Part 1.
RAILROAD COMMISSION OF TEXAS
Chapter 7.
GAS SERVICES DIVISION
Subchapter F. PIPELINE APPEAL OF CITY ASSESSMENT OF ANNUAL CHARGE
16 TAC §§7.6001 - 7.6007
The Railroad Commission of Texas proposes new §§7.6001-
7.6007, relating to General Provisions; Procedure for Filing and Service of
an Appeal, Obligation of City to Respond, and Intervention; Contents of Appeal;
Contents of Response; Contents of Motion to Intervene; Standards for Determining
an Appeal; and Procedure for Determining and Sharing of the Commission's Costs,
in 16 Texas Administrative Code, Chapter 7, new Subchapter F, to be entitled
"Pipeline Appeal of City Assessment of Annual Charge." The Commission proposes
the new subchapter to implement the provisions of new Texas Natural Resources
Code, §117.102, and new Texas Utilities Code, §121.2025, enacted
by Senate Bill 480 and House Bill 951, 79th Legislature, Regular Session (2005).
These new provisions give the Railroad Commission exclusive jurisdiction to
determine whether a city's annual charge is authorized under Texas Natural
Resources Code, §117.102(b)(1), or Texas Utilities Code, §121.2025(b)(1).
These statutory provisions authorize cities to assess a reasonable annual
charge for the placement, construction, maintenance, repair, replacement,
operation, use, relocation, or removal by an owner or operator of a hazardous
liquid, carbon dioxide, or natural gas pipeline facility on, along, or across
the public roads, highways, streets, alleys, streams, canals, or other public
ways located within the city and maintained by the city. This charge may not
exceed the cost to the city of administering, supervising, inspecting, and
otherwise regulating the location of the pipeline facility, including maintaining
records and maps of the location of the pipeline facility.
An owner or operator of a pipeline facility may appeal the assessment of
a charge under Texas Natural Resources Code, §117.102(b)(1), or Texas
Utilities Code, §121.2025(b)(1), to the Commission, which must hear the
appeal
de novo
. Unless the city that assessed
the charge establishes that the charge is authorized by one or both of these
sections, the Commission must declare the charge invalid or reduce the charge
to an amount authorized by the sections. The owner or operator of the pipeline
facility and the city are required to share equally the costs incurred by
the Commission in connection with the appeal.
The Commission proposes new §7.6001, relating to General Provisions,
to implement the authority of the Commission to hear an appeal from a pipeline
that has been assessed an annual charge pursuant to Texas Natural Resources
Code, §117.102(b)(1), or Texas Utilities Code, §121.2025(b)(1).
Under Texas Natural Resources Code, §117.102(d), and Texas Utilities
Code, §121.2025(d), the Commission has exclusive jurisdiction to determine
whether a city's annual charge is authorized under Texas Natural Resources
Code, §117.102(b)(1), or Texas Utilities Code, §121.2025(b)(1).
In this subchapter, "pipeline" means an owner or an operator of a hazardous
liquid, carbon dioxide, or natural gas pipeline facility that is located in
a public right-of-way in the city; "city" means the city or the municipality
that assessed an annual charge pursuant to Texas Natural Resources Code, §117.102(b)(1),
or Texas Utilities Code, §121.2025(b)(1); "regulating a pipeline facility"
means administering, supervising, inspecting, and otherwise regulating the
location of a pipeline facility, including maintaining records and maps of
the location of the pipeline facility; "public right-of-way in the city" means
public roads, highways, streets, alleys, streams, canals, or other public
ways located within a city and maintained by the city; and "director" means
the director of the Gas Services Division or the director's delegate.
The Commission will hear an appeal filed under this subchapter
de novo
. The appeal will be handled by a legal examiner and a technical
examiner pursuant to this subchapter; the Commission's rules of Practice and
Procedure, 16 Texas Administrative Code Chapter 1; and the Commission's general
standards for establishing just and reasonable rates. The examiners may require
that the city send notice of an appeal filed under this subchapter to all
pipelines that the city identifies as having been assessed an annual charge
within the two years preceding the filing of the appeal. The examiners may
exercise their discretion in deciding whether to permit intervention by another
pipeline or to join another pipeline as a necessary party to an appeal. A
pipeline that files or intervenes in an appeal under this subchapter and the
city that assessed the charge being appealed shall share the costs incurred
by the Commission in connection with the appeal, pursuant to proposed new §7.6007,
relating to Procedure for Determining and Sharing of the Commission's Costs.
