Part 1.
RAILROAD COMMISSION OF TEXAS
Chapter 3.
OIL AND GAS DIVISION
16 TAC §3.1
The Railroad Commission of Texas (Commission) proposes amendments
to §3.1, relating to Organization Report; Retention of Records; Notice
Requirements, also known as Statewide Rule 1.
The Commission proposes the amendments to §3.1 to implement House
Bill (HB) 2021, 78th Legislature (2003), Regular Session, which will become
effective September 1, 2003. HB 2021 amends Texas Natural Resources Code, §91.142,
by adding a new subsection (h), which requires an entity required to file
a P-5 Organization Report or an affiliate of such an entity performing operations
within the jurisdiction of the Commission that files for federal bankruptcy
protection to give written notice to the Commission of that action by submitting
the notice to the Commission's Office of General Counsel not later than the
30th day after the date of filing. The rule already requires regulated entities
to notify the Commission's Office of General Counsel of bankruptcy filings.
HB 2021 expands the scope of that requirement to encompass affiliates of those
entities and would make the rule-mandated notice requirement an express statutory
requirement. The expected result is that operators or their attorneys will
provide more timely notice to the Commission, which should allow the Commission
to better protect the Oil Field Cleanup Fund in bankruptcy proceedings.
The Commission also proposes the review of §3.1 pursuant to Texas
Government Code, §2001.039. The Commission has proposed the review in
a separate document filed simultaneously with the
Texas Register
.
Leslie Savage, Oil and Gas Division planner, has determined that for each
year of the first five years the amendments as proposed will be in effect,
there will be no fiscal implications for state or local governments.
Ms. Savage has also determined that for each year of the first five years
that the amendments will be in effect, there may be a public benefit in that
liability to the state's Oil Field Cleanup Fund may be reduced.
Ms. Savage has estimated that the cost of compliance with the proposed
amendments to §3.1 for individuals, small businesses, or micro-businesses
that are entities required to file an organization report and that file for
bankruptcy protection will be in the nature of a reduction, in that such entities
would have more time to report the bankruptcy filing to the Commission--30
days--than under the current rule, which requires Commission notification
within 72 hours of bankruptcy filing. The statutory change enacted by HB 2021
extends this reporting obligation to affiliates of such entities performing
operations within the jurisdiction of the Commission. For these entities,
imposing a reporting requirement is a new burden that carries with it a
Texas Government Code, §2006.002, requires a state agency considering
adoption of a rule that would have an adverse economic effect on small businesses
or micro-businesses to reduce the effect if doing so is legal and feasible
considering the purpose of the statutes under which the rule is to be adopted.
Before adopting a rule that would have an adverse economic effect on small
businesses or micro-businesses, a state agency must prepare a statement of
the effect of the rule on small businesses and micro-businesses, which must
include an analysis of the cost of compliance with the rule for small businesses
and micro-businesses and a comparison of that cost with the cost of compliance
for the largest businesses affected by the rule, using cost for each employee,
cost for each hour of labor, or cost for each $100 of sales.
The reporting requirement in the proposed amendment implements statutory
amendments that make no distinction based on an entity's status as an individual,
small business, or micro-business. Because this requirement is statutory,
the Commission does not have authority to change the requirement or to create
an exception to it. The report itself, although required to be in writing,
is not required to have a particular form or format; it can be simply a letter
advising the Commission of the bankruptcy filing. The cost of making the report,
therefore, is the administrative cost to the entity of writing, typing, copying,
and mailing a letter.
Because entities required to file an organization report and affiliates
of such entities performing operations within the jurisdiction of the Commission
are not required to make filings with the Commission reporting number of employees,
labor costs, amount of sales, or gross receipts, the Commission cannot determine
whether a particular entity required to comply with §3.1 may be a small
business or a micro-business. However, the Commission has determined that
it is likely that some operators would meet the definitions of these terms
in Texas Government Code, §2006.001. The Commission assumes further that,
during a given year, at least one entity required to comply with §3.1
is an individual, small business, or micro-business that files for bankruptcy
protection. For the purpose of making the comparison required by Texas Government
Code, §2006.002(c), the Commission assumes that the cost of writing,
typing, copying, and mailing a letter advising the Commission of a bankruptcy
filing is $50. Therefore, the cost of complying with §3.1, as amended,
would be $50 per employee if the entity has one employee, $2.50 per employee
if the entity has 20 employees, and $0.50 per employee if the entity has 99
employees. Comparable cost per employee of the bankruptcy reporting requirement
for the largest businesses affected by the proposed amendment would be $0.10
for an employer of 500 persons and $0.05 for an employer of 1,000 persons.
Comments on the proposal may be submitted to Rules Coordinator, Office
of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin,
Texas 78711-2967; online at www.rrc.state.tx.us/rules/commentform.html; or
by electronic mail to rulescoordinator@rrc.state.tx.us. The Commission will
accept comments for 30 days after publication in the
Texas Register
. The Commission encourages all interested persons to
submit comments no later than the deadline. The Commission cannot guarantee
that comments submitted after the deadline will be considered. For further
information, call Ms. Savage (512) 463-7308. The status of Commission rulemakings
in progress is available at www.rrc.state.tx.us/rules/proposed.html.
The Commission proposes the amendments to §3.1 to implement House
Bill (HB) 2021, 78th Legislature (2003), Regular Session, which amends Texas
Natural Resources Code, §91.142; and pursuant to Texas Natural Resources
Code, §§81.051 and 81.052, which provide the Commission with jurisdiction
over all persons owning or engaged in drilling or operating oil or gas wells
and persons owning or operating pipelines in Texas and the authority to adopt
all necessary rules for governing and regulating persons and their operations
under Commission jurisdiction; Texas Natural Resources Code §§85.042,
85.202, 86.041, and 86.042, which require the Commission to adopt rules to
control waste of oil and gas; Texas Natural Resources Code, §91.101,
which authorizes the Commission to adopt rules to prevent pollution of surface
or subsurface water from oil and gas operations; Texas Natural Resources Code, §91.142,
which authorizes the Commission to request information from organizations
performing business under the jurisdiction of the Commission; and Texas Government
Code, §2001.006, which authorizes the Commission to promulgate rules
that implement legislation that has become law but is not yet effective.
