(a) This section implements the authority delegated
to the Commission by Texas Natural Resources Code, §81.058(a)
and (b).
(b) Terms used in this section shall have the same
meaning as in §2.1 of this title (relating to Informal Complaint
Procedure); §2.5 of this title (relating to Informal Complaint
Process Regarding Loss of or Inability to Account for Gas); and §7.115
of this title (relating to Definitions).
(c) The Commission, after notice and opportunity for
hearing, may impose an administrative penalty against:
(1) a purchaser, transporter, gatherer, shipper, or
seller of natural gas; a person described by Texas Natural Resources
Code, §81.051(a) or §111.081(a); or any other entity under
the jurisdiction of the Commission under the Texas Natural Resources
Code that the Commission determines has:
(A) violated §7.7001 of this title (relating to
Natural Gas Transportation Standards and Code of Conduct) or any other
Commission rule adopting standards for entities in the natural gas
industry prohibiting unlawful discrimination; or
(B) unreasonably discriminated against a seller of
natural gas in the purchase of natural gas from the seller; and
(2) a purchaser, transporter, or gatherer of natural
gas if the Commission determines that the person engaged in prohibited
discrimination against a shipper or seller of natural gas because
the shipper or seller filed a formal or informal complaint with the
Commission against the person relating to the person's purchase, transportation,
or gathering of the gas.
(d) In determining whether an entity has violated §7.7001
of this title or has unreasonably discriminated against a seller of
natural gas in the purchase of natural gas from the seller, the Commission
will consider the factors set forth in the definition of "similarly
situated shipper" in §7.115 of this title. In determining whether
conditions of service are the same or substantially the same, the
Commission shall evaluate the significance and degree of similarity
or difference in relevant conditions between sellers that are material
and probative, including, but not limited to, the following:
(1) service requirements;
(2) location of facilities;
(3) receipt and delivery points;
(4) length of haul;
(5) quality of service (firm, interruptible, etc.);
(6) quantity;
(7) swing requirements;
(8) credit worthiness;
(9) gas quality;
(10) pressure (including inlet or line pressure);
(11) duration of service;
(12) connect requirements; and
(13) conditions and circumstances existing at the time
of agreement or negotiation.
(e) In determining whether an entity has engaged in
prohibited discrimination against a shipper or seller of natural gas
because the shipper or seller filed a formal or informal complaint
with the Commission against the person relating to the person's purchase,
transportation, or gathering of the gas, the Commission will consider
all relevant and material facts.
(f) 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.
(g) If the Commission determines after notice and opportunity
for hearing that an entity has engaged in prohibited discrimination
for which a penalty may be imposed under this section, the Commission
may issue any order necessary and reasonable to prevent the discrimination
from continuing, including an order setting rates pursuant to §7.7005
of this title (relating to Authority to Set Rates).
(h) The remedy provided by this section is cumulative
of any other remedy the Commission may order.
(i) In all situations, the Commission will apply the
relevant statutory and rule provisions to achieve the intended statutory
purposes of preventing or remedying undue discrimination and ensuring
that natural gas transportation and gathering services are provided
at rates and under terms and conditions that are just and reasonable.
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