2005 Texas Natural Resources Code CHAPTER 141. GEOTHERMAL RESOURCES

NATURAL RESOURCES CODE

TITLE 5. GEOTHERMAL ENERGY AND ASSOCIATED RESOURCES

CHAPTER 141. GEOTHERMAL RESOURCES

SUBCHAPTER A. GENERAL PROVISIONS


	§ 141.001. SHORT TITLE.  This chapter may be cited as the 
Geothermal Resources Act of 1975.

Acts 1977, 65th Leg., p. 2640, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 141.002. DECLARATION OF POLICY.  It is declared to be 
the policy of the State of Texas that:
		(1)  the rapid and orderly development of geothermal 
energy and associated resources located within the State of Texas 
is in the interest of the people of the State of Texas;
		(2)  in developing the state's geothermal energy and 
associated resources, the primary purpose is to provide a 
dependable supply of energy in an efficient manner that avoids 
waste of the energy resources;
		(3)  consideration shall be afforded to protection of 
the environment, to protection of correlative rights, and to 
conservation of natural resources by all agencies and officials of 
the State of Texas involved in directing and prescribing rules or 
orders governing the exploration, development, and production of 
geothermal energy and associated resources and by-products in 
Texas;
		(4)  since geopressured geothermal resources in Texas 
are an energy resource system, and since an integrated development 
of components of the resources, including recovery of the energy of 
the geopressured water without waste, is required for best 
conservation of these natural resources of the state, all of the 
resource system components, as defined in this chapter, shall be 
treated and produced as mineral resources;  and
		(5)  in making the declaration of policy in Subdivision 
(4) of this section, there is no intent to make any change in the 
substantive law of this state, and the purpose is to restate the law 
in clearer terms to make it more accessible and understandable.

Acts 1977, 65th Leg., p. 2640, ch. 871, art. I, § 1, eff. Sept. 1, 
1977.  Amended by Acts 1979, 66th Leg., p. 394, ch. 185, § 1, eff. 
Aug. 27, 1979.


	§ 141.003. DEFINITIONS.  In this chapter:                                   
		(1)  "Commission" means the Railroad Commission of 
Texas.                   
		(2)  "Board" means the School Land Board.                                     
		(3)  "Commissioner" means the Commissioner of the 
General Land Office.      
		(4)  "Geothermal energy and associated resources" 
means:                    
			(A)  products of geothermal processes, embracing 
indigenous steam, hot water and hot brines, and geopressured water;
			(B)  steam and other gasses, hot water and hot 
brines resulting from water, gas, or other fluids artificially 
introduced into geothermal formations;
			(C)  heat or other associated energy found in 
geothermal formations;  and  
			(D)  any by-product derived from them.                                       
		(5)  "By-product" means any other element found in a 
geothermal formation which is brought to the surface, whether or 
not it is used in geothermal heat or pressure inducing energy 
generation.

Acts 1977, 65th Leg., p. 2641, ch. 871, art. I, § 1, eff. Sept. 1, 
1977.  Amended by Acts 1979, 66th Leg., p. 395, ch. 185, § 2, eff. 
Aug. 27, 1979.

SUBCHAPTER B. POWERS AND DUTIES OF THE RAILROAD COMMISSION


	§ 141.011. GENERAL DUTY OF THE RAILROAD 
COMMISSION.  Except for duties and responsibilities given to other 
agencies and officials under this chapter, the commission shall 
regulate the exploration, development, and production of 
geothermal energy and associated resources on public and private 
land for the purpose of conservation and the protection of 
correlative rights.

