Subchapter A. General Applicability and Requirements

The Railroad Commission of Texas proposes repeals of §12.379, relating to air resources protection for surface mining; §12.389, relating to regrading or stabilizing rills and gullies for surface mining; §12.546, relating to air resources protection for underground mining; and §12.554, relating to regrading or stabilizing rills and gullies for underground mining. The Railroad Commission also proposes new §12.389, relating to stabilization of surface areas for surface mining; and §12.554, relating to stabilization of surface areas for underground mining. The Railroad Commission also proposes amendments to §12.143, relating to air pollution control for surface mining; §12.145, relating to the general requirements of the reclamation plan for surface mining; §12.187, relating to the general requirements of the reclamation plan for underground mining; §12.199 relating to an air pollution control plan for underground mining; and §12.651, relating to coal processing plants performance standards.

Amendments to §§12.143, 12.145, 12.187, 12.199, and 12.651 are nonsubstantive and update internal references.

Section 12.379 and §12.546 are proposed to be repealed because the federal counterparts to these state regulations have been repealed. Air resources protection is generally subject to regulation by the United States Environmental Protection Agency at the federal level and the Texas Natural Resource Conservation Commission at the state level. Overlapping regulations for air resource protection within the coal mining regulatory program is unnecessary.

Section 12.389 and §12.554 are proposed to be repealed and replaced with new §12.389 and §12.554 to offer more general performance standards to provide operators with more flexibility in meeting the goal of surface stabilization.

Melvin Hodgkiss, Director, Surface Mining and Reclamation Division, has determined that during each year of the first five years the proposed repeals, amendments, and new sections are in effect, there will be no fiscal impacts to state or local governments as a result of their adoption. The new requirements applicable to the commission will impose no new costs on the commission.

Mr. Hodgkiss has determined that for each year of the first five years the proposed repeals, amendments, and new sections are in effect, there will be decreased costs of compliance with the amended rules. The new surface stabilization requirements allow industry greater flexibility in meeting land stabilization standards. The repeal of specific dust control requirements eliminates the need to comply with overlapping requirements of the commission and the TNRCC. The cost savings resulting from these changes will vary from operator to operator and cannot be reliably predicted.

Mr. Hodgkiss has also determined that the public benefit from the adoption of the proposed repeals, new sections, and amendments will be continued adherence to environmental protection standards in a more cost effective fashion.

The commission has not requested a local employment impact statement, pursuant to Texas Government Code, §2002.022.

Comments on the proposed repeals, amendments and new sections should be submitted to Melvin Hodgkiss, Director, Surface Mining and Reclamation Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas, 78711-2967. Comments will be accepted until 5:00 p.m. on the 15th day after publication in the Texas Register.

Subchapter G. Surface Coal Mining and Reclamation Operations Permits and Coal Exploration Procedures Systems

The Railroad Commission of Texas proposes amendments to §§13.25, 13.61, 13.69, and 13.70, relating to filings required for stationary CNG installations; licenses, related fees, and licensing requirements; registration of CNG transports; and examination requirements and renewals. These sections include various fees to be paid to the commission for licenses, renewals, examinations, transport registration, and other items.

The commission proposes the amendments in response to legislative directives that the commission recover its costs for providing various services. The proposed amendments increase the current fees to provide the commission with an adequate budget to protect the health, safety, and welfare of the general public, and to otherwise fulfill its statutory responsibilities. Some of the fees currently in effect are set at about half the statutory maximum, and most have not been increased in several years (in some cases, more than 14 years).

In §13.25, the commission proposes to increase the nominal filing fees for certain forms, ranging from $6 to $26, to $10 to $50. The commission proposes in §13.61 to increase original and renewal license fees, currently ranging from $50 to $500, to a range of $100 to $1,000. The table is proposed to be removed from the rule, and the text in the table concerning the fees added to the language about each specific license category. Also, in §13.69, the commission proposes to add a new table to specify registration and transfer fees; these fees previously were not specified in the rule, but the newly proposed fees increase the current fees from $96 and $156 to $270 for all vehicle types.

Proposed new language in §13.70(a)(1)(A) and (B) raises the fees for management-level rules examinations, currently set at $26, to $50, and raises the employee-level examination fee from $11 to $20. Section 13.70(a)(4) is shown as deleted; this language is being moved to a new rule, §13.73 relating to other fees for employee transfer and decal replacement, which will be proposed in a separate but concurrent rulemaking. The language in §13.70(b) concerning the general installers and repairman exemption also includes fees which are proposed to be doubled. In the table, the employee's annual renewal fee is proposed to increase from $10 to $20. Also in §13.70(e), late renewals will increase from $10 to $20.

Other proposed amendments include changes in wording or punctuation to provide clarity. The commission believes the comment period is reasonable in order to comply with legislative directives to file with the comptroller's office information to support a finding of fact by the comptroller that the commission will recover its costs from the industries it regulates.

Thomas D. Petru, assistant director, LP-Gas Section, Gas Services Division, has determined that for each year of the first five years the amendments as proposed will be in effect, there will be fiscal implications for state government as a result of enforcing or administering the sections. The commission anticipates that increasing fees to the proposed amounts will meet the legislative mandate that the cost of administering the LP-gas, CNG, and LNG safety programs will be financed by the regulated industries rather than from general revenue. All fiscal information is presented using fiscal year 1998 numbers. Although the commission recognizes that fee increases may reduce the number of licenses, registrations, exams, etc., it is not possible to calculate that effect. There will be no effect on local government.

Mr. Petru also has determined that the public benefit anticipated as a result of enforcing the sections will be the assurance that the commission is adequately funded to protect the health, safety, and welfare of the general public, while providing for consistent standards for persons in the CNG industry. There will be some anticipated economic cost to small businesses or to individuals based on the proposed increase in the fees. Currently, the commission has 113 CNG licensees with fees ranging from $50 to $500 annually. Based on the proposed increase, the new fees will range from $100 to $1,000, resulting in an anticipated revenue increase of $25,340 for licenses. Currently, the commission has no CNG transports registered. In fiscal year 1998, the commission administered 12 management and 25 employee examinations at $25 and $10 respectively; the proposed fee increase will result in an anticipated revenue increase of $600 and $500 respectively. In fiscal year 1998, the commission received no forms which required filing fees.

Comments on the proposal may be submitted to Kellie Martinec, Rules Coordinator, Office of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted until 5:00 p.m. on July 28, 1999, and should refer to LP-Gas Docket Number 1613. For more information, contact Thomas D. Petru at (512) 463-6949.

The commission will conduct a public comment hearing on Tuesday, July 27, 1999, at 2:00 p.m. in room 1-111 of the William B. Travis Building, 1701 North Congress, Austin, Texas 78701. In addition, to help ensure that all affected persons have a reasonable opportunity to participate in this rulemaking, the commission has sent a letter to CNG licensees to notify them of the proposed fee increases and of the public comment hearing.

Subchapter B. General Rules for Compressed Natural Gas (CNG) Equipment Qualifications