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.