HBA-CBW C.S.H.B. 2436 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2436
By: Merritt
Energy Resources
4/26/2001
Committee Report (Substituted)


BACKGROUND 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.  C.S.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

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.H.B. 2436 amends the Natural Resources Code to create the East Texas
Oil Field Advisory Committee (committee) and to require the Bureau of
Economic Geology of The University of Texas at Austin (bureau) to conduct a
study of the East Texas Oil Field.  The bill sets forth provisions
regarding the operation and administration of the committee and provides
that the committee is composed of : 

  _a member of the Railroad Commission of Texas (commission)  appointed by
the commission; 


  _a member of the board of a school district, appointed by the commission;


  _a representative of the oil industry, appointed by the commission;


  _a member of the senate, appointed by the lieutenant governor; and 


  _a member of the house of representatives, appointed by the speaker of
the house of representatives. 

The bill requires the bureau to make an interim report on or before January
1, 2003, and a final report on or before September 1, 2003,  to the
governor, the lieutenant governor, and the speaker of the house of
representatives containing recommendations regarding measures that should
be taken to maximize the ultimate recovery of oil and gas from the East
Texas Oil Field. These provisions expire and the committee is abolished
September 1, 2003.  The bill sets forth requirements for the commission
relating to appointing members to the committee as soon as practicable. 
 
EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2436 modifies the original bill by requiring the Bureau of
Economic Geology of The University of Texas at Austin to make an interim
report and a final report, rather than just one report.  The substitute
also provides that in the event that the funding intended for the study of
the East Texas Oil Field fails adoption, those provisions are null and
void.