MBN C.S.H.B. 1178 75(R) BILL ANALYSIS C.S.H.B. 1178 H.B. 1178 4-4-97 Committee Report (Substituted) Introduced BACKGROUND The 74th Legislature defined 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. PURPOSE As proposed, C.S.H.B. 1178 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. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 86.091, Natural Resources Code by changing the commission's requirement to limit production from a gas well with a daily deliverability in excess of 250,000 cubic feet of gas per day if the well is in a field for which special field rules are not in effect. Makes conforming changes. SECTION 2. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1178 replaced the Commission's requirement to limit production from gas wells producing more than 100,000 cubic feet of gas per day unless it is a marginal gas well in a field for which special field rules are not in effect. Makes conforming changes.