1-1     By:  Holzheauser (Senate Sponsor - Bivins)            H.B. No. 3490

 1-2           (In the Senate - Received from the House April 17, 1997;

 1-3     April 18, 1997, read first time and referred to Committee on

 1-4     Natural Resources; April 28, 1997, reported favorably, as amended,

 1-5     by the following vote:  Yeas 9, Nays 0; April 28, 1997, sent to

 1-6     printer.)

 1-7     COMMITTEE AMENDMENT NO. 1                                By:  Odgen

 1-8     Amend H.B. No. 3490 as follows:

 1-9           (1)  Add a new SECTION 3 to the bill by amending Section

1-10     93.042, Natural Resources Code to read as follows and renumber

1-11     subsequent sections of the bill appropriately:

1-12           The commission, while a well is in the TERRA program, shall

1-13     assume all well plugging duties for the well and, with the

1-14     exception of the compliance requirements of a valid TERRA license

1-15     holder, all pollution prevention and control responsibilities.  The

1-16     commission shall conduct annual inspections and appropriate tests

1-17     to ensure the continuing integrity of the wellbore.  The commission

1-18     shall keep and retain the necessary records to prove compliance

1-19     with this requirement.

1-20                            A BILL TO BE ENTITLED

1-21                                   AN ACT

1-22     relating to the Texas Experimental Research and Recovery Activity

1-23     (TERRA) of the Railroad Commission of Texas.

1-24           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-25           SECTION 1.  Section 93.004, Natural Resources Code, is

1-26     amended to read as follows:

1-27           Sec. 93.004.  TERRA FUND; CERTIFICATION.  (a)  The TERRA fund

1-28     is created in the state treasury.

1-29           (b)  The commission shall send to the comptroller, or notify

1-30     the comptroller of the amounts of money to be transferred, for

1-31     credit to the TERRA fund:

1-32                 (1)  license fees collected under Section 93.033;

1-33                 (2)  money from the oil-field cleanup fund as provided

1-34     by Section 93.013(c);

1-35                 (3)  payments received under Section 93.013(a)(8);

1-36                 (4)  payments received under Sections 93.036 and

1-37     93.052;

1-38                 (5)  [on January 1 of each year, an amount from the

1-39     oil-field cleanup fund equal to the total money received by that

1-40     fund from the sale of salvaged equipment under Sections 89.085(d)

1-41     and 91.115(f), less the total money paid out to claimants under

1-42     Section 89.086, during the previous fiscal year;]

1-43                 [(6)]  private contributions or grants; and

1-44                 (6) [(7)]  any other money as provided by this chapter.

1-45           (c)  On or after January 1 of each year, the commission may

1-46     notify the comptroller to transfer, for the credit of the TERRA

1-47     fund, an amount from the oil-field cleanup fund equal to the total

1-48     money received by that fund from the sale of salvaged equipment

1-49     under Sections 89.085(d) and 91.115(f), less the total money paid

1-50     to claimants under Section 89.086 during the previous fiscal year.

1-51           (d)  Interest earned on the TERRA fund shall be credited to

1-52     the fund.

1-53           (e) [(d)]  Money in the TERRA fund may be used by the

1-54     commission only for:

1-55                 (1)  the purposes of TERRA, including administrative

1-56     costs; and

1-57                 (2)  administrative and program costs of the commission

1-58     relating to its oil and gas activities, including those under

1-59     Subchapter M, Chapter 91.

1-60           (f)  If the TERRA fund balance is less than twice the

1-61     estimated plugging costs of all unplugged TERRA  wellbores, [except

1-62     that] the commission may not use or pledge [not] more than 75

1-63     percent of the annual interest earned on the money in the fund for

1-64     the [these] purposes described by Subsection (e).  If the TERRA

 2-1     fund balance is less than the total estimated plugging costs of all

 2-2     TERRA wellbores, the commission may use or pledge TERRA funds only

 2-3     for the purpose described in Subsection (e)(1).

 2-4           [(e)  Money in the TERRA fund may not be used or pledged for

 2-5     a purpose described by Subsection (d)(2) unless the unobligated

 2-6     money in the TERRA fund exceeds the total estimated plugging cost

 2-7     of all unplugged TERRA wellbores.]

 2-8           SECTION 2.  Section 93.011, Natural Resources Code, is

 2-9     amended by adding Subsection (i) to read as follows:

2-10           (i)  A well scheduled for plugging with state money may be

2-11     placed in TERRA without a TERRA agreement, but the well may not be

2-12     licensed under Subchapter C unless the owners of the required

2-13     mineral interest have executed a TERRA agreement under  this

2-14     section.

2-15           SECTION 3.  This Act takes effect on September 1, 1997.

2-16           SECTION 4.  The importance of this legislation and the

2-17     crowded condition of the calendars in both houses create an

2-18     emergency and an imperative public necessity that the

2-19     constitutional rule requiring bills to be read on three several

2-20     days in each house be suspended, and this rule is hereby suspended.

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