TITLE 16.ECONOMIC REGULATION

Part 1. RAILROAD COMMISSION OF TEXAS

Chapter 3. OIL AND GAS DIVISION

16 TAC §3.21

The Railroad Commission of Texas withdraws the proposed amendments to §3.21, relating to Fire Prevention and Swabbing, published in the April 5, 2002, issue of the Texas Register (27 TexReg 2666) and proposes additional amendments to the rule. The proposed amendments will clarify current Commission policy concerning swabbing, air jetting, and bailing of wells. Swabbing is a legitimate method for starting or re- starting production in a well. However, the Commission's review of operators using swabbing as an ongoing production technique shows that the majority of those operators have been the subject of Commission enforcement proceedings. Additionally, production swabbing, which generally involves the use of mobile tanks, the stripping of all downhole and surface equipment from the wells, and extremely low production volumes, poses problems in assuring accurate reporting of production, in determining whether a well is actively producing, and in maintaining sufficient wellhead control. Accordingly, the Commission concludes that swabbing should continue to be prohibited as a production technique except in limited circumstances.

In a new amendment from the original proposal, in subsection (k)(2)(A), the Commission deletes the originally proposed requirement of mandatory mechanical integrity tests before the Commission grants an exception allowing an operator to use swabbing as a production method. The Commission may still consider whether a mechanical integrity test is necessary on a case by case basis in determining whether to grant an exception allowing an operator to use swabbing as a production method.

In an additional new amendment from the original proposal, in subsection (k)(1)(B)(v), the Commission proposes language clarifying that in determining whether it grants an exception allowing an operator to use swabbing as a production method, the Commission shall consider the threat of pollution posed by either the production method employed or the condition of the wellbore.

In an additional new amendment from the original proposal, in subsection (k)(1)(B)(ii), the Commission proposes language clarifying that any production attributed to swabbing must be accounted for pursuant to the requirements in §3.26, relating to Separating Devices, Tanks, and Surface Commingling of Oil.

Additionally, in a new amendment suggested by two associations commenting on the original proposal, the Texas Oil and Gas Association (TxOGA) and the Texas Independent Producers and Royalty Owners Association (TIPRO), the Commission proposes the deletion of the phrase "after a workover" from subsection (k)(3) of the original proposal in order to clarify that non-recurring swabbing operations to restore a well to flowing or pumping status are not prohibited under the proposed amendments.

When used as a production technique for shallow wells, swabbing generally involves a mobile truck or trailer-mounted unit. The unit runs a series of swab cups into the well on a wireline below the bottom of any oil column remaining in the well; when the swab cups are retrieved, the cups form a seal against the casing and the column of fluids above the cups is brought to the surface. Typically, these fluids go directly into a tank on the mobile unit. Wells produced by swabbing typically report a minimal amount of production, between one and three barrels on an average monthly basis per well.

Swabbing does, in some circumstances, extend the productive life of extremely marginal, shallow oil wells. However, swabbing as an ongoing production technique creates or contributes to a host of problems for the Commission, royalty owners, and surface owners. The problems include:

(1) Pollution - Swabbing is inherently messy and regular swabbing typically results in repeated spills of a small volume of oil around the well.

(2) Stripped wells - Wells that utilize swabbing as a production technique generally have had all surface equipment, rods, and tubing removed. In a number of cases, operators engaged in swabbing as a production technique purportedly stripped the wells to be swabbed and sold or re-used elsewhere virtually all salvageable equipment from the well site. The operators subsequently abandoned the wells and, because there is not enough potential production to offset the cost of re- equipping the wells, no conventional operator will restore them to production. Ultimately, the Commission has been required to pay a much higher net plugging cost, because there is no equipment to sell to offset plugging costs.

(3) Oversight is difficult - Because there is no well site equipment, it is virtually impossible for Commission staff to determine by an inspection whether a well is really producing or is inactive and therefore in violation of 16 TAC §3.14(b)(2) relating to Plugging.

(4) Safety - Because the well must be open when swabbing is taking place, any wellhead control may not be secured properly, leading to the potential that the well may be left open to the atmosphere. This is a minor safety and pollution concern for most wells because of the potential for falls and fluid movement but a potential major safety concern in the case of wells in fields that produce hydrogen sulfide.

