TITLE 16.ECONOMIC REGULATION

Part 1. RAILROAD COMMISSION OF TEXAS

Chapter 12. COAL MINING REGULATIONS

The Railroad Commission of Texas proposes amendments to §12.3, relating to Definitions; the repeal of §12.71, relating to Areas Where Mining is Prohibited or Limited; new §12.71, relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited; the repeal of §12.72, relating to Procedures; new §12.72, relating to Procedures for Compatibility Findings, Public Road Closures and Relocations, Buffer Zones, and Valid Existing Rights Determinations; the repeal of §12.73, relating to Responsibility; new §12.73, relating to Commission Obligations at Time of Permit Application Review; new §12.74, relating to Responsibility; and amendments to §12.77, relating to Applicability and Restrictions on Exploration on Land Designated as Unsuitable for Surface Coal Mining Operations; §12.111, relating to General Requirements: Exploration That Will Remove More Than 250 Tons of Coal or That Will Occur on Land Designated as Unsuitable for Surface Coal Mining Operations; §12.112, relating to Applications: Approval or Disapproval of Exploration of More Than 250 Tons of Coal or That Will Occur on Land Designated as Unsuitable for Surface Coal Mining Operations; §12.113, relating to Applications: Notice and Hearing for Exploration of More Than 250 Tons; §12.118, relating to Relationship to Areas Designated Unsuitable for Mining; §12.151, relating to Protection of Public Parks and Historic Places; §12.152, relating to Relocation or Use of Public Roads; §12.158, relating to Relationship to Areas Designated Unsuitable for Mining; §12.191, Relating to Protection of Public Parks and Historic Places; §12.192, relating to Relocation or Use of Public Roads; §12.207, relating to Public Notices of Filing of Permit Applications; and §12.216, relating to Criteria for Permit Approval or Denial.

The Commission proposes to repeal §12.71, relating to Areas Where Mining is Prohibited, and replace it with new §12.71, relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited. The proposed new §12.71 adds subsection (b) which is an exception for existing operations to areas where surface coal mining operations are prohibited or limited.

The Commission proposes to repeal §12.72, relating to Procedures for Permit Application, and replace it with §12.72, relating to Procedures for Compatibility Findings, Public Road Closures and Relocations, Buffer Zones, and Valid Existing Rights Determinations. Proposed new subsection (c) explains which agency determines if there is a valid existing right and the process for determining if a valid existing right exists.

The Commission proposes to repeal §12.73, relating to Responsibility, and replace it with new §12.73, relating to Commission Obligations at Time of Permit Application Review. Proposed new §12.73 establishes the criteria to be used for rejection of any portion of an application containing protected lands and establishes procedures for joint approval of mining operations that will adversely affect publicly owned lands

The Commission proposes new §12.74, relating to Responsibility. This new section is merely a renumbering of the current §12.73, relating to Responsibility.

The Commission proposes amendments to §12.3 to remove the definition of Surface coal mining operations, which exist on the date of enactment, and to parallel the federal regulation 30 Code of Federal Regulations (CFR) §761.5. The proposed change to the definition of "valid existing rights" is intended to clarify the circumstances under which a valid existing right exists. As stated in Texas Natural Resources Code §134.012(d), the Commission is not authorized to adjudicate property title or property rights disputes. To demonstrate that a valid existing right exists, except for usage or construction of roads, a person must document that property rights existed on August 3, 1977, and must document compliance with one of the two standards listed in paragraph (187)(B). The two standards are the good faith/permits standard and the needed for and adjacent standard. Other definitions are renumbered as applicable.

The Commission proposes to amend §12.77, relating to exploration on land designated as unsuitable for Surface coal mining operations, by clarifying that lands listed under §12.71(a), relating to areas where Surface coal mining operations are prohibited or limited, are subject to designation as unsuitable for surface coal mining.

The Commission proposes to amend §12.111 and §12.112, to specify that the applicant shall demonstrate that the proposed exploration activities are designed to minimize interference with the value for which the lands were designated as unsuitable for Surface coal mining operations and document consultation with the owner of the feature that causes the land to come under §12.71(a) of this title.

The Commission proposes to amend §12.113, to add that notice also be sent to commenters.

The Commission proposes to amend §12.118 to include areas within 100 feet of a public road.

The Commission proposes to amend §§12.151, 12.152, 12.158, 12.191, 12.192, 12.207, and 12.216, to conform rule citations to other proposed changes.

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. These rule amendments are largely housekeeping measures that are anticipated to have little practical effect in Texas, but which will keep the Texas program in compliance with the requirements of the Office of Surface Mining Reclamation and Enforcement, United States Department of Interior (OSM).

Mr. Hodgkiss 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 discernable change in the cost of regulatory compliance to small businesses, micro-businesses, or individuals. The proposed amendments to the rules regarding valid existing rights could have the effect of clarifying and thus streamlining the decision process. 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 adoption of the proposed repeals, amendments, and new sections 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 Rules Coordinator, Office of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967; online at http://www.rrc.state.tx.us/rules/commentform.html; or by electronic mail to rulescoordinator@rrc.state.tx.us Comments will be accepted for 30 days after publication in the Texas Register . The Commission finds that a 30-day comment period is reasonable because these rules are required to keep the Texas program in compliance with the requirements of OSM. For further information, call Melvin Hodgkiss, Director, Surface Mining and Reclamation Division, at (512) 463-6901. The status of Commission rulemakings in progress is available at http://www.rrc.state.tx.us/rules/proposed.html.

Subchapter A. GENERAL

1. GENERAL

16 TAC §12.3

The Commission proposes the amendments under Texas Natural Resources Code, §134.013, which authorizes the Commission to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the proposed amendments.

Issued in Austin, Texas, on March 11, 2003.

§12.3.Definitions.

The following words and terms, when used in this Chapter (relating to Coal Mining Regulations), shall have the following meanings unless the context clearly indicates otherwise:

(1) - (168) (No change.)

[(169) Surface coal mining operations which exist on the date of enactment--All surface coal mining operations which were being conducted on August 3, 1977.]

(169) [ (170) ] Surface mining activities--Those surface coal mining and reclamation operations incident to the extraction of coal from the earth by removing the materials over a coal seam, before recovering the coal, by auger coal mining, or by recovery of coal from a deposit that is not in its original geologic location.

(170) [ (171) ] Surface operations and impacts incident to an underground coal mine--All activities involved in or related to underground coal mining which are either conducted on the surface of the land, produce changes in the land surface or disturb the surface, air or water resources of the area, including all activities listed in §134.004(19) of the Act and the definition of surface coal mining operations contained in this section.

(171) [ (172) ] Suspended solids or nonfilterable residue--Expressed as milligrams per liter, organic or inorganic materials carried or held in suspension in water which are retained by a standard glass fiber filter in the procedure outlined by the U.S. Environmental Protection Agency regulations for wastewater and analyses (40 CFR 136).

(172) [ (173) ] Temporary diversion--A diversion of a stream or overland flow which is used during coal exploration or surface coal mining and reclamation operations and not approved by the Commission to remain after reclamation as part of the approved postmining land use.

(173) [ (174) ] Temporary impoundment--An impoundment used during surface coal mining and reclamation operations, but not approved by the Commission to remain as part of the approved postmining land use.

(174) [ (175) ] Thick overburden--More than sufficient spoil and other waste materials available from the entire permit area to restore the disturbed area to its approximate original contour. More than sufficient spoil and other waste materials occur where the overburden thickness times the swell factor exceeds the combined thickness of the overburden and coal bed prior to removing the coal, so that after backfilling and grading the surface configuration of the reclaimed area would not:

(A) closely resemble the surface configuration of the land prior to mining; or

(B) blend into and complement the drainage pattern of the surrounding terrain.

(175) [ (176) ] Thin overburden--Insufficient spoil and other waste materials available from the entire permit area to restore the disturbed area to its approximate original contour. Insufficient spoil and other waste materials occur where the overburden thickness times the swell factor, plus the thickness of other available waste materials, is less than the combined thickness of the overburden and coal bed prior to removing the coal, so that after backfilling and grading the surface configuration of the reclaimed area would not:

(A) closely resemble the surface configuration of the land prior to mining; or

(B) blend into and complement the drainage pattern of the surrounding terrain.

(176) [ (177) ] Ton--2,000 pounds avoirdupois (0.90718 metric ton).

(177) [ (178) ] Topsoil--The A and E soil-horizon layers of the four master soil horizons.

