Amend SB 862 (House Committee Report version) as follows:
      (1)  Add a new section to the bill, appropriately numbered,
to read as follows:
      SECTION 1.  Section (e), Section 201.057, Tax Code, is
amended to read as follows:
      (e)  The operator of a proposed or existing gas well,
including a gas well that has not been completed, or the operator
of any proposed or existing oil or gas well within a commission
approved co-production project, may apply to the commission for
certification that the well produces or will produce high-cost gas.
Such application, if seeking certification as high-cost gas
according to Subsection (a)(2)(A), may be made at any time <must be
made in writing no later than the 180th day> after the first day of
production. The application may be made but is not required to be
made concurrently with a request for a determination that gas
produced from the well is high-cost natural gas for purposes of the
Natural Gas Policy Act of 1978 (15 U.S.C. Section 3301 et seq.) or
with a request for commission approval of a co-production project.
The commission may require an applicant to provide the commission
with any relevant information required to administer this section.
For purposes of this section, a determination that gas is high-cost
natural gas according to Subsection (a)(2)(A) or a determination
that gas is produced from within a commission approved
co-production project is a certification that the gas is high-cost
gas for purposes of this section, and in that event additional
certification is not required to qualify for the exemption or tax
reduction provided by this section.
      (2)  In SECTION 32 of the bill, on page 23, line 2, delete
the word "An" and substitute in its place the following:
      Notwithstanding any other provision of this section, to
obtain the maximum tax exemption or tax deduction, an
      (3)  In SECTION 32 of the bill, on page 23, line 6, insert a
new sentence between the period and the word "An" to read as
follows:
      If the application is not filed by the applicable deadline,
the tax exemption or tax deduction is reduced by 10 percent for the
period beginning on the 180th day after the first day of production
and ending on the date on which the application is filed with the
comptroller.