Acts 1977, 65th Leg., p. 2641, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 141.012. RULES.  (a) The commission, in consultation 
with the commissioner and the executive director of the Texas 
Natural Resource Conservation Commission, shall make, publish, and 
enforce rules providing for the rapid and orderly exploration, 
development, and production of geothermal energy and associated 
resources and to accomplish the purposes of this chapter.
	(b)  The rules made under this section shall include rules 
governing:        
		(1)  protection of the environment against damage 
resulting from the exploration, development, and production of 
geothermal energy and associated resources;
		(2)  prevention of waste of natural resources, 
including geothermal energy and associated resources, in 
connection with the exploration, development, and production of 
geothermal energy and associated resources;
		(3)  protection of the general public against injury or 
damage resulting from the exploration, development, and production 
of geothermal energy and associated resources;  and
		(4)  protection of correlative rights against 
infringement resulting from the exploration, development, and 
production of geothermal energy and associated resources.
	(c)  Rules shall be made and enforced only after a public 
hearing.           

Acts 1977, 65th Leg., p. 2641, ch. 871, art. I, § 1, eff. Sept. 1, 
1977.  Amended by Acts 1995, 74th Leg., ch. 76, § 11.276, eff. 
Sept. 1, 1995.


	§ 141.013. ADMINISTRATIVE PENALTY.  (a) If a person 
violates provisions of this title  which pertain to safety or the 
prevention or control of pollution or the provisions of a rule, 
order, license, permit, or certificate which pertain to safety or 
the prevention or control of pollution and are issued under this 
title, the person may be assessed a civil penalty by the commission.
	(b)  The penalty may not exceed $10,000 a day for each 
violation.  Each day a violation continues may be considered a 
separate violation for purposes of penalty assessments.
	(c)  In determining the amount of the penalty, the commission 
shall consider the person's history of previous violations of this 
subchapter or the rules, the seriousness of the violation, any 
hazard to the health or safety of the public, and the demonstrated 
good faith of the person.

Added by Acts 1983, 68th Leg., p. 1419, ch. 286, § 6, eff. Aug. 
29, 1983.


	§ 141.014. PENALTY ASSESSMENT PROCEDURE.  (a) A civil 
penalty may be assessed only after the person charged with a 
violation described under Section 141.013 of this code has been 
given an opportunity for a public hearing.
	(b)  If a public hearing has been held, the commission shall 
make findings of fact, and it shall issue a written decision as to 
the occurrence of the violation and the amount of the penalty that 
is warranted, incorporating, when appropriate, an order requiring 
that the penalty be paid.
	(c)  If appropriate, the commission shall consolidate the 
hearings with other proceedings.
	(d)  If the person charged with the violation fails to avail 
himself of the opportunity for a public hearing, a civil penalty may 
be assessed by the commission after it has determined that a 
violation did occur and the amount of the penalty that is warranted.
	(e)  The commission shall then issue an order requiring that 
the penalty be paid.

Added by Acts 1983, 68th Leg., p. 1419, ch. 286, § 6, eff. Aug. 
29, 1983.


	§ 141.015. PAYMENT OF PENALTY;  REFUND.  (a) On the 
issuance of an order finding that a violation has occurred, the 
commission shall inform the permittee and any other person charged 
within 30 days of the amount of the penalty.
	(b)  Within the 30-day period immediately following the day 
on which the decision or order is final as provided in Subchapter F, 
Chapter 2001, Government Code, the person charged with the penalty 
shall:
		(1)  pay the penalty in full;  or                                             
		(2)  if the person seeks judicial review of either the 
amount of the penalty or the fact of the violation, or both:
			(A)  forward the amount to the commission for 
placement in an escrow account;  or
			(B)  in lieu of payment into escrow, post a 
supersedeas bond with the commission under the following 
conditions.  If the decision or order being appealed is the first 
final commission decision or order assessing any administrative 
penalty against the person, the commission shall accept a 
supersedeas bond.  In the case of appeal of any subsequent decision 
or order assessing any administrative penalty against the person, 
regardless of the finality of judicial review of any previous 
decision or order, the commission may accept a supersedeas bond.  
Each supersedeas bond shall be for the amount of the penalty and in 
a form approved by the commission and shall stay the collection of 
the penalty until all judicial review of the decision or order is 
final.
	(c)  If through judicial review of the decision or order it 
is determined that no violation occurred or that the amount of the 
penalty should be reduced or not assessed, the commission shall, 
within the 30-day period immediately following that determination, 
if the penalty has been paid to the commission, remit the 
appropriate amount to the person, with accrued interest, or where a 
supersedeas bond has been posted, the commission shall execute a 
release of such bond.
	(d)  Failure to forward the money to the commission within 
the time provided by Subsection (b) of this section results in a 
waiver of all legal rights to contest the violation or the amount of 
the penalty.
	(e)  Judicial review of the order or decision of the 
commission assessing the penalty shall be under the substantial 
evidence rule and shall be instituted by filing a petition with the 
district court of Travis County, Texas, and not elsewhere, as 
provided for in Subchapter G, Chapter 2001, Government Code.

