. 6, eff. June 17, 2005.

Added by Acts 2005, 79th Leg., Ch.

720, Sec. 4, eff. September 1, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1311, Sec. 1, eff. June 19, 2009.

Sec. 121.203. ENFORCEMENT: INJUNCTION. The attorney general, on

behalf of the railroad commission, is entitled to injunctive

relief to restrain a violation of a safety standard adopted under

this subchapter, including an injunction that restrains the

transportation of gas or the operation of a pipeline facility.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.204. CIVIL PENALTY. Each day of each violation of a

safety standard adopted under this subchapter is subject to a

civil penalty of not more than $25,000, except that the maximum

penalty that may be assessed for any related series of violations

may not exceed $500,000. The penalty is payable to the state.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.205. SETTLEMENT BY ATTORNEY GENERAL. A civil penalty

under Section 121.204 may be compromised by the attorney general

who in determining a compromise shall consider:

(1) the appropriateness of the penalty in relation to the size

of the business of the person charged;

(2) the gravity of the violation; and

(3) the good faith of the person charged in attempting to

achieve compliance after notification of the violation.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.206. ADMINISTRATIVE PENALTY FOR VIOLATION OF PIPELINE

SAFETY STANDARD OR RULE. (a) The railroad commission may assess

an administrative penalty against a person who violates Section

121.201 or a safety standard or other rule prescribed or adopted

under that section.

(b) The penalty for each violation may not exceed $10,000. Each

day a violation continues may be considered a separate violation

for the purpose of penalty assessment.

(c) In determining the amount of the penalty, the railroad

commission shall consider the guidelines adopted under Subsection

(d).

(d) The railroad commission by rule shall adopt guidelines to be

used in determining the amount of a penalty under this

subchapter. The guidelines shall include a penalty calculation

worksheet that specifies the typical penalty for certain

violations, circumstances justifying enhancement of a penalty and

the amount of the enhancement, and circumstances justifying a

reduction in a penalty and the amount of the reduction. The

guidelines shall take into account:

(1) the person's history of previous violations of Section

121.201 or a safety standard or other rule prescribed or adopted

under that section, including the number of previous violations;

(2) the seriousness of the violation and of any pollution

resulting from the violation;

(3) any hazard to the health or safety of the public;

(4) the degree of culpability;

(5) the demonstrated good faith of the person charged; and

(6) any other factor the commission considers relevant.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.13(b), eff.

Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1233, Sec. 71, eff.

Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

267, Sec. 14, eff. September 1, 2005.

Sec. 121.207. PIPELINE SAFETY ADMINISTRATIVE PENALTY: ASSESSMENT

PROCEDURE. (a) An administrative penalty may be assessed only

after a person charged under Section 121.206 has been given an

opportunity for a public hearing.

(b) If a public hearing is held, the railroad commission shall

make findings of fact and shall issue a written decision as to

the occurrence of the violation and the penalty amount warranted

by the violation, incorporating, if appropriate, an order

requiring that the penalty be paid.

(c) If appropriate, the railroad commission shall consolidate

the hearings with other proceedings under Section 121.206.

(d) If a person charged under Section 121.206 fails to take

advantage of the opportunity for a public hearing, an

administrative penalty may be assessed by the railroad commission

after it has determined:

(1) that a violation occurred; and

(2) the penalty amount warranted by the violation.

(e) After assessing an administrative penalty, the railroad

commission shall issue an order requiring the penalty to be paid.

(f) Not later than the 30th day after the date an order is

issued finding that a violation described under Section 121.206

occurred, the railroad commission shall inform the person found

in violation of the amount of the penalty.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.208. PIPELINE SAFETY ADMINISTRATIVE PENALTY: PAYMENT OF

PENALTY. Not later than the 30th day after the date the railroad

commission's decision or order imposing an administrative penalty

becomes final as provided by Section 2001.144, Government Code,

the person charged with the violation shall:

(1) pay the penalty in full; or

(2) if the person seeks judicial review of either the amount of

the penalty or the fact of the violation, or both:

(A) pay the penalty to the railroad commission for placement in

an escrow account; or

(B) give to the railroad commission a supersedeas bond in a form

approved by the railroad commission for the amount of the penalty

that is effective until all judicial review of the order or

decision is final.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.209. PIPELINE SAFETY ADMINISTRATIVE PENALTY: REFUND OF

