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    LEGISLATURE OF NEBRASKA

    ONE HUNDRED SECOND LEGISLATURE

    SECOND SESSION

    LEGISLATIVE BILL

    Introduced by

    Read first time

    Committee:

    A BILL

    FOR AN ACT relating to pipelines; to amend sections 57-1101,1

    75-109.01, 75-110.01, 75-112, 75-118, 75-128, 75-129,2

    75-130.01, 75-502, and 84-914, Reissue Revised Statutes3

    of Nebraska; to adopt the Oil Pipeline Siting Act; to4

    change provisions relating to eminent domain for5

    pipelines; to change and provide powers and duties for6

    the Public Service Commission; to provide severability;7

    to repeal the original sections; and to declare an8

    emergency.9

    Be it enacted by the people of the State of Nebraska,10

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    Section 1. Sections 1 to 12 of this act shall be known1

    and may be cited as the Oil Pipeline Siting Act.2

    Sec. 2. The purposes of the Oil Pipeline Siting Act are3

    to:4

    (1) Ensure the health, safety, and welfare of Nebraskans,5

    including protection of ground water and drinking water;6

    (2) Ensure protection of the environmental resources of7

    Nebraska;8

    (3) Ensure that an oil pipeline is not constructed or9

    operated within Nebraska without receiving the approval of the10

    commission under section 8 of this act;11

    (4) Ensure that the location, construction, and operation12

    of oil pipelines are in compliance with Nebraska law; and13

    (5) Ensure that a coordinated and efficient method for14

    the authorization of such construction is provided.15

    Sec. 3. (1) The Legislature finds that:16

    (a) Nebraska has the authority as a sovereign state to17

    protect its natural resources for economic and environmental purposes18

    for the benefit of its residents and future generations;19

    (b) The ground water in Nebraska will become increasingly20

    valuable, both economically and strategically, as the population of21

    the world grows; and22

    (c) The construction of an oil pipeline in Nebraska may23

    be necessary to meet the increasing need for energy.24

    (2) The Legislature, mindful of the declaration of rights25

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    found in Article I, section 1, and Article XV, sections 4 and 5, of1

    the Constitution of Nebraska, and its authority under section 46-702,2

    enacts the Oil Pipeline Siting Act. It is the intent of the3

    Legislature that the requirements of the Oil Pipeline Siting Act4

    provide adequate protection of the environment from degradation and5

    ensure prevention of unreasonable depletion and degradation of the6

    beneficial uses of Nebraska's natural resources.7

    Sec. 4. For purposes of the Oil Pipeline Siting Act:8

    (1) Commission means the Public Service Commission;9

    (2) Oil means petroleum, including crude oil or any10

    fraction of crude oil;11

    (3) Oil pipeline means a pipeline which is larger than12

    twenty-five inches in inside diameter and which is constructed either13

    partially or wholly within Nebraska for the transportation of oil.14

    Oil pipeline includes any part of such a pipeline; and15

    (4) Pipeline carrier means a person that engages in16

    owning, operating, or managing an oil pipeline.17

    Sec. 5. (1) A pipeline carrier proposing to construct an18

    oil pipeline to be placed in operation in Nebraska after the19

    effective date of this act shall file an application with the20

    commission and receive approval pursuant to section 8 of this act21

    prior to beginning construction of the oil pipeline within Nebraska.22

    A pipeline carrier proposing a substantive change to the route of an23

    oil pipeline for which it has received approval under section 8 of24

    this act shall file an application for the proposed change with the25

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    commission and receive approval pursuant to section 8 of this act1

    prior to beginning construction relating to the proposed change. The2

    applicant shall also file a copy of the application with the agencies3

    listed in subsection (3) of section 7 of this act.4

    (2) The application shall be accompanied by written5

    agreement to pay expenses assessed pursuant to section 6 of this act6

    and written testimony and exhibits in support of the application. The7

    application shall include:8

    (a) The name and address of the pipeline carrier;9

    (b) A description of the nature and proposed route of the10

    oil pipeline;11

    (c) A statement of the reasons for the selection of the12

    proposed route of the oil pipeline;13

    (d) A list of the governing bodies of the counties and14

    municipalities through which the proposed route of the oil pipeline15

    would be located;16

    (e) A description of the product or material to be17

    transported through the oil pipeline;18

    (f) The estimated number of employees to be employed in19

    Nebraska during construction of the oil pipeline and during the20

    operating life of the oil pipeline. The estimated number shall21

    specify the number of employees who may not live in Nebraska or in22

    the area affected by the oil pipeline;23

    (g) The person who will own the oil pipeline;24

    (h) The person who will manage the oil pipeline;25

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    (i) A plan to comply with the Oil Pipeline Reclamation1

