MBN C.S.H.B. 1999 75(R)BILL ANALYSIS


ENERGY RESOURCES
C.S.H.B. 1999
By: Merritt
3-26-97
Committee Report (Substituted)



BACKGROUND

Under the Texas Experimental Resource and Recovery Activity (TERRA)
program, enacted in 1995, the Railroad Commission may place mechanically
sound non-polluting wells into TERRA, where they will remain until placed
back into active service or plugged by the Commission.  The Commission has
determined that abandoned equipment at TERRA wellsites should be removed.
Abandoned pumpjacks, tanks, motors, etc., could be stolen or cause injury,
or be a source of pollution of the surface.  TERRA wells should also have
clean well bores, meaning that rods, tubing, pumps, etc., should not be
allowed to remain in the well where they deteriorate over time, making it
more difficult and expensive to return the well to active service or to
plug it.  Under current law the Commission has no authority to dispose of
this wellsite equipment, just as it is authorized to do under Chapter 89,
Natural Resources Code, for wells which are plugged with State funds by
the Commission.  The existing Chapter 89 provisions allowing persons with
an ownership interest in the wellsite equipment to file claims for the
proceeds from the sale of salvaged equipment will be applicable to
equipment disposed of under this bill. 

PURPOSE

As proposed, the bill authorizes equipment found at the site of a well
which was placed in TERRA by the Commission to be disposed of and sold
under the provisions of Texas Natural Resources Code, Chapter 89. 

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 93.013, Texas Natural Resources Code, by adding
subsection (g), allowing the Commission to dispose of wellsite equipment
found at wells placed in TERRA under the existing provisions of Chapter
89, Texas Natural Resources Code. 

SECTION 2.  Emergency clause.
            Effective date:  90 days after adjournment.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1999 is a Legislative Council draft.  There are no substantive
changes.