SRC-MKV S.B. 868 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 868
77R5829 SMH-DBy: Lindsay
Natural Resources
4/23/2001
As Filed


DIGEST AND PURPOSE 

Section 52.036 of the Natural Resources Code, regarding temporary reduction
of gas royalty rates, was enacted in 1987 for the purpose of extending the
producing life (royalty paying life) of certain gas wells by providing for
a royalty reduction.  Under the statute a reduction may be granted only for
production between September 1, 1987 and September 1, 1990.  As proposed,
S.B. 868 repeals Section 52.036, Natural Resources Code, since operators
have not been eligible to use Section 52.036 for more than ten years. 

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.  Repealer: Section 52.036 (Temporary Reduction of Gas Royalty
Rates), Natural Resources Code. 

SECTION 2.  Effective date: upon passage or September 1, 2001.