The Commission proposes new §7.6002, relating to Procedure for Filing
and Service of an Appeal, Obligation of City to Respond, and Intervention.
As proposed, a pipeline must file an appeal under this subchapter in writing
no later than one year after the pipeline receives the invoice for or a similar
written notice of the charge being appealed. The pipeline must file the appeal
with the director, who assigns a docket number. Thereafter, all documents
relating to the appeal must include the assigned docket number and must be
filed in the Office of General Counsel Docket Services. The pipeline would
be required to mail or deliver a copy of the appeal to the city attorney,
the city secretary, or any other city official authorized to receive service
of process in civil proceedings within 5 days of the date the pipeline files
the appeal at the Commission. The city would have 30 days from the date it
receives an appeal to file its response to the appeal, in writing, at the
Commission. The city would be required to simultaneously serve a copy of the
response on the pipeline. The examiners assigned to an appeal may require
the city to mail notice of the appeal to each pipeline identified in the city's
response, at the address stated in the response, stating that the pipeline
may intervene in the appeal. Another pipeline with a pipeline facility within
public right-of-way in the city may file a motion to intervene in the appeal
within 30 days after any notice of the appeal is mailed to the pipelines.
The Commission proposes new §7.6003, relating to Contents of Appeal.
In its appeal, a pipeline must include the name, mailing address, and telephone
number, and facsimile transmission number and electronic mail address, if
available, of the pipeline and any authorized representative of the pipeline
and the city attorney, the city secretary, or any other city official authorized
to represent the city in an appeal filed under this subchapter. The pipeline
must describe the charge assessed by the city against the applicable pipeline
facilities; state the basis for the pipeline's claim that the charge is not
authorized under Texas Natural Resources Code, §117.102(b)(1), or Texas
Utilities Code, §121.2025(b)(1); and include all supporting documentation
and citations to authority. The pipeline or its authorized representative
must sign the appeal in ink.
The Commission proposes new §7.6004, relating to Contents of Response.
The city must include the name, mailing address, and telephone number, and
facsimile transmission number and electronic mail address, if available, of
every pipeline that has been assessed an annual charge under Texas Natural
Resources Code, §117.102(b)(1), or Texas Utilities Code, §121.2025(b)(1).
In addition, the city must provide a detailed explanation of its methodology
for calculating the annual charge assessed against the applicable pipelines,
including but not limited to a detailed explanation of and the specific cost
elements for regulating the applicable pipeline facilities and all other pipeline
facilities located on, along, or across public right-of-way in the city, based
on historical costs actually incurred adjusted for known and measurable changes;
a list of every owner or operator of pipeline facilities that are located
on, along, or across public right-of-way in the city, the type and distance
of each pipeline facility within public right-of-way in the city, and the
name, mailing address, and telephone number, and facsimile transmission number
and electronic mail address, if any, of each such pipeline and its authorized
representative contained in city records; the total mileage for and charges
assessed against all pipeline facilities of each type located on, along, or
across public right-of-way in the city; and for those pipeline facilities
that are located on, along, or across public right-of-way in the city but
that were not assessed an annual charge, a detailed explanation of the reason
for not assessing the annual charge.
The Commission proposes new §7.6005, relating to Contents of Motion
to Intervene. A pipeline seeking to intervene in an appeal filed by another
pipeline must include the name, mailing address, and telephone number, and
facsimile transmission number and electronic mail address, if available, of
the movant pipeline and any authorized representative of the movant pipeline.
A pipeline seeking to intervene must describe the charge assessed by the city
against the movant pipeline facilities; state the basis for the pipeline's
claim that the charge is not authorized under Texas Natural Resources Code, §117.102(b)(1),
or Texas Utilities Code, §121.2025(b)(1); include all supporting documentation
and citations to authority; and state the movant pipeline's justiciable interest
in the appeal in which the movant pipeline seeks to intervene. The movant
pipeline or its authorized representative must sign the motion to intervene
in ink.
