By Craddick                                           H.B. No. 1237
       74R5719 DAK-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to certain credits against severance taxes for the use of
    1-3  3-D seismic technology.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter B, Chapter 201, Tax Code, is amended
    1-6  by adding Section 201.058 to read as follows:
    1-7        Sec. 201.058.  TAX CREDIT:  THREE-DIMENSIONAL SEISMIC
    1-8  TECHNOLOGY.  (a)  In this section, "three-dimensional seismic
    1-9  survey" means a seismic survey using three-dimensional seismic data
   1-10  that is regularly organized in three orthogonal directions and is
   1-11  suitable for integration with a computer program capable of
   1-12  processing three-dimensional data.
   1-13        (b)  A producer of gas from a rank wildcat well discovered as
   1-14  a result of a three-dimensional seismic survey is entitled to a
   1-15  credit against the tax imposed by this chapter on the production in
   1-16  an amount that does not exceed the cost to the producer of the
   1-17  three-dimensional seismic survey used by the producer in the
   1-18  discovery of the well.
   1-19        (c)  A producer of gas recovered from an existing production
   1-20  field as a result of a three-dimensional seismic survey is entitled
   1-21  to a credit against the tax imposed by this chapter on the
   1-22  production in an amount that does not exceed the cost to the
   1-23  producer of the three-dimensional seismic survey used by the
   1-24  producer to obtain the incremental recovery.
    2-1        (d)  To receive the tax credit under Subsection (b), a
    2-2  producer must provide to the Railroad Commission of Texas:
    2-3              (1)  a copy of the three-dimensional seismic survey
    2-4  used in the discovery of the well; and
    2-5              (2)  if the producer is not the sole owner of the
    2-6  survey, the written consent of all of the co-owners of the survey
    2-7  to release a copy of the survey to the commission.
    2-8        SECTION 2.  Subchapter B, Chapter 202, Tax Code, is amended
    2-9  by adding Section 202.057 to read as follows:
   2-10        Sec. 202.057.  TAX CREDIT:  THREE-DIMENSIONAL SEISMIC
   2-11  TECHNOLOGY.  (a)  In this section, "three-dimensional seismic
   2-12  survey" means a seismic survey using three-dimensional seismic data
   2-13  that is regularly organized in three orthogonal directions and is
   2-14  suitable for integration with a computer program capable of
   2-15  processing three-dimensional data.
   2-16        (b)  A producer of oil from a rank wildcat well discovered as
   2-17  a result of a three-dimensional seismic survey is entitled to a
   2-18  credit against the tax imposed by this chapter on the production in
   2-19  an amount that does not exceed the cost to the producer of the
   2-20  three-dimensional seismic survey used by the producer in the
   2-21  discovery of the well.
   2-22        (c)  A producer of oil recovered from an existing production
   2-23  field as a result of a three-dimensional seismic survey is entitled
   2-24  to a credit against the tax imposed by this chapter on the
   2-25  production in an amount that does not exceed the cost to the
   2-26  producer of the three-dimensional seismic survey used by the
   2-27  producer to obtain the incremental recovery.
    3-1        (d)  To receive the tax credit under Subsection (b), a
    3-2  producer must provide to the Railroad Commission of Texas:
    3-3              (1)  a copy of the three-dimensional seismic survey
    3-4  used in the discovery of the well; and
    3-5              (2)  if the producer is not the sole owner of the
    3-6  survey, the written consent of all of the co-owners of the survey
    3-7  to release a copy of the survey to the commission.
    3-8        SECTION 3.  This Act takes effect September 1, 1995.
    3-9        SECTION 4.  The importance of this legislation and the
   3-10  crowded condition of the calendars in both houses create an
   3-11  emergency and an imperative public necessity that the
   3-12  constitutional rule requiring bills to be read on three several
   3-13  days in each house be suspended, and this rule is hereby suspended.