Added by Acts 1983, 68th Leg., p. 1419, ch. 286, § 6, eff. Aug. 
29, 1983.  Amended by Acts 1995, 74th Leg., ch. 76, § 5.95(53), 
(59), eff. Sept. 1, 1995.


	§ 141.016. RECOVERY OF PENALTY.  Civil penalties owed 
under Sections 141.013-141.015 of this code may be recovered in a 
civil action brought by the attorney general at the request of the 
commission.

Added by Acts 1983, 68th Leg., p. 1419, ch. 286, § 6, eff. Aug. 
29, 1983.


	§ 141.018. ACCESS TO PROPERTY.  Members and employees of 
the commission, on proper identification, may enter public or 
private property to inspect and investigate conditions relating to 
the exploration, development, and production of geothermal energy, 
to monitor compliance with a rule, permit, or other order of the 
commission, or to examine and copy, during reasonable working 
hours, those records or memoranda of the business being 
investigated.  Members or employees acting under the authority of 
this section who enter an establishment on public or private 
property shall observe the establishment's safety, internal 
security, and fire protection rules.

Added by Acts 1983, 68th Leg., p. 5263, ch. 967, § 10, eff. Sept. 
1, 1983.  Renumbered from § 141.013 by Acts 1987, 70th Leg., ch. 
167, § 5.01(a)(33), eff. Sept. 1, 1987.

SUBCHAPTER C. POWERS AND DUTIES OF THE COMMISSIONER AND BOARD


	§ 141.071. GENERAL AUTHORITY OF COMMISSIONER.  To 
facilitate and encourage the rapid and orderly development of 
geothermal energy and associated resources, the commissioner may:
		(1)  provide for the orderly exploration of land that 
belongs to the permanent school fund, excluding wildlife refuges 
and recreational areas except as provided in Section 141.077 of 
this code;  and
		(2)  issue permits and charge reasonable fees for the 
permits in accordance with rules promulgated under this chapter by 
the board.

Acts 1977, 65th Leg., p. 2642, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 141.072. DEPOSIT OF FEES.  The fees collected from 
issuance of the permits shall be deposited in General Land Office 
Fund 80 and used as the legislature may direct.

Acts 1977, 65th Leg., p. 2642, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 141.073. LEASE OF PERMANENT SCHOOL FUND LAND.  (a) On 
direction of the commissioner, the board may lease land that 
belongs to the permanent school fund, excluding wildlife refuges 
and recreational areas, for the production of geothermal energy and 
associated resources.
	(b)  The board has full authority to set the terms and 
conditions of leases and may adopt rules relating to exploration, 
development, and production of geothermal energy and associated 
resources as the board determines to be in the best interest of the 
state.
	(c)  The board may require the taking in kind of the state's 
interest in the geothermal energy and associated resources or its 
by-products provided from this land.

Acts 1977, 65th Leg., p. 2642, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 141.074. FURNISHING LISTS OF LAND TO OTHER 
AGENCIES.  Before advertising land for lease, the commissioner 
shall furnish a list of the tracts considered by the board for lease 
to the Texas Natural Resource Conservation Commission, the 
commission, and any other state or federal agency that might have 
information that would be beneficial to the board in its 
determination of terms and conditions of the proposed lease.