(178) [ (179) ] Toxic-forming materials--Earth materials or wastes which, if acted upon by air, water, weathering, or microbiological processes, are likely to produce chemical or physical conditions in soils or water that are detrimental to biota or uses of water.

(179) [ (180) ] Toxic mine drainage--Water that is discharged from active or abandoned mines or other areas affected by coal exploration or surface coal mining and reclamation operations, which contains a substance that through chemical action or physical effects is likely to kill, injure, or impair biota commonly present in the area that might be exposed to it.

(180) [ (181) ] Transfer, assignment, or sale of rights--A change in ownership or other effective control over the right to conduct surface coal mining operations under a permit issued by the Commission.

(181) [ (182) ] Unconsolidated streamlaid deposits holding streams--With respect to alluvial valley floors, all flood plains and terraces located in the lower portions of topographic valleys which contain perennial or other streams with channels that are greater than 3 feet in bankfull width and greater than 0.5 feet in bankfull depth.

(182) [ (183) ] Underground development waste--Waste rock mixtures of coal, shale, claystone, siltstone, sandstone, limestone, or related materials that are excavated, moved, and disposed of during development and preparation of areas incident to underground mining activities.

(183) [ (184) ] Underground mining activities--Includes:

(A) surface operations incident to underground extraction of coal or in situ processing, such as construction, use, maintenance, and reclamation of roads, above-ground repair areas, storage areas, processing areas, shipping areas, areas upon which are sited support facilities including hoist and ventilating ducts, areas utilized for the disposal and storage of waste, and areas on which materials incident to underground mining operations are placed; and

(B) underground operations such as underground construction, operation, and reclamation of shafts, adits, underground support facilities, in situ processing, and underground mining, hauling, storage, and blasting.

(184) [ (185) ] Undeveloped rangeland--For purposes of alluvial valley floors, lands where the use is not specifically controlled and managed.

(185) [ (186) ] Unwarranted failure to comply--The failure of the permittee to prevent the occurrence of any violation of the permit or any requirement of the Act, due to the indifference, lack of diligence, or lack of reasonable care, or the failure to abate any violation of such permit or the Act, due to indifference, lack of diligence, or lack of reasonable care.

(186) [ (187) ] Upland areas--With respect to alluvial valley floors, those geomorphic features located outside the floodplain and terrace complex, such as isolated higher terraces, alluvial fans, pediment surfaces, landslide deposits, and surfaces covered with residuum, mud flows or debris flows, as well as highland areas underlain by bedrock and covered by residual weathered material or debris deposited by sheetwash, rillwash, or windblown material.

(187) Valid existing rights--A set of circumstances under which a person may, subject to Commission approval, conduct surface coal mining operations on lands where §134.022 of the Act and §12.71(a) of this title (relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited) would otherwise prohibit such operations. Possession of valid existing rights only confers an exception from the prohibitions of §12.71(a) of this title and §134.022 of the Act. A person seeking to exercise valid existing rights must comply with all other pertinent requirements of the Act and this chapter.

(A) Property rights demonstration. Except as provided in subparagraph (C) of this paragraph, a person claiming valid existing rights must demonstrate that a legally binding conveyance, lease, deed, contract, or other document vests that person, or a predecessor in interest, with the right to conduct the type of surface coal mining operations intended. This right must exist at the time that the land came under the protection of §12.71(a) of this title or §134.022 of the Act. Applicable state statutory or case law will govern interpretation of documents relied upon to establish property rights. If no applicable state law exists, custom and generally accepted usage at the time and place that the documents came into existence will govern their interpretation.

(B) Additional demonstrations. Except as provided in subparagraph (C) of this paragraph, a person claiming valid existing rights must also demonstrate compliance with one of the following standards:

(i) Good faith/all permits standard. All permits and other authorizations required to conduct surface coal mining operations have been obtained, or a good faith effort to obtain all necessary permits and authorizations has been made, before the land came under the protection of §12.71(a) of this title or §134.022 of the Act. At a minimum, an application must have been submitted for any permit required under Subchapter G of this chapter (relating to Surface Coal Mining and Reclamation Operations, Permits, and Coal Exploration Procedure Systems); or

(ii) Needed for and adjacent standard. The land is needed for and immediately adjacent to a surface coal mining operation for which all permits and other authorizations required to conduct surface coal mining operations have been obtained, or a good faith attempt to obtain all permits and authorizations has been made, before the land came under the protection of §12.71(a) of this title or §134.022 of the Act. To meet this standard, a person must demonstrate that prohibiting expansion of the operation onto that land would unfairly impact the viability of the operation as originally planned before the land came under the protection of §12.71(a) of this title or §134.022 of the Act. Except for operations in existence before August 3, 1977, or for which a good faith effort to obtain all necessary permits have been made before August 3, 1977, this standard does not apply to lands already under the protection of §12.71(a) of this title or §134.022 of the Act when the Commission approved the permit for the original operation or when the good faith effort to obtain all necessary permits for the original operation was made. In evaluating whether a person meets this standard, the Commission may consider factors such as:

(I) the extent to which coal supply contracts or other legal and business commitments that predate the time that the land came under the protection of §12.71(a) of this title or §134.022 of the Act depend upon use of that land for surface coal mining operations;

(II) the extent to which plans used to obtain financing for the operation before the land came under the protection of §12.71(a) of this title or §134.022 of the Act rely upon use of that land for surface coal mining operations;

(III) the extent to which investments in the operation before the land came under the protection of §12.71(a) of this title or §134.022 of the Act rely upon use of that land for surface coal mining operations; and

(IV) whether the land lies within the area identified on the life-of-mine map submitted under §12.136(3) of this title (relating to Maps: General Requirements) or §12.182(3) of this title (relating to Maps: General Requirements) before the land came under the protection of §12.71(a) of this title.

(C) Roads. A person who claims valid existing rights to use or construct a road across the surface of lands protected by §12.71(a) of this title or §134.022 of the Act must demonstrate that one or more of the following circumstances exist if the road is included within the definition of "surface coal mining operations" in this section:

(i) the road existed when the land upon which it is located came under the protection of §12.71(a) of this title or §134.022 of the Act, and the person has a legal right to use the road for surface coal mining operations;

(ii) a properly recorded right of way or easement for a road in that location existed when the land came under the protection of §12.71(a) of this title or §134.022 of the Act, and, under the document creating the right of way or easement, and under subsequent conveyances, the person has a legal right to use or construct a road across the right of way or easement for surface coal mining operations;

(iii) a valid permit for use or construction of a road in that location for surface coal mining operations existed when the land came under the protection of §12.71(a) of this title or §134.022 of the Act; or

(iv) valid existing rights exist under subparagraphs (A) and (B) of this paragraph.

[(188) Valid existing rights--Includes:]

[(A) except for haul roads:]

[(i) those property rights in existence on August 3, 1977, that were created by a legally binding conveyance, lease, deed, contract or other document which authorizes the applicant to produce coal by a surface coal mining operation; and]

[(ii) the person proposing to conduct surface coal mining operations on such lands either:]

[(I) has been validly issued, on or before August 3, 1977, all state and federal permits necessary to conduct such operations on those lands; or]

[(II) can demonstrate to the Commission that the coal is both needed for, and immediately adjacent to, an ongoing surface coal mining operation for which all permits were obtained prior to August 3, 1977;]

[(B) for haul roads, valid existing rights includes:]

[(i) A recorded right-of-way, recorded easement, or a permit for a coal haul road recorded as of August 3, 1977; or]

[(ii) Any other road in existence as of August 3, 1977; and]

[(C) interpretation of the terms of the document relied upon to establish valid existing rights shall be based upon Texas case law concerning the interpretation of documents conveying mining rights. When no Texas case law exists, interpretation shall be based upon the usage and custom at the time and place where the document came into existence and upon a showing by the applicant that the parties to the document actually contemplated a right to conduct the same underground or surface mining activities for which the applicant claims a valid existing right.]

[(D) valid existing rights does not include mere expectation of a right to conduct surface coal mining operations or the right to conduct underground coal mining. (Examples of rights which alone do not constitute valid existing rights include, but are not limited to, coal exploration permits or licenses, applications or bids for leases, or where a person has only applied for a state or federal permit.)]

(188) [ (189) ] Valley fill--A fill structure consisting of any material other than coal waste and organic material that is placed in a valley where side slopes of the existing valley measured at the steepest point are greater than 20 degrees or the average slope of the profile of the valley from the toe of the fill to the top of the fill is greater than 10 degrees.

