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.