By Nixon                                               S.B. No. 792
         76R468 SMH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a requirement that a payor of the proceeds from the
 1-3     sale of gas produced from certain gas wells furnish certain
 1-4     information to the payee.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter J, Chapter 91, Natural Resources Code,
 1-7     is amended by adding Section 91.408 to read as follows:
 1-8           Sec. 91.408.  INFORMATION FOR PAYEES OF PROCEEDS OF
 1-9     PRODUCTION FROM CERTAIN GAS WELLS.  A payor of the proceeds from
1-10     the sale of gas produced from a tight formation as defined by
1-11     Section 29(c)(2)(B), Internal Revenue Code of 1986, annually shall
1-12     furnish the payee a statement providing the information necessary
1-13     to compute the federal income tax credit provided by that section
1-14     for the gas for which payment was made in the preceding year,
1-15     including:
1-16                 (1)  the volume of the gas, measured in thousands of
1-17     cubic feet;
1-18                 (2)  the heating value of the gas, measured in millions
1-19     of British thermal units for each thousand cubic feet;
1-20                 (3)  the product of Subdivisions (1) and (2); and
1-21                 (4)  the dollar value of the credit for each million
1-22     British thermal units.
1-23           SECTION 2.  This Act takes effect September 1, 1999.
1-24           SECTION 3.  The importance of this legislation and the
 2-1     crowded condition of the calendars in both houses create an
 2-2     emergency and an imperative public necessity that the
 2-3     constitutional rule requiring bills to be read on three several
 2-4     days in each house be suspended, and this rule is hereby suspended.