By:  Nixon                                             S.B. No. 792
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to a requirement that a payor of the proceeds from the
 1-2     sale of gas produced from certain gas wells furnish certain
 1-3     information to the payee.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter J, Chapter 91, Natural Resources Code,
 1-6     is amended by adding Section 91.408 to read as follows:
 1-7           Sec. 91.408.  INFORMATION FOR PAYEES OF PROCEEDS OF
 1-8     PRODUCTION FROM CERTAIN GAS WELLS.  A payor of the proceeds from
 1-9     the sale of gas produced from a tight formation as defined by
1-10     Section 29(c)(2)(B), Internal Revenue Code of 1986, annually shall
1-11     furnish the payee a statement providing the information necessary
1-12     to compute the federal income tax credit provided by that section
1-13     for the gas for which payment was made in the preceding year,
1-14     including:
1-15                 (1)  information described in Section 91.502(1); and
1-16                 (2)  the volume of the gas measured:
1-17                       (A)  in thousands of cubic feet and heating
1-18     value; or
1-19                       (B)  in millions of British thermal units for
1-20     each thousand cubic feet.
1-21           SECTION 2.  The statement described by Section 91.408,
1-22     Natural Resources Code, as added by this Act, shall be furnished no
1-23     later than the 15th day of March.
1-24           SECTION 3.  This Act takes effect September 1, 1999.
 2-1           SECTION 4.  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.