    Act;2

    (j) An emergency response plan;3

    (k) A list of places along the proposed route which would4

    be in proximity to unusually sensitive ground water areas. For5

    purposes of this subdivision, unusually sensitive ground water areas6

    means an area underlain by a ground water resource that is unusually7

    sensitive to damage from an oil pipeline release. Unusually sensitive8

    ground water areas include areas where (i) a Class I aquifer, as9

    defined in 49 C.F.R. 195.6, as such regulation existed on January 1,10

    2011, is used for water supply and (ii) there is not an adequate11

    alternative water source for water users, including users of12

    community water systems, nontransient noncommunity water systems,13

    private irrigation systems, private domestic supply wells, and14

    private livestock watering facilities; and15

    (l) A list of areas in Nebraska that will be designated16

    and operated as High Consequence Areas as defined by the Pipeline17

    Hazardous Materials Safety Administration in 49 C.F.R. 195.450, as18

    such regulation existed on January 1, 2011.19

    (3) The applicant shall publish notice of the application20

    in at least one newspaper of general circulation in each county in21

    which the oil pipeline is to be constructed and forward a copy of22

    such notice to the commission. The applicant shall serve notice of23

    the application upon the governing bodies of the counties and24

    municipalities specified pursuant to subdivision (2)(d) of this25

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    section.1

    Sec. 6. (1) The commission shall assess the expenses2

    reasonably attributable to investigation and hearing regarding an3

    application filed under section 5 of this act, including expenses4

    billed by agencies required to file reports as authorized in5

    subsection (3) of section 7 of this act and both direct and indirect6

    expenses incurred by the commission or its staff or consultants, to7

    the applicant as agreed under section 5 of this act.8

    (2) The commission shall ascertain the expenses of any9

    such investigation and hearing and by order assess such expenses10

    against the applicant and shall render a bill therefor, by United11

    States mail, to the applicant, either at the time the order under12

    section 8 of this act is issued or from time to time during such13

    application process. Such bill shall constitute notice of such14

    assessment and demand of payment thereof. Upon a bill rendered to15

    such applicant, within fifteen days after the mailing thereof, such16

    applicant shall pay to the commission the amount of the assessment17

    for which it is billed. The commission shall remit the payment to the18

    State Treasurer for credit to the Public Service Commission Pipeline19

    Regulation Fund for the use of the commission. The commission may20

    render bills in one fiscal year for costs incurred within a previous21

    fiscal year.22

    (3) If any applicant against which an assessment has been23

    made pursuant to this section, within fifteen days after the notice24

    of such assessment, (a) neglects or refuses to pay the same or (b)25

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    fails to file objections to the assessment with the commission as1

    provided in subsection (4) of this section, the commission shall2

    transmit to the State Treasurer a certified copy of the notice of3

    assessment, together with notice of neglect or refusal to pay the4

    assessment, and on the same day the commission shall mail by5

    registered mail to the applicant against which the assessment has6

    been made a copy of the notice which it has transmitted to the State7

    Treasurer. If any such applicant fails to pay such assessment to the8

    State Treasurer within ten days after receipt of such notice and9

    certified copy of such assessment, the assessment shall bear interest10

    at the rate of fifteen percent per annum from and after the date on11

    which the copy of the notice was mailed by registered mail to such12

    applicant.13

    (4) Within fifteen days after the date of the mailing of14

    any notice of assessment under subsection (2) of this section, the15

    applicant against which such assessment has been made may file with16

    the commission objections setting out in detail the ground upon which17

    the applicant regards such assessment to be excessive, erroneous,18

    unlawful, or invalid. The commission shall determine if the19

    assessment or any part of the assessment is excessive, erroneous,20

    unlawful, or invalid and shall render an order upholding,21

    invalidating, or amending the assessment. An amended assessment shall22

    have in all respects the same force and effect as though it were an23

    original assessment.24

    (5) If any assessment against which objections have been25

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    filed is not paid within ten days after service of an order finding1