PAYMENT OR RELEASE OF BOND. If through judicial review of a

decision or order regarding an administrative penalty it is

determined that a violation did not occur or that the amount of

the penalty should be reduced or not assessed, the railroad

commission shall, not later than the 30th day after the date of

that determination:

(1) remit the appropriate amount to the person, with accrued

interest if the utility paid the penalty to the railroad

commission; or

(2) execute a release of the bond if the utility posted a

supersedeas bond.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.210. RECOVERY BY ATTORNEY GENERAL. An administrative

penalty owed under Sections 121.206-121.208 may be recovered in a

civil action brought by the attorney general at the request of

the railroad commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.211. PIPELINE SAFETY FEES. (a) The railroad

commission by rule may adopt an inspection fee to be assessed

annually against operators of natural gas distribution pipelines

and their pipeline facilities and natural gas master metered

pipelines and their pipeline facilities subject to this chapter.

(b) The railroad commission by rule shall establish the method

by which the fee will be calculated and assessed. In adopting a

fee structure, the railroad commission may consider any factors

necessary to provide for the equitable allocation among operators

of the costs of administering the railroad commission's pipeline

safety program under this chapter.

(c) The total amount of fees estimated to be collected under

rules adopted by the railroad commission under this section may

not exceed the amount estimated by the railroad commission to be

necessary to recover the costs of administering the railroad

commission's pipeline safety program under this chapter,

excluding costs that are fully funded by federal sources.

(d) The commission may assess each operator of a natural gas

distribution system subject to this chapter an annual inspection

fee not to exceed one dollar for each service line reported by

the system on the Distribution Annual Report, Form RSPA

F7100.1-1, due on March 15 of each year. The fee is due March 15

of each year.

(e) The railroad commission may assess each operator of a

natural gas master metered system subject to this chapter an

annual inspection fee not to exceed $100 for each master metered

system. The fee is due June 30 of each year.

(f) The railroad commission may assess a late payment penalty of

10 percent of the total assessment due under Subsection (d) or

(e) that is not paid within 30 days after the annual due date

established by the applicable subsection.

(g) Each operator of a natural gas distribution system and each

natural gas master meter operator shall recover as a surcharge to

its existing rates the amounts paid to the commission under this

section. Amounts collected under this subsection by an

investor-owned natural gas distribution system or a cooperatively

owned natural gas distribution system shall not be included in

the revenue or gross receipts of the company for the purpose of

calculating municipal franchise fees or any tax imposed under

Subchapter B, Chapter 182, Tax Code, or under Chapter 122. Those

amounts are not subject to a sales and use tax imposed by Chapter

151, Tax Code, or Subtitle C, Title 3, Tax Code.

(h) A fee collected under this section shall be deposited to the

credit of the general revenue fund to be used for the pipeline

safety program.

Added by Acts 2003, 78th Leg., ch. 200, Sec. 12(a), eff. Sept. 1,

2003; Acts 2003, 78th Leg., ch. 520, Sec. 1, eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 21.003, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

948, Sec. 2, eff. September 1, 2005.

Acts 2009, 81st Leg., R.S., Ch.

62, Sec. 1, eff. September 1, 2009.

SUBCHAPTER F. GAS SAFETY

Sec. 121.251. RAILROAD COMMISSION TO INVESTIGATE USE OF GAS

MALODORANTS. The railroad commission shall investigate the use

of malodorants by a person, firm, or corporation in the business

of:

(1) handling, storing, selling, or distributing natural or

liquefied petroleum gases, including butane and other odorless

gases, for private or commercial uses; or

(2) supplying these products to a public building or the general

public.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.252. REGULATION OF USE OF MALODORANTS. (a) The

railroad commission, by rule as necessary to carry out the

purposes of this section, may:

(1) require a person, firm, or corporation subject to Section

121.251 to odorize the gas by using a malodorant agent that

indicates the presence of gas by a distinctive odor;

(2) regulate the method of the use of malodorants; and

(3) direct and approve the use of containers and other equipment

used in connection with malodorants.

(b) A required malodorant agent must be:

(1) nontoxic and noncorrosive; and

(2) not harmful to leather diaphragms in gas equipment.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.253. INTERSTATE TRANSPORTATION OF GAS EXCLUDED. This

subchapter does not apply to gas transported out of this state.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER G. ENFORCEMENT REMEDIES

Sec. 121.301. RECEIVERSHIP. (a) On application of the railroad

commission, a court having jurisdiction to appoint a receiver may

appoint a receiver to control and manage, under the direction of

the court, the property of a pipeline subject to this chapter if

the person or corporation owning, operating, or controlling the

pipeline violates this chapter or a rule of the railroad

commission.

