By Lucio S.B. No. 458
74R3465 CBH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to an exemption from the gas production tax for certain
1-3 high-cost gas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 201.057(b) and (d), Tax Code, are
1-6 amended to read as follows:
1-7 (b) High-cost gas as defined in Subsection (a)(2)(A) of this
1-8 section produced from a well that is spudded or completed between
1-9 May 24, 1989, and September 1, 1996, is exempt from the tax imposed
1-10 by this chapter during the period beginning September 1, 1991, and
1-11 ending August 31, 2001. High-cost gas as defined in Subsection
1-12 (a)(2)(A) of this section produced from a well that is spudded or
1-13 completed after September 1, 1996, but before August 31, 2002, is
1-14 exempt from the tax imposed by this chapter during the period
1-15 beginning September 1, 1996, and ending August 31, 2007. High-cost
1-16 gas as defined in Subsection (a)(2)(B) of this section produced
1-17 from any well regardless of spud date or completion date is
1-18 eligible for refunds of tax paid and exemption from the tax imposed
1-19 by this chapter for production occurring during the period
1-20 beginning the first day of the month after commission approval of a
1-21 co-production project and ending August 31, 2001; provided,
1-22 however, in the event co-production ceases, the exemption shall
1-23 also cease on the first day of the first calendar month that begins
1-24 on or after the 91st day following the date of termination of
2-1 co-production operations. Tax must be paid when due at the rate
2-2 provided in Section 201.052 of this code for all high-cost gas, as
2-3 defined in Subsection (a)(2)(B) of this section, produced on or
2-4 before July 31, 1995. On or after September 1, 1995, the operator
2-5 may apply to the comptroller for a refund and shall be entitled to
2-6 receive a refund of all taxes paid on such high-cost gas produced
2-7 on or after the first day of the calendar month after commission
2-8 approval of the co-production project from which such gas was
2-9 produced and that is otherwise eligible for the tax exemption.
2-10 (d) To qualify for the exemption provided by this section,
2-11 the person responsible for paying the tax must apply to the
2-12 comptroller. The application must contain the certification of
2-13 the commission that the well produces high-cost gas. An
2-14 application may not be filed before January 1, 1990, or after
2-15 December 31, 2004 <1998>. The comptroller shall approve the
2-16 application of a person who demonstrates that the gas is eligible
2-17 for the exemption. The comptroller may require a person applying
2-18 for the exemption to provide any relevant information in the
2-19 person's monthly report that the comptroller considers necessary to
2-20 administer this section. The commission shall notify the
2-21 comptroller in writing immediately if it determines that an oil or
2-22 gas well previously certified as producing high-cost gas does not
2-23 produce high-cost gas or if it takes any action or discovers any
2-24 information that affects the eligibility of gas for an exemption
2-25 under this section.
2-26 SECTION 2. This Act takes effect September 1, 1995.
2-27 SECTION 3. The importance of this legislation and the
3-1 crowded condition of the calendars in both houses create an
3-2 emergency and an imperative public necessity that the
3-3 constitutional rule requiring bills to be read on three several
3-4 days in each house be suspended, and this rule is hereby suspended.