    that such objections have been overruled and disallowed by the2

    commission, the commission shall give notice of such delinquency to3

    the State Treasurer and to the applicant in the manner provided for4

    in subsection (3) of this section. The State Treasurer shall then5

    collect the amount of such assessment. If an amended assessment is6

    not paid within ten days after service of the order of the7

    commission, the commission shall notify the State Treasurer and the8

    applicant as in the case of delinquency in the payment of an original9

    assessment. The State Treasurer shall then collect the amount of such10

    assessment as provided in the case of an original assessment.11

    Sec. 7. (1) After receipt of an application under section12

    5 of this act, the commission shall:13

    (a) Schedule a public hearing;14

    (b) Notify the pipeline carrier of the time, place, and15

    purpose of the public hearing;16

    (c) Publish a notice of the time, place, and purpose of17

    the public hearing in at least one newspaper of general circulation18

    in each county in which the oil pipeline is to be constructed; and19

    (d) Serve notice of the public hearing upon the governing20

    bodies of the counties and municipalities through which the proposed21

    route of the oil pipeline would be located as specified in22

    subdivision (2)(d) of section 5 of this act.23

    (2) The commission may hold additional public meetings24

    for the purpose of receiving input from the public at locations as25

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    close as practicable to the proposed route of the oil pipeline. The1

    commission shall make the public input part of the record.2

    (3) The following agencies shall file a report with the3

    commission, prior to the hearing on the application, regarding4

    information within the respective agencies' area of expertise5

    relating to the impact of the proposed oil pipeline on any area6

    within the respective agencies' jurisdiction, including in such7

    report opinions regarding the advisability of granting, denying, or8

    modifying the proposed oil pipeline: The Department of Environmental9

    Quality, the Department of Natural Resources, the Department of10

    Revenue, the Department of Roads, the State Fire Marshal, the Game11

    and Parks Commission, the Nebraska Oil and Gas Conservation12

    Commission, the Nebraska State Historical Society, and the Board of13

    Educational Lands and Funds. The agencies may submit a request for14

    reimbursement of expenses incurred for any consultants hired to15

    comply with this subsection not to exceed XXX thousand dollars.16

    (4) An application under the Oil Pipeline Siting Act17

    shall be granted if the oil pipeline is determined by the Public18

    Service Commission to be in the public interest. The pipeline carrier19

    shall have the burden to establish that the proposed oil pipeline20

    would serve the public interest. In determining whether the pipeline21

    carrier has met its burden, the commission shall evaluate:22

    (a) Whether the pipeline carrier has demonstrated23

    compliance with all applicable state statutes, rules, and regulations24

    and local ordinances;25

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    (b) Evidence regarding the depletion and degradation of1

    beneficial uses of Nebraska's natural resources, including the list2

    of places in proximity to unusually sensitive ground water areas3

    required under subdivision (2)(k) of section 5 of this act and the4

    list of areas designated as High Consequence Areas required under5

    subdivision (2)(l) of section 5 of this act. Risk of degradation or6

    depletion of beneficial uses of natural resources shall be heavily7

    weighted by the commission as against the public interest;8

    (c) Evidence regarding the environmental, economic, and9

    social impacts of the proposed oil pipeline;10

    (d) Evidence regarding the pipeline carrier's efforts to11

    ensure the health, safety, or welfare of the residents of the area12

    along the proposed route of the oil pipeline;13

    (e) The impact of the proposed oil pipeline on the14

    orderly development of the area around the route of the oil pipeline;15

    (f) The reports of the agencies filed pursuant to16

    subsection (3) of this section;17

    (g) The views of the governing bodies of the area around18

    the proposed route of the oil pipeline; and19

    (h) The application and all materials submitted with the20

    application and any other relevant factors as determined by the21

    commission.22

    (5) The restrictions on ex parte communications set forth23

    in sections 75-130.01 and 84-914 shall not apply to proceedings24

    regarding an application under this section.25

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    Sec. 8. (1) Within eight months after the public hearing1

