Texas Administrative Code › Title 16 - ECONOMIC REGULATION › Part 1 - RAILROAD COMMISSION OF TEXAS › Chapter 14 - REGULATIONS FOR LIQUEFIED NATURAL GAS (LNG) › Subchapter A - GENERAL APPLICABILITY AND REQUIREMENTS › Section 14.2016 - Penalty Guidelines and Enforcement

Current through Reg. 49, No. 28; July 12, 2024
(a) Penalty guidelines for LNG safety
				  violations.
(1) Policy. Improved safety and
				  environmental protection are the desired outcomes of any enforcement action.
				  Encouraging licensees, certificate holders and registered manufacturers 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 LNG-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.
(2) Guidelines. This section complies with
				  the requirements of Texas Natural Resources Code, §
											RSA 81.0531.
				  The penalty amounts contained 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 Texas Natural Resources Code,
				  Chapter 116; of rules, orders, licenses, registrations, permits, or
				  certificates relating to LNG safety adopted under those provisions; and of
				  regulations, codes, or standards that the Commission has adopted by
				  reference.
(3) Commission
				  authority. The establishment of these penalty guidelines shall in no way limit
				  the Commission's authority and discretion to assess administrative penalties.
				  The typical 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,
				  Chapter 116; of rules, orders, licenses, registrations, permits, or
				  certificates relating to LNG safety adopted or issued under those provisions;
				  and of regulations, codes, or standards that the Commission has adopted by
				  reference, 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.
(4) 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:
(A) the person's history of previous
				  violations;
(B) the seriousness of
				  the previous violations;
(C) any
				  hazard to the health or safety of the public; and
(D) the demonstrated good faith of the person
				  charged.
(5) Typical
				  penalties. Regardless of the method by which the typical penalty amount is
				  calculated, the total penalty amount will be within the statutory limit.
				  Typical penalties for violations of Texas Natural Resources Code, Chapter 116;
				  of rules, orders, licenses, registrations, permits, or certificates relating to
				  LNG safety adopted under those provisions; and of regulations, codes, or
				  standards that the Commission has adopted by reference, are set forth in Table
				  1.
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(6)
				  Penalty enhancements for certain violations. For violations that involve
				  threatened or actual safety hazards, or that result from the reckless or
				  intentional conduct of the person charged, the Commission may assess an
				  enhancement of the typical penalty. The enhancement may be in any amount in the
				  range shown for each type of violation, as shown in Table 2.
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(7)
				  Penalty enhancements for certain violators. For violations in which the person
				  charged has a history of prior violations within seven years of the current
				  enforcement action, the Commission may assess an enhancement based on either
				  the number of prior violations or the total amount of previous administrative
				  penalties, but not both. The actual amount of any penalty enhancement will be
				  determined on an individual case-by-case basis for each violation. The
				  guidelines in Tables 3 and 4 are intended to be used separately. Either
				  guideline may be used where applicable, but not both.
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(8)
				  Penalty reduction for settlement before hearing. The recommended monetary
				  penalty for a violation may be reduced by up to 50% if the person charged
				  agrees to a settlement before the Commission conducts an administrative hearing
				  to prosecute a violation. Once the hearing is convened, the opportunity for the
				  person charged to reduce the basic monetary penalty is no longer available. The
				  reduction applies to the basic penalty amount requested and not to any
				  requested enhancements.
(9)
				  Demonstrated good faith. In determining the total amount of any monetary
				  penalty requested, recommended, or finally assessed in an enforcement action,
				  the Commission may consider, on an individual case-by-case basis for each
				  violation, the demonstrated good faith of the person charged. Demonstrated good
				  faith includes, but is not limited to, actions taken by the person charged
				  before the filing of an enforcement action to remedy, in whole or in part, a
				  violation or to mitigate the consequences of a violation.
(10) Other sanctions. Depending upon the
				  nature of and the consequences resulting from a violation of the rules in this
				  chapter, the Commission may impose a non-monetary penalty, such as requiring
				  attendance at a safety training course, or may issue a warning.
(11) Penalty calculation worksheet. The
				  penalty calculation worksheet shown in Table 5 lists the typical penalty
				  amounts for certain violations; the circumstances justifying enhancements of a
				  penalty and the amount of the enhancement; and the circumstances justifying a
				  reduction in a penalty and the amount of the reduction.
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