(5) Theft/inaccurate reporting of production - Because production goes into a mobile tank, there is the potential for an unscrupulous operator to move oil to tanks on leases other than the one where the oil was produced and report it as production from the wrong lease, either to avoid paying royalties or to make it appear that inactive wells are producing.

Because of the problems swabbing as a permanent production method creates or contributes to, the Commission finds that the existing general prohibition on swabbing should be continued. In addition, the proposed amendments are intended to clarify that swabbing as a production technique may be permitted in specific circumstances, but only after notice and hearing.

The Commission further recognizes that several operators are currently using swabbing as a production method. If an operator currently approved to use swabbing as a production method wishes to continue that practice, the operator must file an application for a hearing within six months of the effective date of this rule. An operator that is currently producing by swabbing who timely requests a hearing and diligently pursues the application may continue swabbing existing wells that are approved for swabbing pending the Commission's determination of his application.

Leslie Savage, Administrative Planner, Planning and Administration, Oil and Gas Division, has determined that for the first year of the first five years that the amendments will be in effect, there will be no substantial net fiscal implications for state government as a result of enforcing or administering the amendments. The state will incur some minimal costs as a result of minor programming changes to the Commission's mainframe computer system. In addition, there could be some cost associated with any hearings that are held as provided for in subsection (k)(1). Finally, additional costs may be incurred if Commission field personnel witness any mechanical integrity test performed by an operator. However, the costs of these hearings and witnessing these inspections should be offset by the savings to the Commission in staff time previously expended to determine whether or not operators are accurately reporting any actual production associated with swabbing wells.

There will be no fiscal implications for local governments.

Ms. Savage has estimated that the cost of compliance with the proposed amendments for the individual, small business, or micro- business producer will be an additional business expense for any operators who request a hearing. Such expenses may include costs associated with preparing for and attending the hearing, including but not limited to costs associated with identifying the parties required to receive notice of the hearing, hiring legal counsel and other experts, preparing documents and other evidence, and traveling to Austin for the hearing. Additionally, the cost of compliance may also include costs associated with performing a mechanical integrity test if the operator is required to perform such testing.

Mark Helmueller, Hearings Examiner, Oil and Gas Section, Office of General Counsel, has determined that for each year of the first five years the amended section will be in effect, the public benefit will be clarification of current Commission policies concerning swabbing as a production method, reduction in pollution due to swabbing, reduction in the number of stripped wells abandoned in the future, improvement in the oversight of marginal wells, and more accurate reporting of production. Administrative and regulatory efficiency will also be promoted by these clarifications.

The Commission proposed the review and readoption of §3.21 in accordance with Texas Government Code, §2001.039, as published in the April 5, 2002 issue of the Texas Register (27 TexReg 2846), and will continue to accept comments on the review. The agency's reasons for adopting the rule continue to exist.

Comments may be submitted to Rules Coordinator, Office of General Counsel, Railroad Commission of Texas, P. O. Box 12967, Austin, Texas 78711-2967; by electronic mail to rulescoordinator@rrc.state.tx.us; or online at www.rrc.state.tx.us/rules/commentform.html. Comments will be accepted for 30 days after publication in the Texas Register and should refer to the docket number of this rulemaking proceeding: 20-0230769. For further information, call Mark Helmueller at 512-463-6802.

The Commission proposes the amendments to §3.21 pursuant to Texas Natural Resources Code, §§81.051 and 81.052, which provide the Commission with jurisdiction over all persons owning or engaged in drilling or operating oil or gas wells in Texas and the authority to adopt all necessary rules for governing and regulating persons and their operations under the jurisdiction of the Commission, and §88.011, which authorizes the Commission to adopt rules for the keeping of complete and accurate records correctly reflecting the amount of oil or gas or both produced from each oil property each calendar day and the disposition and method of disposition of all the oil and gas produced, and for the monthly filing with the governmental agency of monthly reports accurately reflecting the true facts with respect to all such matters.

The Texas Natural Resources Code, §§81.051, 81.052, 85.202, and 88.011 are affected by the proposed amendments.

Issued in Austin, Texas, on June 25, 2002.

