LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 5, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  Senate Bill No. 126, 
As Engrossed
          Committee on Ways & Means                              By: Bivins
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB126 ( relating 
to a tax exemption for hydrocarbon production from certain inactive 
oil and gas leased returned to production) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by SB126-As Engrossed
         
No fiscal implication to the State is anticipated.
         

         
 
          
LOCAL
The return to production of oil or gas wells, previously 
idled, would increase local government property values for mineral 
properties.  The extent to which these values would be increased 
depend upon certain unknowns: (1) The number and location of 
wells returned to production; (2) the period of production for 
such wells made active; and, (3) future prices for crude oil 
and natural gas.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,RR