(b) The railroad commission may apply for a receivership only if

the railroad commission determines that the public interest

requires a receivership.

(c) The grounds for the appointment of a receiver under this

section are in addition to any other ground provided by law.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.302. CIVIL PENALTY. (a) A gas utility is subject to a

civil penalty if the gas utility:

(1) violates this chapter;

(2) fails to perform a duty imposed by this chapter; or

(3) fails to comply with an order of the railroad commission if

the order is not stayed or suspended by a court order. A penalty

under this section is payable to the state and shall be not less

than $100 and not more than $1,000 for each violation or failure.

(b) Each violation and each day that the failure continues is

subject to a separate penalty.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.303. PENALTY RECOVERABLE BY VICTIM OF DISCRIMINATION.

(a) A penalty of not less than $100 and not more than $1,000 for

each violation is recoverable by any person against whom

discrimination prohibited by Section 121.104 is committed.

(b) A suit to collect a penalty under this section must be

brought in the name of and for the benefit of the person

aggrieved.

(c) A person who recovers a penalty under this section is also

entitled to reasonable attorney's fees.

(d) The penalty under this section is in addition to a penalty

under Section 121.302.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.304. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE PENALTY.

(a) The railroad commission may assess an administrative

penalty against a gas utility that violates this chapter, fails

to perform a duty imposed by this chapter, or fails to comply

with an order of the railroad commission issued under this

chapter and applicable to the gas utility if the violation:

(1) results in pollution of the air or water of this state; or

(2) poses a threat to the public safety.

(b) The penalty for each violation or failure may not exceed

$10,000 a day. Each day a violation continues may be considered a

separate violation for purposes of penalty assessment.

(c) In determining the amount of the penalty, the railroad

commission shall consider:

(1) the gas utility's history of previous violations of this

chapter;

(2) the seriousness of the violation; and

(3) any hazard to the health or safety of the public.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.305. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE PENALTY:

ASSESSMENT PROCEDURE. (a) An administrative penalty may be

assessed under Section 121.304 only after a gas utility charged

under Section 121.304 has been given an opportunity for a public

hearing.

(b) If a public hearing is held, the railroad commission shall

make findings of fact and shall issue a written decision as to

the occurrence of the violation and the penalty amount warranted

by the violation, incorporating, if appropriate, an order

requiring that the penalty be paid.

(c) If appropriate, the railroad commission shall consolidate

the hearings with other proceedings under Section 121.304.

(d) If a gas utility charged under Section 121.304 fails to take

advantage of the opportunity for a public hearing, an

administrative penalty may be assessed by the railroad commission

after it has determined:

(1) that a violation occurred; and

(2) the penalty amount warranted by the violation.

(e) After assessing an administrative penalty, the railroad

commission shall issue an order requiring the penalty to be paid.

(f) Not later than the 30th day after the date an order is

issued finding that a violation described under Section 121.304

occurred, the railroad commission shall inform the gas utility

found in violation of the amount of the penalty.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.306. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE PENALTY:

PAYMENT OF PENALTY. (a) Not later than the 30th day after the

date the railroad commission's decision or order imposing an

administrative penalty becomes final as provided by Section

2001.144, Government Code, the gas utility charged with the

violation shall:

(1) pay the penalty in full; or

(2) if the gas utility seeks judicial review of either the

amount of the penalty or the fact of the violation, or both:

(A) pay the penalty to the railroad commission for placement in

an escrow account; or

(B) except as provided by Subsection (b), give to the railroad

commission a supersedeas bond, in the amount of the penalty and

in the form approved by the railroad commission, to stay the

collection of the penalty until all judicial review of the order

or decision is final.

(b) If the gas utility is appealing a second or subsequent

decision or order assessing an administrative penalty against the

gas utility, regardless of the finality of judicial review of any

previous decision or order, the railroad commission may, but is

not required to, accept a supersedeas bond.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.307. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE PENALTY:

APPEALS. (a) The district courts of Travis County have

exclusive jurisdiction of the appeal of an order or decision of

the railroad commission assessing an administrative penalty under

Section 121.304.