(189) [ (190) ] Violation, failure, or refusal--With respect to §§12.696 - 12.699 of this title, a violation of or a failure or refusal to comply with any order of the Commission including, but not limited to, a condition of a permit, notice of violation, failure-to-abate cessation order, imminent harm cessation order, order to show cause why a permit should not be suspended or revoked, and order in connection with a civil action for relief, except an order incorporated in a decision issued under §134.175 of the Act.

(190) [ (191) ] Violation notice--Any written notification from a governmental entity of a violation of law, whether by letter, memorandum, legal or administrative pleading, or other written communication.

(191) [ (192) ] Water table--The upper surface of a zone of saturation, where the body of ground water is not confined by an overlying impermeable zone.

(192) [ (193) ] Willfully--With respect to §§12.696 - 12.699 of this title, that an individual acted:

(A) either intentionally, voluntarily, or consciously; and

(B) with intentional disregard or plain indifference to legal requirements in authorizing, ordering, or carrying out a corporate permittee's action or omission that constituted a violation, failure, or refusal.

(193) [ (194) ] Willful violation--An act or omission which violates the Act, state, or federal laws or regulations, or any permit condition required by the Act or this chapter, committed by a person who intends the result which actually occurs.

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 20, 2003.

TRD-200301845

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: May 4, 2003

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


Subchapter F. LANDS UNSUITABLE FOR MINING

2. AREAS DESIGNATED BY ACT OF CONGRESS

16 TAC §12.71, §12.72

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Commission proposes the repeals under Texas Natural Resources Code, §134.013, which authorizes the Commission to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the proposed repeals.

Issued in Austin, Texas, on March 11, 2003.

§12.71.Areas Where Mining is Prohibited or Limited.

§12.72.Procedures.

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 20, 2003.

TRD-200301843

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: May 4, 2003

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


16 TAC §12.71, §12.72

The Commission proposes the new sections under Texas Natural Resources Code, §134.013, which authorizes the Commission to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the proposed new sections.

Issued in Austin, Texas, on March 11, 2003.

§12.71.Areas Where Surface Coal Mining Operations are Prohibited or Limited.

(a) Surface coal mining operations may not be conducted on the following lands unless those lands either qualify for the exception for existing operations under subsection (b) of this section or are subject to valid existing rights, as determined under §12.72(c) of this title (relating to Procedures for Compatibility Findings, Public Road Closures and Relocations, Buffer Zones, and Valid Existing Rights Determinations):

(1) Any lands within the boundaries of:

(A) the National Park System;

(B) the National Wildlife Refuge System;

(C) the National System of Trails;

(D) the National Wilderness Preservation System;

(E) the Wild and Scenic Rivers System, including study rivers designated under section 5(a) of the Wild and Scenic Rivers Act, 16 U.S.C. 1276(a), or study rivers or study river corridors established in any guidelines issued under that Act; or

(F) National Recreation Areas designated by Act of Congress.

(2) Any federal lands within a national forest, except that this prohibition must not apply if the Secretary finds that there are no significant recreational, timber, economic, or other values that may be incompatible with surface coal mining operations, and:

(A) any surface operations and impacts will be incident to an underground coal mine; or

(B) with respect to lands that do not have significant forest cover within national forests west of the 100th meridian, the Secretary of Agriculture has determined that surface mining is in compliance with the Act, the Multiple-Use Sustained Yield Act of 1960, 16 U.S.C. 528-531; the Federal Coal Leasing Amendments Act of 1975, 30 U.S.C. 181 et seq.; and the National Forest Management Act of 1976, 16 U.S.C. 1600 et seq.

(3) Any lands where the operation would adversely affect any publicly owned park or any place listed in the National Register of Historic Places; however, this prohibition does not apply if, as provided in §12.73(d) of this title (relating to Commission Obligations at Time of Permit Application Review), the Commission and the federal, state or local agency with jurisdiction over the park or place jointly approve the operation.

(4) Within 100 feet, measured horizontally, of the outside right-of-way line of any public road, except:

(A) where a mine access or haul road joins a public road, or

(B) when, as provided in §12.72(a) of this title, the Commission (or the appropriate public road authority designated by the Commission) allows the public road to be relocated or closed, or the area within the buffer zone to be affected by the surface coal mining operation, after:

(i) providing public notice and opportunity for a public hearing in accordance with §12.72(a)(3) of this title; and

(ii) finding in writing that the interests of the affected public and landowners will be protected.

(5) Within 300 feet, measured horizontally, of any occupied dwelling; except when:

(A) the owner of the dwelling has provided a written waiver consenting to surface coal mining operations within the protected zone, as provided in §12.72(b) of this title; or

(B) the part of the operation to be located closer than 300 feet to the dwelling is an access or haul road that connects with an existing public road on the side of the public road opposite the dwelling.

(6) Within 300 feet, measured horizontally, of any public building, school, church, community or institutional building, or public park.

(7) Within 100 feet, measured horizontally, of a cemetery; however, this prohibition does not apply if the cemetery is relocated in accordance with all applicable laws and regulations.

(b) Exception for existing operations. The prohibitions and limitations of subsection (a) of this section do not apply to surface coal mining operations for which a valid permit, issued under Subchapter G of this chapter (relating to Surface Coal Mining and Reclamation Operations, Permits and Coal Exploration Procedures Systems), exists when the land comes under the protection of subsection (a) of this section; this exception applies only to lands within the permit area as it exists when the land comes under the protection of subsection (a) of this section.

§12.72.Procedures for Compatibility Findings, Public Road Closures and Relocations, Buffer Zones, and Valid Existing Rights Determinations.

(a) Procedures for relocating or closing a public road or waiving the prohibition on surface coal mining operations within the buffer zone of a public road.

(1) This section does not apply to:

(A) lands for which a person has valid existing rights, as determined under subsection (c) of this section;

(B) lands within the scope of the exception for existing operations in §12.71(b) of this title (relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited); and

(C) access or haul roads that join a public road, as described in §12.71(a)(4)(A) of this title (relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited).

(2) All necessary approvals from the authority with jurisdiction over the road must be obtained for the following:

(A) relocation of a public road;

(B) closure of a public road; or

(C) surface coal mining operations proposed within 100 feet, measured horizontally, of the outside right-of-way line of a public road.

(3) Before approving an action proposed under paragraph (2) of this subsection, the Commission or a public road authority that it designates must determine that the interests of the public and affected landowners will be protected. Before making this determination, the Commission or designated authority must:

(A) provide a public comment period and opportunity to request a public hearing in the locality of the proposed operation;

(B) if a public hearing is requested, publish appropriate advance notice at least two weeks before the hearing in a newspaper of general circulation in the affected locality; and

(C) based upon information received from the public, make a written finding as to whether the interests of the public and affected landowners will be protected. If a hearing is held by the Commission or designated authority, the Commission or designated authority must make a written finding within 30 days after the hearing. If no hearing is held, the Commission or designated authority must make a written finding within 30 days after the end of the public comment period.

(b) Procedures for waiving the prohibition on surface coal mining operations within the buffer zone of an occupied dwelling.

(1) This section does not apply to:

(A) lands for which a person has valid existing rights, as determined under subsection (c) of this section;

(B) lands within the scope of the exception for existing operations in §12.71(b) of this title (relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited); and

(C) access or haul roads that connect with an existing public road on the side of the public road opposite the dwelling, as provided in §12.71(a)(5)(B) of this title (relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited).

(2) If surface coal mining operations are proposed to be conducted within 300 feet, measured horizontally, of any occupied dwelling, the permit application must include a written waiver by lease, deed, or other conveyance from the owner of the dwelling. The waiver must clarify that the owner and signatory have the legal right to deny mining and knowingly waived that right. The waiver will act as consent to surface coal mining operations within a closer distance of the dwelling as specified.

(3) If a valid waiver from the owner of an occupied dwelling to conduct operations within 300 feet of the dwelling was obtained before August 3, 1977, a new waiver does not need to be provided.

(4) If a valid waiver is obtained from the owner of an occupied dwelling, that waiver will remain effective against subsequent purchasers who have actual or constructive knowledge of the existing waiver at the time of purchase. A subsequent purchaser will be deemed to have constructive knowledge if the waiver has been properly filed in public property records pursuant to state laws or if surface coal mining operations have entered the 300-foot zone before the date of purchase.

(c) Submission and processing of requests for valid existing rights determinations.

