TITLE 16.ECONOMIC REGULATION

Part 1. RAILROAD COMMISSION OF TEXAS

Chapter 1. PRACTICE AND PROCEDURE

Subchapter I. PERMIT PROCESSING

16 TAC §1.201

The Railroad Commission of Texas (Commission) adopts amendments to §1.201, relating to Time Periods for Processing Applications and Issuing Permits Administratively, with changes to the version published in the March 12, 2004, issue of the Texas Register (29 TexReg 2509). The Commission adopts the amendments in order to conform the rule text and Table 1 in §1.201 with organizational changes made at the Commission, with substantive changes adopted in rules in other chapters, and with the transfer of the Quarry Safety program to the Texas Department of Transportation, pursuant to House Bill (HB) 3442, 78th Legislature (2003) (Acts 2003, 78th Leg., ch. 200, eff. September 1, 2003).

The adopted amendments to the rule text and to the table are non-substantive and made for clarification purposes. Changes that reflect the new organizational structure of the Commission are found in subsections (a), (d), and (e); these changes indicate the correct names of Commission divisions, employee titles, and the title of Chapter 1. In certain rows, the name of an Oil and Gas Division section is changed from the "Production and Permitting Section" to the new name, the "Permitting/Production Services Section." This change is found in the rows for §§3.6, 3.10, 3.23, 3.38, 3.41, 3.43, 3.48, the three rows for §§3.50, 3.57, 3.83, and 3.101.

In the row for §3.70, the rule number is corrected from the old number of §3.65, and the section name is corrected from the Gas Services Division "Pipeline Safety Section" to the "License and Permit Section."

In the row for §3.81, the rule number is corrected from the old number of §3.77

In the row for §9.10, the rule number and title are corrected from the old rule number and title, and the Gas Services Division section is corrected to the new "License and Permit Section." The $20 fee is correct but applies only to an employee-level examination; the $50 fee for a management-level examination is added. These fees previously were adopted in §9.10 and are not new.

In the row for §9.27, the rule number is corrected and the division is corrected from Gas Services Division, LP-Gas Section, to the new "Rail/LP-Gas/Pipeline Safety Division." The reference to an "individual application" is deleted to conform to the current language of §9.27.

A new row is added for §9.54, Commission-Approved Outside Instructors; this rule applies to persons who wish to provide Commission-approved training or continuing education to LP-gas companies or employees. The Alternative Fuels Research and Education Division processes these applications, which are made on written request, do not require a Form P-5, require an application fee of $300, and have an initial review period of 14 days and a final review period of 10 days. These requirements previously were adopted in §9.54 and are not new.

In the row for §9.101, the rule number and the division name are corrected in the same manner as the row for §9.27.

Four rows are deleted from the Table because the Quarry Safety program was transferred from the Commission to the Texas Department of Transportation; the deleted rows are for §§11.1038 (two rows), 11.1043, and 11.1045.

In the row for §12.148, the initial review period has decreased from 120 days to 60 days.

In the row for §12.226, regarding administrative permit revisions, the application form has been corrected from SMRD-1C to SMRD-2C; the application fee for a permit revision of $500 added; the footnote deleted; and the initial review period changed from 120 days to 60 days. The $500 fee previously was adopted in §12.108(a)(2) and is not a new fee.

In the row for §§12.231-12.233, the application fee for a permit transfer of $500 has been added; again, this fee previously was adopted in §12.108(a)(2) and is not a new fee.

In the row for §13.35, the division name has been corrected to the Rail/LP-Gas/Pipeline Safety Division, and the reference to an individual application has been deleted; as with §9.27, §13.35 requires an application form.

In the rows for both §13.70 and §14.2019, the rule titles are corrected and the new "License and Permit Section" name is added. As with §9.10, a statement clarifying that the $20 examination fee is for an employee-level examination and the $50 fee for a management-level examination is added; these fees previously were adopted in §9.10 and are not new.

In the row for §14.2040, the rule number and division name are corrected.

In the row for §14.2052, the rule number and division name are corrected, and the reference to an individual application is deleted in the same manner as in the rows for §§9.27 and 13.35.

Finally, in the row for the clearance deviation authorization pursuant to Texas Revised Civil Statutes Annotated, article 6559f, the division name is corrected.

The Commission adopts §1.201 with seven changes from the proposal, all found in Table 1. In the first row for §3.46, the fee for an injection permit is $200 per well; the words "per well" are added for clarification. In the second row for §3.46, the fee for an injection permit with authorization to inject resh water was published in the proposal as "$200; $150 per exception." In fact, this permit does not require a fee, so that block is changed to "None." In the third row for §3.46, the fee for an area permit is $200 per well; the words "per well" are added for clarification. In the row for §3.81, the fee for a brine mining injection permit was proposed as $100; that fee is corrected to $200 pursuant to recently adopted amendments to §3.78 of this title (relating to Fees, Performance Bonds and Alternate Forms of Financial Security Required To Be Filed). In the rows for §§3.95, 3.96, and 3.97, the fees were in the proposed Table as $100 per well; pursuant to §3.78, these fees are in fact $200 per well.

