SRC-PNG H.B. 3444 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 3444
By: Lewis, Ron (Fraser)
Natural Resources
5/14/1999
Engrossed


DIGEST 

The recent downturn in the oil and gas industry has caused a decline in the
fees collected for the state's oil-field cleanup fund. Additionally, fund
expenditures have increased due to remediation activities at abandoned
oil-field sites. In order to increase the amount of money being deposited
into the oil-field cleanup fund, H.B. 3444 requires certain penalties and
fees that are currently being deposited into the general revenue fund to be
deposited instead into the oil-field cleanup fund. That money includes
receipts from administrative penalties, fees collected for the expedited
processing of drilling permit applications, and application fees for fluid
injection well permits. 

PURPOSE

As proposed, H.B. 3444 requires certain penalties and fees collected by the
Railroad Commission to be deposited into the oil-field cleanup fund. 

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 Section 81.0531, Natural Resources Code, by adding
Subsection (d), to require a penalty collected under this section to be
deposited to the credit of the oil-field cleanup fund.  

SECTION 2. Amends Section 85.2021(d), Natural Resources Code, to delete a
requirement that fees collected under this section for expediting a
drilling permit application be deposited in the general revenue fund. 

 SECTION 3. Amends Section 91.1013(c), Natural Resources Code, to require
fees collected under this section, rather than under only Subsection (b)
(regarding a permit to discharge to surface water), to be deposited in the
state oil-field cleanup fund.  

SECTION 4. Amends Section 91.111(c), Natural Resources Code, to include
penalties collected under Section 81.0531 in the composition of the
oil-field cleanup fund. Makes conforming and nonsubstantive changes.  

SECTION 5.  Effective date: September 1, 1999. 
  Makes application of this Act prospective. 

SECTION 6.  Emergency clause.