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


Senate Research CenterC.S.S.B. 946
77R10256 QS-DBrown, J. E. "Buster"
Natural Resources
3/21/2001
Committee Report (Substituted)


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.  C.S.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, or commission order at any
time after notice and an opportunity for a hearing.  Provides that if
notice is mailed under Section 89.043 and if the lien is not previously
foreclosed, the lien is foreclosed by operation of law on the 15th day
after the notice is mailed unless the commission has received a valid and
timely request for a hearing before 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.  Makes application of this Act prospective.

SECTION 6.  Effective date: upon passage or September 1, 2001.

SUMMARY OF COMMITTEE CHANGES

Adds a new SECTION 5 to make application of this Act prospective.
 
Renumbers SECTION 5, effective date, as SECTION 6.


Further differs from original by making nonsubstantive and conforming
changes.