The Commission received no comments on the proposal.

The Commission adopts the amendments to §1.201 pursuant to Texas Government Code, §§2005.001 - 2005.007, which require the Commission to adopt procedural rules for processing permit applications and issuing permits and to establish by rule a complaint procedure allowing permit applicants to complaint directly to the chief administrator of the agency; Texas Government Code, §2001.004, which requires agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures; and HB 3442 (78th Legislature, 2003) (Acts 2003, 78th Leg., ch. 200, eff. September 1, 2003).

Texas Government Code, §2001.004 and §§2005.001-2005.007, and Texas Natural Resources Code, Chapter 133, as amended by HB 3442 (Acts 2003, 78th Leg., ch. 200, eff. September 1, 2003), are affected by the adopted amendments.

Statutory authority: Texas Government Code, §§2001.004, and 2005.001 - 2005.007, and Texas Natural Resources Code, Chapter 133, as amended by HB 3442.

Cross-reference to statute: Texas Government Code, §§2001.004 and 2005.001-2005.007, and Texas Natural Resources Code, Chapter 133.

Issued in Austin, Texas, on April 23, 2004.

§1.201.Time Periods for Processing Applications and Issuing Permits Administratively.

(a) Applicability. This rule applies to the permits listed in Column A of Table 1 of this section. For purposes of this rule, the term "permit" includes any authorization issued administratively by the Commission, through the Oil and Gas Division, the Gas Services Division, the Surface Mining and Reclamation Division, or the Rail/LP-Gas/Pipeline Safety Division, and required by the Commission either to engage in or conduct a specific activity or to deviate from requirements, standards, or conditions in statutes or Commission rules and for which the median processing time exceeds seven days.

Figure: 16 TAC §1.201(a)

(b) Completeness. An application is complete when the division or section shown in Column B of Table 1 has determined that the application contains information addressing each application requirement of the regulatory program and all information necessary to initiate the final review by the division or section processing the application. For purposes of this section, certain applicants, as shown in Column D of Table 1, are required to have an approved organization report (Form P-5) on file with the Commission in order for an application to be complete.

(c) Time periods.

(1) The date a permit application is received under this section is the date the application reaches the designated division or section within a division as shown in Column B of Table 1.

(2) The division or section shown in Column B of Table 1 shall process permit applications in accordance with the time periods shown in Columns F and G of Table 1 for a particular permit. Time periods are counted on the basis of calendar days.

(3) The Initial Review Period, shown in Column F of Table 1, begins on the date the designated division or section receives the application and ends on the date the division or section gives written notice to the applicant indicating that either:

(A) the application is complete and accepted for filing; or

(B) the application is incomplete, as described in paragraph (4) of this subsection.

(4) If the division or section determines that an application is incomplete, the division or section shall notify the applicant in writing and shall describe the specific information required to complete the application. An applicant may make no more than two supplemental filings to complete an application. The Initial Review Period shall start again each time the division or section receives a supplemental filing relating to an incomplete application. After the second supplemental submission, if the application is complete, the division or section shall administratively rule on the application; if the application is still incomplete, the division or section shall administratively deny the application. The division or section specifically does not have the authority to accept or review any other additional supplemental submissions. The division or section shall notify the applicant in writing of the administrative decision and, in the case of an administrative denial, the applicant's right to request a hearing on the application as it stands. The applicant may withdraw the application.

(5) The Final Review Period, shown in Column G of Table 1, begins on the date the division or section makes a determination under paragraph (3)(A) of this subsection and ends on the date the permit is:

(A) administratively granted;

(B) administratively denied; or

(C) docketed as a contested case proceeding if the application is neither administratively granted nor administratively denied.

(6) An applicant whose application has been administratively denied may request a hearing by filing a written request for a hearing addressed to the division or section processing the application, within 30 days of the date the application is administratively denied.

(7) Within seven days of either docketing an application under paragraph (5)(C) of this subsection or receiving a written request for a hearing under paragraph (6) of this subsection, the division or section processing the application shall forward the file and any request for hearing, including any memoranda or notes explaining or describing the reasons for docketing or administrative denial, to the Docket Services Section of the Office of General Counsel. The Office of General Counsel shall process the application as prescribed in subsection (e) of this section.

(d) Complaint procedure.

(1) An applicant may complain directly to the Executive Director if a division or section does not process an application within the applicable time periods shown in Columns F and G of Table 1, and may request a timely resolution of any dispute arising from the claimed delay. All complaints shall be in writing and shall state the specific relief sought, which may include the full reimbursement of the fee paid in that particular application process, if any, as shown in Column E of Table 1. As soon as possible after receiving a complaint, the Executive Director shall notify the appropriate division director of the complaint.

