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.