Craddick Bill Makes Unauthorized Petroleum Storage Or Trading A Felony

The text as introduced · 1,533 words

89R14553 JAM/AJZ-F

By: Craddick
H.B. No. 3707

A BILL TO BE ENTITLED

AN ACT

relating to the inspection, purchase, sale, possession, storage,

transportation, and disposal of petroleum products, oil and gas

equipment, and oil and gas waste; creating criminal offenses and

increasing the punishment for an existing criminal offense.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Article 47.07, Code of Criminal Procedure, is

amended to read as follows:

Art. 47.07. OWNER MAY RECOVER. The real owner of the

property sold under [ the provisions of ] Article 47.06 or 47.13 may

recover the proceeds from the sale of the [ such ] property under the

same terms as prescribed in Subsection (e) of Article 18.17 [ of this

Code ].

SECTION 2. Chapter 47, Code of Criminal Procedure, is

amended by adding Article 47.13 to read as follows:

Art. 47.13. PETROLEUM PRODUCT. (a) In this article,

"petroleum product" means crude oil or condensate.

(b) Notwithstanding any other provision of this chapter, an

officer who takes custody of a petroleum product alleged to have

been stolen shall immediately arrange for the total amount of the

petroleum product to be sold at a price that is equal to:

(1) in the case of crude oil, the price of the same

quantity of West Texas Intermediate crude oil, as calculated based

on that crude oil's closing price recorded on the New York

Mercantile Exchange (NYMEX) on the date preceding the date of sale;

or

(2) in the case of condensate, the price of the same

quantity of natural gas liquids as calculated based on the U.S.

natural gas liquid composite price recorded on the New York

Mercantile Exchange (NYMEX) on the date preceding the date of sale.

(c) The proceeds of the sale may be deposited in the manner

prescribed by Article 18.183 for seized money and disposed of in

accordance with this chapter and Chapter 18.

(d) A law enforcement agency may contract with a private

entity to sell a petroleum product in accordance with this article.

SECTION 3. Subchapter A, Chapter 411, Government Code, is

amended by adding Section 411.0185 to read as follows:

Sec. 411.0185. AUTHORIZED INSPECTION OF CARGO TANKS

CONTAINING CERTAIN PETROLEUM PRODUCTS. (a) In this section:

(1) "Cargo tank" has the meaning assigned by Section

162.001, Tax Code.

(2) "Crime laboratory" and "forensic analysis" have

the meanings assigned by Article 38.35, Code of Criminal Procedure.

(3) "Petroleum product" means crude oil or condensate.

(b) A commissioned officer of the department who receives

training described by Subsection (c) may conduct a comprehensive

inspection of any cargo tank used or suspected of being used to

transport a petroleum product on a public road or railroad in this

state. An officer who conducts an inspection under this subsection

may obtain a sample of the petroleum product or suspected petroleum

product being transported in the cargo tank and submit the sample to

a crime laboratory for forensic analysis.

(c) The commission by rule shall develop a training program

for commissioned officers to perform comprehensive inspections

described by Subsection (b). The training program must include

instruction regarding the proper method for an officer to safely

obtain a sample of a petroleum product from a cargo tank.

(d) The department may accept gifts and grants from any

source to fund forensic analyses of petroleum products under this

section.

SECTION 4. Section 31.19, Penal Code, is amended to read as

follows:

Sec. 31.19. THEFT OF PETROLEUM PRODUCT OR OIL AND GAS

EQUIPMENT . (a) In this section :

(1) "Oil and gas equipment" means machinery, drilling

equipment, welding equipment, pipeline equipment, fittings, pumps,

vehicles, or other equipment and materials that are part of or

incident to the exploration, development, maintenance, and

operation of oil and gas properties, including oil and gas wells,

oil and gas leases, gasoline plants, and refineries.

(2) "Petroleum [ , "petroleum ] product" means crude

oil, natural gas, or condensate.

