SRC-MWN H.B. 2436 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2436
77R13994 EBy: Merritt (Brown)
Natural Resources
5/9/2001
Engrossed


DIGEST AND PURPOSE 

The East Texas Oil Field (field) is not only the largest oil field in
Texas, it is also the most productive in the lower 48 states. The field,
which covers several counties, has produced more than 5.3 billion barrels
of oil since its discovery in 1930. The impact of this oil treasure on the
Texas economy, especially the local economies surrounding the field, has
been tremendous. However, production has been declining rapidly, and if new
approaches to capturing oil from the field are not implemented, effective
production of oil could end by 2006. H.B. 2436 requires the Bureau of
Economic Geology of The University of Texas at Austin to conduct a two-year
project to provide a comprehensive reservoir characterization and
engineering study of the field to optimize production strategies.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 85, Natural Resources Code,  as follows:

SUBCHAPTER L. STUDY OF EAST TEXAS OIL FIELD

 Sec. 85.401. DEFINITIONS. Defines "advisory committee" and "bureau."

Sec. 85.402. STUDY OF FIELD. Requires the Bureau of Economic Geology of The
University of Texas at Austin (bureau) to conduct a study of the East Texas
Oil Field for the purpose of making recommendations regarding measures that
should be taken to maximize the ultimate recovery of oil and gas from the
field. 

Sec. 85.403. ADVISORY COMMITTEE. (a) Provides that the advisory committee
is composed of certain persons. 

(b) Provides that a member of the advisory committee serves at the will of
the person who appointed the member. 

(c) Provides that the member of the advisory committee who is the member of
the Railroad Commission of Texas (commission) serves as the presiding
officer of the advisory committee. 

(d) Provides that members of the advisory committee are not entitled to
compensation but are entitled to reimbursement for actual and necessary
expenses incurred in performing their official duties as advisory committee
members. 

(e) Requires necessary costs for the operation of the advisory committee to
be paid from money appropriated to the commission. 
 
  (f) Requires the advisory committee to meet at the call of the presiding
officer. 

(g) Requires the advisory committee to keep a public record of its
decisions at the office of the commission. 

(h) Requires the advisory committee to advise the bureau with regard to the
study required by Section 85.402. 

Sec. 85.404. REPORT. Requires the bureau to submit an interim report of its
findings not later than January 1, 2003, and a final report to certain
persons, not later than September 1, 2003. 

Sec. 85.405. EXPIRATION. Provides that this subchapter expires and the
advisory committee is abolished September 1, 2003. 

SECTION 2. Provides that as soon as practicable on or after the effective
date of this Act, the Railroad Commission, the lieutenant governor, and the
speaker of the house of representatives, are required to appoint certain
persons to the advisory committee. 

SECTION 3.  Requires the provisions of this proposed Act to be null and
void if the legislature fails to adopt certain funding. 

SECTION 4. Effective date: September 1, 2001.