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.