Part I.
Railroad Commission of Texas
Chapter 3.
Oil and Gas Division
16 TAC §3.83
The Railroad Commission of Texas proposes an amendment to
§3.83, regarding tax exemption for three-year inactive wells. The proposed
amendments put into the rule the two-year inactive well incentive provided
for under Senate Bill 126 (75th Legislature). As the rule will be administered,
the operator of a well that has not produced oil or gas in more than one
month in the two years preceding the date of application for severance tax
exemption will receive notice from the commission that the well has been
designated as a candidate for certification. An application for two-year
inactive well certification shall be made during the period September 1,
1997, through August 31, 1999, to qualify for the tax exemption.
Rita E. Percival, planner, Oil and Gas Division, has determined that, for
each year of the first five years the proposed section is in effect, there
will be fiscal implications for state government as a result of enforcing
or administering the amended rule, but they are anticipated to be negligible
because the two-year inactive well incentive will make use of the structure
already in place for the current three-year inactive well incentive, and
any required program adjustments will be made by the existing staff under
the existing budget. There will be no effect on local government. Participation
in this program will be voluntary, but the cost of compliance for individuals
and small businesses may include the following: servicing will be required
for most wells to be brought back onto production; any operator wishing to
participate in the incentive will be required to file a request for certification;
and, if the request is denied administratively, the operator may request
and participate in a hearing. The costs of these actions cannot be predicted
because they will vary from company to company. The exemption will benefit
producers by delaying the untimely plugging of wells capable of production.
Marshall F. Enquist, hearings examiner, Office of General Counsel, has
determined that for each year of the first five years the section is in effect,
the public benefit anticipated as a result of adopting this amendment will
be the economic benefit associated with the resumption of oil and gas production
from inactive wells, which may create increased business and employment opportunities
in equipment sales, well servicing, hydrocarbon gathering and petroleum refining.
Comments may be submitted to Marshall Enquist, Hearings Examiner, Office
of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin,
Texas 78711-2967. Comments will be accepted for 30 days after publication
in the
Texas Register
. For further information,
call Marshall Enquist at (512) 463-5764.
The commission proposes the amendment under the Texas Natural
Resources Code §§81.051, 81.052, 85.055, 85.201 - 85.202, 86.011,
86.012, 86.041, 86.042, 86.081, 86.083 - 86.090, 111.083, 111.090 and 111.133
which authorize the Railroad Commission of Texas to adopt rules for the following
purposes: to govern and regulate persons and their operations under the jurisdiction
of the Railroad Commission; to determine the status of gas production from
all gas reservoirs, to distribute, prorate and apportion allowable production,
to determine the lawful market demand for gas to be produced from each reservoir;
to adjust correlative rights and opportunities; to determine the daily allowable
production for each gas well; to effectuate the provisions and purposes of
Chapter 86 of the Natural Resources Code; and to conserve and prevent waste
of gas.
The Texas Natural Resources Code, Chapter 86, is affected by the proposed
amendments.
§3.83. Tax Exemption for Two-Year Inactive Wells and Three-Year Inactive Wells.
(a)
Purpose. The purpose of this section is to provide a procedure
by which an operator can obtain commission certification of a wellbore as
a
two-year inactive well or
three-year inactive well in order
to qualify for the tax exemptions provided for in the Tax Code, §§201.053,
202.052, and 202.056.
(b)
Definitions.
(1)
Two-year inactive well--A well that has
not produced any hydrocarbons in more than one calendar month in the two
years prior to the date of certification by the Commission under this section.
(2)
[
[
were previous producing or
injection wells that have not been plugged or abandoned;]
[
have been plugged or abandoned;
or]
[
are active injection wells.]
(3)
Eligible well--Wells
eligible under this section include those that:
(A)
were previous producing or injection wells
that have not been plugged or abandoned; or
(B)
have been plugged and abandoned; or
(C)
are active injection wells.
(4)
[
(c)
Certification. The commission or its delegate may certify
a well as a
two-year inactive well or a
three-year inactive well.
If the commission or its delegate declines to certify a well administratively,
the operator affected by this action may request a hearing.
(d)
Revocation of Certification. Certification
of a two-
year inactive well or a three-year inactive well
may be revoked by
the commission for cause which includes, but is not limited to, receipt of
information by the commission that a certified well produced hydrocarbons
in more than one calendar month in the
applicable two or
three
years prior to certification, or if production from other wells is credited
to the
two-year inactive well or the
three-year inactive well,
or if a certified well is reported to the commission to be capable of production
but is not capable of production. The Comptroller of Public Accounts will
be notified of any revocation.
(e)
Certified Wells.
(1)
Three-year inactive wells.
The commission
may not certify a
three-year inactive
well under this section
after February 29, 1996. Prior to applying to the
Comptroller of Public
Accounts
[
(2)
Two-year inactive
wells. The commission may not designate a two-year inactive well under this
section after February 29, 2000. An application for two-year inactive well
certification shall be made during the period of September 1, 1997, through
August 31, 1999, to qualify for the tax exemption. Certification will be
issued upon the filing of a test report showing the well's capability and
an approval of application for certification. Production is presumed to begin
on the well test date as reported on the appropriate report. The certification
shall remain with the well in the event of a change of operator or ownership.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State on March
18, 1998.