The Commission proposes new §7.6006, relating to Standards for Determining
an Appeal. In an appeal brought under this subchapter, the city has the burden
of establishing that every annual charge at issue is authorized by Texas Natural
Resources Code, §117.102, or Texas Utilities Code, §121.2025. If
the city fails to demonstrate that any annual charge at issue is authorized
by Texas Natural Resources Code, §117.102, or Texas Utilities Code, §121.2025,
the Commission must either declare the annual charge invalid in its entirety
or reduce the annual charge to an amount authorized by Texas Natural Resources
Code, §117.102, or Texas Utilities Code, §121.2025. A city may assess
a reasonable annual charge for the placement, construction, maintenance, repair,
replacement, operation, use, relocation, or removal by an owner or operator
of a pipeline facility on, along, or across public right-of-way in the city.
This charge may not exceed the cost to the city of regulating the pipeline
facility.
In determining whether an annual charge is reasonable, the Commission may
consider whether the charges assessed by the city against pipeline facilities
are commensurate with charges assessed for other uses of public right-of-way
in the city, other than by franchised public utilities; whether the charges
assessed by the city are commensurate with charges assessed against pipeline
facilities in public right-of-way by other cities in Texas; and whether total
costs of regulating pipeline facilities within the city are fairly allocated
among all pipeline facilities, including whether the exclusion of any pipelines
from the charges is reasonable.
In determining whether an annual charge exceeds costs of regulating pipeline
facilities the Commission may consider historical costs attributable to regulating
pipeline facilities adjusted for known and measurable changes, including out-of-pocket
expenses and an allocable portion of the capital depreciation of specialized
equipment and salaries, employee benefits, and reasonable overhead for city
officials and employees engaged in and fairly attributable to regulating pipeline
facilities; whether any costs advanced by the city to support the charge are
attributable to the costs of activities other than regulating public right-of-way
in the city, such as safety regulation, emergency response, or other action
that is not required to administer, supervise, inspect, or otherwise regulate
the location of a pipeline facility in public right-of-way in the city, whether
or not authorized to be performed by the city; and whether charges assessed
against pipeline facilities in the aggregate exceed the city's actual or reasonably
expected costs of regulating pipeline facilities in public right-of-way in
the city.
The Commission proposes new §7.6007, relating to Procedure for Determining
and Sharing of the Commission's Costs. The pipelines and a city that are parties
to an appeal under this subchapter must reimburse the Commission for its costs
incurred in connection with the appeal. In each appeal, the city must pay
half of the Commission's costs and each pipeline that files or intervenes
in the appeal must pay an equal share of the half of Commission's costs. The
Commission will determine its costs as follows: First, the director and the
Commission's General Counsel will require employees assigned to an appeal
under this subchapter to keep records of time spent on each appeal. These
will be filed with and made part of the record in each appeal docket. Then,
from time to time, the Commission will specify an hourly rate as its costs
for each employee hour devoted to appeals under this subchapter. The rate
is based on the employee's hourly compensation and multiplied by a factor
to cover employment benefit costs and fairly allocable overhead costs (use
of copiers, faxes, telephones, computers, hearing room, etc.).
The director will invoice the pipelines and the city for Commission costs,
based on the hours recorded by Commission employees and their hourly rates,
together with any out-of-pocket expenses not included in the overhead factor,
within 30 days after the disposition of an appeal. The pipelines and the city
must each remit to the Commission the invoiced costs within 30 days after
receipt of notice of the total amount or after disposition of any appeal from
the invoice, whichever is later. Any pipeline or the city may contest the
amount of the costs invoiced to it by filing with the director a written request
for reconsideration within 30 days after the date of the invoice, stating
the basis for reconsideration. The director will forward any recommendation
to the Commission with the record, and the Commission will determine to approve
or adjust the invoiced costs within 30 days.
Stephen Pitner, Director, Gas Services Division, has determined that for
each of the first five years the proposed new rules will be in effect, there
will be fiscal implications for state government. The Railroad Commission
will be required to handle appeals filed under the proposed new rules, to
hear the appeals
de novo
, and in most cases,
to conduct full, formal contested case proceedings. No appeals have been filed
at the Commission, and the Commission has no information about whether any
cities will assess charges against pipelines pursuant to Texas Natural Resources
Code, §117.102, and Texas Utilities Code, §121.2025, that would
be appealed to the Commission. However, the cities and the pipelines are required
to share the costs incurred by the Commission in handling such appeals; therefore
the net fiscal impact to the state is expected to be zero.
