LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 6, 1995



 TO:     Honorable Steve Holzheauser, Chair     IN RE:  House Bill No. 1407
         Committee on Energy Resources                  By: Holzheauser
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1407 (Relating to applications for oil and gas permits and
revocation of permits, certificates of compliance and
organization reports filed with the Railroad Commission.) this
office has determined the following:

The bill would expand the types of permits and authorizations
which the Railroad Commission is prohibited from issuing if an
organization has violated commission safety or pollution
prevention/control rules. This extension of the prohibition would
include certain permits and certificates of compliance under the
Natural Resources Code and the Water Code.  The bill would also
allow the commission to revoke certain permits or certificates if
violations are discovered, provided the violator is granted a
reasonable compliance period.  Several factors, including history
of previous violations, seriousness of the violation,  hazard to
public health and safety, and any good faith efforts could be
considered in determining revocation.

Although some costs would be anticipated in administering the
provisions of this bill, with a general system already in place
to prohibit permit issuance to violators, the agency indicates
that any new requirements could be absorbed within current budget
levels.


No fiscal implication to the State or units of local government
is anticipated.    




Source:   Railroad Commission
          LBB Staff: JK, KW, DF