SRC-HRD H.B. 1178 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1178
By: Holzheauser (Haywood)
Natural Resources
4-29-97
Engrossed


DIGEST 

The 74th Legislature defined a marginal gas well to help provide
production incentives.  A marginal gas well is defined in the Natural
Resources Code as a gas well that is incapable of producing under normal
operating conditions more than 250,000 cubic feet of gas per day.  The
Railroad Commission has proposed to exempt entire fields of marginal gas
wells from production limitations on grounds that there is market demand
for all production from those fields but, by statute, the commission
cannot exempt individual marginal wells that exist in fields with other
wells capable of producing more than 250,000 cubic feet of gas per day.
This bill would give the Railroad Commission the authority to exempt
marginal gas wells from otherwise applicable production limitations if the
wells are located in gas fields without special field rules.
PURPOSE

As proposed, H.B. 1178 gives the Railroad Commission the authority to
exempt marginal gas wells from otherwise applicable production limitations
if the wells are located in gas fields without special field rules.
                                                                          
RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 86.091, Natural Resources Code, to provide that
none of the provisions of this chapter shall require the Railroad
Commission to limit the production from a marginal gas well to a quantity
less than its actual deliverability if the well has certain
characteristics, rather than to limit production from a gas well to a
quantity less than its actual deliverability. 

SECTION 2. Emergency clause.
  Effective date: upon passage.