(b) Subchapter G, Chapter 2001, Government Code, and the

substantial evidence rule apply to an appeal under this section.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.308. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE PENALTY:

REFUND OF PAYMENT OR RELEASE OF BOND. If through judicial review

of a decision or order regarding an administrative penalty it is

determined that a violation did not occur or that the amount of

the penalty should be reduced or not assessed, the railroad

commission shall, not later than the 30th day after the date of

that determination:

(1) remit the appropriate amount to the gas utility with accrued

interest if the utility paid the penalty to the railroad

commission; or

(2) execute a release of the bond if the utility posted a

supersedeas bond.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.309. POLLUTION OR PUBLIC SAFETY ADMINISTRATIVE PENALTY:

RECOVERY. An administrative penalty owed under Sections

121.304-121.308 may be recovered in a civil action brought by the

attorney general at the request of the railroad commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.310. CRIMINAL PENALTY. (a) A person commits an

offense if:

(1) the person is an owner, officer, director, agent, or

employee of a person or corporation owning, operating, or

controlling a pipeline of a gas utility; and

(2) the person wilfully violates this chapter or Chapter 122.

(b) An offense under this section is punishable by a fine of not

less than $50 and not more than $1,000. In addition to the fine,

the offense may be punishable by confinement in jail for not less

than 10 days nor more than six months.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER H. APPEALS

Sec. 121.401. APPEAL TO COURT. (a) A gas utility or other

party at interest may appeal to a court a decision of any rate,

classification, rule, charge, order, or act adopted by the

railroad commission by filing a petition against the railroad

commission as defendant and specifying each particular reason for

objection.

(b) An action under this section is tried and determined as are

other civil causes in the court except as provided by Section

121.402.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.402. APPEAL: BURDEN AND STANDARD OF PROOF. In a trial

under this subchapter, the burden of proof is on the plaintiff,

who must show by clear and satisfactory evidence that the rate,

rule, order, classification, act, or charge that is the subject

of the complaint is unreasonable and unjust to the plaintiff.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 121.403. APPEAL FROM TRIAL COURT. An appeal from an action

under Section 121.402:

(1) is at once returnable to the appellate court; and

(2) has precedence in the appellate court over each other

pending cause of a different character.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER I. SOUR GAS PIPELINE FACILITIES

Sec. 121.451. DEFINITIONS. In this subchapter:

(1) "Affected party" means the owner or occupant of real

property located in the radius of exposure, as computed in

accordance with a methodology approved by the railroad

commission, of the proposed route of a sour gas pipeline

facility.

(2) "Construction" includes any activity conducted during the

initial construction of a pipeline, including the removal of

earth, vegetation, or obstructions along the proposed pipeline

right-of-way. The term does not include:

(A) surveying or acquiring the right-of-way; or

(B) clearing the right-of-way with the consent of the owner.

(3) "Low-pressure gathering system" means a pipeline that

operates at a working pressure of less than 50 pounds per square

inch.

(4) "Sour gas pipeline facility" means a pipeline facility that

contains a concentration of 100 parts per million or more of

hydrogen sulfide.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.13(a), eff. Sept.

1, 1999.

Sec. 121.452. APPLICABILITY. This subchapter does not apply to:

(1) an extension of an existing sour gas pipeline facility that

is in compliance with the railroad commission's rules for oil,

gas, or geothermal resource operation in a hydrogen sulfide area

if:

(A) the extension is not longer than five miles;

(B) the nominal pipe size is not larger than six inches in

diameter; and

(C) the railroad commission is given notice of the construction

of the extension not later than 24 hours before the start of

construction;

(2) a new or an extension of a low-pressure gathering system; or

(3) an interstate gas pipeline facility, as defined by 49 U.S.C.

Section 60101, that is used for the transportation of sour gas.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.13(a), eff. Sept.

1, 1999.

Sec. 121.453. PERMIT APPLICATION. (a) A person may not begin

construction of a sour gas pipeline facility before the person

obtains from the railroad commission a permit to construct the

facility.

(b) An applicant for a permit to construct a sour gas pipeline

facility must:

(1) publish notice of the application in a form determined by

the railroad commission in a newspaper of general circulation in

each county that contains part of the proposed route of the sour

gas pipeline facility; and

(2) provide a copy of the application to the county clerk of

each county that contains part of the proposed route.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.13(a), eff. Sept.

1, 1999.