Statutory authority: Texas Natural Resources Code, §§81.051,
81.052, 85.042, 85.202, 86.041, 86.042, 91.101, and 91.142; Texas Government
Code, §2001.006.
Cross-reference to statute: Texas Natural Resources Code, §§81.051,
81.052, 85.042, 85.202, 86.041, 86.042, 91.101, and 91.142.
Issued in Austin, Texas, on July 22, 2003.
§3.1.Organization Report; Retention of Records; Notice Requirements.
(a)
Filing requirements.
(1)
(No change.)
(2)
The Commission
shall
[
(3)
Each organization performing activities subject to the
jurisdiction of the Commission
shall
[
(4) - (5)
(No change.)
(6)
Failure by any organization identified in paragraph (1)
of this subsection to answer any subpoena, commission to take deposition,
or directive to appear at a hearing served upon such organization by or on
behalf of the Commission
shall
[
(7) - (10)
(No change.)
(b) - (d)
(No change.)
(e)
Each organization required to file an organization
report under subsection (a) of this section or an affiliate of such an organization
that performs operations within the jurisdiction of the Commission that files
for federal bankruptcy protection
[
(f)
(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 July 22, 2003.
TRD-200304408
Mary Ross McDonald
Deputy General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 475-1295
16 TAC §3.50, §3.101
The Railroad Commission of Texas (Commission) proposes amendments
to §§3.50 and 3.101, relating to Enhanced Oil Recovery Projects--Approval
and Certification for Tax Incentive, and Certification for Severance Tax Exemption
or Reduction for Gas Produced From High-Cost Gas Wells, respectively. The
Commission proposes the amendments to incorporate into the rules changes made
by House Bill (HB) 2424 and HB 2425, 78th Legislature (2003), Regular Session.
Section 52 of HB 2424 amends Texas Tax Code, §201.057, relating to
tax exemption for high-cost gas, to make the exemption permanent rather than
ending on September 1, 2010. Section 53 of HB 2424 amends Texas Tax Code, §202.054,
relating to enhanced oil recovery (EOR), to make permanent the severance tax
exemption for EOR by deleting the ending date of January 1, 2008. These changes
will become effective on October 1, 2003.
Section 110 of HB 2425 amends Texas Tax Code, §201.057, relating to
the high-cost gas tax incentive, by changing the filing procedures and dates.
For any application for certification submitted to the Commission after January
1, 2004, the total allowable credit for taxes paid for reporting periods before
the date the application is filed may not exceed the total tax paid on the
gas that otherwise qualified for the exemption or tax reduction and that was
produced during the 24 consecutive calendar months immediately preceding the
month in which the application for certification was filed with the Commission.
This change became effective on June 20, 2003, when the governor signed HB
2425 into law.
Prior to the change in law made by Section 110 of HB 2425, producers could
apply retroactively for high-cost gas tax incentive with no deadline. The
change in law made by Section 110 of HB 2425 requires producers to file an
application for certification with the Commission by January 1, 2004, for
credit on any production two years prior to that date. After January 1, 2004,
the operator may receive a tax credit on only that qualifying gas produced
24 months immediately prior to the month in which the operator submits the
application to the Commission for certification.
The Commission currently requires that the application for certification
of the area designation be filed and approved before an operator files applications
for certification of individual wells; however, to allow operators to take
the greatest advantage of the change in the Tax Code, the Commission will
allow operators to file the application for certification of the area designation
simultaneously with the filing of applications for certification of individual
wells during the time period between the effective date of this rulemaking
and January 1, 2004. After January 1, 2004, the Commission again will require
that the application for certification of the area designation be filed and
approved before an operator files applications for certification of individual
wells.
The Commission also proposes to make modifications to certain Commission
forms to conform them with the proposed rule amendments. These proposed form
modifications can be viewed online at www.rrc.state.tx.us/rules/proposed.html.
The Commission also proposes the review of §§3.50 and 3.101 pursuant
to Texas Government Code, §2001.039, in a separate document filed simultaneously
with the
Texas Register
.
Leslie Savage, Oil and Gas Division planner, has determined that for each
year of the first five years the proposed amendments will be in effect, there
will be no fiscal implications for state or local governments. The exemption
in the prior law would not have expired until 2010, seven years from now,
and thus there are no fiscal implications in any of the first five years that
the rules, as proposed to be amended, will be in effect. Although the Commission
may receive an increased number of applications for certification prior to
the January 1, 2004, deadline by operators currently filing retroactively,
staff assumes that, after January 1, 2004, operators will file for the tax
incentive in a more timely fashion. There will be no fiscal impact to the
Oil Field Cleanup Fund as a result of HB 2424 or HB 2425 because HB 3442,
also enacted by the 78th Legislature (2003), makes the oil and gas regulatory
fee applicable to the gross production.
Ms. Savage has determined that for each year of the first five years that
the amendments will be in effect, there will be a public benefit in that the
amendments to the Tax Code make permanent the tax incentives that were due
to expire, which should encourage enhanced oil recovery and production of
high- cost natural gas, and the State will be able to better estimate tax
revenue from oil and gas as a result of the limits on the deadlines for filing
retroactively for such tax credits or reductions.
There may be a cost of compliance for individuals, small businesses, or
micro-businesses. Even though the extension of the tax reductions or credits
past the previous deadlines should provide a financial benefit to certain
operators, including certain operators that are individuals, small businesses,
or micro-businesses, the new deadline for filing an application under the
more extensive retroactive provisions is January 1, 2004, less than six months
from now. After that date, the retroactive effect will be limited to 24 months.
Therefore, there may be an additional incremental cost associated with the
changes in the deadlines for filing with the Commission for certification.
Texas Government Code, §2006.002, requires a state agency considering
adoption of a rule that would have an adverse economic effect on small businesses
or micro-businesses to reduce the effect if doing so is legal and feasible
considering the purpose of the statutes under which the rule is to be adopted.