TRD-9803924
Issued in Austin, Texas on March 18, 1998
Mary Ross McDonald
Deputy General Counsel, Office of the General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 463-7008
16 TAC §3.102
The Railroad Commission of Texas proposes new §3.102,
concerning a tax reduction for incremental production. The new section is
proposed to implement the Tax Code, §202.057, which was added by the
75th Legislature, Regular Session, effective September 1, 1997, to determine
whether, and in what amount, oil and casinghead gas production qualify as
incremental production entitled to a 50% severance tax exemption.
Rita E. Percival, planner for the Oil and Gas Division, has determined
that there will be fiscal implications as a result of enforcing or administering
the proposed rule. The effect on state government for the first five years
the new proposed rule will be in effect will include administrative costs
such as notice to operators, analysis and computer programming, and rulemaking
in fiscal year 1998, and application processing in fiscal year 1998 and following
years. These activities are, however, being carried out under existing budget
and staff levels. No severance tax revenue decreases have been forecast by
the Comptroller of Public Accounts as a result of this incentive program,
and increase in sales and ad valorem tax revenues as well as general benefits
to the Texas economy from the multiplier effect are anticipated. There will
be no fiscal implications for local governments.
Participation in this incentive is voluntary. If, however, a small business
or individual does choose to participate, an incremental production technique
of at least $5,000 is required as one part of eligibility for the incentive.
The operator will also need to complete a Commission application form and,
if the application is denied, the operator may choose to incur the expense
of a hearing. The costs of application and, if undertaken, a hearing will
vary from company to company.
Meredith Kawaguchi, legal examiner, Office of General Counsel, has determined
that for each year of the first five years the section as proposed is in
effect, the public benefit anticipated as a result of enforcing the section
as proposed will be increased oil and casinghead gas production from wells
that now produce only marginally.
Comments on the proposal may be submitted to Meredith Kawaguchi, Legal
Examiner, Office of General Counsel - Oil and Gas Section, Railroad Commission
of Texas, P. O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted
for 30 days after publication in the
Texas Register
. Comments should refer to the docket number of this rulemaking, 20-0217624.
For further information, contact Ms. Kawaguchi at (512) 463-7152.
The commission proposes new §3.102 under Tax Code, §202.057
which provides the commission with the authority to determine the amount
of qualified incremental production for the 50% severance tax exemption.
The new section also is proposed pursuant to Texas Natural Resources Code,
§§81.051 and 81.052, which give the commission jurisdiction and
rulemaking authority over all oil and gas operators and their wells in Texas.
The Tax Code, §§202.051, 201.053, and 201.058, are affected by
this rule.
§3.102. Tax Reduction for Incremental Production.
(a)
Purpose. The purpose of this section is to provide a procedure
by which an operator can obtain a 50% severance tax reduction for five years
on the incremental oil and casinghead gas production from a qualifying lease.
(b)
Definitions. The following terms, when used in this section,
shall have the following meanings, unless the context clearly indicates otherwise:
(1)
Oil lease--A commission-designated oil lease to which
the commission has assigned an identifying number.
(2)
Production--Barrels of oil (including barrels of
gas liquids reported as production monthly on the appropriate form) plus
casinghead gas, where six thousand cubic feet of gas is the equivalent of
one barrel of oil, expressed in barrels of oil equivalent (BOE).
(3)
Baseline production--An oil lease's average BOE monthly
production during the four highest months of production in the time period
from January 1, 1996, through December 31, 1996.
(4)
Incremental production--Production from a qualifying
lease in excess of baseline production.
(5)
Incremental production technique--
(A)
any secondary or tertiary production enhancement technique;
(B)
any primary production enhancement technique that an operator
certifies required an expenditure of at least $5,000 to cause increased production.
(6)
Qualifying lease--A lease is a qualifying lease
provided that:
(A)
the commission has designated the lease as an oil lease
and has assigned to it an identifying number;
(B)
production from the lease, measured by dividing the sum
of lease production during the four-month period used to compute the baseline
production by the sum of the number of well-days during the same four-month
period, is no more than seven barrels of oil equivalent per day per well,
excluding gas flared pursuant to the rules of the commission; and
(C)
after the operator performs an incremental production
technique, the lease shows incremental production for four of five consecutive
months on or after September 1, 1997, and before December 31, 1998.
(7)
Incremental ratio--The amount of a qualifying
lease's average monthly incremental production during the four-month period
used to meet the definition of a qualifying lease divided by its average
monthly total production during the same four- month period.
(8)
Qualified incremental production--A qualifying lease's
total monthly production multiplied by the incremental ratio.
(9)
Well-day--One well producing hydrocarbons for one
day.
(c)
Qualification for the tax reduction. An operator of a
qualifying lease is entitled to a 50% tax reduction on that lease's qualified
incremental production for five years provided that:
(1)
The operator of a qualifying lease applies to the commission
for a determination of an incremental ratio before February 11, 1999;
(2)
The commission certifies an incremental ratio;
(3)
The operator provides to the state comptroller the
certified incremental ratio; and
(4)
The operator applies to the state comptroller for
the tax relief provided by this section not later than one year after the
date the commission certifies the incremental ratio for a qualifying lease.
