2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter D. Prevention of Pollution › Section 91.114. Acceptance of Organization Report or Application for Permit; Approval of Certificate of Compliance; Revocation

Sec. 91.114.  ACCEPTANCE OF ORGANIZATION REPORT OR APPLICATION FOR PERMIT;  APPROVAL OF CERTIFICATE OF COMPLIANCE;  REVOCATION.  (a)  Except as provided by Subsection (d), the commission may not accept an organization report required under Section 91.142 or an application for a permit under this Chapter, Chapter 85, or Chapter 26, 27, or 29, Water Code, or approve a certificate of compliance under Section 91.701 if:
(1)  the organization that submitted the report, application, or certificate violated a statute or commission rule, order, license, certificate, or permit that relates to safety or the prevention or control of pollution; or
(2)  a person who holds a position of ownership or control in the organization has, within the seven years preceding the date on which the report, application, or certificate is filed, held a position of ownership or control in another organization and during that period of ownership or control the other organization violated a statute or commission rule, order, license, permit, or certificate that relates to safety or the prevention or control of pollution.
(b)  An organization has committed a violation if:
(1)  a final judgment or final administrative order finding the violation has been entered against the organization and all appeals have been exhausted;  or
(2)  the commission and the organization have entered into an agreed order relating to the alleged violation.
(c)  Regardless of whether the person's name appears or is required to appear on the organization report required by Section 91.142, a person holds a position of ownership or control in an organization if:
(1)  the person is:
(A)  an officer or director of the organization;
(B)  a general partner of the organization;
(C)  the owner of a sole proprietorship organization;
(D)  the owner of at least 25 percent of the beneficial interest in the organization;  or
(E)  a trustee of the organization;  or
(2)  the person has been determined by a final judgment or final administrative order to have exerted actual control over the organization.
(d)  The commission shall accept the report or application or approve the certificate if:
(1)  the conditions that constituted the violation are corrected or are being corrected in accordance with a schedule to which the commission and the organization have agreed;
(2)  all administrative, civil, and criminal penalties and all cleanup and plugging costs incurred by the state relating to those conditions are paid or are being paid in accordance with a payment schedule to which the commission and the organization have agreed;  and
(3)  the report, application, or certificate is in compliance with all other requirements of law and commission rules.
(e)  If a report or application is rejected or a certificate is disapproved under this section, the commission shall provide the organization with a written statement explaining the reason for the rejection or disapproval.
(f)  Notwithstanding Subsection (a), the commission may issue a permit to an organization described by Subsection (a) for a term specified by the commission if the permit is necessary to remedy a violation of law or commission rules.
(g)  A fee tendered in connection with a report or application that is rejected under this section is nonrefundable.
(h)  If the commission is prohibited by Subsection (a) from accepting an organization's organization report or application or approving the organization's certificate or would be prohibited from doing so by that subsection if the organization submitted a report, application, or certificate, the commission, after notice and opportunity for a hearing, by order may revoke:
(1)  the organization's organization report filed under Section 91.142;
(2)  a permit issued to the organization under this chapter, Chapter 85, or Chapter 26, 27, or 29, Water Code; or
(3)  any certificate of compliance approved under Section 91.701.
(i)  An order under Subsection (h) shall provide the organization a reasonable period of time to comply with the judgment or order finding the violation before the revocation takes effect.
(j)  On revocation of its organization report, an organization may not perform any activities under the jurisdiction of the commission under this title or Chapter 26, 27, or 29, Water Code, except as necessary to remedy a violation of law or commission rules and as authorized by the commission.
(k)  The commission may not revoke an organization's organization report, permit, or certificate of compliance under Subsection (h) if it finds that the organization has fulfilled the conditions set out in Subsection (d).
(l)  In determining whether or not to revoke an organization's organization report, permit, or certificate of compliance under Subsection (h), the commission shall consider the organization's history of previous violations, the seriousness of previous violations, any hazard to the health or safety of the public, and the demonstrated good faith of the organization.
(m)  Revocation of an organization's organization report, permit, or certificate does not relieve the organization of any existing or future duty under law, rules, or permit conditions to:
(1)  protect surface or subsurface water from pollution;
(2)  properly dispose of oil and gas waste;  or
(3)  clean up unpermitted discharges of oil and gas waste.
Added by Acts 1991, 72nd Leg., ch. 603, Sec. 13, eff. Sept. 1, 1991.  Renumbered from Sec. 91.110 by Acts 1993, 73rd Leg., ch. 107, Sec. 10.01(10), eff. Aug. 30, 1993.  Amended by Acts 1995, 74th Leg., ch. 617, Sec. 1, eff. Sept. 1, 1995;  Acts 1997, 75th Leg., ch. 121, Sec. 1, eff. Sept. 1, 1997;  Acts 1999, 76th Leg., ch. 30, Sec. 3, eff. Aug. 30, 1999;  Acts 2003, 78th Leg., ch. 956, Sec. 1, eff. June 20, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 816 (S.B. 1670), Sec. 5, eff. September 1, 2007.