(b) A person commits an offense if the person :

(1) unlawfully appropriates a petroleum product with

intent to deprive the owner of the petroleum product by:

(A) [ (1) ] possessing, removing, delivering,

receiving, purchasing, selling, moving, concealing, or

transporting the petroleum product; or

(B) [ (2) ] making or causing a connection to be

made with, or drilling or tapping or causing a hole to be drilled or

tapped in, a pipe, pipeline, or tank used to store or transport a

petroleum product ;

(2) transports to a waste disposal location a

petroleum product for which the person cannot identify the

petroleum product's initial owner;

(3) purchases a petroleum product from a person that

is not authorized by the Railroad Commission of Texas to sell the

petroleum product; or

(4) stores, purchases, or trades a petroleum product

for financial benefit by means of a method that is not authorized by

the Railroad Commission of Texas .

(b-1) A person commits an offense if the person unlawfully

appropriates oil and gas equipment with intent to deprive the owner

of the oil and gas equipment by possessing, removing, delivering,

receiving, purchasing, selling, moving, concealing, or

transporting the oil and gas equipment.

(c) Appropriation of a petroleum product or oil and gas

equipment is unlawful if it is without the owner's effective

consent.

(d) An offense under Subsection (b) [ this section ] is:

(1) a [ state jail ] felony of the third degree if the

total value of the petroleum product appropriated is less than

$10,000;

(2) a felony of the second [ third ] degree if the total

value of the petroleum product appropriated is $10,000 or more but

less than $100,000; or

(3) a felony of the first [ second ] degree if the total

value of the petroleum product appropriated is $100,000 or more

[ but less than $300,000; or

[ (4) a felony of the first degree if the total value of

the petroleum product appropriated is $300,000 or more ].

(e) An offense under Subsection (b-1) is:

(1) a felony of the third degree if the total value of

the oil and gas equipment appropriated is less than $10,000;

(2) a felony of the second degree if the total value of

the oil and gas equipment appropriated is $10,000 or more but less

than $100,000; or

(3) a felony of the first degree if the total value of

the oil and gas equipment appropriated is $100,000 or more.

(f) If conduct that constitutes an offense under this

section also constitutes an offense under any other law, the actor

may be prosecuted under this section or the other law, but not both.

SECTION 5. Section 27.031, Water Code, is amended to read as

follows:

Sec. 27.031. PERMIT FROM RAILROAD COMMISSION ; CRIMINAL

PENALTY . (a) A [ No ] person commits an offense if the person

continues [ may continue ] using a disposal well or begins [ begin ]

drilling a disposal well or converting an existing well into a

disposal well to dispose of oil and gas waste without first

obtaining a permit from the railroad commission.

(b) An offense under this section is:

(1) a felony of the third degree if no oil and gas

waste has been disposed of or the total value of the oil and gas

waste disposed of is less than $10,000;

(2) a felony of the second degree if the total value of

the oil and gas waste disposed of is $10,000 or more but less than

$100,000; or

(3) a felony of the first degree if the total value of

the oil and gas waste disposed of is $100,000 or more.

(c) If conduct that constitutes an offense under this

section also constitutes an offense under any other law, the actor

may be prosecuted under this section or the other law, but not both.

SECTION 6. Article 47.07, Code of Criminal Procedure, as

amended by this Act, and Article 47.13, Code of Criminal Procedure,

as added by this Act, apply only to property seized on or after the

effective date of this Act. Property seized before the effective

date of this Act is governed by the law in effect on the date the

property was seized, and the former law is continued in effect for

that purpose. For purposes of this section, property was seized

before the effective date of this Act if any portion of the property

was seized before that date.

SECTION 7. Not later than January 1, 2026, the Public Safety

Commission shall adopt rules to implement Section 411.0185,

Government Code, as added by this Act.

SECTION 8. Except as provided by Section 6 of this Act, the

changes in law made by this Act apply only to an offense committed

on or after the effective date of this Act. An offense committed

before the effective date of this Act is governed by the law in

effect on the date the offense was committed, and the former law is

continued in effect for that purpose. For purposes of this section,

an offense was committed before the effective date of this Act if

any element of the offense was committed before that date.

SECTION 9. This Act takes effect September 1, 2025.