1-1 By: Earley (Senate Sponsor - Sims) H.B. No. 1739
1-2 (In the Senate - Received from the House May 5, 1993;
1-3 May 6, 1993, read first time and referred to Committee on Natural
1-4 Resources; May 25, 1993, reported favorably by the following vote:
1-5 Yeas 6, Nays 0; May 25, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Sims x
1-9 Truan x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Brown x
1-14 Carriker x
1-15 Lucio x
1-16 Montford x
1-17 Ratliff x
1-18 Shelley x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to the measurement of gas produced from certain wells.
1-22 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-23 SECTION 1. Section 88.052, Natural Resources Code, is
1-24 amended to read as follows:
1-25 Sec. 88.052. PROHIBITED PASSAGE FROM CONTROL OF PRODUCER
1-26 WITHOUT MEASUREMENT AND RECORD OF AMOUNT; EXCEPTION FOR MARGINAL
1-27 GAS PRODUCTION. (a) Except as provided by Subsection (b) of this
1-28 section, no <No> person owning, leasing, operating, or controlling
1-29 an oil property in this state may permit the oil or gas produced to
1-30 pass beyond the possession or control of that person to the
1-31 possession or control of any other person without first accurately
1-32 measuring the amount of the oil or gas and making and preserving an
1-33 accurate record of the amount.
1-34 (b) A person is not required to measure the amount of a
1-35 well's gas production, unless otherwise required by commission rule
1-36 or order, if:
1-37 (1) the well produces less than 20,000 cubic feet of
1-38 gas in a day;
1-39 (2) the gas is not commingled with production from
1-40 different fields unless the commission has granted commingling
1-41 authority;
1-42 (3) for an oil well, the commission does not permit
1-43 the well's gas production to be measured on a lease basis;
1-44 (4) all affected parties, including any well operator,
1-45 royalty owner, or pipeline operator, agree in writing to the
1-46 management of production and transfer of possession or control
1-47 under estimates of production as provided by Subsection (c) of this
1-48 section.
1-49 (c) The commission by rule shall require the operator of a
1-50 well for which the accurate measurement of gas production is not
1-51 required to submit to the commission an estimate of the well's gas
1-52 production for each month's operation. The commission annually
1-53 shall verify or review the estimates.
1-54 SECTION 2. This Act takes effect September 1, 1993.
1-55 SECTION 3. The importance of this legislation and the
1-56 crowded condition of the calendars in both houses create an
1-57 emergency and an imperative public necessity that the
1-58 constitutional rule requiring bills to be read on three several
1-59 days in each house be suspended, and this rule is hereby suspended.
1-60 * * * * *
1-61 Austin,
1-62 Texas
1-63 May 25, 1993
1-64 Hon. Bob Bullock
1-65 President of the Senate
1-66 Sir:
1-67 We, your Committee on Natural Resources to which was referred H.B.
1-68 No. 1739, have had the same under consideration, and I am
2-1 instructed to report it back to the Senate with the recommendation
2-2 that it do pass and be printed.
2-3 Sims,
2-4 Chairman
2-5 * * * * *
2-6 WITNESSES
2-7 No witnesses appeared on H.B. No. 1739.