By Brown                                         S.B. No. 988

      75R6156 CBH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to records and reports required from certain producers and

 1-3     purchasers of oil.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Sections 202.101 and 202.102, Tax Code, are

 1-6     amended to read as follows:

 1-7           Sec. 202.101.  PRODUCER'S RECORDS.  A producer shall keep

 1-8     accurate records in the state.  The records must show:

 1-9                 (1)  the [counties in which the producer produces oil;]

1-10                 [(2)  the names of the] leases from which the producer

1-11     produces oil;

1-12                 (2) [(3)]  the total number of barrels of oil produced

1-13     from each lease;

1-14                 (3) [(4)]  for each sale or delivery to a first

1-15     purchaser, the name and address of the first purchaser, the number

1-16     of barrels  sold or delivered, and the price received for the oil;

1-17                 (4) [(5)]  the amount and disposition of oil refined,

1-18     processed, or used on the lease where it is produced;

1-19                 (5) [(6)]  the location and number of barrels in

1-20     storage that the producer owns and has not sold; and

1-21                 (6) [(7)]  the name and address of each pipeline or

1-22     refinery that is storing oil that the producer has not sold.

1-23           Sec. 202.102.  FIRST PURCHASER'S RECORDS.  A first purchaser

1-24     shall keep accurate records in the state.  The records must show:

 2-1                 (1)  the name and address of each producer from which

 2-2     the first purchaser buys oil;

 2-3                 (2)  for each producer, the [counties where the oil is

 2-4     produced;]

 2-5                 [(3)  for each producer, the name of the] lease from

 2-6     which the oil is produced;

 2-7                 (3) [(4)]  the number of barrels of oil purchased from

 2-8     each producer and the price paid each producer for the oil;

 2-9                 (4) [(5)]  the number of barrels purchased and used,

2-10     refined, or processed by the first purchaser; and

2-11                 (5) [(6)]  for each sale to a subsequent purchaser, the

2-12     name and address of the subsequent purchaser, the number of barrels

2-13     sold, and the price received for the oil.

2-14           SECTION 2.  Section 202.201(a), Tax Code, is amended to read

2-15     as follows:

2-16           (a)  A producer authorized by the comptroller to remit the

2-17     tax due shall file with the comptroller, on or before the 25th day

2-18     of each calendar month, the report under this subsection and, as

2-19     applicable, the report under Subsection (d) showing the total oil

2-20     produced, used, lost or stolen, or possessed and otherwise

2-21     unaccounted for by the producer during the preceding calendar

2-22     month.  The report under this subsection must show:

2-23                 (1)  the number of barrels of oil produced;

2-24                 (2)  [the counties in which oil was produced;]

2-25                 [(3)]  the name, address, and taxpayer identification

2-26     number assigned by the comptroller of each first purchaser of oil

2-27     and for each the amount of oil purchased;

 3-1                 (3) [(4)]  the price, by amounts, received for the oil

 3-2     for each first purchaser;

 3-3                 (4) [(5)]  the [name of the] lease from which the oil

 3-4     was produced; and

 3-5                 (5) [(6)]  other information the comptroller may

 3-6     reasonably require.

 3-7           SECTION 3.  Section 202.202(a), Tax Code, is amended to read

 3-8     as follows:

 3-9           (a)  On or before the 25th day of each calendar month, each

3-10     first purchaser or his authorized agent shall file a report with

3-11     the comptroller.  The report must contain the following information

3-12     concerning oil purchased from a producer during the preceding

3-13     calendar month:

3-14                 (1)  the number of barrels of oil purchased from each

3-15     producer;

3-16                 (2)  the price paid each producer for the oil;

3-17                 (3)  the name and address of each producer;

3-18                 (4)  the [counties in which the oil was produced;]

3-19                 [(5)  the names of the] leases from which the oil was

3-20     produced; and

3-21                 (5) [(6)]  other information the comptroller may

3-22     reasonably require.

3-23           SECTION 4.  This Act takes effect September 1, 1997, and

3-24     applies to a report due on or after that date.

3-25           SECTION 5.  The importance of this legislation and the

3-26     crowded condition of the calendars in both houses create an

3-27     emergency and an imperative public necessity that the

 4-1     constitutional rule requiring bills to be read on three several

 4-2     days in each house be suspended, and this rule is hereby suspended.