SRC-SLL S.B. 988 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 988
By: Brown
Natural Resources
3-19-97
As Filed


DIGEST 

Currently, crude oil production is reported for severance tax purposes at
the county level.  However, this has proved inadequate.  The current
system of county-level data cannot capture the relationship between buyers
and sellers, which leaveS the State Comptroller's Office without a means
to document the price paid for oil at the point of sale.  Natural gas is
reported aT the individual lease level, the level at which all primary
business records are kept.  Lease level reporting would provide the data
needed for market-level analysis and pre-audit analysis.  This bill will
require records and reports from certain producers and purchasers of oil
to be at the lease level. 

PURPOSE

As proposed, S.B. 988 requires records and reports from certain producers
and purchasers of oil to be at the lease level. 

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 Sections 202.101 and 202.102, Tax Code, to delete a
provision requiring a producer to keep a record of counties in which and
the names of leases from which a producer produces oil.  Makes conforming
changes. 

SECTION 2. Amends Section 202.201(a), Tax Code, to make conforming changes.

SECTION 3. Amends Section 202.202(a), Tax Code, to make conforming changes.

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

SECTION 5. Emergency clause.