Texas Administrative Code › Title 16 - ECONOMIC REGULATION › Part 1 - RAILROAD COMMISSION OF TEXAS › Chapter 3 - OIL AND GAS DIVISION › Section 3.107 - Penalty Guidelines for Oil and Gas Violations

Current through Reg. 49, No. 28; July 12, 2024
(a) Policy. Improved safety and environmental
				protection are the desired outcomes of any enforcement action. Encouraging
				operators to take appropriate voluntary corrective and future protective
				actions once a violation has occurred is an effective component of the
				enforcement process. Deterrence of violations through penalty assessments is
				also a necessary and effective component of the enforcement process. A
				rule-based enforcement penalty guideline to evaluate and rank oil- and natural
				gas-related violations is consistent with the central goal of the Commission's
				enforcement efforts to promote compliance. Penalty guidelines set forth in this
				section will provide a framework for more uniform and equitable assessment of
				penalties throughout the state, while also enhancing the integrity of the
				Commission's enforcement program.
(b) Only guidelines. This section complies
				with the requirements of Texas Natural Resources Code, §
									RSA 81.0531
				and §91.101, which provides the Commission with the authority to adopt
				rules, enforce rules, and issue permits relating to the prevention of
				pollution. The penalty amounts shown in the tables in this section are provided
				solely as guidelines to be considered by the Commission in determining the
				amount of administrative penalties for violations of provisions of Texas
				Natural Resources Code, Title 3; Texas Water Code, Chapters 26, 27, and 29,
				that are administered and enforced by the Commission; or the provisions of a
				rule adopted or order, license, permit, or certificate issued under Texas
				Natural Resources Code, Title 3, or Texas Water Code, Chapters 26, 27, and 29.
				This rule does not contemplate automatic enforcement. Violations can be
				corrected by operators before being referred to legal enforcement.
(c) Commission authority. The establishment
				of these penalty guidelines shall in no way limit the Commission's authority
				and discretion to cite violations and assess administrative penalties. The
				guideline minimum penalties listed in this section are for the most common
				violations cited; however, this is neither an exclusive nor an exhaustive list
				of violations that the Commission may cite. The Commission retains full
				authority and discretion to cite violations of Texas Natural Resources Code,
				Title 3; including Nat. Res. Code §91.101, which provides the Commission
				with the authority to adopt rules, enforce rules, and issue permits relating to
				the prevention of pollution; the provisions of Texas Water Code, Chapters 26,
				27, and 29, that are administered and enforced by the Commission; and the
				provisions of a rule adopted or an order, license, permit, or certificate
				issued under Texas Natural Resources Code, Title 3, or Texas Water Code,
				Chapters 26, 27, and 29, and to assess administrative penalties in any amount
				up to the statutory maximum when warranted by the facts in any case, regardless
				of inclusion in or omission from this section.
(d) Factors considered. The amount of any
				penalty requested, recommended, or finally assessed in an enforcement action
				will be determined on an individual case-by-case basis for each violation,
				taking into consideration the following factors:
(1) the person's history of previous
				violations;
(2) the seriousness of
				the violation;
(3) any hazard to
				the health or safety of the public; and
(4) the demonstrated good faith of the person
				charged.