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.