BILL ANALYSIS



S.B. 315
By: HAYWOOD (HOLZHEAUSER)
February 28, 1995
Committee Report (Unamended)


BACKGROUND

Current law requires all gas wells to be pressure-tested in January
and July of each year.  The Railroad Commission of Texas uses
deliverability tests in its gas proration system to assign
allowables for each well.  Wellhead pressure data is used to set
the allowable production for gas wells, and the results of these
tests supply the necessary information.


PURPOSE

As proposed, S.B. 315 authorizes the Railroad Commission of Texas
to require deliverability and pressure testing of gas wells and to
determine the methods for reporting the tests.


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.


SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 86.141, Natural Resources Code, as
follows:

     Sec.  86.141.  New title: DUTY TO TEST GAS WELLS.  Authorizes
     the Railroad Commission of Texas (commission) to require
     persons producing gas from any gas well to periodically test
     the deliverability and wellhead pressure of each gas well from
     which gas is produced.
     
SECTION 2.  Amends Section 86.142, Natural Resource Code, as
follows:

     Sec.  86.142.  TEST REQUIREMENTS.  Requires a deliverability
     and pressure test of a gas well to be made under uniform and
     recognized methods and under rules prescribed by the
     commission.
     
     SECTION 3.  Amends Section 86.143, Natural Resources Code, as
follows:

     Sec.  86.143.  TEST REPORTS.  (a) Requires verified reports of
     the tests to determine deliverability and pressure to be filed
     with the commission within a certain time period after the
     test period as set by the commission.
     
     Existing Subsection (b) is deleted and Subsection (c) is
     renamed as (b).This Subsection provides that the reports are a public
       record.  Requires the reports to be on file for a period of
       time determined by the commission, and to be open to
       inspection by the public.
       
       SECTION 4.  Effective date: September 1, 1995.

SECTION 5.  Emergency clause.  

SUMMARY OF COMMITTEE ACTION

S.B. 315 was considered by the Energy Resources Committee in a
public hearing on February, 27, 1995. David Garlick of the Railroad
Commission of Texas testified on the bill. No one testified for or
against the bill. A motion to report S.B. 315 to the full house
with the recommendation that it do pass and be printed and be sent
to the Committee on Local and Consent Calendars carried with a vote
of 9 Ayes, 0 Nays, 0 PNV, and 0 Absent.