Before adopting a rule that would have an adverse economic effect on small
businesses or micro-businesses, a state agency must prepare a statement of
the effect of the rule on small businesses and micro-businesses, which must
include an analysis of the cost of compliance with the rule for small businesses
and micro- businesses and a comparison of that cost with the cost of compliance
for the largest businesses affected by the rule, using cost for each employee,
cost for each hour of labor, or cost for each $100 of sales.
Because operators that would be eligible to file for high cost gas tax
incentives are not required to make filings with the Commission reporting
number of employees, labor costs, amount of sales, or gross receipts, the
Commission cannot determine whether a particular operator filing under §§3.50
and 3.101 may be a small business or a micro-business. However, the Commission
has determined that it is likely that some eligible operators would meet the
definitions of these terms in Texas Government Code, 2006.001. The Commission
assumes further that, during a given year, at least one operator filing under §§3.50
and 3.101 is an individual, small business, or micro-business.
Ms. Savage has determined that it is not possible to calculate that the
cost of compliance with the proposed amendments to §§3.50 and 3.101
for individual, small business, or micro- business operators that would be
entitled to file for high cost gas tax incentives. The application deadline
and the limitation on retroactive effect in the proposed amendments implement
statutory changes that make no distinction based on an entity's status as
an individual, small business, or micro-business; and because these requirements
are statutory, the Commission does not have authority to change the requirements
or to create exceptions to them. The administrative cost to an operator of
preparing and filing an application for high cost gas tax incentives is unchanged
as compared to the current version of §§3.50 and 3.101; the Commission
is not able to quantify the cost to an operator of filing an application earlier
than it otherwise might have.
Comments on the proposed rule amendments as well as the proposed conforming
modifications to Commission forms may be submitted to Rules Coordinator, Office
of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin,
Texas 78711-2967; online at www.rrc.state.tx.us/rules/commentform.html; or
by electronic mail to rulescoordinator@rrc.state.tx.us. The Commission will
accept comments for 30 days after publication in the
Texas Register
. The Commission encourages all interested persons to
submit comments no later than the deadline. The Commission cannot guarantee
that comments submitted after the deadline will be considered. For further
information, call Ms. Savage (512) 463-7308. The status of Commission rulemakings
in progress is available at www.rrc.state.tx.us/rules/proposed.html.
The Commission proposes the amendments to incorporate into the rules changes
made by HB 2424 and HB 2425, 78th Legislature (2003), Regular Session. These
changes are made pursuant to Texas Natural Resources Code, §§81.051
and 81.052, which provide the Commission with jurisdiction over all persons
owning or engaged in drilling or operating oil or gas wells and persons owning
or operating pipelines in Texas and the authority to adopt all necessary rules
for governing and regulating persons and their operations under Commission
jurisdiction; Texas Natural Resources Code §§85.042, 85.202, 86.041,
and 86.042 which require the Commission to adopt rules to control waste of
oil and gas; and Texas Government Code, §2001.006, which authorizes the
Commission to promulgate rules to implement legislation that has become law
but is not effective.
Statutory authority: Texas Natural Resources Code, §§81.051,
81.052, 85.024, 85.202, 86.041, and 86.042; Texas Tax Code, §§201.057
and 202.054; and Texas Government Code, §2001.006.
Cross-reference to statute: Texas Natural Resources Code, §§81.051,
81.052, 85.042, 85.202, 86.041, and 86.042; and Texas Tax Code, §§201.057
and 202.054.
Issued in Austin, Texas, on July 22, 2003.
§3.50.Enhanced Oil Recovery Projects--Approval and Certification for Tax Incentive.
(a) - (c)
(No change.)
(d)
Application requirements. To qualify for the recovered
oil tax rate the operator
shall
[
(1)
submit an application for approval on the appropriate
form [
(2)
(No change.)
(3)
obtain a unitization agreement if required for purposes
of carrying out the project under the Natural Resources Code, Chapter 101,
Subchapter B. The Commission may not approve the project unless the unitization
is approved; and
(4)
(No change.)
(e) - (f)
(No change.)
(g)
Approval and certification.
(1)
Project approval. In order to be eligible for the recovered
oil tax rate as provided in the Tax Code, §202.052(b), the operator
shall
[
(A)
prove that it qualifies as an EOR project;
(B)
designate the area to be affected by the project and obtain
Commission approval of the designation; and
(C)
if production from the wells within the project area is
reported with production from wells not in the project area, designate the
method to account for and report production from the project area.
(2)
Positive production response certificate.
(A)
The operator of an EOR project that meets the requirements
of this section
shall
[
(B)
(No change.)
(C)
The application for the positive production response certificate
shall
[
(h)
Annual reporting.
(1)
The operator
shall
[
(2)
The report
shall
[
(A)
Commission certification date of positive production response;
(B)
monthly volume of injected fluid(s);
(C)
number of well(s) used for injection;
(D)
monthly production of oil, gas, and water;
(E)
number of active producing wells; and
(F)
any other relevant information requested by the Oil and
Gas Division.
(i)
Reduced or enlarged areas. The operator may apply for
reduced or enlarged project area certification if[
[(1)
the application for reduction or enlargement
of the project is received before January 1, 2008; and]
[
(j)
Termination and penalty. Upon approval by the Commission
and the comptroller, the recovered oil tax rate
shall continue
[
§3.101.Certification for Severance Tax Exemption or Reduction for Gas Produced From High-Cost Gas Wells.
(a)
Purpose.
This section specifies the
[
(b)
(No change.)
(c)
Applicability.
(1)
A severance tax exemption is available for high-cost gas
produced from a well that is spudded or completed between May 24, 1989, and
September 1, 1996. Eligible high-cost gas
shall
[
(2)
A severance tax reduction is available for high-cost gas
produced from a well that is spudded or completed after August 31, 1996 [
(3)
(No change.)
