(a) Authority. As permitted by Texas Civil Statutes, Article 6447n, the Commission authorizes payment of regulatory fees, fines, penalties, and charges for goods and services by means of an electronic payment method or a credit card issued by a financial institution chartered by a state or the United States or issued by a nationally recognized credit organization approved by the Commission. Payment by an authorized method may be made in person, by telephone, or through the Internet. A person who makes a payment to the Commission by means of an electronic payment method or credit card shall pay a convenience fee in an amount reasonable and necessary to reimburse the Commission for the costs involved in processing the payment.
(b) Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.
  (1) Commission--The Railroad Commission of Texas.
  (2) Convenience fees--An additional charge by the Commission collected from the payer to cover the cost of credit card merchant fees, Internet transactions, and/or other charges associated with non-cash payments.
  (3) Electronic payment--Non-cash payment made to the Commission over the Internet or otherwise.
  (4) Electronic processing--The required use of an electronic processing system owned by financial institution chartered by a state or the United States or issued by a nationally recognized credit organization approved by the Commission to make a payment to the Commission.
  (5) Merchant fees--Charges by a third party to the Commission for the electronic processing of non-cash payments, which can include both flat fees and charges based on a percentage of the total payment amount.
  (6) Non-cash payments--The use of credit cards, debit cards, charge cards, or other payment methods offered by a financial institution chartered by a state or the United States or issued by a nationally recognized credit organization approved by the Commission.
  (7) Payments--Regulatory fees, fines, penalties, and charges for goods and services paid to the Commission.
  (8) Payer--Any entity making a payment to the Commission.
  (9) Refunds--Payments returned by the Commission to the payer.
  (10) Transaction fees--Charges incurred by the Commission to cover the cost of processing debit card, credit card, Internet, and other non-cash transactions. These include the charges incurred by the Commission for Texas Online Internet payment processing services.
(c) Explanation of how the Commission charges convenience fees.
  (1) General. The Commission will assess convenience fees on a per-transaction basis in an amount that will cover the cost of the transaction fee paid by the Commission for electronic payment processing services, including but not limited to the transaction cost incurred by the Commission through the use of Texas Online Internet payment services. Payers shall pay convenience fees when they make payment to the Commission using any payment method that requires electronic processing. The Commission will refund convenience fees using the same electronic processing system used to make the payment.
  (2) Examples. The fact situations in subparagraphs (A) through (C) of this paragraph illustrate the Commission's interpretation and application of Texas Civil Statutes, Article 6447n, and demonstrate how the Commission will calculate the amount of any convenience fee that may be due. The fact situations in subparagraphs (A) through (C) of this paragraph are illustrative only.
    (A) Customer #1 pays for a drilling permit application over the Internet using a credit card or a debit card through the Texas Online payment portal services. Customer #1 also pays a convenience fee that includes merchant fees and a $2.00 per transaction charge for using Texas Online Internet processing services.
    (B) Customer #2 pays for a drilling permit application in person using a credit card or a debit card. Customer #2 also pays a convenience fee that includes merchant fees only.
    (C) Customer #3 pays for a drilling permit application by writing a check. Customer # 3 pays no convenience fees.

Source Note: The provisions of this §20.501 adopted to be effective October 22, 2001, 26 TexReg 8344