Mr. Pitner has determined that there will also be fiscal implications for
local governments, specifically, cities whose assessed charges are appealed
to the Commission by a pipeline. In an appeal, a city will incur costs related
to its participation in an administrative contested case proceeding and, specifically,
costs related to demonstrating that the charge assessed against the pipeline
meets the requirements of Texas Natural Resources Code, §117.102, and/or
Texas Utilities Code, 121.2025. Among others, the city would incur costs for
filing a response to a pipeline's appeal; might incur the costs for sending
notice of an appeal to all pipelines that the city identifies as having been
assessed an annual charge within the two years preceding the filing of the
appeal, if the examiners so require; could incur costs associated with discovery;
might incur costs associated with retaining legal representation and one or
more experts to consult and/or to testify at a hearing; might incur costs
related to travel to Austin, Texas, to participate in a contested case hearing,
including expenses for transportation, lodging and meals. In addition, the
city would be required to bear half the Commission's costs in an appeal in
which the city is a party.
Mr. Pitner has also determined that for each year of the first five years
the new rules as proposed will be in effect, the public benefit anticipated
as a result of enforcing the new rules will be greater assurance that the
charges assessed by a city against a pipeline will be limited to reasonable
annual charges for the placement, construction, maintenance, repair, replacement,
operation, use, relocation, or removal by an owner or operator of a hazardous
liquid, carbon dioxide, or natural gas pipeline facility on, along, or across
the public roads, highways, streets, alleys, streams, canals, or other public
ways located within the city and maintained by the city; will not exceed the
cost to the city of administering, supervising, inspecting, and otherwise
regulating the location of the pipeline facility, including maintaining records
and maps of the location of the pipeline facility; and will otherwise comply
with the requirements of Texas Natural Resources Code, §117.102(b)(1),
or Texas Utilities Code, §121.2025(b)(1).
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, a state agency must prepare a statement of the effect of the rule
on small businesses, which must include an analysis of the cost of compliance
with the rule for small 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.
Even assuming that there are pipeline owners and operators that might be
classified as a small business or a micro-business, the Commission is unable
to determine any cost of compliance for such entities based on the cost for
each employee, the cost for each hour of labor, or the cost for each $100
of sales. No appeals have been filed at the Commission, and the Commission
has no information about whether any cities will assess charges against pipelines
pursuant to Texas Natural Resources Code, §117.102, and Texas Utilities
Code, §121.2025, that would be appealed to the Commission. Further, the
filing of an appeal pursuant to the proposed new rules or moving to intervene
in another pipeline's appeal is entirely voluntary; a pipeline may avoid the
cost of complying with the proposed rules by not filing an appeal of a city
charge or not moving to intervene. Should a pipeline file an appeal or have
its motion to intervene granted, however, the pipeline will incur costs related
to its participation in an administrative contested case proceeding and, specifically,
costs related to the preparation, filing, and service of legal documents;
could incur costs associated with discovery; might incur costs associated
with retaining legal representation and one or more experts to consult and/or
to testify at a hearing; might incur costs related to travel to Austin, Texas,
to participate in a contested case hearing, including expenses for transportation,
lodging and meals. Finally, a pipeline would be required to bear up to half
the Commission's costs in an appeal; if more than one pipeline is a party
to an appeal, all pipelines will jointly and equally share half the Commission's
costs.
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
. Comments should refer to GUD No. 9666. 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 Mark Brock, Utility Analyst,
at (512) 463-7018. The status of Commission rulemakings in progress is available
at www.rrc.state.tx.us/rules/proposed.html.
The Commission proposes the new rules to implement the provisions
of new Texas Natural Resources Code, §117.102, and new Texas Utilities
Code, §121.2025, enacted by Senate Bill 480 and House Bill 951, 79th
Legislature, Regular Session (2005), which give the Commission exclusive jurisdiction
to determine whether a city's annual charge is authorized under Texas Natural
Resources Code, §117.102(b)(1), or Texas Utilities Code, §121.2025(b)(1);
and pursuant to Texas Natural Resources Code, §81.052, which authorizes
the Commission to adopt all necessary rules for governing and regulating persons
and their operations under the jurisdiction of the Commission.