(4)
If the operator determines that a gas well previously
certified as producing high-cost gas no longer produces high-cost gas or if
the operator takes any action or discovers any information that affects the
eligibility of gas for an exemption or tax reduction under Texas Tax Code, §201.057,
the operator
shall
[
(5)
If the Commission determines that a gas well previously
certified as producing high-cost gas no longer produces high-cost gas or if
the commission takes any action or discovers any information that affects
the eligibility of gas for an exemption or tax reduction under Texas Tax Code, §201.057,
the Commission
shall
[
(d)
Application procedure.
(1)
An application for a state severance tax exemption or
tax reduction for a gas well may be made only by the operator of that well.
The operator shall file one copy of the required application form, one copy
of the required attachments specified in subsection (e)(1)-(6) of this section
and any additional information deemed necessary by the Commission to clarify,
explain and support the required attachments. Submission of legible copies
of required attachments
shall
[
(2)
Filings and correspondence on high-cost gas state severance
tax applications
shall
[
(e)
Application requirements for individual well certifications.
To qualify for the severance tax exemption or tax reduction, the operator
shall
[
(1) - (6)
(No change.)
(f)
Application requirements for tight formation area certifications.
(1)
If justification for an individual well application is
based on a tight formation certification and the well is not located within
a geographical area that has been previously certified as a designated tight
formation area or the well is not completed in a formation interval that has
been previously certified as a designated tight formation by the Federal Energy
Regulatory Commission under the Natural Gas Policy Act or by the Railroad
Commission of Texas, the operator
shall
[
(2)
An applicant requesting a tight formation area designation
shall
[
(3)
In addition to the written request and list of affected
persons, the applicant
shall
[
(A)
(No change.)
(B)
engineering and geological exhibits, including a written
explanation of each, to establish the following:
(i)
that the in situ permeability throughout the proposed
formation or specific portion thereof is 0.1 millidarcies or less, as determined
by geometric mean or median analysis of available data from all wells that
either have been tested or are completed in the proposed formation within
the requested area. If no in situ permeability estimates are provided for
wells that are in the requested area and have been tested and/or are completed
in the proposed formation, an explanation
shall
[
(ii) - (iv)
(No change.)
(g)
Commission action on applications for individual well
certifications and for tight formation area designations.
(1)
Each application, for an individual well certification,
shall
[
(2)
(No change.)
(3)
If Commission staff finds that the data submitted with
the tight formation area designation applications are complete and comply
with the requirements set out in subsection (f)(3) of this section and if
no protest to the application is filed within 21 days of the notice, the application
shall
[
(h)
Reporting. To qualify for the exemption or tax reduction
provided by Texas Tax Code, §201.057(a)(2)(A), all persons responsible
for paying the tax
shall
[
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 July 22, 2003.
TRD-200304409
Mary Ross McDonald
Deputy General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 475-1295
Chapter 22.
PRACTICE AND PROCEDURE
Subchapter M. PROCEDURES AND FILING REQUIREMENTS IN PARTICULAR COMMISSION PROCEEDINGS
16 TAC §22.252
The Public Utility Commission of Texas (commission) proposes
new procedural rule §22.252, relating to Procedures for Approval of ERCOT
Fees and Rates. The proposed new section will determine the appropriate procedures
parties shall follow in a proceeding related to the fees and rates charged
by the Electric Reliability Council of Texas (ERCOT). Project Number 27736
is assigned to this proceeding.
The commission is also proposing an amendment to substantive rule §25.362
of this title (relating to Electric Reliability Council of Texas (ERCOT) Governance)
and new substantive rule §25.363 of this title (relating to ERCOT Fees
and Other Rates) concerning the expense components included in ERCOT's fees
and rates and ERCOT reporting requirements. The proposed substantive rule
and amendment are being published separately in this issue of the
Texas Register
but will be considered as part of Project Number 27736.
Richard Lain, Financial Analyst, Financial Review Division of the Public
Utility Commission, 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.
Richard Lain 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 additional certainty in the procedures used
to determine the appropriate fees and rates of ERCOT. The new rule will enable
the commission to conduct such proceedings more efficiently and will provide
advance notice to interested persons of the requirements for such proceedings.
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.
Richard Lain 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.
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 Wednesday, September 10, 2003,
at 10:00 a.m.
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 21 days after publication.
Reply comments may be submitted within 30 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 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 27736.
When commenting on specific subsections of the proposed rule, parties are
encouraged to describe "best practice" examples of regulatory policies, and
their rationale, that have been proposed or implemented successfully in other
states already undergoing electric industry restructuring, if the parties
believe that Texas would benefit from application of the same policies. The
commission is only interested in receiving "leading edge" examples which are
specifically related and directly applicable to the Texas statute, rather
than broad citations to other state restructuring efforts.
This new section is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 and §14.052 (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, including rules of practice and procedure;
and specifically, PURA §39.151 which grants the commission the authority
to establish the reasonable and competitively neutral rates for an independent
organization, like ERCOT.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002,
14.052, and 39.151.
§22.252.Procedures for Approval of ERCOT Fees and Rates.
(a)
Procedures. Except to the extent modified in this section,
the commission's procedural rules concerning contested cases will govern the
conduct of hearings, discovery, burden of proof, and resolution of disputes
relating to Electric Reliability Council of Texas (ERCOT) fees and rates.
(b)
Interim approval. ERCOT may request interim approval of
a fee or rate, or a change in a fee or rate, based on a showing of good cause.
A request for interim relief shall be filed no later than 60 days before the
interim relief is proposed to take effect. A fee or rate charged on an interim
basis shall be subject to refund if it exceeds the final fee or rate set by
the commission, unless a refund would harm ERCOT's ability to efficiently
perform its required functions.
(c)
Filing package. The fee and rate application shall be in
substantial compliance with a fee-filing package approved by the commission.
