1-1     By:  Bivins                                           S.B. No. 1713

 1-2           (In the Senate - Filed March 14, 1997; March 24, 1997, read

 1-3     first time and referred to Committee on Natural Resources;

 1-4     April 4, 1997, reported favorably by the following vote:  Yeas 7,

 1-5     Nays 1; April 4, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the Texas Experimental Research and Recovery Activity

 1-9     (TERRA) of the Railroad Commission of Texas.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 93.004, Natural Resources Code, is

1-12     amended to read as follows:

1-13           Sec. 93.004.  TERRA Fund; Certification.  (a)  The TERRA fund

1-14     is created in the state treasury.

1-15           (b)  The commission shall send to the comptroller, or notify

1-16     the comptroller of the amounts of money to be transferred, for

1-17     credit to the TERRA fund:

1-18                 (1)  license fees collected under Section 93.033;

1-19                 (2)  money from the oil-field cleanup fund as provided

1-20     by Section 93.013(c);

1-21                 (3)  payments received under Section 93.013(a)(8);

1-22                 (4)  payments received under Sections 93.036 and

1-23     93.052;

1-24                 (5)  [on January 1 of each year, an amount from the

1-25     oil-field cleanup fund equal to the total money received by that

1-26     fund from the sale of salvaged equipment under Sections 89.085(d)

1-27     and 91.115(f), less the total money paid out to claimants under

1-28     Section 89.086, during the previous fiscal year;]

1-29                 [(6)]  private contributions or grants; and

1-30                 (6) [(7)]  any other money as provided by this chapter.

1-31           (c)  On or after January 1 of each year, the commission may

1-32     notify the comptroller to transfer, for the credit of the TERRA

1-33     fund, an amount from the oil-field cleanup fund equal to the total

1-34     money received by that fund from the sale of salvaged equipment

1-35     under Sections 89.085(d) and 91.115(f), less the total money paid

1-36     to claimants under Section 89.086 during the previous fiscal year.

1-37           (d)  Interest earned on the TERRA fund shall be credited to

1-38     the fund.

1-39           (e) [(d)]  Money in the TERRA fund may be used by the

1-40     commission only for:

1-41                 (1)  the purposes of TERRA, including administrative

1-42     costs; and

1-43                 (2)  administrative and program costs of the commission

1-44     relating to its oil and gas activities, including those under

1-45     Subchapter M, Chapter 91.

1-46           (f)  If the TERRA fund balance is less than twice the

1-47     estimated plugging costs of all unplugged TERRA wellbores, [except

1-48     that] the commission may not use or pledge [not] more than 75

1-49     percent of the annual interest earned on the money in the fund for

1-50     the [these] purposes described by Subsection (e).  If the TERRA

1-51     fund balance is less than the total estimated plugging costs of all

1-52     TERRA wellbores, the commission may use or pledge TERRA funds only

1-53     for the purpose described in Subsection (e)(1).

1-54           [(e)  Money in the TERRA fund may not be used or pledged for

1-55     a purpose described by Subsection (d)(2) unless the unobligated

1-56     money in the TERRA fund exceeds the total estimated plugging cost

1-57     of all unplugged TERRA wellbores.]

1-58           SECTION 2.  Section 93.011, Natural Resources Code, is

1-59     amended by adding Subsection (i) to read as follows:

1-60           (i)  A well scheduled for plugging with state money may be

1-61     placed in TERRA without a TERRA agreement, but the well may not be

1-62     licensed under Subchapter C unless the owners of the required

1-63     mineral interest have executed a TERRA agreement under this

1-64     section.

 2-1           SECTION 3.  Section 93.013, Natural Resources Code, is

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

 2-3           (g)  When the commission places a wellbore in TERRA, the

 2-4     commission may dispose of wellsite equipment in the manner provided

 2-5     in Section 89.085 without entering into a contract to plug the

 2-6     well.

 2-7           SECTION 4.  This Act takes effect September 1, 1997.

 2-8           SECTION 5.  The importance of this legislation and the

 2-9     crowded condition of the calendars in both houses create an

2-10     emergency and an imperative public necessity that the

2-11     constitutional rule requiring bills to be read on three several

2-12     days in each house be suspended, and this rule is hereby suspended.

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