(1) Basic framework for valid existing rights determinations. The following table identifies the agency responsible for making a valid existing rights determination and the definition that it must use, based upon which part of §12.71(a) of this title (relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited) applies and whether the request includes federal lands.

Figure: 16 TAC §12.72(c)(1)

(2) Contents of requests for a valid existing rights determination. A request for a valid existing rights determination for any land other than federal land must be submitted to the Commission if the applicant intends to conduct surface coal mining operations on the basis of valid existing rights under §12.71(a) of this title or wishes to confirm the right to do so. This request may be submitted before preparing and submitting an application for a permit or boundary revision for the land.

(A) Requirements for property rights demonstration. A property rights demonstration must be provided under the definition of "valid existing rights" in §12.3(187)(A) of this title (relating to Definitions) if the request relies upon the good faith/all permits standard or the needed for and adjacent standard in the definition of "valid existing rights" in §12.3(187)(B) of this title. This demonstration must include the following items:

(i) a legal description of the land to which the request pertains;

(ii) complete documentation of the character and extent of the applicant's current interests in the surface and mineral estates of the land to which the request pertains;

(iii) a complete chain of title for the surface and mineral estates of the land to which the request pertains;

(iv) a description of the nature and effect of each title instrument that forms the basis for the request, including any provision pertaining to the type or method of mining or mining-related surface disturbances and facilities;

(v) a description of the type and extent of surface coal mining operations that the applicant claims the right to conduct, including the method of mining, any mining-related surface activities and facilities, and an explanation of how those operations would be consistent with state property law;

(vi) complete documentation of the nature and ownership, as of the date that the land came under the protection of §12.71(a) of this title (relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited) or §134.022 of the Act, of all property rights for the surface and mineral estates of the land to which the request pertains;

(vii) names and addresses of the current owners of the surface and mineral estates of the land to which the request pertains;

(viii) if the coal interests have been severed from other property interests, documentation that the owners of other property interests in the land to which the request pertains has been notified and provided reasonable opportunity to comment on the validity of the applicant's property rights claims; and

(ix) any comments that are received by the applicant in response to the notification provided under clause (viii) of this subparagraph.

(B) Requirements for good faith/all permits standard. If the applicant's request relies upon the good faith/all permits standard in the definition of "valid existing rights" in §12.3(187)(B)(i) of this title, the information required under that clause must be submitted. The following information about permits, licenses, and authorizations for surface coal mining operations on the land to which the request pertains must also be submitted:

(i) approval and issuance dates and identification numbers for any permits, licenses, and authorizations that the applicant or a predecessor in interest obtained before the land came under the protection of §12.71(a) of this title (relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited) or §134.022 of the Act;

(ii) application dates and identification numbers for any permits, licenses, and authorizations for which the applicant or a predecessor in interest submitted an application before the land came under the protection of §12.71(a) of this title or §134.022 of the Act; and

(iii) an explanation of any other good faith effort that the applicant or a predecessor in interest made to obtain the necessary permits, licenses, and authorizations as of the date that the land came under the protection of §12.71(a) of this title or §134.022 of the Act.

(C) Requirements for needed for and adjacent standard. If the applicant's request relies upon the needed for and adjacent standard in the definition of "valid existing rights" in §12.3(187)(B)(i) of this title, the information required under subparagraph (A) of this paragraph must be submitted. In addition, the applicant must explain how and why the land is needed for and immediately adjacent to the operation upon which the request is based, including a demonstration that prohibiting expansion of the operation onto that land would unfairly impact the viability of the operation as originally planned before the land came under the protection of §12.71(a) of this title or §134.022 of the Act.

(D) Requirements for standards for mine roads. If the applicant's request relies upon one of the standards for roads in the definition of "valid existing rights" in §12.3(187)(c)(i) - (iii) of this title, the applicant must submit satisfactory documentation that:

(i) the road existed when the land upon which it is located came under the protection of §12.71(a) of this title or §134.022 of the Act, and that the applicant has a legal right to use the road for surface coal mining operations;

(ii) a properly recorded right of way or easement for a road in that location existed when the land came under the protection of §12.71(a) of this title or §134.022 of the Act, and, under the document creating the right of way or easement, and under any subsequent conveyances, the applicant has a legal right to use or construct a road across that right of way or easement to conduct surface coal mining operations; or

(iii) a valid permit for use or construction of a road in that location for surface coal mining operations existed when the land came under the protection of §12.71(a) of this title or §134.022 of the Act.

(3) Initial review of request regarding any land other than federal land.

(A) The Commission must conduct an initial review to determine whether the applicant's request includes all applicable components of the submission requirements of paragraph (2) of this subsection. This review pertains only to the completeness of the request, not the legal or technical adequacy of the materials submitted.

(B) If the applicant's request does not include all applicable components of the submission requirements of paragraph (2) of this subsection, the Commission must notify the applicant and establish a reasonable time for submission of the missing information.

(C) When the applicant's request includes all applicable components of the submission requirements of paragraph (2) of this subsection, the Commission must implement the notice and comment requirements of paragraph (4) of this subsection.

(D) If the information requested by the Commission under subparagraph (B) of this paragraph is not provided within the time specified or as subsequently extended, the Commission must issue a determination that the applicant has not demonstrated valid existing rights, as provided in paragraph (5)(D) of this subsection.

(4) Notice and comment requirements and procedures.

(A) When the applicant's request satisfies the completeness requirements of paragraph (3) of this subsection, the Commission must publish a notice in a newspaper of general circulation in the county in which the land is located. This notice must invite comment on the merits of the request. Alternatively, the Commission may require that the applicant publish this notice and provide the Commission with a copy of the published notice. Each notice must include:

(i) the location of the land to which the request pertains;

(ii) a description of the type of surface coal mining operations planned;

(iii) a reference to and brief description of the applicable standard(s) under the definition of "valid existing rights" in §12.3(187) of this title; and

(I) if the request relies upon the good faith/all permits standard or the needed for and adjacent standard in the definition of "valid existing rights" in §12.3(187)(B) of this title, the notice also must include a description of the property rights claimed and the basis for that claim;

(II) if the request relies upon the standard in the definition of "valid existing rights" in §12.3(187)(C)(i) of this title, the notice also must include a description of the basis for the claim that the road existed when the land came under the protection of §12.71(a) of this title or §134.022 of the Act. In addition, the notice must include a description of the basis for the claim that the applicant has a legal right to use that road for surface coal mining operations;

(III) if the request relies upon the standard in the definition of "valid existing rights" in §12.3(187)(C)(ii) of this title, the notice must also include a description of the basis for the claim that a properly recorded right of way or easement for a road in that location existed when the land came under the protection of §12.71(a) of this title or §134.022 of the Act. In addition, the notice must include a description of the basis for the claim that, under the document creating the right-of-way or easement, and under any subsequent conveyances, the applicant has a legal right to use or construct a road across the right-of-way or easement to conduct surface coal mining operations;

(iv) if the applicant's request relies upon one or more of the standards in the definition of "valid existing rights" in §12.3(187)(B), (C)(i), and (C)(ii) of this title, a statement that the Commission will not make a decision on the merits of the request if, by the close of the comment period under this notice or the notice required by subparagraph (C) of this paragraph, a person with a legal interest in the land initiates appropriate legal action to resolve any differences concerning the validity or interpretation of the deed, lease, easement, or other documents that form the basis of the applicant's claim;

(v) a description of the procedures that the Commission will follow in processing the request;

(vi) the closing date of the comment period, which must be a minimum of 30 days after the publication date of the notice;

(vii) a statement that interested persons may obtain a 30-day extension of the comment period upon request; and

(viii) the name and address of the Commission office where a copy of the request is available for public inspection and to which comments and requests for extension of the comment period should be sent.

(B) The Commission must promptly provide a copy of the notice required under subparagraph (A) of this paragraph to:

(i) all reasonably locatable owners of surface and mineral estates in the land included in the request; and

(ii) the owner of the feature causing the land to come under the protection of §12.71(a) of this title, and, when applicable, the agency with primary jurisdiction over the feature with respect to the values causing the land to come under the protection of §12.71(a) of this title. For example, both the landowner and the State Historic Preservation Officer must be notified if surface coal mining operations would adversely impact any site listed on the National Register of Historic Places. As another example, both the surface owner and the National Park Service must be notified if the request includes non-federal lands within the authorized boundaries of a unit of the National Park System.

