LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 6, 1995



 TO:     Honorable Bill Sims, Chair             IN RE:  Senate BillNo. 1356
         Committee on Natural Resources                 By: Haywood
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1356 (Relating to the commingling of oil and gas production.)
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 amends the Natural Resources Code to allow an oil or gas
operator to obtain a downhole co-mingling permit by
administrative approval from the Railroad Commission (RRC).
    
The RRC would be allowed to administratively grant a co-mingling
permit based upon current rules and procedures.

Currently operators must go through a formal hearing process to
obtain a co-mingling permit.

Because the bill would not affect the price or production levels
of natural gas or crude oil, there would be no fiscal impact on
local or state tax receipts.


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




Source:   Comptroller of Public Accounts, Railroad Commission    




          LBB Staff: JK, CT, DF