(d)
Request for hearing. If the request for certification
of an incremental ratio is denied administratively, or if the operator does
not agree with the administrative determination of the amount of the incremental
ratio, the applicant may request a hearing. The request for a hearing must
be filed within twenty days after the date on which notice of the administrative
decision is mailed to the operator. The commission shall provide notice of
the hearing to the applicant and to any other affected person named by the
applicant. After hearing, the examiner shall recommend final action by the
commission.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on March
18, 1998.
TRD-9803923
Issued in Austin, Texas on March 18, 1998
Mary Ross McDonald
Deputy General Counsel, Office of the General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 463-7008
Chapter 22.
Practice and Procedure
The Public Utility Commission of Texas proposes amendments to §22.31
relating to Classification in General; §22.33 relating to Tariff Filings;
§22.35 relating to Informal Disposition; §22.51 relating to Notice
for Public Utility Regulatory Act §2.211, §2.212, §3.210 and
§3.211 Proceedings; §22.52 relating to Notice in Licensing Proceedings;
and §22.56 relating to Notice of Unclaimed Funds. The proposed amendments
will correct citations to the Public Utility Regulatory Act due to codification
in the Texas Utilities Code and update the sections to reflect changes in
state government and commission organization. Project Number 17709 has been
assigned to these proposed amendments.
Ms. Paula Mueller, deputy chief, Office of Regulatory Affairs, has determined
that for each year of the first five-year period the proposed sections are
in effect there will be no fiscal implications for state or local government
as a result of enforcing or administering the sections.
Ms. Mueller has determined that for each year of the first five years the
proposed sections are in effect the public benefit anticipated as a result
of enforcing the sections will be rules that more accurately reflect current
statute and state and commission organization. There will be no effect on
small businesses as result of enforcing these sections. There is no anticipated
economic cost to persons who are required to comply with the sections as
proposed.
Ms. Mueller has also determined that for each year of the first five years
the proposed sections are in effect there will be no impact on employment
in the geographic area affected by implementing the requirements of the sections.
Comments on the proposed amendments (16 copies) may be submitted to the
Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue,
P.O. Box 13326, Austin, Texas 78711-3326, within 30 days after publication.
The Appropriations Act of 1997, HB 1, Article IX, Section 167 requires that
each state agency review and consider for readoption each rule adopted by
that agency pursuant to the Government Code, Chapter 2001 (Administrative
Procedure Act). Such reviews shall include, at a minimum, an assessment by
the agency as to whether the reason for adopting or readopting the rule continues
to exist. The commission invites specific comments regarding whether the
reason for adopting these rules continues to exist in considering the proposed
amendments. All comments should refer to Project Number 17709 and reference
Procedural Rules, Subchapter C and D.
Subchapter C. Classification of Applications or Other Documents Initiating a Proceeding
16 TAC §§22.31, 22.33, 22.35
These amendments are proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 and §14.052 (Vernon
1998) (PURA), which provides the Public Utility Commission with the authority
to make and enforce rules reasonably required in the exercise of its powers
and jurisdiction, including rules of practice and procedure.
Cross Index to Statutes: Public Utility Regulatory Act §14.002 and
§14.052.
§22.31.Classification in General.
(a)
Classification and Assignment of Control Number.
Central Records
[
(b)
Control Numbering System.
Central Records
[
(c)
Control Number Log.
Central Records
[
§22.33.Tariff Filings.
(a)
Applicability and Classification. This section shall apply
to undocketed applications by utilities to change their tariffs. Such tariff
filings shall be classified as "electric tariff filings," "regular telephone
tariff filings," or "special telephone tariff filings." Electric tariff filings
and regular telephone tariff filings shall be those applications filed pursuant
to §23.24 of this title (relating to Form and Filing of Tariffs). Special
telephone tariff filings shall be those applications filed by telecommunications
utilities pursuant to
§23.25 of this title (relating to Procedures
Applicable to PURA Chapter 58 Electing Incumbent Local Exchange Carriers),
§23.26 of this title (relating to New and Experimental Services), §23.27
of this title (relating to Rate-Setting Flexibility for Services Subject
to Significant Competitive Challenges, and §23.28 of this title (relating
to Promotional Rates for LEC Services)
[
(b) - (f)
(No change.)
§22.35.Informal Disposition.
(a)
(No change.)
(b)
Proposed Order. The
presiding officer
[
(c) - (e)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on
March 18, 1998.
TRD-9803993
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 936-7308
16 TAC §§22.51, 22.52, 22.56
These amendments are proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 and §14.052 (Vernon
1998) (PURA), which provides the Public Utility Commission with the authority
to make and enforce rules reasonably required in the exercise of its powers
and jurisdiction, including rules of practice and procedure.
Cross Index to Statutes: Public Utility Regulatory Act §14.002 and
§14.052.
§22.51. Notice for Public Utility Regulatory Act Chapter 36, Subchapters C - E; Chapter 51, §51.009; and Chapter 53, Subchapters C - E [
(a)
Notice in a Proceeding Seeking a Rate Increase. In proceedings
under PURA,
Chapter 36, Subchapters C and E; Chapter 51, §51.009;
or Chapter 53, Subchapters C and E
[
(1)
Publication of Notice. The applicant shall publish notice
of its statement of intent to change rates in conspicuous form and place
at least once a week for four consecutive weeks prior to the effective date
of the proposed rate change, in a newspaper having general circulation in
each county containing territory affected by the proposed rate change. The
published notice shall contain the following information:
(A) - (E)
(No change.)