(C) The letter transmitting the notice required under subparagraph (B) of this paragraph must provide a 30-day comment period, starting from the date of service of the letter, and specify that another 30 days is available upon request. At its discretion, the Commission may grant additional time for good cause upon request. The Commission need not necessarily consider comments received after the closing date of the comment period.

(5) How a decision will be made.

(A) Procedure. The Commission must review the materials submitted under paragraph (2) of this subsection, comments received under paragraph (4) of this subsection, and any other relevant, reasonably available information to determine whether the record is sufficiently complete and adequate to support a decision on the merits of the request. If not, the Commission must notify the applicant in writing, explaining the inadequacy of the record and requesting submittal, within a specified reasonable time, of any additional information that the agency deems necessary to remedy the inadequacy.

(B) Determination. Once the record is complete and adequate, the Commission must determine whether the applicant has demonstrated valid existing rights. The decision document must explain how the applicant has or has not satisfied all applicable elements of the definition of "valid existing rights" in §12.3(187) of this title. It must contain findings of fact and conclusions, and it must specify the reasons for the conclusions.

(C) Impact of property rights disagreements. This subparagraph applies only when the request relies upon one or more of the standards in the definition of "valid existing rights" in §12.3(187)(B), (C)(i) and (C)(ii) of this title.

(i) The Commission must issue a determination that the applicant has not demonstrated valid existing rights if those property rights claims are the subject of pending litigation in a court or administrative body with jurisdiction over the property rights in question. The Commission will make this determination without prejudice, meaning that an applicant may refile the request once the property rights dispute is finally adjudicated. This clause applies only to situations in which legal action has been initiated as of the closing date of the comment period under paragraph (4)(A) or (C) of this subsection.

(ii) If the record indicates disagreement as to the accuracy of property rights claims, but this disagreement is not the subject of pending litigation in a court or administrative agency of competent jurisdiction, the Commission must evaluate the merits of the information in the record and determine whether the applicant has demonstrated that the requisite property rights exist under the definition of "valid existing rights" in §12.3(187)(A), (C)(i) or (C)(ii) of this title, as appropriate. The Commission must then proceed with the decision process under subparagraph (B) of this paragraph.

(D) Default determination. The Commission must issue a determination that an applicant has not demonstrated valid existing rights if the information that is requested under paragraph (3)(B) of this subsection or subparagraph (A) of this paragraph has not been submitted within the time specified or as subsequently extended. The Commission will make this determination without prejudice, meaning that the applicant may refile a revised request at any time.

(E) Notice after decision. After making a determination, the Commission must:

(i) provide a copy of the determination, together with an explanation of appeal rights and procedures, to the applicant, to the owner or owners of the land to which the determination applies, to the owner of the feature causing the land to come under the protection of §12.71(a) of this title, and, when applicable, to the agency with primary jurisdiction over the feature with respect to the values that caused the land to come under the protection of §12.71(a) of this title; and

(ii) publish notice of the determination in a newspaper of general circulation in the county in which the land is located. Alternatively, the Commission may require that the applicant publish this notice and provide a copy of the published notice to the Commission.

(6) Administrative and judicial review. A determination that an applicant has or does not have valid existing rights is subject to administrative and judicial review under §12.222 and §12.223 of this title (relating to Administrative Review and Judicial Review).

(7) Availability of records. The Commission must make a copy of that request available to the public in the same manner as it must make permit applications available to the public under §12.210 of this title (relating to Public Availability of Information in Permit Applications On File With the Commission). In addition, the Commission must make records associated with that request, and any subsequent determination under paragraph (5) of this subsection, available to the public in accordance with the requirements and procedures of §12.672 of this title (relating to Availability of Records).

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 20, 2003.

TRD-200301846

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: May 4, 2003

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


3. CRITERIA FOR DESIGNATING AREAS AS UNSUITABLE FOR SURFACE COAL MINING OPERATIONS

16 TAC §12.73

(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 Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Commission proposes the repeal under Texas Natural Resources Code, §134.013, which authorizes the Commission to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the proposed repeal.

Issued in Austin, Texas, on March 11, 2003.

§12.73.Responsibility.

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 20, 2003.

TRD-200301844

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: May 4, 2003

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


16 TAC §12.73, §12.74

The Commission proposes the new sections under Texas Natural Resources Code, §134.013, which authorizes the Commission to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the proposed new sections.

Issued in Austin, Texas, on March 11, 2003.

§12.73.Commission Obligations at Time of Permit Application Review.

(a) Obligation. Upon receipt of an administratively complete application for a permit for a surface coal mining operation, or an administratively complete application for revision of the boundaries of a surface coal mining operation permit, the Commission must review the application to determine whether the proposed surface coal mining operation would be located on any lands protected under §12.71(a) of this title (relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited).

(b) Criteria for Rejection. The Commission must reject any portion of the application that would locate surface coal mining operations on land protected under §12.71(a) of this title unless:

(1) the site qualifies for the exception for existing operations under §12.71(b) of this title;

(2) a person has valid existing rights for the land, as determined under §12.72(c) of this title (relating to Procedures For Compatibility Findings, Public Road Closures and Relocations, Buffer Zones, And Valid Existing Rights Determinations);

(3) the applicant obtains a waiver or exception from the prohibitions of §12.71(a) of this title in accordance with §12.72(a)-(b) of this title; or

(4) for lands protected by §12.71(a)(3) of this title, both the Commission and the agency with jurisdiction over the park or place jointly approve the proposed operation in accordance with subsection (d) of this section.

(c) Location verification. If the Commission has difficulty determining whether an application includes land within an area specified in §12.71(a)(1) of this title or within the specified distance from a structure or feature listed in §12.71(a)(6) or (a)(7) of this title, the Commission must request that the federal, state, or local governmental agency with jurisdiction over the protected land, structure, or feature verify the location.

(1) The request for location verification must:

(A) include relevant portions of the permit application;

(B) provide the agency with 30 days after receipt to respond, with a notice that another 30 days is available upon request; and

(C) specify that the Commission will not necessarily consider a response received after the comment period provided under subparagraph (B) of this paragraph.

(2) If the agency does not respond in a timely manner, the Commission may make the necessary determination based on available information.

(d) Procedures for joint approval of surface coal mining operations that will adversely affect publicly owned parks or historic places.

(1) If the Commission determines that the proposed surface coal mining operation will adversely affect any publicly owned park or any place included in the National Register of Historic Places, the Commission must request that the federal, state, or local agency with jurisdiction over the park or place either approve or object to the proposed operation. The request must:

(A) include a copy of applicable parts of the permit application;

(B) provide the agency with 30 days after receipt to respond, with a notice that another 30 days is available upon request; and

(C) state that failure to interpose an objection within the time specified under subparagraph (B) of this paragraph will constitute approval of the proposed operation.

(2) The Commission may not issue a permit for a proposed operation subject to paragraph (1) of this subsection unless all affected agencies jointly approve.

(3) Paragraphs (1) and (2) of this subsection do not apply to:

(A) lands for which a person has valid existing rights, as determined under §12.72(c) of this title; and

(B) lands within the scope of the exception for existing operations in §12.71(b) of this title.

§12.74.Responsibility.

The Commission must use the criteria in this Subchapter (relating to Lands Unsuitable for Mining) for the evaluation of each petition for the designation of areas as unsuitable for surface coal mining operations.

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 20, 2003.

TRD-200301847

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: May 4, 2003

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


16 TAC §12.77

The Commission proposes the amendments under Texas Natural Resources Code, §134.013, which authorizes the Commission to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the proposed amendments.

Issued in Austin, Texas, on March 11, 2003.

§12.77. Applicability and Restrictions on Exploration on Land Designated as Unsuitable for Surface Coal Mining Operations.

(a) Applicability. Pursuant to appropriate petitions, lands listed in §12.71(a) of this title (relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited) are subject to designation as unsuitable for all or certain types of Surface coal mining operations under this Division and Division 4 of Subchapter F (relating to Lands Unsuitable for Mining).

(b) Exploration Restrictions. Designation of any area as unsuitable for all or certain types of surface coal mining operations pursuant to §§134.016-134.022 of the Act and regulations of this subchapter (relating to Lands Unsuitable for Mining) does not prohibit coal exploration operations in the area, if conducted in accordance with the Act, this chapter (relating to Coal Mining Regulations), the approved state program and other applicable requirements. Exploration operations on any lands designated unsuitable for surface coal mining operations must be approved by the Commission under §§12.109-12.115 of this title (relating to General Requirements for Coal Exploration) to ensure that exploration does not interfere with any value for which the area has been designated unsuitable for surface coal mining.

