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TITLE 34PUBLIC FINANCE
PART 1COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3TAX ADMINISTRATION
SUBCHAPTER ZCOASTAL PROTECTION FEE
RULE §3.692Definitions, Reporting Requirements and Amount of Fee

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

  (1) Condensate--Any liquid hydrocarbon condensed from a natural gas stream and existing at atmospheric pressure and temperature.

    (A) Condensate includes, but is not limited to, liquid hydrocarbons:

      (i) recovered by non-mechanical processes such as conventional gravity separators;

      (ii) recovered by a treating facility such as a gas compression or dehydration facility; or

      (iii) recovered at pipeline drip stations.

    (B) Condensate does not include liquid hydrocarbons which may be recovered only by mechanical separation processes such as refrigeration, absorption or distillation.

  (2) Crude oil--Any naturally occurring liquid hydrocarbons at atmospheric temperature and pressure coming from the earth, including condensate.

    (A) Crude oil includes, but is not limited to, crude oil:

      (i) as it exists at atmospheric pressure and temperature when it is produced;

      (ii) as it exists after initial gas separation and/or stabilization; or

      (iii) as it exists after treating and/or conditioning for the removal of water and/or other impurities, and is sold, shipped, or purchased as crude oil.

    (B) Crude oil does not include any product which has been physically separated from crude oil.

  (3) Marine terminal--Any waterfront or offshore facility used for transferring crude oil to or from cargo vessels, including all associated pipelines, structures, devices or equipment. Marine terminals include, but are not limited to, the following:

    (A) loading docks;

    (B) sea terminals;

    (C) transshipment terminals; and

    (D) production/drilling platforms or rigs.

  (4) Operator--Any person owning a terminal facility or operating terminal facility by lease, contract or other form of agreement.

  (5) Vessel--Every description of water craft or other contrivance used or capable of being used as a means of transportation on water, whether self-propelled or otherwise. Examples include, but are not limited to, the following:

    (A) barges;

    (B) ships; and

    (C) any container aboard a barge, tanker etc., which may be used for transporting crude oil.

  (6) Waterfront--Land or structures fronting or abutting on the waters or bed of the Gulf of Mexico within the jurisdiction of the State of Texas, including any other contiguous waters that are navigable by vessels with a capacity to carry 10,000 gallons or more of oil as fuel or cargo.

(b) Reporting requirements.

  (1) Each marine terminal operator, or owner of crude oil who is registered with the comptroller to report the fee, shall file a coastal protection fee report with the comptroller stating the number of barrels of crude oil and condensate off-loaded from vessels or loaded onto vessels at marine terminals located in Texas. The volume shall be determined by tank tables compiled to show 100% of the full capacity of the tank or by use of industry standard automatic measuring equipment, and shall be corrected to 60 degrees Fahrenheit. The volume may be reduced by a reasonable allowance for basic sediment and water as determined by tests generally recognized by the industry to be accurate.

  (2) The marine terminal operator shall collect a fee from the owner of the crude oil or condensate and remit the fee to the comptroller.

  (3) The fee shall be collected only once on the same crude oil or condensate.

(c) Amount of fee.

  (1) Except as provided in paragraphs (2) and (4) of this subsection, the rate of the fee will be $.01333 per barrel of crude oil or condensate.

  (2) When the balance in the coastal protection fund has reached $20 million, the commissioner of the General Land Office will certify that fact to the comptroller. The fee will not be collected or required to be paid on or after the first day of the second month following the commissioner's certification to the comptroller.

  (3) If the commissioner of the General Land Office certifies to the comptroller that the balance of the coastal protection fund has fallen below $10 million, the fee will again be due at the rate of $.01333 per barrel.

  (4) The rate of the fee will be $.04 per barrel of crude oil or condensate when:

    (A) the commissioner of the General Land Office certifies to the comptroller that:

      (i) the balance in the coastal protection fund is less than $20 million; and

      (ii) an unauthorized discharge of oil in excess of 100,000 gallons has occurred within the previous 30 days; and

      (iii) expenditures from the fund for response costs and damages are expected to deplete the fund substantially.

    (B) The fee will not be collected or required to be paid on or after the first day of the second month following the commissioner's certification to the comptroller that the balance in the coastal protection fund has reached:

      (i) $20 million; or

      (ii) any lesser amount that the commissioner determines is sufficient to pay response costs and damages without substantially depleting the fund.

  (5) The comptroller will cause to be published in the Texas Register a notice specifying the date on which collection of the fee must begin or end.

(d) Due date of report and payment.

  (1) The coastal protection fee report and payment are due not later than the last day of the month following the calendar month in which liability for the fee is incurred.

  (2) A marine terminal operator shall not file a monthly report showing crude oil or condensate transferred to or from a marine terminal located in Texas during periods in which the fee is suspended.

(e) Penalty. Penalties due on delinquent fees and reports will be imposed as provided by Tax Code, §111.061.

(f) Interest. Interest due on delinquent fees will be imposed as provided by Tax Code, §111.060.


Source Note: The provisions of this §3.692 adopted to be effective December 5, 1996, 21 TexReg 11517; amended to be effective October 12, 2004, 29 TexReg 9555; amended to be effective September 5, 2006, 31 TexReg 7134

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