§3.21.Fire Prevention and Swabbing.

(a)-(j) (No change.)

(k) Swabbing, bailing, or air jetting of wells is prohibited as a production method for wells unless the Commission has, after notice and hearing, granted an exception to this subsection. The Commission shall give notice of the hearing at least 10 days prior to the date of the hearing.

(1) An operator seeking an exception to allow swabbing, bailing, or air jetting of a well shall:

(A) provide the Commission with the names and mailing addresses of the mineral interest owners of record and surface owners of record of the lease on which a well for which an exception is sought is located;

(B) present evidence at the hearing establishing:

(i) the method of production proposed;

(ii) that any production is properly accounted for pursuant to §3.26 of this title (relating to Separating Devices, Tanks, and Surface Commingling of Oil);

(iii) that the proposed exception is necessary to prevent waste or protect correlative rights;

(iv) that wellhead control is sufficient to prevent releases from the well;

(v) that no pollution of usable quality water or safety hazard will result from either the proposed production method or the condition of the well; and

(vi) that the operator possesses a continuing good faith claim to the right to operate the well.

(2) In addition to the information set out in paragraph (1) of this subsection, factors that the Commission may consider in ruling on a request for an exception include:

(A) whether the well has passed a mechanical integrity test within the preceding 12 months;

(B) the estimated monthly and cumulative production from the well if the requested exception is granted;

(C) whether production will be into an on-lease tank battery or a mobile tank;

(D) the adequacy of the financial assurance provided by the operator to assure that the well will be timely and properly plugged;

(E) whether production volume, fine sands in the reservoir, or other factors render pumping of the well impracticable;

(F) whether the reservoir from which the well produces contains hydrogen sulfide; and

(G) the operator's history of compliance with Commission rules.

(3) This section does not prohibit swabbing as a non- recurring method to start initial production, to test or clean out a well, or to restore a well to flowing or pumping status.

[ (k) Swabbing is prohibited, except for the purpose of starting initial production of a well or for the testing or cleaning out of a well for starting the initial flow of a well after testing and cleaning out or for the purpose of restoring flowing conditions in a well which has gone dead. In no event shall such swabbing continue for a period longer than is reasonably necessary to accomplish the purpose for which swabbing is permitted.]

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 June 25, 2002.

TRD-200203979

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: August 11, 2002

For further information, please call: (512) 475-1295


Chapter 20. ADMINISTRATION

Subchapter E. VEHICLE MANAGEMENT

16 TAC §20.401

The Railroad Commission of Texas (Commission) proposes to amend §20.401, relating to Agency Vehicles, to add new subsection (d) to prohibit a Commission employee from bidding on surplus vehicles if the employee has been involved in the inspection of the vehicle. The Commission proposes this new wording to enhance and improve its internal control structure; to avoid both the appearance and the actual occurrence of impropriety; and to prevent the conflict of interest that necessarily arises when an employee who has inspected a vehicle then bids on the same vehicle in a sale of surplus equipment. Employees who inspect Commission vehicles have a duty to provide the Commission an objective inspection and evaluation of its vehicles and a fair determination of their fitness for service. Employees who bid on surplus agency vehicles hope to obtain a bargain. A conflict of interest arises when an employee participates in the inspection of a vehicle and in the determination that it is unfit for service, then bids on that vehicle as surplus equipment. Such an event could undermine public confidence in the Commission's administration of its duties.

Rebecca Trevino, Director of Finance, has determined that for each year of the first five years the amendment is in effect there will be no fiscal implications to state or local governments as a result of administering or enforcing the amendment. The public benefit anticipated as a result of the amendment will be consistent procedures for use of state vehicles in an efficient manner and the avoidance of impropriety and conflict of interest. There is no anticipated economic cost for small businesses, micro-businesses, or individuals, because the proposed amendment applies to the Commission's management of its vehicles.

Comments on the proposal may be submitted to Rules Coordinator, Office of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments may also be submitted online at www.rrc.state.tx.us/rules/proposed.html or by electronic mail to rulescoordinator@rrc.state.tx.us. The Commission will accept comments for 30 days after publication in the Texas Register . For further information, call Ms. Kellie Martinec at (512) 475-1295.