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 20, 2003.

TRD-200301848

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: May 4, 2003

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


Subchapter G. SURFACE COAL MINING AND RECLAMATION OPERATIONS, PERMITS, AND COAL EXPLORATION PROCEDURES SYSTEMS

3. GENERAL REQUIREMENTS FOR COAL EXPLORATION

16 TAC §§12.111 - 12.113

The Commission proposes the amendments under Texas Natural Resources Code, §134.013, which authorizes the Commission to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the proposed amendments.

Issued in Austin, Texas, on March 11, 2003.

§12.111.General Requirements: Exploration That Will Remove [ of ] More Than 250 Tons of Coal or That Will Occur on Land Designated as Unsuitable for Surface Coal Mining Operations .

Any person who intends to conduct coal exploration outside a permit area during which more than 250 tons of coal will be removed or which will take place on lands designated as unsuitable for surface mining under Subchapter F of this chapter (relating to Lands Unsuitable for Mining) shall, prior to conducting the exploration, submit an application and obtain the written approval of the Commission, in accordance with the following:

(1) Contents of application for approval. Each application for approval shall contain, at a minimum, the following information:

(A) - (E) (No change.)

(F) if the surface is owned by a person other than the applicant, a description of the basis upon which the applicant claims the right to enter that land for the purpose of conducting exploration and reclamation; [ and ]

(G) a statement of why extraction of more than 250 tons of coal is necessary for exploration ; and [ . ]

(H) for any lands listed in §12.71(a) of this title (relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited), a demonstration that, to the extent technologically and economically feasible, the proposed exploration activities have been designed to minimize interference with the values for which those lands were designated as unsuitable for Surface coal mining operations. The application must include documentation of consultation with the owner of the feature causing the land to come under the protection of §12.71(a) of this title, and, when applicable, with the agency with primary jurisdiction over the feature with respect to the values that caused the land to come under the protection of §12.71(a) of this title.

(2) (No change.)

§12.112.Applications: Approval or Disapproval of Exploration of More Than 250 Tons of Coal or That Will Occur on Land Designated as Unsuitable for Surface Coal Mining Operations .

(a) (No change.)

(b) The Commission shall approve a complete application filed in accordance with §§12.109-12.111, this section, and §§12.113-12.115 of this title (relating to General Requirements for Coal Exploration), if it finds, in writing, that the applicant has demonstrated that the exploration and reclamation described in the application:

(1) (No change.)

(2) will not jeopardize the continued existence of an endangered or threatened species listed pursuant to Section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533) or result in the destruction or adverse modification of critical habitat of those species; [ and ]

(3) will not adversely affect any cultural resources or districts, sites, buildings, structures, or objects listed or eligible for listing on the National Register of Historic Places, unless the proposed exploration has been approved by both the Commission and the agency with jurisdiction over such matters ; and

(4) with respect to exploration activities on any lands protected under §12.71(a) of this title (relating to Areas Where Surface Coal Mining Operations are Prohibited Or Limited), minimize interference, to the extent technologically and economically feasible, with the values for which those lands were designated as unsuitable for surface coal mining operations. Before making this finding, the Commission must provide reasonable opportunity to the owner of the feature causing the land to come under the protection of §12.71(a) of this title, and, when applicable, to the agency with primary jurisdiction over the feature with respect to the values that caused the land to come under the protection of §12.71(a) of this title, to comment on whether the finding is appropriate.

(c) (No change.)

§12.113.Applications: Notice and Hearing for Exploration of More Than 250 Tons.

(a) The Commission shall notify the applicant and the appropriate local government officials, and other commenters on the application, in writing, of its decision to approve or disapprove the application. If the application is disapproved, the notice to the applicant shall include a statement of the reason[ , ] for disapproval. The Commission shall provide public notice of approval or disapproval of each application[ , ] by publication in a newspaper of general circulation in the general vicinity of the proposed operations.

(b) (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 20, 2003.

TRD-200301849

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: May 4, 2003

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


4. SURFACE MINING PERMIT APPLICATIONS--MINIMUM REQUIREMENTS FOR LEGAL, FINANCIAL, COMPLIANCE, AND RELATED INFORMATION, PART I

16 TAC §12.118

The Commission proposes the amendments under Texas Natural Resources Code, §134.013, which authorizes the Commission to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the proposed amendments.

Issued in Austin, Texas, on March 11, 2003.

§12.118.Relationship to Areas Designated Unsuitable for Mining.

(a) Each application shall contain [ a statement of ] available information on whether the proposed permit area is within an area designated unsuitable for surface coal mining and reclamation or is within an area under study for designation in an administrative proceeding [ activities ] under §§12.74-12.77 of this title (relating to Criteria for Designating Areas as Unsuitable for Surface Coal Mining Operations) and §§12.78-12.85 of this title (relating to Process for Designating Areas as Unsuitable for Surface Coal Mining Operations) [ or under study for designation in an administrative proceeding ].

(b) (No change.)

(c) If an applicant proposes to conduct surface mining activities within 100 feet of a public road or within 300 feet of an occupied dwelling, the application must meet the requirements of §12.72(a) or (b) of this title (relating to Procedures for Compatibility Findings, Public Road Closures and Relocations, Buffer Zones, and Valid Existing Rights Determinations) [ shall contain the waiver of the owner of the dwelling as required in §12.72(f) of this title (relating to Procedures) ].

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 20, 2003.

TRD-200301850

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: May 4, 2003

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


6. SURFACE MINING PERMIT APPLICATIONS--MINIMUM REQUIREMENTS FOR RECLAMATION AND OPERATION PLAN

16 TAC §12.151, §12.152

The Commission proposes the amendments under Texas Natural Resources Code, §134.013, which authorizes the Commission to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the proposed amendments.

Issued in Austin, Texas, on March 11, 2003.

§12.151.Protection of Public Parks and Historic Places.

(a) For any publicly owned parks or any places listed on the National Register of Historic Places that may be adversely affected by the proposed operations, each plan shall describe the measures to be used:

(1) to prevent adverse impacts; or

(2) if a person has valid existing rights as determined under §12.72(c) of this title (relating to Procedures for Compatibility Findings, Public Road Closures and Relocations, Buffer Zones, and Valid Existing Rights Determinations), or if joint agency approval is to be obtained under §12.73(d) of this title (relating to Commission Obligations at Time of Permit Application Review), to minimize adverse impacts.

[(2) if valid existing rights or joint agency approval is to be obtained under §12.72(g) of this title (relating to Procedures), to minimize adverse impacts.]

(b) (No change.)

§12.152.Relocation or Use of Public Roads.

Each application shall describe, with appropriate maps and cross sections, the measures to be used to ensure that the interests of the public and landowners affected are protected if, under §12.72(a) of this title (relating to Procedures for Compatibility Findings, Public Road Closures and Relocations, Buffer Zones, and Valid Existing Rights Determinations) [ §12.72(e) of this title ], the applicant seeks to have the Commission approve:

(1) conducting the proposed surface mining activities within 100 feet of the right-of-way line of any public road, except where mine access or haul roads join that right-of-way; or

(2) relocating a public road.

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 20, 2003.

TRD-200301851

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: May 4, 2003

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


7. SURFACE MINING PERMIT APPLICATIONS--MINIMUM REQUIREMENTS FOR LEGAL, FINANCIAL, COMPLIANCE, AND RELATED INFORMATION, PART II

16 TAC §12.158

The Commission proposes the amendments under Texas Natural Resources Code, §134.013, which authorizes the Commission to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the proposed amendments.

Issued in Austin, Texas, on March 11, 2003.

§12.158.Relationship to Areas Designated Unsuitable for Mining.

(a) Each application shall contain [ a statement of ] available information on whether the proposed permit area is within an area designated unsuitable for surface coal mining and reclamation operations or is within an area under study for designation in an administrative proceeding [ underground mining activities ] under §§12.74-12.77 of this title (relating to Criteria for Designating Areas as Unsuitable for Surface Coal Mining Operations) and §§12.78-12.85 of this title (relating to Process for Designating Areas as Unsuitable for Surface Coal Mining Operations) [ Operations or under study for designation in an administrative proceeding ].

(b) (No change.)

