{"operation":"document","citation":"16 TAC § 8.201","title":"Pipeline Safety and Regulatory Program Fees","source_type":"regulation","agency":"Railroad Commission of Texas","status":"current","official":true,"published_on":null,"effective_on":"2026-02-25","summary":"(a) Application of fees. Pursuant to Texas Utilities Code, §121.211, the Commission establishes a pipeline safety and regulatory program fee, to be assessed annually against operators of gas distribution pipelines and pipeline facilities and gas master metered pipelines and pipeline facilities subje","machine_formats":{"json":"https://regulus.evalyn.ai/document/tx-tac-16-8-201.json","markdown":"https://regulus.evalyn.ai/document/tx-tac-16-8-201.md"},"app_url":"https://regulus.evalyn.ai/document/tx-tac-16-8-201","source_url":"https://texas-sos.appianportalsgov.com/rules-and-meetings?chapter=8&interface=VIEW_TAC&part=1&title=16","body":"(a) Application of fees. Pursuant to Texas Utilities Code,\n§121.211, the Commission establishes a pipeline safety and\nregulatory program fee, to be assessed annually against\noperators of gas distribution pipelines and pipeline facilities\nand gas master metered pipelines and pipeline facilities\nsubject to the Commission's jurisdiction under Texas\nUtilities Code, Title 3. The total amount of revenue\nestimated to be collected under this section does not exceed\nthe amount the Commission estimates to be necessary to\nrecover the costs of administering the pipeline safety and\nregulatory programs under Texas Utilities Code, Title 3,\nexcluding costs that are fully funded by federal sources for\nany fiscal year.\n\n(b) Gas distribution systems. The Commission hereby\nassesses each operator of a gas distribution system an annual\npipeline safety and regulatory program fee of $1.00 for each\nservice (service line) in service at the end of each calendar\nyear as reported by each system operator on the U.S.\nDepartment of Transportation (DOT) Gas Distribution\nAnnual Report, Form PHMSA F7100.1-1 due on March 15\nof each year.\n(1) Each operator of a gas distribution system shall\ncalculate the annual pipeline safety and regulatory program\ntotal to be paid to the Commission by multiplying the $1.00\nfee by the number of services listed in Part B, Section 3, of\nForm PHMSA F7100.1-1, due on March 15 of each year.\n(2) Each operator of a gas distribution system shall remit\nto the Commission on March 15 of each year the amount\ncalculated under paragraph (1) of this subsection. Payments\nshall be made using the Commission's online application\navailable on the Commission's website.\n(3) Each operator of a gas distribution system shall\nrecover, by a surcharge to its existing rates, the amount the\noperator paid to the Commission under paragraph (1) of this\nsubsection. The surcharge:\n(A) shall be a flat rate, one-time surcharge;\n(B) shall not be billed before the operator remits the\npipeline safety and regulatory program fee to the\nCommission;\n(C) shall be applied in the billing cycle or cycles\nimmediately following the date on which the operator paid\nthe Commission;\n(D) shall not exceed $1.00 per service or service line;\nand\n(E) shall not be billed to a state agency, as that term is\ndefined in Texas Utilities Code, §101.003.\n(4) No later than 90 days after the last billing cycle in\nwhich the pipeline safety and regulatory program fee\nsurcharge is billed to customers, each operator of a gas\ndistribution system shall file with the Commission's\nOversight and Safety Division a report showing:\n(A) the pipeline safety and regulatory program fee\namount paid to the Commission;\n(B) the unit rate and total amount of the surcharge\nbilled to each customer;\n(C) the date or dates on which the surcharge was billed\nto customers; and\n(D) the total amount collected from customers from the\nsurcharge.\n(5) Each operator of a gas distribution system that is a\nutility subject to the jurisdiction of the Commission pursuant\nto Texas Utilities Code, Chapters 101 - 105, shall file a\ngenerally applicable tariff for its surcharge in conformance\nwith the requirements of §7.315 of this title (relating to\nFiling of Tariffs).\n(6) Amounts recovered from customers under this\nsubsection by an investor-owned gas distribution system or a\ncooperatively owned gas distribution system shall not be\nincluded in the revenue or gross receipts of the system for\nthe purpose of calculating municipal franchise fees or any\ntax imposed under Subchapter B, Chapter 182, Tax Code, or\nunder Chapter 122, nor shall such amounts be subject to a\nsales and use tax imposed by Chapter 151, Tax Code, or\nSubtitle C, Title 3, Tax Code.\n(c) Master master meter systems. The Commission hereby\nassesses each master meter system an annual pipeline safety\nand regulatory program fee of $100 per master meter system.\n(1) Each operator of a gas master meter system shall\n\nremit to the Commission the annual pipeline safety and\nregulatory program fee of $100 per master meter system no\nlater than June 30 of each year. Payments shall be made\nusing the Commission's online application available on the\nCommission's website.\n(2) The Commission shall send an invoice to each\naffected master meter system operator no later than April 30\nof each year as a courtesy reminder. The failure of a master\nmeter system operator to receive an invoice shall not exempt\nthe master meter system operator from its obligation to remit\nto the Commission the annual pipeline safety and regulatory\nprogram fee on June 30 each year.\n(3) Each operator of a master meter system shall recover\nas a surcharge to its existing rates the amounts paid to the\nCommission under paragraph (1) of this subsection.\n(4) No later than 90 days after the last billing cycle in\nwhich the pipeline safety and regulatory program fee\nsurcharge is billed to customers, each master meter system\noperator shall file with the Oversight and Safety Division a\nreport showing:\n(A) the pipeline safety and regulatory program fee\namount paid to the Commission;\n(B) the unit rate and total amount of the surcharge\nbilled to each customer;\n(C) the date or dates on which the surcharge was billed\nto customers; and\n(D) the total amount collected from customers from the\nsurcharge.\n(d) Late payment penalty. If the operator of a gas\ndistribution system or a master meter system does not remit\npayment of the annual pipeline safety and regulatory\nprogram fee to the Commission within 30 days of the due\ndate, the Commission shall assess a late payment penalty of\n10 percent of the total assessment due under subsection (b)\nor (c) of this section, as applicable, and shall notify the\noperator of the total amount due to the Commission.","truncated":false,"body_characters":5734}