2007 Montana Legislature

HOUSE BILL NO. 24

INTRODUCED BY KLOCK

BY REQUEST OF THE ENERGY AND TELECOMMUNICATIONS INTERIM COMMITTEE

AN ACTPROVIDING COMMON CARRIER STATUS TO PIPELINES MOVING CARBON DIOXIDE; AMENDING SECTIONS 69-13-101, 69-13-102, 69-13-201, 69-13-301, 69-13-302, AND 69-13-303, MCA; AND PROVIDING A CONTINGENT EFFECTIVE DATE.

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

Section 1. Section 69-13-101, MCA, is amended to read:

"69-13-101. Common carrier pipeline. (1) The following are hereby declared to be common carriers and subject to the provisions of this chapter: every Pursuant to subsection (3), each person, firm, corporation, limited partnership, joint-stock association, or association of any kind whatever is a common carrier if it engages in:

(a) owning, operating, or managing any pipeline or any part of any pipeline within the state for the transportation of crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide to or for the public for hire or engaging in the business of transporting crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide by pipelines;

(b) owning, operating, or managing any pipeline or any part of any pipeline for the transportation of crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide to or for the public for hire, which when the pipeline is constructed or maintained upon, along, over, or under any public road or highway;

(c) owning, operating, or managing any pipeline or any part of any pipeline for transportation to or for the public for hire of crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide, which when the pipeline is or may be constructed, operated, or maintained across, upon, along, over, or under the right-of-way of any railroad, corporation, or other common carrier required by law to transport crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide as a common carrier;

(d) owning, operating, or managing or participating in ownership, operation, or management, under lease, contract of purchase, agreement to buy or sell, or other agreement or arrangement of any kind whatsoever, any pipeline or any part of any pipeline for the transportation from any oil field, coal mine or field, or place of production within the state to any distributing, refining, or marketing center or reshipping point thereof, within this state, of crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide, bought of from others; or

(e) made a common carrier by or under the terms of contract with or in pursuance of the law of the United States.

(2) The provisions of this chapter shall do not apply to:

(a) those pipelines which that are limited in their use to the wells, stations, plants, and refineries of the owner and which that are not a part of the pipeline transportation system of any common carrier, as herein defined; nor shall such provisions apply to or

(b) any property of such a common carrier which that is not a part of or necessarily incident to its pipeline transportation system.

(3) To be defined as a common carrier of carbon dioxide under this section, the carbon dioxide may be transported only for the purpose of permanent sequestration in a geologic formation."

Section 2. Section 69-13-102, MCA, is amended to read:

"69-13-102. Scope of chapter -- enforcement. (1) It is declared that the operation of these pipelines, to which this chapter applies, for the transportation of crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide, in connection with the purchase or purchase and sale of such crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide, is a business in mode of the conduct of which the public is interested and as such is subject to regulation by law. The business of purchasing or of purchasing and selling crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide, using in connection with such that business a pipeline of the class subject to this chapter to transport the crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide so bought or sold shall may not be conducted unless such the pipeline so used in connection with such that business is a common carrier within the purview of this law chapter and subject to the jurisdiction herein conferred upon the commission.

(2) It shall be is the duty of the attorney general to enforce this provision by injunction or other adequate remedy."

Section 3. Section 69-13-201, MCA, is amended to read:

"69-13-201. Establishment of rates and operating rules. (1) The commission shall have the power to may establish and enforce rates of charges and regulations for gathering, transporting, loading, and delivering crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide by such common carrier in this state and for the use of storage facilities necessarily incident to such the transportation and to prescribe and enforce rules for the government and control of such common carriers in respect to their pipelines and receiving, transferring, and loading facilities. It shall be its duty to The commission shall exercise such the power upon petition by any person showing a substantial interest in the subject.

(2) No An order establishing or prescribing rates and rules shall may not be made except after hearing and at least 10 days' and not more than 30 days' notice to the person, firm, corporation, partnership, joint-stock association, or association owning or controlling and operating the pipeline or pipelines affected.

(3) In the event any If a rate shall be is filed by any pipeline and complaint against the same rate or petition to reduce the same shall be rate is filed by any shipper and such the complaint be is sustained, in whole or in part, all shippers who shall have paid the rates so filed by the pipeline shall have the right to reparation or reimbursement of all excess in transportation charges so paid, over and above the proper rate as finally determined, on all shipments made after the date of the filing of such the complaint."

