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                                  * * * * *