The amendment is proposed under Texas Government Code, §2171.1045, which requires the Commission to adopt rules consistent with the management plan adopted under Texas Government Code, §2171.104, relating to the assignment and use of the agency's vehicles.

Texas Government Code, §§2171.104 and 2171.1045, is affected by the proposed amendment.

Issued in Austin, Texas on June 25, 2002.

§20.401.Agency Vehicles.

(a) This section implements the provisions of Texas Government Code, §2171.1045, concerning the use and management of state agency vehicles, and the provisions of the State Vehicle Management Plan adopted by the State Council on Competitive Government on October 11, 2000. The plan may be viewed at the web site of the General Services Commission at www.gsc.state.tx.us/fleet, or any successor site that may be created by the Texas Building and Procurement Commission.

(b) Vehicles, with the exception of vehicles assigned to field employees, are assigned to the Railroad Commission's motor pool and shall be available for checkout by a Commission employee.

(c) The Commission may assign a vehicle to an individual administrative or executive employee on a regular or everyday basis only if there is a documented finding that the assignment is critical to the needs and mission of the Commission.

(d) A Commission employee is prohibited from bidding on a surplus vehicle if the employee has been involved in the inspection of the vehicle.

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 June 25, 2002.

TRD-200203978

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: August 11, 2002

For further information, please call: (512) 475-1295


Part 8. TEXAS RACING COMMISSION

Chapter 303. GENERAL PROVISIONS

Subchapter A. ORGANIZATION OF THE COMMISSION

16 TAC §303.4, §303.9

The Texas Racing Commission proposes amendment to §303.4, relating to Commission meetings and to §303.9, relating to Commission records in accordance with the requirements of Chapter 1275, Acts of the 75th Legislature, 1997, Section 55 and Government Code § 2001.039. The amendment will update referenced citations and conform the rule to current rule style.

Judith L. Kennison, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for state or local government.

Ms. Kennison has also determined that for each of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the proposal will be that the public is assured the Commission rules are current and accurate. There will be no economic impact to small or micro businesses. There is no anticipated economic cost to an individual required to comply with the amendment as proposed. The proposal has no effect on the state's agricultural, horse breeding, horse training, greyhound breeding, or greyhound training industries.

Written comments must be submitted within 30 days after publication of the proposed amendments in the Texas Register to Judith L. Kennison, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080, fax (512) 833-6907.

The amendment is proposed under the Texas Civil Statutes, Article 179e, §2.11, which authorizes the Commission to conduct meetings and implement policies for public participation, and §2.15, which authorizes the Commission permit public inspection of certain Commission records.

The proposed amendment implements Texas Civil Statutes, Article 179e.

§303.4.Meetings.

(a) Except as otherwise provided by state law, Commission [ commission ] meetings are subject to the Texas open meetings law, Government Code, Chapter 551.

(b) The Commission [ commission ] shall hold at least six regular meetings each year on dates set by the Commission [ commission ]. The Chair [ chair ] or any four members of the Commission [ commission ] may call a special meeting of the Commission [ commission ].

(c) Except as otherwise provided by state law or by the Rules [ a rule of the commission ], Robert's Rules of Order (Revised 1996 [ 1981 ]) govern the proceedings of the Commission [ commission ].

(d) The executive secretary shall prepare the agenda for each Commission [ commission ] meeting, subject to the approval of the Chair [ chair ] of the Commission [ commission ]. At the request of any two Commissioners [ commissioners ], the executive secretary shall place an item on the agenda. If only one Commissioner [ commissioner ] requests that an item be placed on the agenda, the Chair [ chair ] shall review the request and, after consulting with the Vice-chair [ vice-chair ], determine whether to place the item on the agenda.

(e) A licensee of the Commission [ commission ] or a member of the public may request that an item be placed on the agenda by filing a written request with the executive secretary not later than 14 days before the date of the meeting. The party making the request must include with the request an original and one copy of all information, data, or other supporting materials relating to the request. After receiving a request under this subsection, the chair shall review the request and, after consulting with the Vice-chair [ vice-chair ], determine whether to place the item on the agenda.