Texas Natural Resources Code, §§81.052 and 117.102, and Texas
Utilities Code, §121.2025, are affected by the proposed new rules.
Statutory authority: Texas Natural Resources Code, §§81.052 and
117.102, and Texas Utilities Code, §121.2025.
Cross-reference to statutes: Texas Natural Resources Code, §§81.052
and 117.102, and Texas Utilities Code, §121.2025.
Issued in Austin, Texas on August 8, 2006.
§7.6001.General Provisions.
(a)
The following words and terms, when used in this subchapter,
shall have the following meanings, unless the context clearly indicates otherwise:
(1)
City--The city or the municipality that assessed an annual
charge pursuant to Texas Natural Resources Code, §117.102(b)(1), or Texas
Utilities Code, §121.2025(b)(1).
(2)
Director--The director of the Gas Services Division or
the director's delegate.
(3)
Pipeline--An owner or an operator of a hazardous liquid,
carbon dioxide, or natural gas pipeline facility that is located in a public
right-of-way in the city.
(4)
Public right-of-way in the city--Public roads, highways,
streets, alleys, streams, canals, or other public ways located within a city
and maintained by the city.
(5)
Regulating a pipeline facility--Administering, supervising,
inspecting, and otherwise regulating the location of a pipeline facility,
including maintaining records and maps of the location of the pipeline facility.
(b)
This subchapter implements the authority of the Commission
to hear an appeal from a pipeline that has been assessed an annual charge
pursuant to Texas Natural Resources Code, §117.102(b)(1), or Texas Utilities
Code, §121.2025(b)(1).
(c)
Under Texas Natural Resources Code, §117.102(d), and
Texas Utilities Code, §121.2025(d), the Commission has exclusive jurisdiction
to determine whether a city's annual charge is authorized under Texas Natural
Resources Code, §117.102(b)(1), or Texas Utilities Code, §121.2025(b)(1).
(d)
The Commission will hear an appeal filed under this subchapter
(e)
A pipeline that files or intervenes in an appeal under
this subchapter and the city that assessed the charge being appealed shall
share the costs incurred by the Commission in connection with the appeal,
pursuant to §7.6007 of this title, relating to Procedure for Determining
and Sharing of the Commission's Costs.
§7.6002.Procedure for Filing and Service of an Appeal, Obligation of City to Respond, and Intervention.
(a)
A pipeline shall file an appeal under this subchapter in
writing no later than one year after the pipeline receives the invoice for
or a similar written notice of the charge being appealed.
(b)
The pipeline shall file the appeal with the director, who
shall assign a docket number. Thereafter, all documents relating to the appeal
shall include the assigned docket number and shall be filed in the Office
of General Counsel Docket Services.
(c)
The pipeline shall mail or deliver a copy of the appeal
to the city attorney, the city secretary, or any other city official authorized
to receive service of process in civil proceedings within 5 days of the date
the pipeline files the appeal at the Commission.
(d)
The city shall have 30 days from the date it receives an
appeal to file its response to the appeal, in writing, at the Commission.
The city shall simultaneously serve a copy of the response on the pipeline.
(e)
The examiners may require the city to mail notice of the
appeal to each pipeline identified in the city's response, at the address
stated in the response, stating that the pipeline may intervene in the appeal.
(f)
Another pipeline with a pipeline facility within public
right-of-way in the city may file a motion to intervene in the appeal within
30 days after any notice of the appeal is mailed to the pipelines pursuant
to subsection (e) of this section.
§7.6003.Contents of Appeal.
(a)
The pipeline shall include the name, mailing address, and
telephone number, and facsimile transmission number and electronic mail address,
if available, of the following entities:
(1)
the pipeline and any authorized representative of the pipeline;
and
(2)
the city attorney, the city secretary, or any other city
official authorized to represent the city in an appeal filed under this subchapter.
(b)
The pipeline shall describe the charge assessed by the
city against the applicable pipeline facilities; state the basis for the pipeline's
claim that the charge is not authorized under Texas Natural Resources Code, §117.102(b)(1),
or Texas Utilities Code, §121.2025(b)(1); and include all supporting
documentation and citations to authority.
(c)
The pipeline or its authorized representative shall sign
the appeal in ink.
§7.6004.Contents of Response.