(F)
the following language: "Persons who wish to intervene
in or comment upon these proceedings should notify the
Public Utility
Commission of Texas (commission)
[
(2) - (3)
(No change.)
(b)
Notice in a PURA
Chapter 36, Subchapters C and E;
Chapter 51, §51.009; or Chapter 53, Subchapters C and E
[
(1)
(No change.)
(2)
Notice by Mail to Affected Customers. The applicant
shall mail notice of the proposed rate decrease to all of the applicant's
affected customers. This notice may be mailed separately or may be mailed
with customer billings. At the top of this notice, the following language
shall be printed in prominent lettering: "Notice of Rate Decrease Request."
The notice shall contain the following information:
(A) - (E)
(No change.)
(F)
the following language: "Persons who wish to intervene
in or comment upon these proceedings should notify the
Public Utility
Commission of Texas (commission)
[
(3)
(No change.)
(c)
Notice in a PURA
Chapter 36, Subchapter D; or Chapter
53, Subchapter D
[
(d)
(No change.)
§22.52.Notice in Licensing Proceedings.
(a)
Notice in Electric Licensing Proceedings. In all electric
licensing proceedings except minor boundary changes and notice of intent
and certification proceedings for new electric generating plants, the applicant
shall give notice in the following ways:
(1)
Applicant shall publish notice of the applicant's intent
to secure a certificate of convenience and necessity in a newspaper having
general circulation in the county or counties where a certificate of convenience
and necessity is being requested, once each week for two consecutive weeks
beginning with the week after the application is filed with the commission.
This notice shall identify in general terms the type of facility if applicable,
and the estimated expense associated with the project.
(A)
The notice shall also include the following statement
in the first paragraph: "Persons with questions about this project should
contact (name of utility contact) at (utility contact telephone number).
Persons who wish to intervene in the proceeding or comment upon action sought,
should contact the Public Utility Commission of Texas
(commission)
,
at P. O. Box 13326, Austin, Texas 78711-3326, or call the Public Utility
Commission's Office of
Customer Protection
[
(B) - (D)
(No change.)
(2)
(No change.)
(3)
Applicant shall, upon filing an application, mail
notice of its application to the owners of land, as stated on the current
county tax roll(s), who would be directly affected by the requested certificate,
including the preferred location and any alternative location of the proposed
facility. For purposes of this paragraph, land is directly affected if an
easement would be obtained over all or any portion of it, or if it contains
a habitable structure that would be within 200 feet of the proposed facility.
(A)
The notice must contain all information required in paragraph
(1) of this subsection and contain the following statement in the first paragraph
of the notice printed in bold-face type: "Your land may be directly affected
in this proceeding. If the preferred route or one of the alternative routes
requested under the certificate is approved by the Public Utility Commission
of Texas, the utility will have the right to build a facility which may directly
affect your land. This proceeding will not determine the value of your land
or the value of an easement if one is needed by the utility to build the
facility. If you have questions about this project, your should contact (name
of utility contact) at (utility contact telephone number). If you wish to
participate in this proceeding by becoming a party or to comment upon action
sought, you should contact the Public Utility Commission of Texas
(commission)
, at P.O. Box 13326, Austin, Texas 78711-3326, or call the Public Utility
Commission's Office of
Customer Protection
[
(B) - (E)
(No change.)
(4) - (6)
(No change.)
(b)
Notice by Applicants for New Electric Generating Plant.
Persons planning to apply for a certificate of convenience and necessity
for a new electric generating plant shall file a notice of such intent with
the commission pursuant to PURA,
§37.058
[
(1)
Applicants for a Notice of Intent shall provide notice
of the application by publishing in a newspaper having general circulation
in the county or counties in which the generating plant is proposed to be
located, if known, and in each county containing territory served by the
utility, once each week for two consecutive weeks beginning the week after
the notice of intent is filed with the commission. This notice shall identify
the site of the facility, if known. This notice shall further identify in
general terms the type of facility, including at a minimum the fuel to be
used, basic technology, size of the plant and estimated service date, and
the estimated expense associated with the project. The notice shall also
include the following statement: "Persons with questions about this project
should contact (name of utility contact) at (utility contact telephone number).
Persons who wish to intervene in the proceeding or comment upon action sought
should contact the Public Utility Commission's
(commission)
Office
of
Customer Protection
[
(2)
(No change.)
(c)
Notice in Telephone Licensing Proceedings. In all telephone
licensing proceedings, except minor boundary changes, applications for a
certificate of operating authority, or applications for a service provider
certificate of operating authority, the applicant shall give notice in the
following ways:
(1)
Applicants shall publish in a newspaper having general
circulation in the county or counties where a certificate of convenience
and necessity is being requested, once each week for two consecutive weeks,
beginning the week after the application is filed, notice of the applicant's
intent to secure a certificate of convenience and necessity. This notice
shall identify in general terms the types of facilities, if applicable, the
area for which the certificate is being requested, and the estimated expense
associated with the project. Whenever possible, the notice should state the
established intervention deadline. The notice shall also include the following
statement: "Persons with questions about this project should contact (name
of utility contact) at (utility contact telephone number). Persons who wish
to intervene in the proceeding or comment upon action sought, should contact
the Public Utility Commission
(commission),
at P. O. Box 13326,
Austin, Texas 78711-3326, or call the Public Utility Commission's Office
of
Customer Protection
[
(2)-(3)
(No change.)
