SRC-JXG H.B. 2104 76(R)BILL ANALYSIS Senate Research CenterH.B. 2104 By: Craddick (Bivins) Natural Resources 5/5/1999 Committee Report (Amended) DIGEST The 75th Legislature created a severance tax relief for wells which have been returned to active status after three years or more of inactive status. This exemption has been responsible for a great number of wells being reworked and producing, according to the Texas Railroad Commission (RRC). The application to apply for a severance tax relief for wells expires on August 31, 1999. H.B. 2104 would extend the application deadline for a severance tax relief for wells to August 31, 2009, and would extend the deadline for RRC to designate a two-year inactive well to February 28, 2010. PURPOSE As proposed, H.B. 2104 extends the application deadline for a severance tax relief for wells. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sections 202.056(c) and (d), Tax Code, as follows: (c) Prohibits the Texas Railroad Commission (RRC) from designating a two-year inactive well under this section after February 28, 2010. (d) Requires an application for two-year inactive well certification to be made during the period of September 1, 1997, through August 31, 2009. SECTION 2. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE CHANGES SECTION 1. Amends Section 202.056(c), Tax Code, to prohibit RRC from designating a two-year inactive well under this section after February 28, 2010, rather than 2002. Amends Section 202.056(d), Tax Code, to require an application for two-year inactive well certification to be made during the period of September 1, 1997, through August 31, 2009, rather than 2001.