    under section 7 of this act, the commission shall enter an order2

    granting the application for the oil pipeline or denying the3

    application. The order granting the application shall state that the4

    application is in the public interest and shall authorize the5

    pipeline carrier to act under section 57-1101.6

    (2) The commission may, for just cause, extend the time7

    for the entry of an order under subsection (1) of this section, not8

    to exceed eighteen months after the public hearing under section 7 of9

    this act unless all parties agree to a longer extension.10

    (3) If the commission grants the application, the11

    pipeline carrier shall file a status report with the commission12

    regarding the construction of the oil pipeline every six months. The13

    pipeline carrier shall notify the commission of the completion of the14

    oil pipeline within Nebraska within thirty days after such15

    completion.16

    Sec. 9. Any party aggrieved by a decision of the17

    commission regarding an application under the Oil Pipeline Siting Act18

    may appeal. The appeal shall be in accordance with the Administrative19

    Procedure Act.20

    Sec. 10. The Public Service Commission Pipeline21

    Regulation Fund is created. The fund shall be administered by the22

    commission. The fund shall be used by the commission to carry out the23

    Oil Pipeline Siting Act. Any money in the fund available for24

    investment shall be invested by the state investment officer pursuant25

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    to the Nebraska Capital Expansion Act and the Nebraska State Funds1

    Investment Act.2

    Sec. 11. The commission may adopt and promulgate rules3

    and regulations to carry out the Oil Pipeline Siting Act.4

    Sec. 12. The commission may contract for professional5

    services and expert assistance, including, but not limited to, the6

    services of engineers, accountants, attorneys, and economists, to7

    assist with reviewing applications under the Oil Pipeline Siting Act.8

    Sec. 13. Section 57-1101, Reissue Revised Statutes of9

    Nebraska, is amended to read:10

    57-1101 Any person engaged in, and any company,11

    corporation, or association formed or created for the purpose of,12

    transporting or conveying crude oil, petroleum, gases, or other13

    products thereof in interstate commerce through, or across the State14

    of Nebraska, or intrastate within the State of Nebraska, and desiring15

    or requiring a right-of-way or other interest in real estate, and16

    being unable to agree with the owner or lessee of any land, lot,17

    right-of-way, or other property for the amount of compensation for18

    the use and occupancy of so much of any lot, land, real estate,19

    right-of-way, or other property as may be reasonably necessary for20

    the laying, relaying, operation, and maintenance of any such pipeline21

    or the location of any plant or equipment necessary to operate such22

    pipeline, shall have the right to acquire the same for such purpose23

    through the exercise of the power of eminent domain, except that for24

    any oil pipeline as defined in section 4 of this act to be placed in25

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    operation in Nebraska after the effective date of this act, any such1

    person, company, corporation, or association shall apply for and2

    receive an order granting the application under the Oil Pipeline3

    Siting Act prior to having the rights provided under this section.4

    The procedure to condemn property shall be exercised in the manner5

    set forth in sections 76-704 to 76-724.6

    Sec. 14. Section 75-109.01, Reissue Revised Statutes of7

    Nebraska, is amended to read:8

    75-109.01 Except as otherwise specifically provided by9

    law, the Public Service Commission shall have jurisdiction, as10

    prescribed, over the following subjects:11

    (1) Common carriers, generally, pursuant to sections12

    75-101 to 75-158;13

    (2) Grain pursuant to the Grain Dealer Act and the Grain14

    Warehouse Act and sections 89-1,104 to 89-1,108;15

    (3) Manufactured homes and recreational vehicles pursuant16

    to the Uniform Standard Code for Manufactured Homes and Recreational17

    Vehicles;18

    (4) Modular housing units pursuant to the Nebraska19

    Uniform Standards for Modular Housing Units Act;20

    (5) Motor carrier registration and safety pursuant to21

    sections 75-301 to 75-322, 75-369.03, 75-370, and 75-371;22

    (6) Pipeline carriers and rights-of-way pursuant to the23

    Oil Pipeline Siting Act, the State Natural Gas Regulation Act, and24

    sections 75-501 to 75-503. If the provisions of Chapter 75 are25

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    inconsistent with the provisions of the Oil Pipeline Siting Act, the1

