SRC-MKV S.B. 946 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 946
By: Brown, J. E. "Buster"
Natural Resources
3/19/2001
As Filed


DIGEST AND PURPOSE 

Current law allows the Railroad Commission of Texas (commission) to sell
salvageable equipment and hydrocarbons after the 30th day from the date a
certified notice is sent to the operator requiring the operator to plug a
well and/or remediate a pollution site or request a hearing.  Although the
current statute prevents a person from removing any well site equipment
once the certified notice has been sent to the operator, the commission may
not sell the equipment or any hydrocarbons until it enters into a contract
to plug a well or remediate a site.  As proposed, S.B. 946 eliminates the
contracting requirement prior to selling salvageable equipment and
hydrocarbons. 

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 Section 89.043(c), Natural Resources Code, to add
language authorizing the Railroad Commission of Texas (commission) to plug
a well and foreclose its statutory lien under Section 89.083 unless the
operator requests a hearing not later than the 10th day after the date the
operator receives the notice.  Requires the notice to the operator to state
that the commission has a statutory lien on all well-site equipment under
Section 89.083 which may be foreclosed on the 15th day after the date the
noticed is mailed if a valid hearing request has not been received by that
date. 

SECTION 2.  Amends Section 89.083(c), Natural Resources Code, to authorize
the lien to be foreclosed by judicial action, commission order, or by
operation of law on the 15th day after the date of the notice given
pursuant to Section 89.043, unless the commission has received a valid and
timely request for hearing prior to that date.  Deletes language
authorizing the commission to foreclose on the lien by entering into a
plugging contract.  Makes a conforming change. 

SECTION 3.  Amends Sections 89.085(a), (g), and (h), Natural Resources
Code, to make conforming changes. 

SECTION 4.  Amends Sections 89.086(a) and (c), Natural Resources Code, to
make conforming changes. 

SECTION 5.  Effective date: upon passage or September 1, 2001.