§22.56.Notice of Unclaimed Funds.
The applicant shall notify the
Comptroller of Public Accounts
[
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on
March 18, 1998.
TRD-9803992
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 936-7308
16 TAC §22.71
The Public Utility Commission of Texas (PUC) proposes an
amendment to §22.71, relating to Filing of Pleadings and Other Materials.
The proposed amendment will assure that the commissioners have adequate time
to fully review all documents necessary to conduct an open meeting. Project
Number 18893 has been assigned to this proposed amendment.
Paula Mueller, deputy chief, Office of Regulatory Affairs, has determined
that for each year of the first five-year period the proposed section is
in effect there will be no fiscal implications for state or local government
as a result of enforcing or administering the section.
Ms. Mueller has determined that for each year of the first five years the
proposed section is in effect the public benefit anticipated as a result
of enforcing the section will be more timely and convenient access to public
information on proceedings scheduled before an open meeting of the commission.
There will be no effect on small businesses as a result of enforcing this
section. There is no anticipated economic cost to persons who are required
to comply with the section as proposed.
Ms. Mueller has also determined that for each year of the first five years
the proposed section is in effect there will be no impact on employment in
the geographic area affected by implementing the requirements of the section.
Comments on the proposed amendment (16 copies) may be submitted to the
Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue,
P.O. Box 13326, Austin, Texas 78711-3326, within 30 days after publication.
All comments should refer to Project Number 18893.
This amendment is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 and §14.052 (Vernon
1998) (PURA), which provides the Public Utility Commission with the authority
to make and enforce rules reasonably required in the exercise of its powers
and jurisdiction, including rules of practice and procedure.
Cross Reference to Statutes: Public Utility Regulatory Act, §14.002
and §14.052.
§22.71.Filing of Pleadings and Other Materials.
(a) - (g)
(No change.)
(h)
Filing deadlines for documents addressed to the commissioners.
(1)
Except as provided in paragraph (2) of this subsection,
all documents
from parties
addressed to the commissioners relating
to any proceeding that has been placed on the agenda of an open meeting shall
be filed with the commission filing clerk no later than
seven
[
(2) - (3)
(No change.)
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
March 18, 1998.
TRD-9803966
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 936-7308
Chapter 309.
Operation of Racetracks
Subchapter B. Horse Racetracks
Operations
16 TAC §309.199
(Editor's note: The text of the following section proposed for
repeal will not be published. The section may be examined in the offices
of the Texas Racing Commission or in the Texas Register office, Room 245,
James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Racing Commission proposes the repeal
of §309.199, concerning horsemen's bookkeeper. The Texas Racing Act
was revised by sunset legislation effective September 1, 1997, and in that
legislation, the Commission is required to adopt rules developing a system
for monitoring the activities and employees of an association relating to
the horsemen's account. Contemporaneously with this proposal, the Commission
is proposing new §309.199 and §313.61 which relate to the purse
account and the duties of the horsemen's bookkeeper. These rule changes implement
the sunset legislation.
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
has determined that for the first five-year period the repeal is in effect
there will be no fiscal implications for state or local government as a result
of enforcing the proposal.
Ms. Flowerday has also determined that for each of the first five years
the repeal is in effect the public benefit anticipated as a result of enforcing
the proposal will be that the Commission's rules are consistent with Texas
Civil Statutes, Article 179e, and that all funds dedicated to purses and
to the owners of race horses will be adequately protected. There will be
no fiscal implications for small businesses. There is no anticipated economic
cost to an individual required to comply with the proposal. The proposal
has no effect on the state's agricultural, horse breeding, horse training,
greyhound breeding, or greyhound training industries.
Comments on the proposal may be submitted on or before May 12, 1998, to
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
P.O. Box 12080, Austin, Texas 78711-2080.
The repeal is proposed under the Texas Civil Statutes, Article
179e, §3.02, which authorize the Commission to adopt rules for conducting
racing with wagering and for administering the Texas Racing Act; §3.22,
which authorizes the Commission to adopt rules relating to the horsemen's
account; and §6.06, which authorizes the Commission to adopt rules on
all matters relating to the operation of racetracks.
The proposal implements Texas Civil Statutes, Article 179e.
§309.199.Horsemen's Bookkeeper.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
March 17, 1998.
TRD-9803855
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 833-6699
16 TAC §309.199
The Texas Racing Commission proposes new §309.199, concerning
the purse account. The Texas Racing Act was revised by sunset legislation
effective September 1, 1997, and in that legislation, the Commission is required
to adopt rules developing a system for monitoring the activities and employees
of an association relating to the horsemen's account. Contemporaneously with
this proposal, the Commission is proposing new § 313.61 which relates
to the duties of the horsemen's bookkeeper. These rule changes implement
the sunset legislation.
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
has determined that for the first five-year period the new section is in
effect there will be no fiscal implications for state or local government
as a result of enforcing the proposal.
