MBN S.B. 1487 75(R)BILL ANALYSIS ENERGY RESOURCES S.B. 1487 By: Bivins (Torres) 4-22-97 Committee Report (Unamended) BACKGROUND In 1975, the Texas Legislature enacted a law in response to the energy crisis requiring that before a sale of natural gas or casinghead gas is made for use outside the state, the Railroad Commission must find, after notice and a hearing, that no person, agency entity, private or public school, facility of the state, county, municipality, or other political subdivision, or producer of food and fibre requires this gas to meet their needs. This bill removes an unnecessary regulatory burden on the interstate sale of Texas natural gas. If challenged, the current provisions will probably be declared unconstitutional as an unfair burden on interstate commerce. PURPOSE To repeal Sections 52.291- 52.294, and 52.296 of the Texas Natural Resources Code, requiring that the Texas Railroad Commission find, after notice and a hearing, that no person, agency, entity, private or public school, facility, of the state, county, municipality, or other political subdivision, or producer of food and fibre requires Texas natural gas to meet their needs before it is sold outside the state. 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. Repeals Sections 52.291, 52.292, 52.293, 52.294, and 52.296 of the Natural Resources Code. SECTION 2. States that the terms of any oil and gas lease executed before the effective date of this Act that impose the requirements of Sections 52.291 through 52.294 and 52.296, Natural Resources Code, are null and void. SECTION 3. Effective date. September 1, 1997. SECTION 4. Emergency Clause.