MBN H.B. 3490 75(R)BILL ANALYSIS ENERGY RESOURCES H.B. 3490 By: Holzheauser 4-3-97 Committee Report (Unamended) BACKGROUND The Texas Experimental Research and Recovery Activity program (TERRA) was first adopted during the 74th legislative session. This program is designed to protect environmentally sound inactive wells from well plugging so that they can resume beneficial production in the future. PURPOSE As proposed, H.B. 3490 would make adjustments in the TERRA program to address certain problems which have arisen since its enactment. 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 93.004 of the Natural Resources Code to clarify that salvage money earned in well plugging may be transferred into the TERRA fund on or after January first of each year. States that if the balance in the TERRA fund becomes two times as much as is required to plug the wells in the program, then the funds in excess of the double balance may be used by the Commission for general purposes. Makes conforming changes. SECTION 2. Amends Section 93.011 of the Natural Resources Code to allow wells to be added to TERRA without a TERRA agreement with the mineral interest owners, but the well may not be licensed by the Commission for any use by others, unless the mineral interest owners execute a TERRA agreement. SECTION 3. Effective date: September 1, 1997. SECTION 4. Emergency Clause.