TITLE economic-regulation

Part I. Railroad Commission of Texas

Chapter 9. Liquefied Petroleum Gas Division

Subchapter A. General Applicability and Requirements

16 TAC §9.31

The Railroad Commission of Texas adopts amendments to §9.31, relating to LP-gas regional supply emergency response, without changes to the proposed version published in the December 6, 1996, issue of the Texas Register (21 TexReg 11689). The amendments streamline the procedure previously in place in order to allow the commission to respond in a more timely manner to and to take actions that might alleviate an LP-gas regional supply emergency.

The amendments eliminate the previous requirement that there be notice and hearing before the commission can determine whether there is an LP-gas regional supply emergency. Under the Administrative Procedure Act and commission rules for conducting a contested case, there must be ten days notice; opportunity to intervene and participate as a party in an evidentiary hearing; circulation of a proposal for decision with adequate time for parties to submit exceptions and replies; and deliberation and decision by the commission at an open meeting. That process does not permit the commission to respond in a timely manner to an LP-gas regional supply emergency that may be of only a few days' duration.

The amendments allow the commission to receive information from those sources, among others, listed in §9.31(b); to determine whether there is an LP-gas regional supply emergency, and if so, the counties of its location and its likely duration; and to request that certain LP-gas loading rack operators give loading priority to transports whose cargoes are bound for the county or counties of the regional supply emergency. The commission believes that encouraging the industry voluntarily to take steps to avoid potential LP-gas shortages or to alleviate actual shortages is the best way to ensure adequate regional supplies of LP-gas for Texas consumers.

The commission received no comments on the proposed amendments.

The amendments is adopted under Texas Natural Resources Code, §113.243(c)(3), which authorizes the commission to develop conservation and distribution plans to minimize the frequency and severity of disruptions in the supply of alternative fuels.

The Texas Natural Resources Code, §113.243(c)(3), is affected by the proposed amendments.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Issued in Austin, Texas, on January 2, 1997.

TRD-9700207

Mary Ross McDonald

Deputy General Counsel, Office of the General Counsel

Railroad Commission of Texas

Effective date: January 28, 1997

Proposal publication date: December 6, 1996

For further information, please call: (512) 463-7008