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