TITLE 16. ECONOMIC REGULATION

DIVISION 2. GENERAL REQUIREMENTS FOR PERMITS AND PERMIT APPLICATIONS

16 TAC §12.108

The Railroad Commission of Texas (Commission) adopts amendments to §12.108, relating to Permit Fees, without changes to the proposed text as published in the July 4, 2025, issue of the Texas Register (50 TexReg 3848) and will not be republished. The Commission adopts the amendments to implement provisions of Senate Bill 1, 89th Texas Legislature (Regular Session, 2025), and, specifically, Article VI, Railroad Commission Rider 5, which requires the amounts appropriated from general revenue for state fiscal years (FY) 2026 and 2027 to cover the cost of permitting and inspecting coal mining operations. The Rider is contingent upon the Commission assessing fees during the 2026-2027 biennium sufficient to generate revenue to cover the general revenue appropriations. The Commission amends the annual fees required by coal mining permittees in subsection (b).

The Texas State Legislature appropriated the applicable funds in Senate Bill 1 based on fees collected as set forth in Rider 5, including fees appropriated for both the coal mining program and a separate, existing program for uranium exploration permitting. The uranium program cost is subtracted from the total annual appropriation to determine the cost of the coal regulatory program. The Commission's coal mining regulatory program is partially funded with a 50 percent cost reimbursement grant from the United States Department of the Interior, Office of Surface Mining Reclamation and Enforcement. The remaining 50 percent is funded by the fees collected in §12.108.

The Commission received no comments on the proposal.

The Commission amends the fees set forth in subsection (b) by splitting the annual fee for each acre of land within a permit area covered by a reclamation bond on December 31st of each year, currently at $12.85, into two fees. The Commission amends paragraph (1) to remain at the current fee amount of $12.85 for each bonded acre of land that has met the Phase I reclamation release requirements of §12.313(a)(1) of this title (relating to Criteria and Schedule for Release of Performance Bond) based on the number of bonded acres of land identified by the applicant as meeting the requirements of §12.313(a)(1), as shown on the map required by §12.142(2)(C) of this title (relating to Operation Plan: Maps and Plans) and approved by the Commission. The Commission amends paragraph (2) to include a fee of $29.80 for the bonded acres of land that have not met the Phase I reclamation release requirements of §12.313(a)(1) based on the number of bonded acres of land identified by the applicant as not meeting the requirements of §12.313(a)(1), as shown on the map required by §12.142(2)(C) and approved by the Commission. The annual permit fee in re-numbered paragraph (3) remains at the current amount of $6,170 per permit. The Commission anticipates that annual fees in these new amounts will result in revenue of $4,650,102, for the coal regulatory program in each year of the 2026-2027 biennium.

The Commission adopts the amendments under Texas Natural Resources Code §134.011, §134.013, and §134.055, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011, §134.013 and §134.055.

Cross-reference to statute: Texas Natural Resources Code §134.011, §134.013 and §134.055.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 19, 2025.

TRD-202502986

Natalie Dubiel

Assistant General Counsel

Railroad Commission of Texas

Effective date: September 8, 2025

Proposal publication date: July 4, 2025

For further information, please call: (512) 475-1295

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