BILL ANALYSIS



S.B. 1438
By: BROWN (HIRSCHI)
April 25, 1995
Committee Report (Unamended)


BACKGROUND

A definition of "marginal gas well" has proven helpful on the
federal government level in establishing incentives for marginal
gas well production.  Currently, Texas statutes do not define
"marginal gas well."


PURPOSE

S.B. 1438 creates the definition for a "marginal gas well."


RULEMAKING AUTHORITY

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


SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 86.091, Natural Resources Code, to
define "marginal gas well," as a well that is incapable of
producing more than 250,000 cubic feet of gas per day under normal
operating conditions.

SECTION 2. Emergency Clause.


SUMMARY OF COMMITTEE ACTION

S.B. 1438 was considered by the Energy Resources Committee in a
public hearing on April 24, 1995. Lindsey Dingmore, Jr., of the
Texas Independent Producers and Royalty Owners Association,
testified in favor of the bill. Brenda Loudermilk of the Railroad
Commission of Texas testified neutrally on the bill. No one
testified against the bill. The bill was left pending.

Later in the same public hearing, S.B. 1438 was laid out on pending
business. The bill was reported favorably without amendment with
the recommendation that it do pass and be printed and be sent to
the Committee on Local and Consent Calendars, by a record vote of
6 ayes, 
0 nays, 0 PNV, and 3 absent.