SRC-PNG S.B. 816 76(R)BILL ANALYSIS


Senate Research CenterS.B. 816
By: Brown
Natural Resources
6/21/1999
Enrolled


DIGEST 

Currently, under Texas law, a gas utility must report the sale,
acquisition, or lease of a plant for a total consideration of more than
$100,000 to the Railroad Commission.  Also, a transfer of gas reserve
rights from gas utilities to other utilities and interstate pipelines must
be approved by the Railroad Commission.  This bill raises the threshold
amount which triggers reporting to the Railroad Commission to $1 million to
reflect inflation and industry changes.  This bill repeals the requirement
to report to the Railroad Commission transfers of gas reserve rights to
reflect the adequate gas reserves in Texas. 

PURPOSE

As enrolled, S.B. 816 revises the Utilities Code concerning certain
transactions by a gas utility. 

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 102.051(a), Utilities Code, to prohibit a gas
utility from selling, acquiring, or leasing a plant as an operating unit or
system in this state for a total consideration of more than $1 million,
rather than $100,000, unless the gas utility reports the transaction to the
Railroad Commission. 

SECTION 2.  Repealer: Section 102.054, Utilities Code (Approval of
Conveyance of Gas Reserve Rights). 

SECTION 3.  Makes application of this Act prospective.

SECTION 4.  Effective date: September 1, 1999.

SECTION 5.  Emergency clause.