HBA-SEB H.B. 1911 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1911
By: Cuellar
Energy Resources
3/12/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, the State of Texas receives 80 percent of bonuses, rentals, and
royalties from mining operations conducted on lands upon which minerals are
reserved to the state, while the owner of the surface receives 20 percent.
Surface mining is often more invasive than oil and gas development and may
effectively preclude the owner of the surface from using the surface of the
land for any other purpose.  H.B. 1911 increases the surface owner's
compensation by dividing the bonuses, rentals, and royalties that result
from surface mining so that the state receives 60 percent and the surface
owner receives 40 percent.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 53.001, Natural Resources Code, by adding
Subdivision (4), as follows: 

(4)  Defines "surface mining" as the mining of minerals by removing the
overburden lying above the natural deposit of minerals and mining directly
from the natural deposits that are exposed.  Provides that this term does
not include in situ mining activities.   

SECTION 2.  Amends Sections 53.065(b) and (c), Natural Resources Code, as
follows: 

(b)  Requires a lessee of a lease under this subchapter (Lease of Minerals
by Surface Owner) executed on or after September 1, 1987, to pay to the
state 80 percent and to the owner of the surface 20 percent of all bonuses
agreed to be paid for the lease and 80 percent and 20 percent,
respectively, of all rentals and royalties payable under the lease, except
as provided by Subsection (c).  Makes conforming changes.  

(c)  Requires the lessee of a lease under this subchapter executed on or
after September 1, 1999, for the exploration and production by surface
mining of coal, lignite, potash, sulphur, thorium, or uranium, to pay to
the state 60 percent and to the owner of the surface 40 percent of all
bonuses agreed to be paid for the lease and 60 percent and 40 percent,
respectively, of all rentals and royalties payable under the lease.  

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.