Ms. Flowerday has also determined that for each of the first five years
the new section is in effect the public benefit anticipated as a result of
enforcing the proposal will be that the Commission's rules are consistent
with Texas Civil Statutes, Article 179e, and that all funds dedicated to
purses and to the owners of race horses will be adequately protected. There
will be no fiscal implications for small businesses. There is no anticipated
economic cost to an individual required to comply with the proposal. The
proposal has no effect on the state's agricultural, horse breeding, horse
training, greyhound breeding, or greyhound training industries.
Comments on the proposal may be submitted on or before May 12, 1998, to
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
P.O. Box 12080, Austin, Texas 78711-2080.
The new section is proposed under the Texas Civil Statutes, Article
179e, §3.02, which authorize the Commission to adopt rules for conducting
racing with wagering and for administering the Texas Racing Act; §3.22,
which authorizes the Commission to adopt rules relating to the horsemen's
account; and §6.06, which authorizes the Commission to adopt rules on
all matters relating to the operation of racetracks.
The proposal implements Texas Civil Statutes, Article 179e.
§309.199.Purse Accounts.
(a)
All money required to be set aside for purses, whether
from wagering on live races or on simulcast wagering, are trust funds held
by an association as custodial trustee for the benefit of horsemen. No more
than three business days after the end of each week's wagering, the association
shall deposit the amount set aside for purses into purse accounts maintained
by breed by the horsemen's organization in one or more federally insured
depositories.
(b)
Purse money for a completed race shall be made available
to the horsemen's bookkeeper on or before the third day after the week's
races have run. The horsemen's bookkeeper shall distribute purse money for
a race to the accounts of the persons entitled to the money immediately after
the executive secretary advises the horsemen's bookkeeper that the race has
been cleared for payment.
(c)
If an association fails to run live races during any 12-month
period, all money in the purse account shall be paid to the horsemen running
in the last live meet conducted by the association in a pro rata amount based
on the published condition book(s) for that meet.
(d)
If an association ceases a live race meet before completion
of the live race dates granted by the commission, the funds in and due the
purse account shall be distributed as follows:
(1)
first, payment of earned but unpaid purses;
(2)
second, retroactive pro rata payments to the horsemen
if provided by contract with the horsemen's organization; and
(3)
third, subject to the approval of the horsemen's
organization, transfer within 120 days after cessation of live racing of
the balance in the purse account to a purse account for one or more other
associations.
(e)
The commission may at any time inspect, review, or audit
the records and performance of the association, the horsemen's organization,
or the horsemen's bookkeeper to determine compliance with this section.
(f)
No part of any funds allocated to any race or races from
the purse fund shall be subject to any surcharge, promotion fee, advertising
fee, or expense by the association for any reason whatsoever.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on
March 17, 1998.
TRD-9803856
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 833-6699
Subchapter A. Officials
Duties of Other Officials
16 TAC §313.61
(Editor's note: The text of the following section proposed for
repeal will not be published. The section may be examined in the offices
of the Texas Racing Commission or in the Texas Register office, Room 245,
James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Racing Commission proposes the repeal
of §313.61, concerning the duties of the horsemen's bookkeeper. The
Texas Racing Act was revised by sunset legislation effective September 1,
1997, and in that legislation, the Commission is required to adopt rules
developing a system for monitoring the activities and employees of an association
relating to the horsemen's account. Contemporaneously with this proposal,
the Commission is proposing new §309.199 and §313.61 which relates
to the purse account and the duties of the horsemen's bookkeeper. These rule
changes implement the sunset legislation.
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
has determined that for the first five-year period the repeal is in effect
there will be no fiscal implications for state or local government as a result
of enforcing the proposal.
Ms. Flowerday has also determined that for each of the first five years
the repeal is in effect the public benefit anticipated as a result of enforcing
the proposal will be that the Commission's rules are consistent with Texas
Civil Statutes, Article 179e, and that all funds dedicated to purses and
to the owners of race horses will be adequately protected. There will be
no fiscal implications for small businesses. There is no anticipated economic
cost to an individual required to comply with the proposal. The proposal
has no effect on the state's agricultural, horse breeding, horse training,
greyhound breeding, or greyhound training industries.
Comments on the proposal may be submitted on or before May 12, 1998, to
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
P.O. Box 12080, Austin, Texas 78711-2080.
The repeal is proposed under the Texas Civil Statutes, Article
179e, §3.02, which authorize the Commission to adopt rules for conducting
racing with wagering and for administering the Texas Racing Act; §3.22,
which authorizes the Commission to adopt rules relating to the horsemen's
account; and §6.06, which authorizes the Commission to adopt rules on
all matters relating to the operation of racetracks.
The proposal implements Texas Civil Statutes, Article 179e.
§313.61.Horsemen's Bookkeeper.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
March 17, 1998.
TRD-9803857
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 833-6699
16 TAC §313.61
The Texas Racing Commission proposes new §313.61, concerning
the duties of the horsemen's bookkeeper. The Texas Racing Act was revised
by sunset legislation effective September 1, 1997, and in that legislation,
the Commission is required to adopt rules developing a system for monitoring
the activities and employees of an association relating to the horsemen's
account. Contemporaneously with this proposal, the Commission is proposing
new §309.199 which relates to the purse account. These rule changes
implement the sunset legislation.