(c) An application that proposes to conduct Surface coal mining operations within 100 feet of a public road or within 300 feet of an occupied dwelling must meet the requirements of §12.72(a) or (b) of this title (relating to Procedures for Compatibility Findings, Public Road Closures and Relocations, Buffer Zones, and Valid Existing Rights Determinations), respectively. [ If an applicant proposes to conduct or locate surface operations or facilities within 300 feet of an occupied dwelling, the application shall include the waiver of the owner of the dwelling as required in §12.72 of this title (relating to Procedures). ]

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 20, 2003.

TRD-200301852

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: May 4, 2003

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


9. UNDERGROUND MINING PERMIT APPLICATIONS--MINIMUM REQUIREMENTS FOR RECLAMATION AND OPERATION PLAN

16 TAC §12.191, §12.192

The Commission proposes the amendments under Texas Natural Resources Code, §134.013, which authorizes the Commission to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the proposed amendments.

Issued in Austin, Texas, on March 11, 2003.

§12.191.Protection of Public Parks and Historic Places.

(a) For any publicly owned parks or any places listed on the National Register of Historic Places that may be adversely affected by the proposed operations, each plan shall describe the measures to be used:

(1) to prevent adverse impacts; or

(2) If a person has valid existing rights as determined under §12.72(c) of this title (relating to Procedures for Compatibility Findings, Public Road Closures and Relocations, Buffer Zones, and Valid Existing Rights Determinations), or if joint agency approval is to be obtained under §12.73(d) of this title (relating to Commission Obligations at Time of Permit Application Review), to minimize adverse impacts.

[(2) if valid existing rights or joint agency approval is to be obtained under §12.72(g) of this title (relating to Procedures), to minimize impacts.]

(b) (No change.)

§12.192.Relocation or Use of Public Roads.

Each application shall describe, with appropriate maps and cross sections, the measures to be used to ensure that the interests of the public and landowners affected are protected if, under §12.72(a) of this title (relating to Procedures for Compatibility Findings, Public Road Closures and Relocations, Buffer Zones, and Valid Existing Rights Determinations) [ §12.72 of this title (relating to Procedures) ], the applicant seeks to have the Commission approve:

(1) conducting the proposed surface mining activities within 100 feet of the right-of-way line of any public road, except where mine access or haul roads join that right-of-way; or

(2) relocating a public road.

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 20, 2003.

TRD-200301853

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: May 4, 2003

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


11. REVIEW, PUBLIC PARTICIPATION, AND APPROVAL OF PERMIT APPLICATIONS AND PERMIT TERMS AND CONDITIONS

16 TAC §12.207, §12.216

The Commission proposes the amendments under Texas Natural Resources Code, §134.013, which authorizes the Commission to promulgate rules pertaining to surface coal mining operations.

Texas Natural Resources Code, §134.013, is affected by the proposed amendments.

Issued in Austin, Texas, on March 11, 2003.

§12.207.Public Notices of Filing of Permit Applications.

(a) An applicant for a permit shall place an advertisement in a local newspaper of general circulation in the locality of the proposed surface coal mining and reclamation operations at least once a week for four consecutive weeks. The applicant shall place the advertisement in the newspaper at the same time the complete permit application is filed with the Commission. The advertisement shall contain, at a minimum, the following information:

(1) - (4) (No change.)

(5) if an applicant seeks a permit to mine within 100 feet of the outside right-of-way of a public road or to relocate or close a public road, except where public notice and hearing has previously been provided for this particular part of the road in accordance with §12.72(a) of this title (relating to Procedures for Compatibility Findings, Public Road Closures and Relocations, Buffer Zones, and Valid Existing Rights Determinations), a concise statement describing the public road, the particular part to be relocated or closed , where the relocation or closure is to occur, and the duration of the relocation or closure .

(b) (No change.)

(c) The written notifications shall be sent to:

(1) The following State and federal agencies:

(A) Texas [ Natural Resource Conservation ] Commission on Environmental Quality ;

(B) - (I) (No change.)

(2) - (5) (No change.)

(d) (No change.)

§12.216.Criteria for Permit Approval or Denial.

No permit or revision application shall be approved, unless the application affirmatively demonstrates and the Commission finds, in writing, on the basis of information set forth in the application or from information otherwise available, which is documented in the approval and made available to the applicant, that:

(1) - (3) (No change.)

(4) the proposed permit area is:

(A) not included within an area designated unsuitable for surface coal mining operations under §§12.74-12.77 of this title (relating to Criteria for Designating Areas as Unsuitable for Surface Coal Mining Operations) and §§12.78-12.85 of this title (relating to Process for Designating Areas as Unsuitable for Surface Coal Mining Operations) or within an area subject to the prohibitions of §12.71(a) of this title (relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited) ; or

(B) not within an area under study for designation as unsuitable for surface coal mining operations or in an administrative proceeding begun under §§12.78-12.85 of this title (relating to Process for Designating Areas as Unsuitable for Surface Coal Mining Operations), unless the applicant demonstrates that, before January 4, 1977, he or she made substantial legal and financial commitments in relation to the operation for which he or she is applying for a permit; or

(C) not on any lands subject to the prohibitions or limitations of §12.71(a)(1), (a)(6) or (a)(7) of this title [ §12.71(1), (6), or (7) of this title (relating to Areas Where Mining is Prohibited or Limited) ]; or

(D) not within 100 feet of the outside right-of-way line of any public road, except as provided for in §12.72(a) of this title (relating to Procedures for Compatibility Findings, Public Road Closures and Relocations, Buffer Zones, and Valid Existing Rights Determinations) [ §12.72(e) of this title (relating to Procedures) ]; or

(E) not within 300 feet from any occupied dwelling, except as provided for in §12.71(a)(5) of this title [ §12.71(5) of this title (relating to Areas Where Mining Is Prohibited or Limited) and §12.72(f) of this title (relating to Procedures) ];

(5) the proposed operations will not adversely affect any properties listed on and eligible for listing on the National Register of Historic Places, except as provided for in §12.71(a)(3) of this title [ §12.71(3) of this title (relating to Areas Where Mining Is Prohibited or Limited) ]. This finding may be supported in part by inclusion of appropriate permit conditions, revisions in the operation plan, or a documented decision by the Commission that no additional protection measures are required under the National Historic Preservation Act;

(6) - (15) (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 20, 2003.

TRD-200301854

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: May 4, 2003

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


Part 2. PUBLIC UTILITY COMMISSION OF TEXAS

Chapter 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS

Subchapter J. COSTS, RATES AND TARIFFS

2. RECOVERY OF STRANDED COSTS

16 TAC §25.263

The Public Utility Commission of Texas (commission) proposes an amendment to §25.263, relating to True-Up Proceeding. The proposed amendment will implement the provisions of Public Utility Regulatory Act (PURA) §39.262, which sets forth the requirements for the final true-up of stranded costs.

The commission proposes to amend §25.263 by modifying subsection (d)(1) to establish the true-up filing schedule required by PURA §39.262(c). As more fully discussed below, the proposed schedule is based upon staff's assessment of available resources, the complexity of the true-up filings, and factors related to each filing company's specific circumstances.

The proposed true-up filing date for Centerpoint Energy Houston, LLC (Centerpoint), Reliant Energy Retail Service, LLC, and Texas Genco, LP is January 12, 2004. This date is effectively consistent with the date specified in PURA §39.262(c) as the date after which true-up filings may begin and it is also consistent with Reliant Resources, Inc.'s option, exercisable in January 2004, to purchase the shares of Texas Genco common stock owned by Centerpoint. If the timing of Centerpoint's true-up filing is different from the date used to establish the option purchase price, Centerpoint will be exposed to uncertainty regarding full recovery of its stranded costs. Additionally, given the potential magnitude of its stranded costs, a filing date of January 12, 2004 is proposed for Centerpoint because its stranded-cost proceeding will likely be the most thoroughly litigated of all the true-up filings and, consequently, will likely require the greatest amount of resources.

For Texas-New Mexico Power Company (TNMP) and First Choice Power, Inc., the proposed true-up filing date is March 31, 2004. This date is approximately two and one- half months after Centerpoint's proposed filing date and thus allows much of the processing in that case to have been completed. TNMP has already sold its generation assets, and the apparent amount of TNMP's stranded costs is considerably smaller than that of the other companies filing for stranded-cost recovery. Additionally, some elements of the true-up proceeding will not be at issue in TNMP's filing (e.g., the capacity auction true-up adjustment, potential inclusion of control premium, etc.). For these reasons, the amount of resources required for TNMP's true-up filing is not expected to be as great as that of the other stranded-cost companies.

