BILL ANALYSIS S.B. 1356 By: Haywood Natural Resources 04-10-95 Committee Report (Unamended) BACKGROUND Downhole commingling is a production method used by operators to reduce expenses and increase total recovery from wells. Commingling extends the productive life of wells and leases and results in more taxes and revenue from the property. This practice reduces the economic abandonment of wells due to economic reasons. Current law authorizes the approval of downhole applications after notice has been given to others and a hearing has taken place. PURPOSE As proposed, S.B. 1356 authorizes the Railroad Commission of Texas to permit production by commingling oil or gas, or both, after notice and opportunity for hearing. 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 85.046(b), Natural Resources Code, to authorize the Railroad Commission of Texas to permit production by commingling oil or gas or both from multiple stratigraphic or lenticular accumulations where the commission, after notice and opportunity for hearing, has found that producing gas or oil, or both, in a commingled state will prevent waste, promote conservation, or protect correlative rights. SECTION 2. Amends Section 86.012(b), Natural Resources Code, to make a conforming change. SECTION 9. Effective date: September 1, 1995. SECTION 10. Emergency clause.