1-1 By: Nixon S.B. No. 792 1-2 (In the Senate - Filed March 2, 1999; March 3, 1999, read 1-3 first time and referred to Committee on Natural Resources; 1-4 April 16, 1999, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 5, Nays 0; April 16, 1999, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 792 By: Haywood 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to a requirement that a payor of the proceeds from the 1-11 sale of gas produced from certain gas wells furnish certain 1-12 information to the payee. 1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-14 SECTION 1. Subchapter J, Chapter 91, Natural Resources Code, 1-15 is amended by adding Section 91.408 to read as follows: 1-16 Sec. 91.408. INFORMATION FOR PAYEES OF PROCEEDS OF 1-17 PRODUCTION FROM CERTAIN GAS WELLS. A payor of the proceeds from 1-18 the sale of gas produced from a tight formation as defined by 1-19 Section 29(c)(2)(B), Internal Revenue Code of 1986, annually shall 1-20 furnish the payee a statement providing the information necessary 1-21 to compute the federal income tax credit provided by that section 1-22 for the gas for which payment was made in the preceding year, 1-23 including: 1-24 (1) information described in Section 91.502(1); and 1-25 (2) the volume of the gas measured: 1-26 (A) in thousands of cubic feet and heating 1-27 value; or 1-28 (B) in millions of British thermal units for 1-29 each thousand cubic feet. 1-30 SECTION 2. The statement described by Section 91.408, 1-31 Natural Resources Code, as added by this Act, shall be furnished no 1-32 later than the 15th day of March. 1-33 SECTION 3. This Act takes effect September 1, 1999. 1-34 SECTION 4. The importance of this legislation and the 1-35 crowded condition of the calendars in both houses create an 1-36 emergency and an imperative public necessity that the 1-37 constitutional rule requiring bills to be read on three several 1-38 days in each house be suspended, and this rule is hereby suspended. 1-39 * * * * *