Acts 1977, 65th Leg., p. 2642, ch. 871, art. I, § 1, eff. Sept. 1, 
1977.  Amended by Acts 1995, 74th Leg., ch. 76, § 11.277, eff. 
Sept. 1, 1995.


	§ 141.075. NOTICE OF SALE.  Land offered for lease to the 
public by the board shall be advertised in four daily newspapers in 
the state that have general circulation at least 30 days in advance 
of the sale date.  The notice shall be published in three issues of 
each newspaper.

Acts 1977, 65th Leg., p. 2642, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 141.076. BIDS.  (a) Sales of leases shall be made by 
sealed bids.       
	(b)  The board is entitled to reject any and all bids, but if 
it accepts a bid, the bid must be determined by the board to be in 
the best interest of the State of Texas.

Acts 1977, 65th Leg., p. 2642, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 141.077. LEASES AND PERMITS FOR GOVERNMENTAL 
AGENCIES.  (a) The board may grant permits and leases to state and 
federal institutions, organizations, or groups desiring to do 
exploratory or experimental research of geothermal energy and 
associated resource potentials.
	(b)  These permits and leases may be granted on land that 
belongs to the permanent school fund, excluding wildlife refuges 
and recreational areas.
	(c)  The permits and leases may be issued or granted for 
research or experimental purposes under rules and conditions the 
board determines to be in the best interest of the state.
	(d)  In granting these leases, the commissioner and board do 
not have to follow the procedures in this subchapter for leasing to 
the public.

Acts 1977, 65th Leg., p. 2643, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 141.078. UNIT AGREEMENTS.  (a) The board may approve 
unit agreements of one or more leased tracts on application of the 
lessees.
	(b)  Before approving any unit agreement, the board must find 
that the unit agreement if approved by the board will be in the best 
interest of the state.

Acts 1977, 65th Leg., p. 2643, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 141.079. REPORT TO LEGISLATURE.  During the first 30 
days of each regular session of the legislature, the commissioner 
shall report on the status of the exploration, development, and 
production of geothermal energy and associated resources under the 
land governed by this subchapter.

Acts 1977, 65th Leg., p. 2643, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 

SUBCHAPTER D. ENFORCEMENT


	§ 141.101. GENERAL ENFORCEMENT AUTHORITY.  (a) In 
addition to other authority specifically granted to the commission 
under this chapter, the commission may enforce this chapter or any 
rule, order, or permit of the commission adopted under this chapter 
in the same manner and subject to the same conditions provided by 
Chapters 81 and 85 of this code, including the authority to seek and 
obtain civil penalties and injunctive relief under those chapters.
	(b)  If the enforcement authority in Section 81.054, Natural 
Resources Code, is used to institute a civil action alleging a 
violation of an NPDES permit or the failure to obtain an NPDES 
permit issued under this chapter, the attorney general may not 
oppose intervention by a person who has standing to intervene as 
provided by Rule 60, Texas Rules of Civil Procedure.

Added by Acts 1983, 68th Leg., p. 5263, ch. 967, § 11, eff. Sept. 
1, 1983.  Amended by Acts 1995, 74th Leg., ch. 310, § 7, eff. Aug. 
28, 1995.


	§ 141.102. CRIMINAL PENALTY.  (a) A person who knowingly, 
wilfully, or with criminal negligence violates Subchapter B of this 
chapter  or a rule, order, or permit of the commission issued under 
that subchapter commits an offense.
	(b)  An offense under Subsection (a) of this section is 
punishable by a fine of not more than $10,000 a day for each day a 
violation is committed.
	(c)  Venue for prosecution of an alleged violation of this 
section is in a court of competent jurisdiction in the county in 
which the violation is alleged to have occurred.

Added by Acts 1983, 68th Leg., p. 5263, ch. 967, § 11, eff. Sept. 
1, 1983.