(d)
ERCOT notice. Once a docket number has been assigned to
the fee and rate application, ERCOT shall provide notice of the application
to all entities subject to the fees and rates (as identified through the current
information available to ERCOT) and to all parties that intervened in its
most recent fee and rate application docket. This notice may be made by electronic
mail. ERCOT will also post the notice and a copy of its fee and rate application
on its web site. The notice shall contain the following information:
(1)
the docket number of the fee and rate application;
(2)
in dollars per megawatt hour, the amount of the current
fee and rate, the amount of the proposed fee and rate increase or decrease,
and the total fee and rate amount after the increase or decrease goes into
effect;
(3)
the effect the proposed fee and rate is expected to have
on ERCOT's revenues;
(4)
the effective date of the proposed fee and rate;
(5)
a description of the entities affected by the proposed
fee and rate;
(6)
a brief explanation of the need for the proposed fee and
rate;
(7)
the deadline for intervention in the proceeding; and
(8)
the following language: "Persons who wish to intervene
in or comment upon these proceedings should notify the Public Utility Commission
of Texas within 30 days of the date of this notice. A request to intervene
or for further information should be mailed to the Public Utility Commission
of Texas, P.O. Box 13326, Austin, Texas 78711-3326. A request to intervene
shall include a statement of position containing a concise statement of the
requestor's position on the application, a concise statement of each question
of fact, law, or policy that the requestor considers at issue and a concise
statement of the requestor's position on each issue identified."
(e)
Commission notice. The commission shall publish notice
of the fee and rate application in the
Texas Register
. This notice shall contain the same information required in subsection
(d) of this section.
(f)
Schedule. If ERCOT seeks to change its fees and rates,
it shall file an application not less than 120 days before the new rate and
fee is to become effective. The deadline for parties to intervene in a fee
and rate application proceeding shall be 30 days after the date notice is
issued by ERCOT pursuant to subsection (d) of this section.
(g)
Processing of the application. If no motion to intervene
is filed by the intervention deadline, and no statement of position objecting
to the fee and rate application is filed by the commission staff, the fee
and rate application shall be presented to the commission for consideration
of approval.
(1)
If a motion to intervene objecting to the fee and rate
application is filed, the commission shall review the motion to determine
whether it raises any disputed issues of fact, law or policy. If the motion
does not raise factual issues, the commission may resolve any disputed issues
of law or policy on the basis of briefing, if requested.
(2)
If factual issues must be resolved, the matter may be referred
to the State Office of Administrative Hearings for the making of all necessary
factual determinations and the preparation of a proposal for decision, including
findings of fact and conclusions of law, unless the commission or a commissioner
serves as the finder of facts.
(3)
The commission shall render a final decision approving
or denying a fee application under this section within 120 days of the date
of filing of the application, unless the commission extends the time for a
final decision. If the commission does not make a final determination concerning
a fee and rate change before the proposed effective date, the commission will
be considered to have approved the change on an interim basis as of the proposed
effective date, subject to the authority of the commission thereafter to require
a refund upon conclusion of the hearing.
(h)
Review of fees based on a complaint. On its own initiative,
or upon complaint by an affected person, the commission may enter an order
changing the fees and rates charged by ERCOT, after reasonable notice and
hearing, if it finds that the existing fees and rates are unreasonable, are
not competitively neutral, are insufficient to cover ERCOT's costs, or are
in violation of law. The presiding officer shall establish the procedures
for processing such complaints in accordance with the commission's procedural
rules.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on July 28, 2003.
TRD-200304542
Rhonda G. Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 936-7308
Subchapter O. UNBUNDLING AND MARKET POWER
2.
INDEPENDENT ORGANIZATIONS
16 TAC §25.362, §25.363
The Public Utility Commission of Texas (commission) proposes
an amendment to §25.362, relating to Electric Reliability Council of
Texas (ERCOT) Governance, and new §25.363, relating to ERCOT Fees and
Other Rates. The proposed new rule will establish the manner in which ERCOT
maintains its accounts and records and will determine the appropriate expense
components to be included in ERCOT's fees and rates and the method of calculating
those rates. The proposed amendment will add related reporting requirements
concerning ERCOT expenditures and long term operating plans. Project Number
27736 is assigned to this proceeding.
The commission is also proposing new procedural rule §22.252 of this
title (relating to Procedures for Approval of ERCOT Fees and Rates) to address
the procedure for reviewing ERCOT fee changes. The proposed new procedural
rule is being published separately in this issue of the
Texas Register
but will be considered as part of Project Number 27736.
Richard Lain, Financial Analyst, Financial Review Division of the Public
Utility Commission, has determined that for each year of the first five-year
period the proposed sections are in effect there will be no fiscal implications
for state or local government as a result of enforcing or administering the
sections.
Richard Lain has determined that for each year of the first five years
the proposed sections are in effect the public benefit anticipated as a result
of enforcing the sections will be additional certainty concerning the appropriate
expense components to be included in the fees and rates of ERCOT. The new
rule and amendment will also provide additional information concerning ERCOT's
expenditures and long-term operations plans and will enable the commission
and interested persons to have greater insight into the operations of ERCOT.
By providing additional certainty, the new rule and amendment will also help
to reduce the issues that may be raised in commission proceedings to establish
the level of ERCOT's fees and rates and reduce the cost of participating in
such proceedings. 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 these sections as
proposed.
Richard Lain has also determined that for each year of the first five years
the proposed sections are 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.
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 Wednesday, September 10, 2003,
at 10:00 a.m.
Comments on the proposed amendment and 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 21 days after publication.
Reply comments may be submitted within 30 days after publication. Comments
should be organized in a manner consistent with the organization of the proposed
rules. The commission invites specific comments regarding the costs associated
with, and benefits that will be gained by, implementation of the proposed
sections. The commission will consider the costs and benefits in deciding
whether to adopt these sections. All comments should refer to Project Number
27736.
When commenting on specific subsections of the proposed rule, parties are
encouraged to describe "best practice" examples of regulatory policies, and
their rationale, that have been proposed or implemented successfully in other
states already undergoing electric industry restructuring, if the parties
believe that Texas would benefit from application of the same policies. The
commission is only interested in receiving "leading edge" examples which are
specifically related and directly applicable to the Texas statute, rather
than broad citations to other state restructuring efforts.
The new section and amendment are 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 §39.151, which
grants the commission oversight and review authority over independent organizations,
like ERCOT, and authorizes the commission to establish reasonable and competitively
neutral rates for such organizations.
