SRC-CTC S.B. 1618 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1618
77R3548 CBH-DBy: Armbrister
Business & Commerce
3/18/2001
As Filed


DIGEST AND PURPOSE 

In 1973, legislation was passed to address inequity in certain mineral
agreements.  Large oil companies required small contractors to indemnify
them for all losses, regardless of fault, before a contract would be
awarded.  Currently, the San Miguel Electric Cooperative has a contract
with a large mining contractor to provide lignite from a surface mine to a
generating plant that indemnifies the cooperative for accidents and
injuries at the surface mine.  As proposed, S.B. 1618 creates a specific
exemption for San Miguel Electric Cooperative to Chapter 127 (Indemnity
Provisions in Certain Mineral Agreements), Civil Practice and Remedies
Code. 

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 127, Civil Practice and Remedies Code, by adding
Section 127.008, as follows: 

Sec. 127.008.  ELECTRIC COOPERATIVE CORPORATION.  (a) Provides that this
section applies to an electric cooperative corporation operating under
Chapter 161, Utilities Code, that owns or leases real property to mine
lignite using open pit surface mining methods.   

(b) Provides that this chapter does not affect the right of an electric
cooperative corporation described by Subsection (a) to secure indemnity
from a lessee, operator, contractor, or other person who performs services
for or provides materials or products to the corporation that relate to
lignite mining. 

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