LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 24, 1997
         
         
      TO: Honorable J.E. "Buster" Brown, Chair            IN RE:  House Bill No. 3490, As Engrossed
          Committee on Natural Resources                              By: Holzheauser
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB3490 ( Relating 
to the Texas Experimental Research and Recovery Activity (TERRA) 
of the Railroad Commission of Texas.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB3490-As Engrossed
         

No significant fiscal implication to the State is anticipated. 
 
         
The bill would dedicate the Texas Experimental Research and 
Recovery Activity (TERRA) account in the state treasury (account 
5014).  The bill would amend provisions relating to when funds 
received from the sale of salvage equipment and deposited into 
the Oil Field Cleanup Account could be transferred to the account, 
and would specify circumstances under which funds in the account 
may be used for administrative and program costs.  

The bill 
would add a provision allowing wells scheduled for plugging 
(using state funds) to be placed in the TERRA program without 
a TERRA agreement, but such wells would not be licensed under 
TERRA unless the owners of the mineral interest had executed 
an agreement.  The Railroad Commission estimates this provision 
could save $2,000 per year in TERRA funds.  
         
 
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   455   Railroad Commission
                                         
                      LBB Staff:   JK ,BB ,JH