Sec. 121.454. RAILROAD COMMISSION APPROVAL OR DENIAL. (a) The

railroad commission by order may approve an application for a

permit to construct a sour gas pipeline facility if the railroad

commission finds that the materials to be used in and method of

construction and operation of the facility comply with the rules

and safety standards adopted by the railroad commission.

(b) The railroad commission may issue an order under this

section without holding a hearing unless an affected party files

a written protest with the railroad commission not later than the

30th day after the date notice is published under Section

121.453. If an affected party files a written protest, the

railroad commission shall:

(1) hold a hearing not later than the 60th day after the date

the protest is filed; and

(2) issue an order:

(A) approving the permit application; or

(B) denying the application and stating the reasons for the

denial.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.13(a), eff. Sept.

1, 1999.

SUBCHAPTER J. TESTING OF NATURAL GAS PIPING SYSTEMS IN SCHOOL

FACILITIES

Sec. 121.5005. APPLICABILITY. This subchapter applies to a

facility of a public elementary or secondary school, including a

charter school, or a private elementary or secondary school, but

does not apply to a home school.

Added by Acts 2001, 77th Leg., ch. 1233, Sec. 73, eff. Sept. 1,

2001.

Sec. 121.501. DEFINITION. In this subchapter, "supplier" means

an individual or company that sells and delivers natural gas to a

school facility. If more than one individual or company sells and

delivers natural gas to a school facility, each individual or

company is a supplier for purposes of this subchapter.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.14(a), eff. Sept.

1, 1999. Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 74, eff.

Sept. 1, 2001.

Sec. 121.502. DUTY TO PRESSURE TEST. (a) A person responsible

for a school facility shall perform biennial pressure tests on

the natural gas piping system in the school facility. The tests

must be performed before the beginning of the school year.

(b) A person responsible for more than one school facility may

perform the tests on a two-year cycle under which the person

pressure tests the natural gas piping system in approximately

one-half of the facilities each year.

(c) If the person responsible for one or more school facilities

operates the facilities on a year-round calendar, the pressure

test in each of those facilities must be conducted and reported

not later than July 1 of the year in which the pressure test is

performed.

(d) A natural gas piping pressure test performed under a

municipal code satisfies the pressure testing requirements

prescribed by this section.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.14(a), eff. Sept.

1, 1999. Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 74, eff.

Sept. 1, 2001.

Sec. 121.503. REQUIREMENTS OF TEST. (a) The person responsible

for a school facility shall perform the pressure test to

determine whether the natural gas piping downstream of the school

facility's meter holds at least normal operating pressure over a

specified period determined by the railroad commission.

(b) During the pressure test, each system supply inlet and

outlet in the school facility must be closed.

(c) At the request of a person responsible for a school

facility, the railroad commission shall assist the person in

developing a procedure for conducting the test.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.14(a), eff. Sept.

1, 1999. Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 74, eff.

Sept. 1, 2001.

Sec. 121.504. NOTICE OF TEST. (a) A person responsible for a

school facility shall provide written notice to the school's

supplier specifying the date and result of each pressure test or

other inspection.

(b) The supplier shall maintain a copy of the notice until at

least the first anniversary of the date on which the supplier

received the notice.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.14(a), eff. Sept.

1, 1999. Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 74, eff.

Sept. 1, 2001.

Sec. 121.505. TERMINATION OF SERVICE. (a) A supplier shall

terminate service to a school facility if:

(1) the supplier receives official notification from the firm or

individual conducting the test of a hazardous natural gas leakage

in the facility piping system; or

(2) a test or other inspection at the facility is not performed

as required by this subchapter.

(b) A supplier is not liable for any damages that result from a

failure to terminate service as required by Subsection (a)(2) for

a facility other than a school district facility.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.14(a), eff. Sept.

1, 1999. Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 74, eff.

Sept. 1, 2001.

Sec. 121.506. REPORT OF LEAKAGE. An identified natural gas

leakage in a school district facility must be reported to the

board of trustees of the district in which the facility is

located. An identified natural gas leakage in another school

facility must be reported to the person responsible for the

school facility.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.14(a), eff. Sept.

1, 1999. Amended by Acts 2001, 77th Leg., ch. 1233, Sec. 74, eff.

Sept. 1, 2001.

Sec. 121.507. ENFORCEMENT. The railroad commission shall

enforce this subchapter.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.14(a), eff. Sept.

1, 1999.