Cross Reference to Statutes: Public Utility Regulatory Act §14.002
and §39.151.
§25.362.Electric Reliability Council of Texas (ERCOT) Governance.
(a) - (g)
(No change.)
(h)
Required reports.
(1)
Annual report.
Beginning with the
2002 calendar year, ERCOT shall file an annual report with the commission,
not later than 120 days after the end of the year.
[
(A)
An independent audit of ERCOT's financial statements for
the report year;
(B)
A schedule comparing actual revenues and costs to budgeted
revenues and costs for the report year and a schedule showing the variance
between actual and budgeted revenues and costs;
(C)
An independent audit of ERCOT's market operation for the
report year; [
(D)
The annual board-approved budget
; and
[
(E)
Any other information the commission may
deem necessary.
(2)
Quarterly reports.
ERCOT shall file quarterly
reports no later than 45 days after the end of each quarter, which shall include:
(A)
All internal audit reports that were produced during the
reporting quarter; [
(B)
A report on performance measures, as prescribed by the
commission
;
[
(C)
By account item as established in the
fee filing package prescribed by the commission under §22.252 of this
title (relating to Procedures for Approval of ERCOT Fees and Rates) a report
of:
(i)
ERCOT fees and other rates, funds allocated, funds encumbered,
and funds expended;
(ii)
An explanation for expenditures deviating from the original
funding allocation for the particular account item;
(iii)
A detailed explanation of how unexpended funds will be
expended in the subsequent year; and
(D)
Any other information the commission may
deem necessary.
(i) - (j)
(No change.)
(k)
Long-term operations plan. Annually, by
September 30th, ERCOT shall file a long-term operations plan. At a minimum
the long-term operations plan shall provide the following information:
(1)
A definition of the responsibilities and role of ERCOT,
the transmission and distribution utilities (TDUs), and retail electric providers
(REPs) in the electric market;
(2)
A description of the long-term roles and responsibilities
of ERCOT such as single control area, customer registration, transaction clearinghouse,
load forecasting and reserve margin planning, transmission planning, and transmission
system additions and upgrades;
(3)
Estimated annual budgets over a three, five, and ten-year
time frame;
(4)
Life cycle costs for the customer registration system and
all other systems supported by the ERCOT administrative fee;
(5)
Long-term goals for all ERCOT activities;
(6)
Performance measures for ERCOT's functions as described
in PURA §39.151(a) to allow for an annual evaluation of ERCOT's performance
in meeting these goals; and
(7)
Any other information or activity required by the commission.
§25.363.ERCOT Fees and Other Rates.
(a)
Scope. This section applies to all fees and rates levied
or charged by the Electric Reliability Council of Texas (ERCOT) in its role
as an independent organization under the Public Utility Regulatory Act (PURA) §39.151.
Charges for wholesale market services acquired by ERCOT in accordance with
its protocols are not governed by this section, but may be revised in accordance
with §25.362 of this title (relating to Electric Reliability Council
of Texas (ERCOT) Governance).
(1)
A fee or rate that was in effect on the effective date
of this section shall remain in effect and shall not be changed without commission
approval.
(2)
ERCOT must seek and obtain commission approval of any new
or modified rate or fee prior to implementing the new or modified rate or
fee.
(b)
System of accounts and reporting. For the purpose of accounting
and reporting to the commission, ERCOT shall maintain its books and records
in accordance with Generally Accepted Accounting Principles. ERCOT shall establish
a standard chart of accounts and employ it consistently from year to year.
The standard chart of accounts shall be used for the purpose of reporting
to the commission and shall be consistent with the fee filing application
and long-term operations plan approved by the commission. The accounts shall
show all revenues resulting from the various fees charged by ERCOT and reflect
all expenses in a manner that allows the commission to determine the sources
of the costs incurred for each activity for which a separate fee is charged.
ERCOT must seek and obtain commission approval of any new or modified account
prior to implementing the new or modified account.
(c)
Allowable expenses for fees and rates. Fees and rates shall
be based upon ERCOT's cost of performing its required functions as described
in PURA §39.151(a). To determine the reasonable cost of performing its
functions, ERCOT shall use a historical test year, except that ERCOT may use
a future test year if ERCOT demonstrates that the scope of its activities
and functions has been expanded by the commission or the market participants,
resulting in higher future costs. To determine if the costs are reasonable
and necessary, the commission shall review ERCOT's costs for consistency compared
to the ERCOT long-term operations plan, to costs incurred by market participants
and other independent system operators for similar activities, and to any
other information and data considered appropriate by the commission.
(1)
Only those expenses that are reasonable and necessary to
carry out the functions described in PURA §39.151, shall be included
in allowable expenses.
(2)
Allowable expenses, to the extent they are reasonable and
necessary may include, but are not limited to the following general categories:
(A)
Operating expenses, which include salaries and related
benefits, legal and consulting services, hardware and software maintenance
and licensing, insurance, employee training and travel, and depreciation;
(B)
Facility and equipment costs, and other long-lived investments;
(C)
Debt service (interest plus principal reduction) and other
reasonable and necessary costs of capital to fund investments in property
and facilities, and other capital expenditures that are used and useful in
performing the functions of an independent organization; and
(D)
Expenses associated with fees and dues charged by organizations
setting electric or energy business practices and communications standards
(e.g., North American Electric Reliability Council ("NERC"), North American
Energy Standards Board ("NAESB"), and ISO/TRO Council) to which ERCOT is presently
a member.
(3)
The following are not allowable as a component of expenses:
(A)
Legislative advocacy expenses, whether made directly or
indirectly;
(B)
Funds expended in support of political candidates, movements
or causes;
(C)
Funds expended promoting religious causes;
(D)
Funds expended in support of or in acquiring membership
in social, recreational, fraternal, or clubs or organizations in excess of
0.1% of the annual ERCOT revenue requirement, or $100,000, whichever is less;
(E)
Funds expended for advertising, marketing, or other promotions,
which includes, but is not limited to:
(i)
promotional goods;
(ii)
efforts to increase name recognition;
(iii)
radio, television, newspaper or other media advertising;
except that this prohibition does not include public service announcements
and community education efforts (not to exceed 0.05% of the annual ERCOT revenue
requirement or $50,000, whichever is less) or direct advertising for the specific
purpose of recruiting employees, but does include advertising in an indirect
fashion to increase name recognition with potential employees; and
(F)
any expenditure found by the commission to be unreasonable,
unnecessary, or not in the public interest.