(2) Within 30 days of receipt of a complaint, the division director of the division or section processing the application that is the subject of the complaint shall submit to the Executive Director a written report of the facts relating to the processing of the application. The report shall include the division director's explanation of the reason or reasons the division or section did or did not exceed the established time periods. If the Executive Director does not agree that the division or section has violated the established periods or finds that good cause existed for the division or section to have exceeded the established periods, the Executive Director may deny the relief requested by the complaint.

(3) For purposes of this section, good cause for exceeding the established period means:

(A) the number of permit applications to be processed by the division or section exceeds by at least 15 percent the number of permit applications processed by that division or section in the same quarter of the previous calendar year;

(B) the division or section must rely on another public or private entity to process all or part of the permit application received by the agency, and the delay is caused by that entity; or

(C) other conditions exist that give the division or section good cause for exceeding the established period, including but not limited to circumstances such as personnel shortages, equipment outages, and other unanticipated events or emergencies.

(4) The Executive Director shall make the final decision and provide written notification of the decision to the applicant and the division or section within 60 days of receipt of the complaint.

(e) Hearings. If an application is docketed as a contested case proceeding, it is governed by the time periods in this chapter (relating to Practice and Procedure) once the application has been filed with the Docket Services Section of the Office of General Counsel.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 23, 2004.

TRD-200402728

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Effective date: May 13, 2004

Proposal publication date: March 12, 2004

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


Chapter 15. ALTERNATIVE FUELS RESEARCH AND EDUCATION DIVISION

Subchapter B. PROPANE CONSUMER REBATE PROGRAM

16 TAC §15.125

The Railroad Commission of Texas adopts amendments to §15.125 (relating to Application) without changes from the version published in the March 12, 2004, issue of the Texas Register (29 TexReg 2510). The amendments change the application period for certain rebates from 60 days after installation to 30 days after installation. This change was recommended by the Propane Alternative Fuels Advisory Committee (AFRED advisory committee) as a means of better managing the consumer rebate program budget.

All administrative requirements of the rebate program will remain unchanged, except that an applicant for a rebate on domestic equipment, such as an appliance, will have 30 days rather than 60 days after installation to submit an application for a rebate. Thirty days appears to be adequate time, given the brevity and simplicity of the application and required documentation for these rebates. The application for a rebate on domestic equipment consists of a one- or two-page form, depending on the type of rebate, verifying the equipment for which the rebate is being sought. The form requires, for example, the make, model, and serial number of the eligible equipment installed or being replaced; the date and physical address of the installation; the applicant's name, address, and telephone number; and the participating propane marketer's name, address, telephone number, and Railroad Commission LP-Gas license number. The form also requires the signature of the applicant and the Company Representative and, for certain rebate amounts, the applicant's tax identification number or social security number. The required documentation is typically a one-page work order showing that the equipment for which the rebate is being sought is installed and operating in the State of Texas in compliance with Railroad Commission requirements.

The amendment in §15.125(a) adds language specifying that the forms and supporting documentation must include required information, must describe with sufficient particularity the equipment for which the rebate is being sought, and must show that the equipment is installed and operating in the State of Texas in compliance with Railroad Commission requirements.

The amendments in §15.125(d) make the distinction between the deadlines applicable to domestic equipment rebates and to other types of rebates. An application for a rebate on domestic equipment, such as an appliance, must be received at the Commission no later than 30 days following the date of the eligible installation to be eligible for a rebate. An application for a rebate on a motor vehicle, industrial lift truck, or other industrial equipment must be received at the Commission no later than 60 days following the date of the eligible installation to be eligible for a rebate.

The Commission received no comments on the proposed amendments.

The Commission adopts the amendments under Texas Natural Resources Code, §113.2435(b), which authorizes the Commission to adopt rules relating to the establishment of consumer rebate programs for purchasers of appliances and equipment fueled by LPG or other environmentally beneficial fuels for the purpose of achieving energy conservation and efficiency or improving air quality in this state; and Texas Natural Resources Code, §113.243(c)(6), which authorizes the Commission to use money in the Alternative Fuels Research and Education Fund, now Alternative Fuels Research and Education Fund Account 101, General Revenue-Dedicated, to pay the direct and indirect costs of such programs.

Texas Natural Resources Code, §§113.243, 113.2435, and 113.246, are affected by the adopted amendments.

Statutory authority: Texas Natural Resources Code, §§113.2435(b) and 113.243(c)(6).

Cross-reference to statute: Texas Natural Resources Code, §§113.243, 113.2435, and 113.246.

Issued in Austin, Texas, on April 23, 2004.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 23, 2004.

TRD-200402727

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Effective date: May 13, 2004

Proposal publication date: March 12, 2004

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