BILL ANALYSIS


                                                    C.S.S.B. 1551
                                                      By: Haywood
                                                Natural Resources
                                                          4-15-95
                                   Committee Report (Substituted)
BACKGROUND

Gas and oil production within the Boonesville area of Wise County
results from many small, individual producing zones, or lenses,
throughout the area.  Disputes in the late 1970s and early 1980s
concerning the development of the Boonesville area resulted in the
severe restriction of the authority of the Railroad Commission of
Texas to regulate the area; consequently, Boonesville is the only
area of the state where gas and oil production is regulated by
statute rather than the Railroad Commission.

PURPOSE

As proposed, C.S.S.B. 1551 repeals certain provisions of the
Natural Resources Code that limit the Railroad Commission's
authority to regulate production of oil and gas from multiple
stratigraphic oil and gas reservoirs.

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 Sections 85.053(b), Natural Resources Code, as
follows:

     Sec. 85.053.  (b) Authorizes the Railroad Commission of Texas
     to distribute, prorate, apportion, or allocate the production
     of oil or gas from pools of certain commingled separate
     accumulations of oil or gas, or oil and gas.
     
     (i) Redesignates existing Subdivision (ii).  Deletes
       existing Subdivision (i) prohibiting the commingling and
       distribution, proration, apportionment, or allocation of
       certain separate accumulations from expanding, adding to, or
       extending the vertical or areal extent of any single pool as
       a provision to the authority granted under this subsection.
       
       (ii) Redesignates existing Subdivision (iii).  Deletes
       existing Subdivision (iv) prohibiting any gas well in any
       field under former Subdivision (i) where commingled separate
       accumulations of gas are being prorated from being assigned
       an allowable in excess of its production during a certain
       production period as a provision to the authority granted
       under this subsection.
     SECTION 2.     Amends Section 85.055(d), Natural Resources Code, to
make conforming and nonsubstantive changes.

SECTION 3. Amends Section 86.081(b), Natural Resources Code, to
make conforming changes.

SECTION 4. Emergency clause.
           Effective date: upon passage.