By: Ogden S.B. No. 1545 A BILL TO BE ENTITLED AN ACT 1-1 relating to the payment for proceeds derived from the sale of oil 1-2 or condensate from an oil or gas well located in this state. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter J, Chapter 91, Natural Resources Code, 1-5 is amended by adding Section 91.407 to read as follows: 1-6 Sec. 91.407. PAYMENT BY FIRST PURCHASER TO OPERATOR 1-7 CONSIDERED PROCEEDS. Absent a written notification between the 1-8 operator and each payee, a payment by the first purchaser of crude 1-9 oil or condensate to the operator is considered proceeds derived 1-10 from the sale of crude oil or condensate production; provided, 1-11 however, that the characterization given in the written 1-12 notification does not conclusively determine the character of the 1-13 payment by the first purchaser. 1-14 SECTION 2. This Act takes effect September 1, 1997. 1-15 SECTION 3. The importance of this legislation and the 1-16 crowded condition of the calendars in both houses create an 1-17 emergency and an imperative public necessity that the 1-18 constitutional rule requiring bills to be read on three several 1-19 days in each house be suspended, and this rule is hereby suspended.