    provisions of the Oil Pipeline Siting Act control;2

    (7) Railroad carrier safety pursuant to sections 74-918,3

    74-919, 74-1323, and 75-401 to 75-430;4

    (8) Telecommunications carriers pursuant to the Automatic5

    Dialing-Announcing Devices Act, the Emergency Telephone6

    Communications Systems Act, the Enhanced Wireless 911 Services Act,7

    the Intrastate Pay-Per-Call Regulation Act, the Nebraska8

    Telecommunications Regulation Act, the Nebraska Telecommunications9

    Universal Service Fund Act, the Telecommunications Relay System Act,10

    the Telephone Consumer Slamming Prevention Act, and sections 86-57411

    to 86-580;12

    (9) Transmission lines and rights-of-way pursuant to13

    sections 70-301 and 75-702 to 75-724;14

    (10) Water service pursuant to the Water Service15

    Regulation Act; and16

    (11) Jurisdictional utilities governed by the State17

    Natural Gas Regulation Act. If the provisions of Chapter 75 are18

    inconsistent with the provisions of the State Natural Gas Regulation19

    Act, the provisions of the State Natural Gas Regulation Act control.20

    Sec. 15. Section 75-110.01, Reissue Revised Statutes of21

    Nebraska, is amended to read:22

    75-110.01 A summary of the authority or relief sought in23

    an application or petition shall be set out in the notice given24

    according to the rules the commission shall adopt. After notice of an25

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    application or petition has been given as provided by the rules for1

    notice, the commission may process the application or petition2

    without a hearing by use of affidavits if the application or petition3

    is not opposed. The commission shall not deny an application or4

    petition of a common carrier, pipeline carrier, or jurisdictional5

    utility until after it has either given the applicant a hearing6

    thereon, or received the applicant's affidavits and made them a part7

    of the record.8

    Sec. 16. Section 75-112, Reissue Revised Statutes of9

    Nebraska, is amended to read:10

    75-112 (1) For purposes of carrying out the powers and11

    duties of the commission related to the subjects under its12

    jurisdiction enumerated in section 75-109.01, each commissioner and13

    examiner of the commission may:14

    (a) Administer oaths;15

    (b) Compel the attendance of witnesses;16

    (c) Examine any of the books, papers, documents, and17

    records of any motor carrier or regulated motor carrier as defined in18

    section 75-302 or common, or contract, or pipeline carrier subject to19

    the jurisdiction of the commission under section 75-109.01 or any20

    jurisdictional utility or have such examination made by any person21

    that the commission may employ for that purpose;22

    (d) Compel the production of such books, papers,23

    documents, and records; or24

    (e) Examine under oath or otherwise any officer,25

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    director, agent, or employee of any such carrier or jurisdictional1

    utility or any other person.2

    (2) Any person employed by the commission to examine such3

    books, papers, documents, or records shall produce his or her4

    authority, under the hand and seal of the commission, to make such5

    examination.6

    (3) The commissioners may certify to all official acts of7

    the commission.8

    Sec. 17. Section 75-118, Reissue Revised Statutes of9

    Nebraska, is amended to read:10

    75-118 The commission shall:11

    (1) Fix all necessary rates, charges, and regulations12

    governing and regulating the transportation, storage, or handling of13

    household goods and passengers by any common carrier in Nebraska14

    intrastate commerce;15

    (2) Make all necessary classifications of household goods16

    that may be transported, stored, or handled by any common carrier in17

    Nebraska intrastate commerce, such classifications applying to and18

    being the same for all common carriers;19

    (3) Prevent and correct the unjust discriminations set20

    forth in section 75-126;21

    (4) Enforce all statutes and commission regulations22

    pertaining to rates and, if necessary, institute actions in the23

    appropriate court of any county in which the common carrier involved24

    operates except actions instituted pursuant to sections 75-140 and25

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    75-156 to 75-158. All suits shall be brought and penalties recovered1

    in the name of the state by or under the direction of the Attorney2

    General; and3

    (5) Enforce the Oil Pipeline Siting Act and the State4

    Natural Gas Regulation Act.5

    Sec. 18. Section 75-128, Reissue Revised Statutes of6

    Nebraska, is amended to read:7

    75-128 (1) It is hereby declared to be the policy of the8

    Legislature that all matters presented to the commission be heard and9

    determined without delay. All matters requiring a hearing shall be10

    set for hearing at the earliest practicable date and in no event,11

    except for good cause shown, which showing shall be recited in the12

    order, shall the time fixed for hearing be more than six months after13

    the date of filing of the application, complaint, or petition on14

    which such hearing is to be had. Except in case of an emergency and15

    upon a motion to proceed with less than a quorum made by all parties16

    and supported by a showing of clear and convincing evidence of such17

    emergency and benefit to all parties, a quorum of the commission18

    shall hear all matters set for hearing. Except as otherwise provided19

    in the Oil Pipeline Siting Act or section 75-121 and except for good20

    cause shown, a decision of the commission shall be made and filed21

    within thirty days after completion of the hearing or after22

    submission of affidavits in nonhearing proceedings.23

    (2) In the case of any proceeding upon which a hearing is24

    held, the transcript of testimony shall be prepared and submitted to25

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    the commission prior to entry of an order, except that it shall not1

