1. (a) Filing requirements.

   1. (1) No organization, including any person, firm, partnership, joint stock association, corporation, or other organization, domestic or foreign, operating wholly or partially within this state, acting as principal or agent for another, for the purpose of performing operations within the jurisdiction of the commission shall perform such operations prior to acceptance and approval by the commission of an organization report. Operations within the jurisdiction of the commission include, but are not limited to, the following:

      1. (A) drilling, operating, or producing any oil, gas, geothermal resource, brine mining injection, fluid injection, or oil and gas waste disposal well;
      2. (B) transporting, reclaiming, treating, processing, or refining crude oil, gas and products, or geothermal resources and associated minerals;
      3. (C) discharging, storing, handling, transporting, reclaiming, or disposing of oil and gas waste, including hauling salt water for hire by any method other than pipeline;
      4. (D) operating gasoline plants, natural gas or natural gas liquids processing plants, pressure maintenance or repressurizing plants, or recycling plants;
      5. (E) recovering skim oil from a salt water disposal site;
      6. (F) nominating crude oil;
      7. (G) operating a directional survey company;
      8. (H) cleaning a reserve pit;
      9. (I) operating a pipeline;
      10. (J) operating as a cementer approved for plugging wells; or
      11. (K) operating an underground hydrocarbon or natural gas storage facility.
   2. (2) The commission will notify organizations that perform operations not included in paragraph (1)(A)-(K) of this subsection of any additional activities subject to the jurisdiction of the commission which require the filing of the organization report. Such notification will make the provisions of this section applicable to such activities.
   3. (3) Each organization performing activities subject to the jurisdiction of the commission must maintain a current organization report with the commission until all duties, obligations, and liabilities incurred pursuant to commission rules, the Natural Resources Code, Titles 3 (Subtitles A, B, C, and Chapter 111 of Subtitle D) and 5, and the Water Code, Chapters 27 and 29, are fulfilled.

   4. (4) The organization report must contain the following information:

      1. (A) the name, street address, and mailing address of the organization;
      2. (B) the plan of the business organization;

      3. (C) for each officer, director, general partner, owner of more than 25% ownership interest, or trustee (hereinafter controlling entity) of the organization:

         1. (i) that entity's name;

         2. (ii) the following:

            1. (I) if the entity is an individual, his or her driver's license number;
            2. (II) if the entity is not an individual, either the name and driver's license number of the primary individual in control of the entity, or an active P-5 number for that entity;
            3. (III) if any individual subject to this clause has a driver's license, he or she may, at such individual's option, submit his or her social security number instead of his or her driver's license number. If any individual subject to this subparagraph has no driver's license and does not wish to submit a social security number, he or she shall submit an official state identification number, such a Texas state identification card number issued by the Texas Department of Public Safety. If such individual has no driver's license or official state identification number, and does not wish to submit his or her social security number, then such individual shall submit his or her full legal name;
         3. (iii) a street address different than that of the organization; and
         4. (iv) if different from the mailing address of the organization, a mailing address;
      4. (D) if a foreign or nonresident organization, the name and street address of a resident agent.
   5. (5) Any organization may designate a resident agent with a street address different than that of the organization in place of submitting the street addresses of the three (if applicable) primary controlling entities of the organization. Any foreign or nonresident organization identified in paragraph (1) of this subsection shall designate and maintain a resident agent upon whom may be served any process, notice, or demand required or permitted by law to be served upon such entity by or on behalf of the commission. Failure of such organization to designate and maintain a resident agent will render the organization report invalid. (Reference Order Number 20-60,617, effective January 1, 1971.)
   6. (6) Failure by any organization identified in paragraph (1) of this subsection to answer any subpoena, commission to take deposition, or directive to appear at a hearing served upon such organization by or on behalf of the commission will render the organization report invalid.
   7. (7) Organization reports must be refiled annually according to the schedule assigned by the commission. Prior to the filing date, the commission will mail notification and information to each organization for update of the organization report file. An amended organization report must be filed within 15 days after a change in any information required to be reported in the organization report. Address changes only may also be reported by letter. Any requirement under statute or commission rule for an order to be sent or notice to be given by the commission to an organization may be met by mailing the item to the organization's mailing address shown on the most recently filed organization report or the most recently filed letter notification of change of address. Notices sent by regular first-class mail may be presumed to have been received if, upon arrival of the deadline for any response to the notice, the wrapper containing the notice has not been returned to the commission. Service of notices and orders sent by certified mail is effective upon: acceptance of the item by any person at the address; initial failure to claim or refusal to accept the item by any person at the address prior to its eventual return to the commission by the United States Postal Service; or return of the item to the commission by the United States Postal Service bearing a notation such as "addressee unknown," "no forwarding address," "forwarding order expired," or any similar notation indicating that the organization's mailing address shown on the most recently filed organization report or address change notification letter is incorrect. Any commission action or proceeding for which notice is required may go forward on the basis of the notice provided under this subsection, whether or not actual notice has been received.
2. (b) Record requirements. All entities who perform operations which are within the jurisdiction of the commission shall keep books showing accurate records of the drilling, redrilling, or deepening of wells, the volumes of crude oil on hand at the end of each month, the volumes of oil, gas, and geothermal resources produced and disposed of, together with records of such information on leases or property sold or transferred, and other information as required by commission rules and regulations in connection with the performance of such operations, which books shall be kept open for the inspection of the commission or its representatives, and shall report such information as required by the commission to do so.
3. (c) Time frame. All organizations shall keep copies of records, forms, and documents which are required to be filed with the commission, along with the supporting documents referred to in subsection (b) of this section, for a period of three years, or longer if required by another commission rule, and any such copies may be disposed of at the discretion of such entities after the original records, forms, and documents have been on file with the commission for the required period, except that particular documents shall be retained beyond the required period and until the resolution of pending commission regulatory enforcement proceedings if the documents contain information material to the determination of any issues therein. All records, forms, and documents required to be filed with the commission shall be filed in the same name, exactly as it appears on the organization report.

Source Note:The provisions of this §3.1 adopted to be effective January 1, 1976; amended to be effective January 1, 1981, 5 TexReg 4990; amended to be effective February 22, 1986, 11 TexReg 701; amended to be effective December 7, 1987, 12 TexReg 4411; amended to be effective July 22, 1991, 16 TexReg 3767; amended to be effective July 1, 1992, 17 TexReg 4173.