Section 4. Section 69-13-301, MCA, is amended to read:

"69-13-301. Records and reports. (1) Such common Common carriers of crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide shall make and publish their tariffs under such rules as that may be prescribed by said the commission. The commission shall require them the common carriers to make reports and may investigate their books and records kept in connection with such the business.

(2) The commission shall require of such common carrier pipelines to make monthly reports, duly verified under oath, of the total quantities of crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide owned by such the pipelines, of that held by them in storage for others, and of their unfilled storage capacity. No publicity shall Publicity may not be given by the commission to the reports as to stock of crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide on hand of any particular pipeline, but the commission in its discretion may make public the aggregate amounts held by all the pipelines making such the reports and of their aggregate storage capacity."

Section 5. Section 69-13-302, MCA, is amended to read:

"69-13-302. Connection and interchange facilities. (1) Every Each common carrier shall exchange crude petroleum tonnage, coal tonnage, or petroleum or coal products tonnage, or carbon dioxide volume with each like similar common carrier. The commission shall have the power to may require such connections and facilities for the interchange of such the tonnage and volume to be made at every locality reached by both pipelines whenever a necessity therefor for the connections and facilities exists, subject to such rates and regulations as that may be made by the commission. Any such common carrier under like similar rules shall must be required to install and maintain facilities for the receipt and delivery of crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide of patrons at all points on such the pipeline.

(2) No A carrier shall may not be required to receive or transport any crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide except such as may be marketable under rules to be prescribed by the commission, which they are hereby empowered and required to prescribe. The commission is also empowered and required to shall make rules for the ascertainment of the amount of water and other foreign matter in crude oil, coal, or the products thereof of crude petroleum or coal, or carbon dioxide tendered for transportation, for deduction therefor for water and foreign matter, and for the amount of deduction to be made for temperature, leakage, and evaporation.

(3) The recital herein of particular powers on delegated to the part of said commission shall in this section may not be construed to limit the general powers conferred by this chapter."

Section 6. Section 69-13-303, MCA, is amended to read:

"69-13-303. Prohibition of discrimination in rates or service. (1) Except as provided in subsection (2), no such a common carrier in its operations as such shall may not discriminate between or against shippers in regard to facilities furnished, service rendered, or rates charged under the same or similar circumstances in the transportation of crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide.; nor shall there There may not be any discrimination in the transportation of crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide produced or purchased by itself the common carrier directly or indirectly. In this connection the pipeline shall must be considered as a shipper of the crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide produced or purchased by itself the pipeline directly or indirectly and handled through its facilities. No such A carrier in such the operation shall may not directly or indirectly charge, demand, collect, or receive from any one a greater or lesser compensation for any service rendered than from another for a like and contemporaneous service. Subject to the provisions of this chapter and the rules which that may be prescribed by the commission, every such common carrier shall receive and transport crude petroleum, or coal, the products of crude petroleum or coal, or carbon dioxide delivered to it for transportation and shall so receive and transport the same products and perform its other duties with respect thereto to the products without discrimination.

(2) The provisions of subsection (1) shall do not limit the right of the commission to prescribe rates and regulations different from or to some places from other rates or regulations for transportation from or to other places, as it may determine.; nor shall any A carrier be is not guilty of discrimination when obeying any order of the commission. When there shall be is offered for transportation more crude petroleum, coal, or the products thereof of crude petroleum or coal, or carbon dioxide than can be immediately transported, the same shall products must be equitably apportioned. The commission may make and enforce general or specific regulations in this regard. No such A common carrier shall may not at any time be required to receive for shipments exceeding 3,000 barrels of petroleum or the products thereof of petroleum in any one day from any person, firm, corporation, or association of persons."

Section 7. Contingent voidness. If Senate Bill No. 218 is not passed and approved, [this act] is void.

Section 8. Contingent effective date. [This act] is effective when the department of environmental quality certifies to the code commissioner that the board of environmental review has adopted the rules required by Senate Bill No. 218.

- END -

Latest Version of HB 24 (HB0024.ENR)
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