    be necessary to have prepared prior to a commission decision the2

    transcripts of testimony on hearings involving noncontested3

    proceedings and hearings involving emergency rate applications under4

    section 75-121.5

    (3) For each application, complaint, or petition filed6

    with the commission, except those filed under sections 75-303.01 and7

    75-303.02, the Oil Pipeline Siting Act, or the State Natural Gas8

    Regulation Act, the commission shall charge a filing fee to be9

    determined by the commission, but in an amount not to exceed the sum10

    of five hundred dollars, payable at the time of such filing. The11

    commission shall also charge to persons regulated by the commission,12

    except persons regulated under the Oil Pipeline Siting Act or the13

    State Natural Gas Regulation Act, a hearing fee to be determined by14

    the commission, but in an amount not to exceed the sum of two hundred15

    fifty dollars, for each half day of hearings if the person regulated16

    by the commission files an application, complaint, or petition which17

    necessitates a hearing.18

    (4) For each new tariff filed with the commission, except19

    those filed under sections 75-301 to 75-322, the commission shall20

    charge a fee not to exceed fifty dollars. This subsection does not21

    apply to amendments to existing tariffs.22

    (5) The commission shall remit the fees received to the23

    State Treasurer for credit to the General Fund.24

    Sec. 19. Section 75-129, Reissue Revised Statutes of25

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    Nebraska, is amended to read:1

    75-129 The commission may hold sessions at any place in2

    the state when deemed necessary to facilitate the discharge of its3

    duties and may conduct the hearing and other proceedings provided for4

    in sections 75-101 to 75-801, in the Oil Pipeline Siting Act, in the5

    State Natural Gas Regulation Act, or under any other law of this6

    state at such place or places in the state as may, in the judgment of7

    the commission, be the most convenient and practicable for8

    determining the particular matter before the commission. The9

    commission may hold public meetings as provided in section 7 of this10

    act.11

    Sec. 20. Section 75-130.01, Reissue Revised Statutes of12

    Nebraska, is amended to read:13

    75-130.01 With respect to any matter of fact or law at14

    issue in a contested case and notwithstanding any other provision of15

    law, a member, staff, or agent of the Public Service Commission shall16

    not during the pendency of any contested case heard before the17

    commission have any ex parte communication with any party having an18

    interest in the outcome of the contested case. For purposes of this19

    section, the definitions in section 84-901 shall apply.20

    Notwithstanding subdivision (4)(c) of section 84-901, this section21

    applies to all communications by a party in contested cases under the22

    State Natural Gas Regulation Act, including, but not limited to,23

    general rate filings under section 66-1838. This section shall not24

    apply to proceedings regarding an application under section 7 of this25

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    act.1

    Sec. 21. Section 75-502, Reissue Revised Statutes of2

    Nebraska, is amended to read:3

    75-502 Pipeline carriers which are declared common4

    carriers under section 75-501 and pipeline carriers approved under5

    the Oil Pipeline Siting Act may store, transport, or convey any6

    liquid or gas, or the products thereof, and make reasonable charges7

    therefor, may lay down, construct, maintain, and operate pipelines,8

    tanks, pump stations, connections, fixtures, storage plants, and such9

    machinery, apparatus, devices, and arrangement as may be necessary to10

    operate such pipes or pipelines between different points in this11

    state, and may use and occupy such lands, rights-of-way, easements,12

    franchises, buildings, and structures as may be necessary to13

    construct and maintain them.14

    Sec. 22. Section 84-914, Reissue Revised Statutes of15

    Nebraska, is amended to read:16

    84-914 In contested cases:17

    (1) An agency may admit and give probative effect to18

    evidence which possesses probative value commonly accepted by19

    reasonably prudent persons in the conduct of their affairs and20

    exclude incompetent, irrelevant, immaterial, and unduly repetitious21

    evidence. An agency shall give effect to the rules of privilege22

    recognized by law. Any party to a formal hearing before an agency,23

    from which a decision may be appealed to the courts of this state,24

    may request that the agency be bound by the rules of evidence25

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    applicable in district court by delivering to the agency at least1

