Current through Reg. 49, No. 12; March 22, 2024
(a) This section implements the authority
delegated to the Commission by Texas Natural Resources Code, §
RSA
81.058<subdiv>(c)</subdiv>, which
provides that the Commission, after notice and opportunity for hearing, may
impose an administrative penalty against a purchaser, transporter, gatherer,
shipper, or seller of natural gas who is a party to an informal complaint
resolution proceeding and is determined by the Commission to have failed to
participate in the proceeding or failed to provide information requested by a
mediator in the proceeding. This section applies to informal complaint
resolutions proceedings filed pursuant to §
RSA
2.1 of this title (relating to Informal
Complaint Procedure), and §
RSA
2.5 of this title (relating to Informal
Complaint Process Regarding Loss of or Inability to Account for Gas.
(b) Failure to participate in an informal
complaint resolution proceeding may include:
(1) a person who gathers or transports gas
not providing, by the 30th day after the date the person receives a request
from a producer, a written explanation of any loss of or inability to account
for the gas tendered to the person by the producer;
(2) a respondent not replying in writing to
both the monitor and the complainant within 14 calendar days from the date of
the monitor's notification letter that a complaint has been filed at the
Commission;
(3) a respondent's
written reply that does not address the substance of the complaint;
(4) a respondent's written reply that does
not either propose a solution or explain why the complaint is
incorrect;
(5) a person who gathers
or transports gas not providing, by the 14th day after the date a complaint is
filed at the Commission, the producer and the Commission an accounting of the
gas tendered to the person by the producer for gathering or transport during
the production period covered by the complaint;
(6) if the Commission has granted an
extension of time to the person who gathered or transported the gas to provide
the accounting required by §
RSA
2.5<subdiv>(e)(3)</subdiv> of
this title, the failure of the person to respond by the deadline;
(7) if the person who gathered or transported
the gas does not have the information necessary to provide the accounting
required by §
RSA
2.5<subdiv>(e)(3)</subdiv> of
this title, the failure of the person to provide to the producer and to the
Commission a written explanation of the reason the person does not have the
information;
(8) the person who
gathered or transported the gas not providing either the accounting required by
§
RSA
2.5<subdiv>(e)(3)</subdiv> of
this title or the explanation required by §
RSA
2.5<subdiv>(e)(5)</subdiv> of
this title;
(9) a complainant or a
respondent not communicating with the other during the 14 calendar days from
the date of the respondent's reply to attempt resolve the complaint without the
participation of a mediator;
(10) a
complainant or a respondent not advising the Commission monitor within seven
days after expiration of the period allowed for informal resolution whether the
person wants the matter referred to a Commission or non-Commission
mediator;
(11) in the event the
complainant and respondent desire to use a non-Commission employee mediator and
are unable to agree upon the selection of a non-Commission employee mediator,
failure of a complainant or a respondent to submit the name of a preferred
mediator to work with the other's preferred mediator to choose a third mediator
who will preside over the process;
(12) a complainant or respondent not
providing documents or information the mediator considers necessary in
evaluating the complaint and has requested;
(13) a complainant or respondent not
attending a scheduled mediation meeting, absent good cause and prior notice to
all participants;
(14) a
complainant or respondent not participating in the mediation meeting or not
undertaking in good faith to settle all issues raised in the complaint;
or
(15) a complainant or respondent
not making available during the mediation meeting, in person, representatives
who are empowered to make decisions on their behalf.
(c) An administrative penalty imposed under
this section may not exceed $5,000 a day for each violation. Each day a
violation continues or occurs is a separate violation for purposes of imposing
a penalty under this section.
(d)
The amount of any penalty requested, recommended, or finally assessed in an
enforcement action brought pursuant to this section 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 of §
RSA
2.1 or §
RSA
2.5 of this title, including the number of
previous violations;
(2) the
demonstrated good faith of the person charged; and
(3) any other factor the Commission considers
relevant.
(e) The
recommended 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 penalty is no longer available.
(f) The remedy provided by this section is
cumulative of any other remedy the Commission may order.