LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 5, 1995 TO: Honorable Tom Craddick, Chair IN RE: House Bill No. 676 Committee on Ways & Means By: Craddick House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 676 (Relating to exempting from severance taxation certain hydrocarbons, including condensate, produced from certain previously inactive oil and gas wells.) this office has determined the following: The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would continue for two more years the oil and gas severance tax exemption for wells that have been inactive for three years. Production from such wells would be exempted from severance taxes for ten years. The bill would extend the tax exemption to include condensate produced from qualifying wells after September 1, 1995. No fiscal implication to units of local government is anticipated. No significant fiscal implication to the State is anticipated. Source: Comptroller of Public Accounts, Railroad Commission LBB Staff: JK, CT, DF