    three days prior to the holding of the hearing a written request2

    therefor. Such request shall include the requesting party's agreement3

    to be liable for the payment of costs incurred thereby and upon any4

    appeal or review thereof, including the cost of court reporting5

    services which the requesting party shall procure for the hearing.6

    All costs of a formal hearing shall be paid by the party or parties7

    against whom a final decision is rendered;8

    (2) The hearing officer or a designee, at the request of9

    any party or upon the hearing officer's own motion, may administer10

    oaths and issue subpoenas, discovery orders, and protective orders in11

    accordance with the rules of civil procedure except as may otherwise12

    be prescribed by law. Subpoenas and orders issued under this13

    subsection may be enforced by the district court;14

    (3) All evidence including records and documents in the15

    possession of the agency of which it desires to avail itself shall be16

    offered and made a part of the record in the case. No factual17

    information or evidence other than the record shall be considered in18

    the determination of the case. Documentary evidence may be received19

    in the form of copies or excerpts or incorporated by reference;20

    (4) Every party shall have the right of cross-examination21

    of witnesses who testify and shall have the right to submit rebuttal22

    evidence;23

    (5) An agency may take official notice of cognizable24

    facts and in addition may take official notice of general, technical,25

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    or scientific facts within its specialized knowledge and the rules1

    and regulations adopted and promulgated by such agency. Parties shall2

    be notified either before or during the hearing or by reference in3

    preliminary reports or otherwise of material so noticed. Parties4

    shall be afforded an opportunity to contest facts so noticed. The5

    record shall contain a written record of everything officially6

    noticed. An agency may utilize its experience, technical competence,7

    and specialized knowledge in the evaluation of the evidence presented8

    to it; and9

    (6) Except as otherwise provided in section 7 of this10

    act:11

    (6)(a) No party in a contested case or other person12

    outside the agency having an interest in the contested case shall13

    make or knowingly cause to be made an ex parte communication to the14

    hearing officer or to an agency head or employee who is or may15

    reasonably be expected to be involved in the decisionmaking process16

    of the contested case; .17

    (b) No hearing officer or agency head or employee who is18

    or may reasonably be expected to be involved in the decisionmaking19

    process of the contested case shall make or knowingly cause to be20

    made an ex parte communication to any party in a contested case or21

    other person outside the agency having an interest in the contested22

    case; .23

    (c) No agency head or employee engaged in the24

    investigation or enforcement of a contested case shall make or25

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    knowingly cause to be made an ex parte communication to a hearing1

    officer or agency head or employee who is or may reasonably be2

    expected to be involved in the decisionmaking process of the3

    contested case; .4

    (d) The hearing officer or agency head or employee who is5

    or may reasonably be expected to be involved in the decisionmaking6

    process of the contested case who receives or who makes or knowingly7

    causes to be made an ex parte communication set forth in subdivisions8

    (6)(a) through (c) of this section shall file in the record of the9

    contested case (i) all such written communications, (ii) memoranda10

    stating the substance of all such oral communications, and (iii) all11

    written responses and memoranda stating the substance of all oral12

    responses to all the ex parte communications. The filing shall be13

    made within two working days of the receipt or making of the ex parte14

    communication. Notice of the filing, with an opportunity to respond,15

    shall be given to all parties of record; .16

    (e) The prohibitions of subdivision (6) of this section17

    shall apply beginning at the time notice for hearing is given. An18

    agency may designate an earlier time, but such earlier time shall be19

    required to be set forth in the agency's rules of procedure; and .20

    (f) The prohibitions contained in subdivisions (6)(a) and21

    (b) of this section shall not apply to ex parte communications to or22

    from an elected official. However, the disclosure requirements23

    contained in subdivision (6)(d) of this section shall apply to ex24

    parte communications to or from an elected official.25

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    Sec. 23. If any section in this act or any part of any1

    section is declared invalid or unconstitutional, the declaration2

    shall not affect the validity or constitutionality of the remaining3

    portions.4

    Sec. 24. Original sections 57-1101, 75-109.01, 75-110.01,5

    75-112, 75-118, 75-128, 75-129, 75-130.01, 75-502, and 84-914,6

    Reissue Revised Statutes of Nebraska, are repealed.7

    Sec. 25. Since an emergency exists, this act takes effect8

    when passed and approved according to law.9

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