SRC-SLL C.S.S.B. 632 75(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 632
By: Brown
Natural Resources
2-28-97
Committee Report (Substituted)


DIGEST 

Currently, the Railroad Commission has the authority to require
reclamation plant and commercial disposal facility operators (operators),
to ensure that these plants are properly operated and closed, to show
evidence of financial responsibility by submitting a bond or letter of
credit in the amount of $100,000, or a lesser amount if the operator shows
that the lesser amount will be sufficient to properly operate and close
the facility.  However, these bonds and letters of credit have been
difficult, if not impossible, for many of these operators to obtain.  This
bill will provide for the payment of a nonrefundable annual fee in lieu of
a bond or other form of financial security of a person applying for or
acting under a Railroad Commission permit to store, handle, treat,
reclaim, or dispose of oil and gas waste. 

PURPOSE

As proposed, C.S.S.B. 632 provides for the payment of a nonrefundable
annual fee in lieu of a bond or other form of financial security of a
person applying for or acting under a Railroad Commission permit to store,
handle, treat, reclaim, or dispose of oil and gas waste. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 91.109, Texas Natural Resources Code, to
authorize the Railroad Commission (commission), in lieu of a bond or
another form of financial security, to allow a person to pay to the
commission a nonrefundable annual fee in an amount determined by the
commission not to exceed five percent of the bond that would otherwise be
required. 

SECTION 2. Amends Section 91.1091, Texas Natural Resources Code, to
require the commission, except as provided by Subsection (b), to refund
the proceeds from a bond or other fund of security required by this
subchapter in certain circumstances.  Prohibits the commission from
refunding fees paid to the commission in lieu of a bond under this
subchapter. 

SECTION 3. Amends Section 91.111(c), Texas Natural Resources Code, to
provide that the OilField Cleanup Fund consists, among others, of fees
collected under Section 91.109 of this code. 

SECTION 4. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 5. Emergency clause. 

SUMMARY OF COMMITTEE CHANGES

Amends SECTION 1, Section 91.109, Natural Resources Code, previously
designated as proposed SECTION 2, to authorize the commission to determine
the amount of the annual fee, but it is not to exceed five percent of the
bond that would otherwise be required. 

Amends SECTION 2, Section 91.1091, Natural Resources Code, previously
designated as proposed  SECTION 3, to require the commission, except as
provided by Subsection (b), to refund certain proceeds from a bond or
other form of security.  Prohibits the commission from refunding fees paid
in lieu of a bond.  Makes a conforming change. 

Amends SECTION 3, Section 91.111(c), Natural Resources Code, previously
designated as SECTION 1. 

Amends SECTION 4, to provide that the effective date is September 1, 1997,
and make application of this Act prospective.  Deletes emergency clause. 

Adds SECTION 5, to invoke the emergency clause.