(f) All individuals wishing to address the Commission [ commission ] must sign a registration form and make their remarks under oath. All individuals addressing the Commission [ commission ] are subject to questioning by the Commission [ commission ] and the Commission [ commission ] staff.

(g) Before each regular Commission [ commission ] meeting, the executive secretary shall distribute the agenda and a summary of each rule scheduled for proposal at the meeting to each licensed racetrack, each official breed registry, the officially recognized horsemen's organization, and the Texas Veterinary Medical Association. An association shall post the agenda and rules in a prominent place that will ensure access by interested persons.

§303.9.Records.

(a) Except as otherwise provided by the Act, Commission [ commission ] records are subject to the Texas Open Records law [ Act ], Government Code, Chapter 552.

(b) To inspect Commission [ commission ] records, a person must make a request to the executive secretary. The executive secretary may require the request to be made in writing.

(c) A person may not remove an original record from the offices of the Commission [ commission ] without the approval of the executive secretary.

(d) A person requesting to inspect a Commission [ commission ] record must pay all costs involved in preparing or copying the record. The Commission [ commission ] adopts the suggested charges promulgated by the Texas Building and Procurement [ General Services ] Commission for providing copies of public information at 5 TAC §111.63 and Government Code §552.261 .

(e) If the Commission [ commission ] mails a copy of Commission [ commission ] record to a person requesting to inspect the record, the Commission [ commission ] may also charge the person for the appropriate amount of postage.

(f) The executive secretary may establish written procedures for inspection of Commission [ commission ] records consistent with the state's open records requirements.

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 June 28, 2002.

TRD-200204051

Judith L. Kennison

General Counsel

Texas Racing Commission

Earliest possible date of adoption: August 11, 2002

For further information, please call: (512) 833-6699


Subchapter B. POWERS AND DUTIES OF THE COMMISSION

16 TAC §303.35, §303.38

The Texas Racing Commission proposes an amendment to §303.35, relating to access to Commission programs and to §303.38 relating to cooperation with peace officers and other enforcement entities in accordance with the requirements of Chapter 1275, Acts of the 75th Legislature, 1997, Section 55 and Government Code § 2001.039. The amendment will update referenced citations, update current word usage, and conform the rule to current rule style.

Judith L. Kennison, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for state or local government.

Ms. Kennison has also determined that for each of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the proposal will be that the public is assured the Commission rules are current and accurate. There will be no economic impact to small or micro businesses. There is no anticipated economic cost to an individual required to comply with the amendment as proposed. The proposal has no effect on the state's agricultural, horse breeding, horse training, greyhound breeding, or greyhound training industries.

Written comments must be submitted within 30 days after publication of the proposed amendments in the Texas Register to Judith L. Kennison, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080, fax (512) 833-6907.

The amendment is proposed under the Texas Civil Statutes, Article 179e, §2.22, relating to public programs and facility accessibility, and §3.11, which authorizes the Commission to cooperate with law enforcement entities and conduct criminal history records checks.

The proposed amendment implements Texas Civil Statutes, Article 179e.

§303.35.Access to Commission Programs.

(a) Persons who do not speak English or who have a physical, mental, or developmental disability will be provided reasonable access to the Commission and to the Commission's programs.

(b) All Commission facilities, including facilities on association grounds, will comply with Texas Civil Statutes, Article 9102, concerning architectural barriers and the policy of the State of Texas to encourage and promote the rehabilitation of [ handicapped or ] disabled individuals [ citizens ]. Each association licensed by the Commission is required to ensure accessibility to its facilities for disabled persons, pursuant to §309.113 [ §309.14 ] of this title (relating to Accessibility by Disabled Persons).

(c) All testing, whether oral, in sign language, or in a foreign language, will be arranged when an examination is required for licensure. A hearing before the Board of Stewards/Judges or the State Office of Administrative Hearings will be arranged as needed if a question of fitness for a particular license should arise.

(d) Complaints against a person or entity regulated by the Commission will be accepted in all forms under all circumstances and the Commission will provide an interpreter with an [ and ] investigator should a language problem arise. The Commission welcomes public [ citizen ] input [ and communications ] at Commission meetings . On [ and on ] prior reasonable notice to the Commission, an interpreter will be provided to assist individuals [ citizens ] in making presentations to the Commission.

