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
Universal Citation: 16 TX Admin Code ยง 14.2016
Current through Reg. 49, No. 12; March 22, 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.
(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.
(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.
(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.
(b) Denial, suspension, or revocation of licenses, manufacturer registrations, or certificates.
(1) The Commission may deny, suspend, or
revoke a license, manufacturer registration, or certificate for any person who
fails to comply with this chapter.
(A) If AFS
determines that an applicant for license, manufacturer registration,
certificate, or renewal has not met the requirements of this chapter, AFS shall
notify the applicant in writing of the reasons for the proposed denial. In the
case of an applicant for license, manufacturer registration, or certificate,
the notice shall advise the person that the application may be resubmitted
within 30 calendar days of receipt of the denial with all cited deficiencies
corrected, or, if the person disagrees with AFS' determination, that person may
request in writing a hearing on the matter within 30 calendar days of receipt
of the notice of denial.
(B) If a
person resubmits the application within 30 calendar days of receipt of the
denial with all deficiencies corrected, AFS shall issue the license,
manufacturer registration, certificate, or renewal as applicable.
(2) Hearing regarding denial of
license, manufacturer registration, certificate, or associated renewals.
(A) An applicant receiving a notice of denial
may request a hearing to determine whether the applicant did comply in all
respects with the requirements for the license, registration, or certificate
sought. The request for hearing shall be in writing, shall refer to the
specific requirements the applicant claims were met, and shall be submitted to
AFS within 30 calendar days of the applicant's receipt of the notification of
denial.
(B) Upon receipt of a
request complying with this paragraph, AFS shall forward the request for a
hearing to the Hearings Division for the purpose of scheduling a
hearing.
(C) If, after hearing, the
Commission finds the applicant's claim has been supported, the Commission may
issue an order approving the license, manufacturer registration, or certificate
and AFS shall issue the license, manufacturer registration, certificate, or
associated renewal if applicable.
(D) If, after hearing, the Commission finds
that the applicant does not comply with the requirements of this chapter the
Commission may issue an order denying the application or renewal.
(3) Alleged violations and notice
of non-compliance.
(A) If AFS finds by means
including, but not limited to, inspection, review of required documents
submitted, or complaint by a member of the general public or any other person,
a probable or actual violation of or noncompliance with Texas Natural Resources
Code, Chapter 116, or the rules in this chapter, AFS shall notify the licensee,
registered manufacturer, or certified person of the alleged violation or
noncompliance in writing.
(B) The
notice shall specify the acts, omissions, or conduct constituting the alleged
violation or noncompliance and shall designate a date not less than 30 calendar
days or more than 45 calendar days after the licensee, registered manufacturer,
or certified person receives the notice by which the violation or noncompliance
shall be corrected or discontinued. If AFS determines the violation or
noncompliance may pose imminent peril to the health, safety, or welfare of the
general public, AFS may notify the licensee, registered manufacturer, or
certified person orally with instruction to immediately cease the violation or
noncompliance. When oral notice is given, AFS shall follow it with written
notification no later than five business days after the oral
notification.
(C) The licensee,
registered manufacturer, or certified person shall either report the correction
or discontinuance of the violation or noncompliance within the time frame
specified in the notice or shall request an extension of time in which to
comply. The request for extension of the time to comply shall be received by
AFS within the same time frame specified in the notice for correction or
discontinuance.
(4)
Hearing regarding suspension or revocation of licenses, manufacturer
registrations, and certificates. If a licensee, registered manufacturer, or
certified person disagrees with the determination of AFS under this subsection,
that person may request a public hearing on the matter as specified in Chapter
1 of this title (relating to Practice and Procedure). The request shall be in
writing, shall refer to the specific rules or statutes the licensee, registered
manufacturer, or certified person claims to have complied with, and shall be
received by AFS within 30 calendar days of the person's receipt of the notice
of violation or noncompliance. AFS shall forward the request for hearing to the
Hearings Division.
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