76R9860 SMJ-F                           
         By Cuellar, Craddick                                  H.B. No. 1911
         Substitute the following for H.B. No. 1911:
         By Driver                                         C.S.H.B. No. 1911
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to payments to be made under certain leases for the
 1-3     exploration and production by surface mining of certain minerals.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 53.001, Natural Resources Code, is
 1-6     amended by adding Subdivision (4) to read as follows:
 1-7                 (4)  "Surface mining" means the mining of minerals by
 1-8     removing the overburden lying above the natural deposit of minerals
 1-9     and mining directly from the natural deposits that are exposed.
1-10     The term does not include in situ mining activities.
1-11           SECTION 2.  Sections 53.065(b) and (c), Natural Resources
1-12     Code, are amended to read as follows:
1-13           (b)  Except as provided by Subsection (c), under [Under] a
1-14     lease executed under this subchapter on or after September 1, 1987,
1-15     the lessee shall pay:
1-16                 (1)  to the state 80 percent of all bonuses agreed to
1-17     be paid for the lease and 80 percent of all rentals and royalties
1-18     that are payable  under the lease; and
1-19                 (2)  [.  The lessee shall pay] to the owner of the
1-20     surface 20 percent of all bonuses agreed to be paid for the lease
1-21     and 20 percent of all rentals and royalties payable under the
1-22     lease.      
1-23           (c)  Under a lease executed under this subchapter on or after
1-24     September 1, 1999, for the exploration and production by surface
 2-1     mining of coal, lignite, potash, sulphur, thorium, or uranium, the
 2-2     lessee shall pay:
 2-3                 (1)  to the state 60 percent of all bonuses agreed to
 2-4     be paid for the lease and 60 percent of all rentals and royalties
 2-5     that are payable under the lease; and
 2-6                 (2)  to the owner of the surface 40 percent of all
 2-7     bonuses agreed to be paid for the lease and 40 percent of all
 2-8     rentals and royalties payable under the lease.
 2-9           (d)  If production is obtained, the state shall receive not
2-10     less than one-sixteenth of the value of the minerals produced.
2-11           SECTION 3.  (a)  This Act takes effect September 1, 1999.
2-12           (b)  The change in law made by this Act does not affect a
2-13     lease for the exploration and production by surface mining of coal,
2-14     lignite, potash, sulphur, thorium, or uranium that is not within
2-15     all or part of a survey previously sold with all minerals reserved
2-16     to the state.
2-17           SECTION 4.  The importance of this legislation and the
2-18     crowded condition of the calendars in both houses create an
2-19     emergency and an imperative public necessity that the
2-20     constitutional rule requiring bills to be read on three several
2-21     days in each house be suspended, and this rule is hereby suspended.