1-1 By: Ogden S.B. No. 1545 1-2 (In the Senate - Filed March 14, 1997; March 20, 1997, read 1-3 first time and referred to Committee on Natural Resources; 1-4 May 2, 1997, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 7, Nays 1; May 2, 1997, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1545 By: Ogden 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the payment for proceeds derived from the sale of oil 1-11 or condensate from an oil or gas well located in this state. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Subchapter J, Chapter 91, Natural Resources Code, 1-14 is amended by adding Section 91.407 to read as follows: 1-15 Sec. 91.407. PAYMENT BY FIRST PURCHASER TO OPERATOR 1-16 CONSIDERED PROCEEDS. Absent a written notification between the 1-17 operator and each payee, a payment by the first purchaser of crude 1-18 oil or condensate to the operator is considered proceeds derived 1-19 from the sale of crude oil or condensate production; provided, 1-20 however, that the characterization given in the written 1-21 notification does not conclusively determine the character of the 1-22 payment by the first purchaser. 1-23 SECTION 2. This Act takes effect September 1, 1997. 1-24 SECTION 3. The importance of this legislation and the 1-25 crowded condition of the calendars in both houses create an 1-26 emergency and an imperative public necessity that the 1-27 constitutional rule requiring bills to be read on three several 1-28 days in each house be suspended, and this rule is hereby suspended. 1-29 * * * * *