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
has determined that for the first five-year period the new section is in
effect there will be no fiscal implications for state or local government
as a result of enforcing the proposal.
Ms. Flowerday has also determined that for each of the first five years
the new section is in effect the public benefit anticipated as a result of
enforcing the proposal will be that the Commission's rules are consistent
with Texas Civil Statutes, Article 179e, and that all funds dedicated to
purses and to the owners of race horses will be adequately protected. There
will be no fiscal implications for small businesses. There is no anticipated
economic cost to an individual required to comply with the proposal. The
proposal has no effect on the state's agricultural, horse breeding, horse
training, greyhound breeding, or greyhound training industries.
Comments on the proposal may be submitted on or before May 12, 1998, to
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
P.O. Box 12080, Austin, Texas 78711-2080.
The new section is proposed under the Texas Civil Statutes, Article
179e, §3.02, which authorize the Commission to adopt rules for conducting
racing with wagering and for administering the Texas Racing Act; §3.22,
which authorizes the Commission to adopt rules relating to the horsemen's
account; and §6.06, which authorizes the Commission to adopt rules on
all matters relating to the operation of racetracks.
The proposal implements Texas Civil Statutes, Article 179e.
§313.61.Horsemen's Bookkeeper.
(a)
Designation of horsemen's bookkeeper.
(1)
An association shall ensure a horsemen's bookkeeper is
available to maintain the horsemen's account.
(2)
The executive secretary may designate an entity unrelated
to the association to serve as the horsemen's bookkeeper. To be designated
as the horsemen's bookkeeper, an entity must submit a plan of operation acceptable
to the executive secretary that demonstrates the entity's ability to perform
the duties of the horsemen's bookkeeper.
(3)
A designation as horsemen's bookkeeper does not constitute
a license, but the commission may require any individual involved with a
designated entity to receive a license.
(4)
If the executive secretary approves an association's
request to designate an entity as horsemen's bookkeeper, the association
is relieved of responsibility for providing a horsemen's bookkeeper and shall
cooperate fully with the horsemen's bookkeeper designated by the executive
secretary.
(b)
Revocation of designation.
(1)
A designation as the horsemen's bookkeeper continues in
effect until revoked by the executive secretary.
(2)
The executive secretary may revoke a designation
as the horsemen's bookkeeper if the executive secretary determines the designated
entity has:
(A)
failed to comply with the Act, commission rules, or the
plan of operation, in a manner that indicates malfeasance as opposed to mere
mistake;
(B)
failed to maintain accurate and reliable records;
(C)
misappropriated or mishandled funds in its possession
or control; or
(D)
failed to correct within a reasonable time any deficiency
in operations identified by the executive secretary in writing.
(3)
Before revoking a designation as horsemen's
bookkeeper, the executive secretary must issue a notice of proposed revocation
which specifically describes the grounds for revocation. No later than 30
days after receiving a notice of proposed revocation, the entity may file
a written response to the allegations with the executive secretary.
(4)
The executive secretary may not revoke a designation
without making adequate provision for a successor horsemen's bookkeeper.
(c)
Operations of horsemen's bookkeeper.
(1)
Each owner engaged in racing must open and maintain an
account with the horsemen's bookkeeper. The horsemen's bookkeeper may permit
other individuals to open and maintain an account with the horsemen's bookkeeper,
subject to the approval of the commission. The aggregate of all such accounts
is the horsemen's account.
(2)
The horsemen's bookkeeper shall keep accurate records
of the horsemen's account and the constituent accounts. The horsemen's bookkeeper
shall:
(A)
promptly credit each account with all earnings, awards,
and deposits;
(B)
deduct or disburse all payments as directed by the owner
or authorized agent;
(C)
render periodic statements of each constituent account;
and
(D)
perform all other duties and functions as may be required
by the Act or the commission's rules.
(d)
Audit. The commission may at any time inspect, review
or audit the records and performance of the horsemen's bookkeeper.
(e)
Temporary provision. Until September 1, 1998, the commission
may approve contracts submitted by an association for the provision of horsemen's
bookkeeper services.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on
March 17, 1998.
TRD-9803858
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 833-6699
Subchapter B. Distribution of Pari-mutuel Pools
1
] Three-year inactive well--A
well that has not produced any hydrocarbons in more than one calendar month
in the three years prior to the date of certification by the commission under
this section. [
Wells eligible under this section include those that:
]
(A)
(B)
(C)
2
] Well--A wellbore with
single or multiple completions.
Office of Comptroller
] for the tax incentives
listed in subsection (a) of this section, the operator of a
three-year
inactive
certified well shall file with the commission a test report
showing productive capability for the well. Production is presumed to begin
on this well test date. The certification remains with the well in the event
of a change of operator or ownership.
Part II.
Public Utility Commission of Texas
The secretary
] shall determine whether
an application or other document initiating a proceeding should be designated
as a docket, tariff, or project.
Central Records
[
The secretary
] shall assign an appropriate control number to each docket, tariff,
or project.
The secretary
] shall establish and maintain a control numbering system.
The secretary
] shall maintain a record or log of all applications or
other documents assigned a control number, which shall include the style,
the date the application or other document was filed or the proceeding initiated,
the nature of the proceeding, and the presiding officer assigned to the proceeding,
if any. The log shall be accessible to the public.
