By Earley H.B. No. 1085
Substitute the following for H.B. No. 1085:
By Craddick C.S.H.B. No. 1085
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the qualification of oil from new or expanded enhanced
1-3 oil recovery projects for special tax rates.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 202.054(b), Tax Code, is amended to read
1-6 as follows:
1-7 (b) Oil produced from a tertiary recovery project, or from a
1-8 secondary recovery project for which an application for approval
1-9 under this section is filed with the commission before January 1,
1-10 1994, <an enhanced recovery project> qualifies for the recovered
1-11 oil tax rate if, before the project begins active operation, the
1-12 commission approves the project and designates the area to be
1-13 affected by the project. The incremental production from a
1-14 secondary recovery project for which an application for approval
1-15 under this section is filed with the commission on or after January
1-16 1, 1994, qualifies for the recovered oil tax rate if, before the
1-17 project begins active operation, the commission approves the
1-18 project and designates the area to be affected by the project. The
1-19 incremental production from an expanded enhanced recovery project
1-20 qualifies for the recovered oil tax rate if, before the expansion
1-21 begins, the commission approves the expansion and designates the
1-22 area to be affected by the expansion. The operator of a proposed
1-23 project or a proposed expansion may apply to the commission for
1-24 approval of the project or expansion under this section. The
2-1 commission may require an applicant to provide the commission with
2-2 any relevant information required to administer this section. If
2-3 approval by the commission of a unitization agreement under
2-4 Subchapter B, Chapter 101, Natural Resources Code, is required for
2-5 purposes of carrying out the project or expansion, the commission
2-6 may not approve the project or expansion unless it approves the
2-7 unitization agreement. A person may apply for approval of a
2-8 proposed enhanced recovery project or a proposed expansion under
2-9 this subsection concurrently with the application for approval of a
2-10 unitization agreement for purposes of carrying out the enhanced
2-11 recovery project or expansion under Section 101.011, Natural
2-12 Resources Code, or with an application for certification of the
2-13 project or expansion as a tertiary recovery project for purposes of
2-14 Section 4993, Internal Revenue Code of 1986, or may make a separate
2-15 application for approval.
2-16 SECTION 2. Section 202.054(c), Tax Code, is amended to read
2-17 as follows:
2-18 (c) This section applies to an enhanced recovery project
2-19 that begins active operation on or after September 1, 1989, and to
2-20 an expansion that the commission approves on or after September 1,
2-21 1991. An application for approval under this section must be filed
2-22 on or after September 1, 1989, and before January 1, 1998 <1994>,
2-23 for a new enhanced recovery project. An application for approval
2-24 under this section must be filed on or before September 1, 1991,
2-25 and before January 1, 1998 <1994>, for an expansion of an existing
2-26 enhanced recovery project. A project may not qualify as an
2-27 expansion if the project has qualified as a new enhanced recovery
3-1 project under this section. An application may be filed on or
3-2 after September 1, 1989, even if a separate application for
3-3 approval of the project or expansion has already been filed under
3-4 Subchapter B, Chapter 101, Natural Resources Code, or for approval
3-5 as a tertiary recovery project for purposes of Section 4993,
3-6 Internal Revenue Code of 1986, if the operation of a new project or
3-7 the expansion of an existing project does not begin before the
3-8 application for approval under this section is approved by the
3-9 commission.
3-10 SECTION 3. Section 202.054(e), Tax Code, is amended to read
3-11 as follows:
3-12 (e) The recovered oil tax rate applies only to that oil
3-13 production, from the area the commission certifies to be affected
3-14 by the project, which is:
3-15 (1) oil produced from a tertiary recovery project, or
3-16 from a secondary recovery project for which an application for
3-17 approval under this section is filed with the commission before
3-18 January 1, 1994;
3-19 (2) the incremental production from a secondary
3-20 recovery project for which an application for approval under this
3-21 section is filed with the commission on or after January 1, 1994;
3-22 or
3-23 (3) <oil produced from a new enhanced oil recovery
3-24 project or> the incremental production caused by the expansion of
3-25 an existing enhanced recovery project <from the area the commission
3-26 certifies to be affected by the project>.
3-27 SECTION 4. This Act takes effect September 1, 1993.
4-1 SECTION 5. The importance of this legislation and the
4-2 crowded condition of the calendars in both houses create an
4-3 emergency and an imperative public necessity that the
4-4 constitutional rule requiring bills to be read on three several
4-5 days in each house be suspended, and this rule is hereby suspended.