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 July 28, 2003.
TRD-200304543
Rhonda G. Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 936-7308
Chapter 402.
BINGO REGULATION AND TAX
16 TAC §402.584
The Texas Lottery Commission proposes new section 16 TAC §402.584
relating to the transfer of funds. Specifically, the new section identifies
the process by which a licensed authorized organization conducting bingo or
an organization applying for a license to conduct bingo may request permission
to loan money from its general fund to its bingo account for necessary expenses.
Fiscal Impact
Lee Deviney, Financial Administration Director, has determined for the
first five year period the new rule is in effect, there will be no significant
fiscal impact for state or local government as a result of enforcing this
rule. Any costs to the State could be absorbed by current resources. For each
year of the first five years the section will be in effect, the fiscal impact
is the following: FY 03, $0; FY 04, $0; FY 05, $0; FY 06, $0 and FY 07, $0.
Additionally, there will be no adverse effect on small businesses, micro businesses
or local or state employment.
William L. Atkins, Director, Charitable Bingo Operations Division, has
determined that each of the first five years the section as proposed is in
effect, applicants for a license to conduct Charitable Bingo and licensees
will benefit from the adoption of the section. The anticipated benefit as
a result of the proposed new section is that applicants and licensees will
have a clearer understanding of the requirements necessary to comply with
Occupations Code, Section 2001.451(c).
Written comments on the proposed new rule may be submitted to Kevin Oldham,
Assistant General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin,
Texas 78761-6630.
The proposed new rule is proposed under Occupations Code, Section
2001.054 which authorizes the Commission to adopt rules to enforce and administer
the Bingo Enabling Act, under Government Code, Section 467.102 which authorizes
the Commission to adopt rules for the enforcement and administration of the
laws under the Commission's jurisdiction, under Occupations Code, Section
2001.051(b) which grants the Commission broad authority to exercise strict
control and close supervision over all bingo conducted in Texas so that bingo
is fairly conducted and the proceeds derived from bingo are used for an authorized
purpose, and under Occupations Code, Section 2001.451(c) which provides that
a licensed authorized organization may lend money from its general fund to
its bingo account if the organization requests and receives prior approval
from the commission.
The new rule implements Occupations Code, Chapter 2001.
§402.584.Transfer of Funds.
(a)
A licensed authorized organization or an organization applying
for a license to conduct bingo may request permission to loan money from its
general fund to its bingo account for necessary expenses by submitting a completed
Bingo Financial Summary which includes the organization's actual or estimated:
(1)
monthly bingo income;
(2)
monthly bingo expenses;
(3)
employee payroll;
(4)
one time expense;
(5)
amount of funds to be transferred; and
(6)
balance of its general fund prior to the requested transfer
of funds.
(b)
Prior to approval the Director must find that:
(1)
the loan is necessary;
(2)
the repayment schedule is reasonable; and
(3)
the loan can be repaid within a twelve month period.
(c)
The Director may consider the organization's financial
condition as reflected in all available information including past quarterly
reports prior to the approval of the loan request.
(d)
When a loan is approved by the Director, the loan transaction
must be reported on the organization's quarterly report as follows:
(1)
the loan transaction must be reported as "Approved Loan
Proceed" for the quarter in which the loan was approved; and
(2)
loan payments must be reported as "Loan Repayment" for
the quarter in which they are paid.
(e)
If the loan is not paid back to the organization's general
fund by the later of the renewal date of the license or the time period allowed
under subsection (b), then the Charitable Bingo Operations Division may initiate
disciplinary action.
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 July 24, 2003.
TRD-200304462
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: September 7, 2003
For further information, please call: (512) 344-5113
will
] notify
organizations that perform operations not included in paragraph (1)(A)-(K)
of this subsection of any additional activities subject to the jurisdiction
of the Commission which require the filing of the organization report. Such
notification
shall
[
will
] make the provisions of this
section applicable to such activities.
must
] maintain
a current organization report with the Commission until all duties, obligations,
and liabilities incurred pursuant to Commission rules, the Natural Resources
Code, Titles 3 (Subtitles A, B, C, and Chapter 111 of Subtitle D) and 5, and
the Water Code, Chapters 27 and 29, are fulfilled.
will
] render the organization
report invalid.
Organizations that file for
bankruptcy
] shall provide written notice to the Commission
of that
action not later than the 30th day after the date the organization or the
affiliate files for bankruptcy protection
[
within 72 hours
]
by submitting the notice to the Enforcement Section of the Office of General
Counsel. All bankruptcy-related notices sent to the Commission shall be submitted
in writing to that section.
must
]:
before January 1, 2008
]. All applications must be filed at
the Commission's Austin office. The form shall be executed and certified by
a person having knowledge of the facts entered on the form. If an application
is already on file under the Natural Resources Code, Chapter 101, Subchapter
B, or for approval as a tertiary recovery project for purposes of the Internal
Revenue Code of 1986, §4993, the operator may file a new EOR project
and area designation application if the active operation of the project does
not begin before the application under this section is approved by the Commission;
must
] apply for and be granted Commission approval
of a new EOR project or an expansion of an existing EOR project, prior to
commencing active operation of the new project or expanded project. For a
project to be approved the operator
shall
[
must
]:
must
] demonstrate to the Commission
a positive oil production response before the operator can receive Commission
certification of such a positive production response. The certification date
may be any date desired by the operator, subject to Commission approval, following
the date on which a positive oil production response first occurred. The operator
shall
[
must
] apply for a positive production response certificate
within three years of project approval for secondary projects, and within
five years of project approval for tertiary projects, to qualify for the recovered
oil tax rate. The oil produced from the designated area of a new EOR project
or incremental oil produced from the designated area of an expanded EOR project
after the date of certification of a positive production response is eligible
for the recovered oil tax rate. The operator
shall
[
must
]
apply to the comptroller pursuant to the Tax Code, §202.052 and §202.054,
to qualify for the recovered oil tax rate.
