By Craddick H.B. No. 2104
76R6126 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a tax exemption for hydrocarbon production from certain
1-3 inactive oil and gas leases returned to production.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 202.056(c) and (d), Tax Code, are
1-6 amended to read as follows:
1-7 (c) If the commission designates a three-year inactive well
1-8 under this section, it shall issue a certificate designating the
1-9 well as a three-year inactive well as defined by Subsection (a)(3)
1-10 of this section. The commission may not designate a three-year
1-11 inactive well under this section after February 29, 1996. If the
1-12 commission designates a two-year inactive well under this section,
1-13 it shall issue a certificate designating the well as a two-year
1-14 inactive well as defined by Subsection (a)(4) of this section. The
1-15 commission may not designate a two-year inactive well under this
1-16 section after February 28, 2002 [29, 2000].
1-17 (d) An application for three-year inactive well
1-18 certification shall be made during the period of September 1, 1993,
1-19 through August 31, 1995, to qualify for the tax exemption under
1-20 this section. An application for two-year inactive well
1-21 certification shall be made during the period September 1, 1997,
1-22 through August 31, 2001 [1999], to qualify for the tax exemption
1-23 under this section. Hydrocarbons sold after the date of
1-24 certification are eligible for the tax exemption.
2-1 SECTION 2. The importance of this legislation and the
2-2 crowded condition of the calendars in both houses create an
2-3 emergency and an imperative public necessity that the
2-4 constitutional rule requiring bills to be read on three several
2-5 days in each house be suspended, and this rule is hereby suspended,
2-6 and that this Act take effect and be in force from and after its
2-7 passage, and it is so enacted.