§§23.25 —
23.28 of this title (relating to Rates)
] or PURA,
§§53.251,
53.252, 53.301 - 53.308 or 55.004
[
or §3.212 or §3.213
]. This section shall apply unless it is inconsistent with
Chapters
23, 25 or 26
[
Chapter 23
] of this title, or PURA.
commission secretary
] shall prepare a proposed order which shall be
served on all parties no less than 20 days before the commission is scheduled
to consider the application in open meeting.
Subchapter D. Notice §2.211, §2.212, §3.210, and §3.211 ], Proceedings.
§2.212 or §3.211
] involving the commission's original jurisdiction over a utility's
proposed increase in rates, the applicant shall give notice in the following
manner:
commission
] as soon as
possible, as an intervention deadline will be imposed. A request to intervene
or for further information should be mailed to the Public Utility Commission
of Texas, P.O. Box 13326, Austin, Texas 78711-3326. Further information may
also be obtained by calling the Public Utility Commission's Office of
Customer Protection
[
Consumer Affairs
] at (512) 936-7120
or (888) 782-8477
. Hearing- and speech-impaired individuals with text
telephones (TTY) may contact the commission at (512) 936- 7136. The deadline
for intervention in the proceeding is 45 days after the date the application
was filed with the commission."
§2.212 or §3.211
] Proceeding Seeking a Rate Decrease. In
proceedings initiated pursuant to PURA,
Chapter 36, Subchapters C and
E; Chapter 51, §51.009; or Chapter 53, Subchapters C and E
[
§2.212 or §3.211
] in which a rate reduction that does not
involve a rate increase for any customer is sought, the applicant shall give
notice in the following manner:
commission
] as soon as
possible, as an intervention deadline will be imposed. A request to intervene
or for further information should be mailed to the Public Utility Commission
of Texas, P.O. Box 13326, Austin, Texas 78711-3326. Further information may
also be obtained by calling the Public Utility Commission's Office of
Customer Protection
[
Consumer Affairs
] at (512) 936-7120
or (888) 782-8477
. Hearing- and speech-impaired individuals with text
telephones (TTY) may contact the commission at (512) 936- 7136. The deadline
for intervention in the proceeding is 45 days after the date the application
was filed with the commission."
§2.211 or §3.210
] Rate Investigation.
In an investigation into a utility's rates pursuant to PURA,
Chapter
36, Subchapter D; or Chapter 53, Subchapter D
[
§2.211 or
§3.210
], the presiding officer may require the utility under investigation
to provide reasonable notice to its customers and affected municipalities.
Reasonable notice may include notice of the type set forth in subsection
(a) of this section.
Consumer Affairs
] at (512) 936-7120
or (888) 782-8477
. Hearing- and speech-impaired
individuals with text telephones (TTY) may contact the commission at (512)
936-7136. The deadline for intervention in the proceeding is (date 70 days
after the date the application was filed with the commission) and a letter
requesting intervention should be received by the commission by that date."
Consumer Affairs
] at (512) 936-7120
or (888) 782-8477
. Hearing- and speech-impaired
individuals with text telephones (TTY) may contact the commission at (512)
936- 7136. If you wish to participate in this proceeding by becoming a party,
the deadline for intervention in the proceeding is (date 70 days after the
date the application was filed with the commission), and you must send a
letter requesting intervention to the commission which is received by that
date."
§2.255(d)
]. Applicants for new electric generating plants shall give notice in
the following ways:
Consumer Affairs
] at (512) 936-7120
or
(888) 782-8477. Hearing- and speech-impaired individuals with text
telephones (TTY) may contact the commission at (512) 936-7136. The deadline
for intervention in the proceeding is 70 days after the date the application
was filed with the commission." Proof of publication of notice shall be in
the form of a publisher's affidavit which shall specify the newspaper(s)
in which the notice was published; the county or counties in which the newspaper(s)
is or are of general circulation; and the dates upon which the notice was
published. Proof of publication shall be submitted to the commission as soon
as available.
Consumer Affairs
] at (512)
936-7120
or
(888) 782-8477. Hearing- and speech-impaired individuals
with text telephones (TTY) may contact the commission at (512) 936-7136.
The deadline for intervention in the proceeding is 70 days after the date
the application was filed with the commission." Proof of publication of notice
shall be in the form of a publisher's affidavit which shall specify the newspaper(s)
in which the notice was published; the county or counties in which the newspaper(s)
is or are of general circulation; and the dates upon which the notice was
published. Proof of publication shall be submitted to the commission as soon
as available.
State Treasurer
] of proceedings in which there may be a
specific amount of money to be refunded to ratepayers who may need to be
located. This rule shall not apply in fuel refund proceedings.
Subchapter E. Pleadings
six
] days prior to the open meeting at which the proceeding will
be considered provided that no party is prejudiced by the timing of the filing
of the documents. Documents that are not filed before the deadline and do
not meet one of the exceptions in paragraph (2) of this subsection, will
be considered untimely filed.
Part VIII.
Texas Racing Commission
Division
4.
Operations
Chapter 313.
Officials and Rules of Horse Racing
Division
3
. Duties of Other Officials
Chapter 321.
Pari-mutuel Wagering