will
] be processed administratively. If the Commission
representative denies administrative approval, the applicant shall have the
right to a hearing upon request. After hearing, the examiner shall recommend
final action by the Commission.
must
] file an
annual report on the appropriate form with the Oil and Gas Division each year
the project remains eligible for the reduced severance tax rate. This form
shall
[
must
] be filed within 30 days of the first anniversary
of the date that the Commission acted on the EOR positive production response
certification application and annually thereafter.
must
] contain
the following:
:
]
(2)
]
the application for reduction or enlargement
is received prior to the filing of an application for positive production
response certification of the original enhanced oil recovery project.
continues
] for a maximum of 10 years, unless the project is sooner terminated.
If the project is terminated prior to the 10-year period, the operator
shall
[
must
] notify the Commission and the comptroller in
writing within 30 days after the last day of active operations. Failure to
so notify may result in civil penalties, interest, and the tax due. If the
Commission determines a project has been terminated or there is action that
affects the tax rate, it
shall
[
will
] notify the comptroller
immediately in writing.
To provide a
] procedure by which an operator can obtain a Railroad Commission
of Texas certification that natural gas from a particular gas well qualifies
as high-cost natural gas under the Texas Tax Code, Chapter 201, Subchapter
B, §201.057(a)(2)(A) and that such gas is exempt from or eligible for
a reduction of the severance tax imposed by the Texas Tax Code, Chapter 201.
will
]
be exempt from the tax imposed by the Texas Tax Code, Chapter 201, during
the period from September 1, 1991, through August 31, 2001.
, and before September 1, 2010
]. Eligible high-cost gas
shall
[
will
] be entitled to a reduction of the tax imposed by the Texas Tax
Code, Chapter 201, for the first 120 consecutive calendar months beginning
on the first day of production or until the cumulative value of the tax reduction
equals 50% of the drilling and completion costs incurred for the well, whichever
occurs first. The amount of tax reduction is determined pursuant to the Texas
Tax Code, §201.057(c).
If the application for certification is submitted
to the Commission after January 1, 2004, the total allowable credit for taxes
paid for reporting periods before the date the application is filed may not
exceed the total tax paid on the gas that otherwise qualified for the exemption
or tax reduction and that was produced during the 24 consecutive calendar
months immediately preceding the month in which the application for certification
under this section was filed with the Commission.
must
] notify the Commission in writing
within 30 days after such an event occurs.
will
] notify within 48 hours,
in writing, the comptroller and the operator.
will
] comply if the application
includes a statement, signed by the operator, that the attachments are true
and correct copies of the documents originally filed with the Commission.
However, the Commission may require an operator to file certified copies of
required attachments or other documents from Commission files if necessary
for a certification.
should
] be addressed to the
Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967, Attention:
High-Cost Gas Severance Tax Section. No filings may be made at the district
offices.
must
] prove that the gas produced is high-cost gas
by providing the following information:
must
] first
apply for a tight formation area designation.
must
] submit a written request to the High-Cost Gas
Severance Tax Section, at the address given in subsection (d)(2) of this section,
for a certification that a named formation or a specific portion thereof is
a tight formation. The applicant
shall
[
must
] supply
a list of the names and addresses of all affected persons. For purposes of
this subsection, "affected persons" means all operators of all wells listed
on the current proration schedule for the applicable field or fields located
within the proposed designated area. The applicant shall mail or deliver a
copy of the prescribed, completed notice of application form to all affected
persons, and if required, shall publish the notice of application in accordance
with §1.46 of this title (relating to Notice by Publication in Oil and
Gas and Surface Mining and Reclamation Nonrulemaking Proceedings), as found
in the Commission's General Rules of Practice and Procedure (16 Texas Administrative
Code Chapter 1). Notice of application forms may be obtained by contacting
the Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967,
Attention: High-Cost Severance Tax Section. Before the application may be
approved, the applicant shall submit a letter certifying that all affected
persons were sent a copy of the notice of application, and the date on which
the notice of application was sent.
must
] submit the following
information in duplicate:
must
]
be provided;
will
] be assigned a docket number identifying it as
a severance tax application. A notice of receipt
shall
[
will
] be sent to the applicant, indicating the assigned docket number and
receipt date. All further correspondence shall include this docket number.
will
] be presented to the Commission for approval.
If Commission staff finds the data submitted are incomplete, or indicate the
area does not qualify, or if a protest is filed within the 21-day notice period,
the applicant
shall
[
must
] request a hearing to have
the application considered. If the applicant does not request such a hearing
or if the applicant fails to appear at a requested hearing, the application
shall be dismissed. Any such hearing shall be held only after at least 10
days' notice by the Commission to all affected persons as defined in subsection
(f)(2) of this section. If no protestant appears at the hearing, and/or if
the application and any evidence presented at the hearing establishes that
the subject formation meets the requirements for a tight formation certification,
the application shall be presented to the Commission for approval.
must
] apply with the comptroller
after receiving a copy of the Commission's certification letter. The application
shall contain the Commission's letter certifying that the well produces or
will produce high-cost gas, a completed copy of the Commission's application
for certification form and a completed copy of the applicable Comptroller
of Public Accounts' form. To obtain the maximum tax exemption or tax reduction,
the application
shall
[
must
] be filed with the comptroller
at the later of the 180th day after the first day of production or the 45th
day after the certification by the Commission. If the application is not filed
by the applicable deadline, the tax exemption or reduction will be reduced
by 10% for the period beginning on the 180th day after the first day of production
and ending on the date on which the application is filed with the comptroller.
Part 2.
PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 25.
SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
(1)
]
The annual report shall include:
and
]
.
]
and
]
.
]
Part 9.
TEXAS LOTTERY COMMISSION