(a)
The city shall include the name, mailing address, and telephone
number, and facsimile transmission number and electronic mail address, if
available, of every pipeline that has been assessed an annual charge under
Texas Natural Resources Code, §117.102(b)(1), or Texas Utilities Code, §121.2025(b)(1).
(b)
The city shall provide a detailed explanation of its methodology
for calculating the annual charge assessed against the applicable pipelines,
including but not limited to:
(1)
a detailed explanation of and the specific cost elements
for regulating the applicable pipeline facilities and all other pipeline facilities
located on, along, or across public right-of- way in the city, based on historical
costs actually incurred adjusted for known and measurable changes;
(2)
a list of every owner or operator of pipeline facilities
that are located on, along, or across public right-of-way in the city, the
type and distance of each pipeline facility within public right-of-way in
the city, and the name, mailing address, and telephone number, and facsimile
transmission number and electronic mail address, if any, of each such pipeline
and its authorized representative contained in city records;
(3)
the total mileage for and charges assessed against all
pipeline facilities of each type located on, along, or across public right-of-way
in the city; and
(4)
for those pipeline facilities that are located on, along,
or across public right-of-way in the city but that were not assessed an annual
charge, a detailed explanation of the reason for not assessing the annual
charge.
§7.6005.Contents of Motion to Intervene.
(a)
A pipeline seeking to intervene in an appeal filed by another
pipeline shall include the name, mailing address, and telephone number, and
facsimile transmission number and electronic mail address, if available, of
the movant pipeline and any authorized representative of the movant pipeline.
(b)
A pipeline seeking to intervene shall describe the charge
assessed by the city against the movant pipeline facilities; state the basis
for the pipeline's claim that the charge is not authorized under Texas Natural
Resources Code, §117.102(b)(1), or Texas Utilities Code, §121.2025(b)(1);
include all supporting documentation and citations to authority; and state
the movant pipeline's justiciable interest in the appeal in which the movant
pipeline seeks to intervene.
(c)
The movant pipeline or its authorized representative shall
sign the motion to intervene in ink.
§7.6006.Standards for Determining an Appeal.
(a)
In an appeal brought under this subchapter, the city has
the burden of establishing that every annual charge at issue is authorized
by Texas Natural Resources Code, §117.102, or Texas Utilities Code, §121.2025.
If the city fails to demonstrate that any annual charge at issue is authorized
by Texas Natural Resources Code, §117.102, or Texas Utilities Code, §121.2025,
the Commission shall either declare the annual charge invalid in its entirety
or shall reduce the annual charge to an amount authorized by Texas Natural
Resources Code, §117.102, or Texas Utilities Code, §121.2025.
(b)
A city may assess a reasonable annual charge for the placement,
construction, maintenance, repair, replacement, operation, use, relocation,
or removal by an owner or operator of a pipeline facility on, along, or across
public right-of-way in the city. This charge may not exceed the cost to the
city of regulating the pipeline facility.
(c)
In determining whether an annual charge is reasonable,
the Commission may consider:
(1)
whether the charges assessed by the city against pipeline
facilities are commensurate with charges assessed for other uses of public
right-of-way in the city, other than by franchised public utilities;
(2)
whether the charges assessed by the city are commensurate
with charges assessed against pipeline facilities in public right-of-way by
other cities in Texas; and
(3)
whether total costs of regulating pipeline facilities within
the city are fairly allocated among all pipeline facilities, including whether
the exclusion of any pipelines from the charges is reasonable.
(d)
In determining whether an annual charge exceeds costs of
regulating pipeline facilities the Commission may consider:
(1)
historical costs attributable to regulating pipeline facilities
adjusted for known and measurable changes, including out-of-pocket expenses
and an allocable portion of the capital depreciation of specialized equipment
and salaries, employee benefits, and reasonable overhead for city officials
and employees engaged in and fairly attributable to regulating pipeline facilities;
(2)
whether any costs advanced by the city to support the charge
are attributable to the costs of activities other than regulating public right-of-way
in the city, such as safety regulation, emergency response, or other action
that is not required to administer, supervise, inspect, or otherwise regulate
the location of a pipeline facility in public right-of-way in the city, whether
or not authorized to be performed by the city; and
(3)
whether charges assessed against pipeline facilities in
the aggregate exceed the city's actual or reasonably expected costs of regulating
pipeline facilities in public right-of-way in the city.