§303.38.Cooperation with Peace Officers and Other Enforcement Entities

The Commission [ commission ], its employees, and its licensees shall cooperate with all district attorneys, [ criminal district attorneys, ] county attorneys, the Department of Public Safety, the attorney general, and all peace officers who are enforcing a criminal law related to racing, the Act, or the Rules.

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 June 28, 2002.

TRD-200204052

Judith L. Kennison

General Counsel

Texas Racing Commission

Earliest possible date of adoption: August 11, 2002

For further information, please call: (512) 833-6699


Subchapter D. TEXAS BRED INCENTIVE PROGRAMS

1. GENERAL PROVISIONS

16 TAC §§303.82, 303.84, 303.85

The Texas Racing Commission proposes an amendment to §§303.82, 303.84, and 303.85 relating to general provisions of the Commission's Texas bred incentive programs in accordance with the requirements of Chapter 1275, Acts of the 75th Legislature, 1997, Section 55 and Government Code § 2001.039. The amendments will rephrase certain language for clarity and conform the rule to current rule style.

Judith L. Kennison, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for state or local government.

Ms. Kennison has also determined that for each of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the proposal will be that the public is assured the Commission rules are understandable and accurate. There will be no economic impact to small or micro businesses. There is no anticipated economic cost to an individual required to comply with the amendment as proposed. The proposal has no effect on the state's agricultural, horse breeding, horse training, greyhound breeding, or greyhound training industries.

Written comments must be submitted within 30 days after publication of the proposed amendments in the Texas Register to Judith L. Kennison, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080, fax (512) 833-6907.

The amendment is proposed under the Texas Civil Statutes, Article 179e, §9.01, which authorizes the official breed registries to develop and improve breeding of horses in Texas.

The proposed amendment implements Texas Civil Statutes, Article 179e.

§303.82.Bond Required.

The treasurer or chief fiscal officer of each official breed registry must be insured [ covered ] by a bond in an amount sufficient to ensure the integrity of the program administered through that breed registry.

§303.84. Report to the Commission [ Mailings to Membership ]

A [ An official ] breed registry designated by the Act [ or the commission ] or another organization recognized by the Commission [ commission ] for any purpose shall provide to the Commission [ commission ] on June 15 of each year:

(1) a current list of the officers, directors, and members of the organization; and

(2) a copy of the organization's current charter, bylaws, or other organizational documents, including all amendments to those documents.

§303.85.Background Investigations

The Commission [ commission ] may require the officers, directors, or managers of a [ an official ] breed registry [ or other persons administering a Texas-bred incentive program ] to submit to a background investigation conducted by the Department of Public Safety or the Commission [ 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 June 28, 2002.

TRD-200204053

Judith L. Kennison

General Counsel

Texas Racing Commission

Earliest possible date of adoption: August 11, 2002

For further information, please call: (512) 833-6699


2. PROGRAM FOR HORSES

16 TAC §303.91

(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 a repeal of §303.91, relating to horse breed registries in accordance with the requirements of Chapter 1275, Acts of the 75th Legislature, 1997, Section 55 and Government Code § 2001.039. The repeal is necessary because its provisions are duplicative of §9.02 of the Racing Act and therefore redundant.

Judith L. Kennison, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for state or local government.

Ms. Kennison 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 public is assured the Commission rules free of redundancy. There will be no economic impact to small or micro businesses. There is no anticipated economic cost to an individual required to comply with the amendment as proposed. The proposal has no effect on the state's agricultural, horse breeding, horse training, greyhound breeding, or greyhound training industries.

Written comments must be submitted within 30 days after publication of the proposed amendments in the Texas Register to Judith L. Kennison, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080, fax (512) 833-6907.

The repeal is proposed under the Texas Civil Statutes, Article 179e, §9.02, which authorizes officially designated horse breed registries.

The repeal implements Texas Civil Statutes, Article 179e.

§303.91.Horse Breed Registries.

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 June 28, 2002.

TRD-200204054

Judith L. Kennison

General Counsel

Texas Racing Commission

Earliest possible date of adoption: August 11, 2002

For further information, please call: (512) 833-6699