For AEP Texas North Company and Mutual Energy WTU, LP, the proposed true-up filing date is May 28, 2004. This date is proposed because it allows a number of months to pass after the filing of the previous cases and thus allows much of the processing of those cases to have been completed. Additionally, AEP Texas North Company will not be filing for stranded-cost recovery; the only two true-up items for AEP Texas North Company and Mutual Energy WTU, LP are the "retail clawback" calculation required by PURA §39.262(e) and the final fuel reconciliation. The expected amounts at stake for these two items, in comparison to the amounts for all true-up elements in the other companies' true-up filings, are not expected to be significant. Accordingly, the resources required for this true-up filing are not likely to be substantial.

For AEP Texas Central Company (AEP Central) and Mutual Energy CPL, LP, the proposed filing date is September 3, 2004. This relatively late filing date is essentially based upon AEP Central's specific circumstances -- that is, this date reflects the fact that AEP Central has not yet definitively determined whether the market valuation of its generation assets will occur by the sale of the assets or by the issuance of stock pursuant to a stock valuation or partial stock valuation methodology. In Docket Number 27120, Petition of Central Power and Light Company for Declaratory Order and Approval of Plan of Divestiture , in which AEP Central (formerly Central Power and Light Company) sought a declaratory order approving its right to sell nuclear assets for purposes of stranded-cost determination, AEP Central estimated that if it uses the sale methodology, the time required for sale of all its generation assets will be approximately 18 months. Alternatively, if AEP Central ultimately uses one of the stock valuation methodologies allowed by PURA §39.262(h)(2) or (h)(3), the time required for the issuance of any stock coupled with the subsequent one-year minimum trading period will be approximately the same 18-month period required by the sale process. Simply as a practical matter, therefore, the proposed true-up filing date for AEP Central must reflect an approximate 18-month time period because the company will not have a market valuation of its generation assets before that time. Accordingly, the proposed filing date for AEP Central and Mutual Energy CPL, LP is September 3, 2004.

Darryl Tietjen, Director of Financial Analysis, Financial Review Division, 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.

Mr. Tietjen has also 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 an orderly determination of the final reconciliation of certain amounts due to the unbundled successors-in-interest of deregulated electric utilities. There will be no effects on small businesses or micro-businesses as a result of enforcing this section. There will be no economic costs to persons who are required to comply with the proposed amendment. The proposed amendment merely sets up a schedule upon which the persons required to comply will discharge existing duties under PURA §39.262.

Mr. Tietjen has also determined that for each year of the first five years the proposed section is in effect there should be no effect on a local economy, and therefore no local employment impact statement is required under Administrative Procedure Act §2001.022.

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. Reply comments may be submitted within 40 days after publication. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed section. The commission will consider the costs and benefits in deciding whether to adopt the section. All comments should refer to Project Number 27401.

This amendment is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement 2003) (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; and specifically, PURA §39.252, which addresses a utility's right to recover stranded costs, and PURA §39.262, which requires the commission to conduct a true-up proceeding for each investor-owned electric utility after the introduction of customer choice and which prohibits over-recovery of stranded costs.

Cross Reference to Statutes: Public Utility Regulatory Act §§14.002, 39.252 and 39.262.

§25.263.True-up Proceeding.

(a) - (c) (No change.)

(d) Obligation to file a true-up proceeding.

(1) Each TDU, its APGC, and its AREP shall jointly file [ after January 12, 2004, on a schedule to be determined by the commission, ] a true-up application pursuant to subsection (e) of this section according to the following schedule.

(A) Centerpoint Energy Houston, LLC, Reliant Energy Retail Service, LLC, and Texas Genco, LP -- not earlier than January 12, 2004, and not later than ten days thereafter;

(B) Texas-New Mexico Power Company and First Choice Power, Inc. -- not earlier than March 31, 2004, and not later than ten days thereafter;

(C) AEP Texas North Company and Mutual Energy WTU, LP -- not earlier than May 28, 2004, and not later than ten days thereafter;

(D) AEP Texas Central Company and Mutual Energy CPL, LP -- not earlier than September 3, 2004, and not later than ten days thereafter.

(E) Notwithstanding the schedule in subparagraphs (A) - (D) of this paragraph, the commission may allow a company, upon a showing of good cause, to file its true-up application on a different date.

(2) - (3) (No change.)

(e) - (n) (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 21, 2003.

TRD-200301866

Rhonda G. Dempsey

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: May 4, 2003

For further information, please call: (512) 936-7223


16 TAC §25.264

The Public Utility Commission of Texas (commission) proposes new §25.264, relating to Quantification of Stranded Costs of Nuclear Generation Assets. The proposed new rule will clarify the methods that are available to an electric utility and its affiliated power generation company to quantify the market value of its nuclear generation assets for the purpose of determining its stranded costs under the Public Utility Regulatory Act, Texas Utilities Code Annotated, Chapter 39 (Vernon 1998, Supplement 2003) (PURA). In Docket Number 27120, Petition of Central Power and Light Company for Declaratory Order and Plan of Divestiture , the commission denied a request by AEP Texas Central Company (previously known as Central Power and Light Company) for a declaratory order interpreting the provisions of PURA Chapter 39 related to the stranded cost calculation for nuclear assets. The commission determined that it was more appropriate to address the issue in a rulemaking proceeding and established this project for that purpose. Project Number 27464 is assigned to this proceeding.

Patrick J. Sullivan, Attorney, Legal and Enforcement Division, 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.

Mr. Sullivan 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 to firmly establish the methods that may be employed to determine the stranded cost of nuclear power generation assets. In addition, the rule is needed to serve the public interest and legislative policy stating that utilities with uneconomic generation-related assets should be allowed to recover the reasonable excess costs over market value of those assets. In order to assure that the market value of nuclear generation assets is properly quantified in a manner that reduces, to the extent possible, the amount of excess costs over market value for those assets, the rule clarifies that a public utility and its affiliated companies may use any of the valuation methods specified in PURA §39.262(h) and (i) to quantify the market value of nuclear generation assets. The rule is proposed as part of the commission's efforts to adopt competitive rules to protect the public interest during the transition to and in the establishment of a fully competitive electric power industry under PURA Chapter 39. There will be no adverse economic effect on small businesses or micro-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.

Mr. Sullivan has also determined that for each year of the first five years the proposed section is in effect there should be no effect on a local economy, and therefore no local employment impact statement is required under Administrative Procedure Act §2001.022.

Comments on the proposed new section (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 20 days after publication. Comments should be organized in a manner consistent with the organization of the proposed rule. The commission invites specific comments regarding the legislative history of the portions of PURA detailing the determination of stranded costs of nuclear generation assets. All comments should refer to Project Number 27464.

The commission staff will conduct a public hearing on this rulemaking under the Administrative Procedure Act, Texas Government Code §2001.029 at the commission's offices located in the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701 on April 29, 2003 at 9:00 a.m. Interested persons are invited to comment on the rule at that time and to offer oral reply comments to the initial comments filed in this project.

This new section is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement 2003) (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; and specifically, PURA §39.252, which allows an electric utility to recover all of its net, verifiable, nonmitigable stranded costs in purchasing power and providing electric generation service; PURA §39.262(a), which provides that an electric utility and its affiliates may not be permitted to overrecover its stranded costs; PURA §39.262(c), which directs each transmission and distribution utility, its affiliated retail electric provider, and its affiliated power generation company to jointly file an application to finalize its stranded costs under procedures to be determined by the commission; and PURA §39.262(h) and (i), which establish the methods by which the final stranded costs shall be calculated.

Cross Reference to Statutes: Public Utility Regulatory Act §§14.002, 39.252 and 39.262.

§25.264.Quantification of Stranded Costs of Nuclear Generation Assets.

The market value of an affiliated power generation company's nuclear assets shall be established by compliance with any of the four methods of quantification specified in Public Utility Regulatory Act §39.262(h) and related requirements specified in §25.263 of this title (relating to True-up Proceeding). For any nuclear assets that are not valued pursuant to a sale of assets or an exchange of assets, the electric utility or its affiliated power generation company shall either combine those assets in one or more transferee corporations as described in PURA §39.262(h)(2) and (3) for purposes of determining their market value, or the commission will determine their market value using the "excess costs over market" or ECOM method.

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 21, 2003.

TRD-200301880

Rhonda G. Dempsey

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: May 4, 2003

For further information, please call: (512) 936-7308