§7.6007.Procedure for Determining and Sharing of the Commission's Costs.
(a)
The pipelines and a city that are parties to an appeal
under this subchapter shall reimburse the Commission for its costs incurred
in connection with the appeal. In each appeal, the city shall pay half of
the Commission's costs and each pipeline that files or intervenes in the appeal
shall pay an equal share of the half of Commission's costs.
(b)
The Commission shall determine its costs as follows:
(1)
The director and the Commission's General Counsel shall
require employees assigned to an appeal under this subchapter to keep records
of time spent on each appeal. These shall be filed with and made part of the
record in each appeal docket.
(2)
The Commission shall from time to time specify an hourly
rate as its costs for each employee hour devoted to appeals under this subchapter.
The rate shall be based on the employee's hourly compensation and multiplied
by a factor to cover employment benefit costs and fairly allocable overhead
costs (use of copiers, faxes, telephones, computers, hearing room, etc.).
(c)
The director shall invoice the pipelines and the city for
Commission costs, based on the hours recorded by Commission employees and
their hourly rates, together with any out-of-pocket expenses not included
in the overhead factor, within 30 days after the disposition of an appeal.
The pipelines and the city shall each remit to the Commission the invoiced
costs within 30 days after receipt of notice of the total amount or after
disposition of any appeal from the invoice, whichever is later.
(d)
Any pipeline or the city may contest the amount of the
costs invoiced to it by filing with the director a written request for reconsideration
within 30 days after the date of the invoice, stating the basis for reconsideration.
The director shall forward any recommendation to the Commission with the record,
and the Commission will determine to approve or adjust the invoiced costs
within 30 days.
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 August 8, 2006.
TRD-200604090
Mary Ross McDonald
Managing Director
Railroad Commission of Texas
Earliest possible date of adoption: September 24, 2006
For further information, please call: (512) 475-1295
Subchapter A. GENERAL RULES
16 TAC §15.30
The Railroad Commission of Texas proposes an amendment to
16 TAC §15.30, relating to Propane Alternative Fuels Advisory Committee.
The proposed amendment to subsection (b) would change the date on which the
committee is abolished from October 31, 2006, to October 31, 2010.
Dan Kelly, Director, Alternative Fuels Research and Education Division,
has determined that, for each year of the first five years that the amendment
is proposed to be in effect, there will be no fiscal implications for state
or local governments.
Mr. Kelly has also determined that, for each year of the first five years
the amendment is proposed to be in effect, the public benefit anticipated
as a result of enforcing the amendment will be continued effective representation
of the propane industry and propane consumers in advising the commission on
matters related to the division's programs and operations.
There is no anticipated economic cost to individuals, small businesses,
or micro-businesses required to comply with the proposed amendment. Participation
as a member of the committee is voluntary.
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 Mr. Kelly at (512) 463-7291. The status of Commission rulemakings
in progress is available at www.rrc.state.tx.us/rules/proposed.html.
The amendment is proposed under Texas Natural Resources Code, §113.242,
which authorizes the Commission to appoint one or more advisory committees
composed of members representing the LP- gas industry and other environmentally
beneficial alternative fuels industries, consumers, and other interests to
consult with and advise the Commission on opportunities and methods to expand
the use of LP-gas and other environmentally beneficial alternative fuels.
Texas Natural Resources Code, §113.242, is affected by the proposed
amendment.
Issued in Austin, Texas on August 8, 2006.
§15.30.Propane Alternative Fuels Advisory Committee.
(a)
(No change.)
(b)
Establishment; duration. Effective September 1, 1994, the
committee is hereby established. The committee is abolished on October 31,
2010,
[
(c) - (l)
(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 August 8, 2006.
TRD-200604089
Mary Ross McDonald
Managing Director
Railroad Commission of Texas
Earliest possible date of adoption: September 24, 2006
For further information, please call: (512) 475-1295
Chapter 26.
SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS
Subchapter P. TEXAS UNIVERSAL SERVICE FUND
Chapter 15.
ALTERNATIVE FUELS RESEARCH AND EDUCATION DIVISION
2006,
] unless the commission amends this subsection
to establish a different date.
Part 2.
PUBLIC UTILITY COMMISSION OF TEXAS