By Lewis of Orange H.B. No. 1850
77R5831 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to audits regarding oil and gas produced from certain
1-3 state land.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 52.135(b)-(d), Natural Resources Code,
1-6 are amended to read as follows:
1-7 (b) If, after inspection and examination of books, accounts,
1-8 reports, or other records, the commissioner or his representative
1-9 determines that additional royalties are due under a lease of state
1-10 land or minerals, the commissioner shall send to the lessee by
1-11 first class [certified] mail[, return receipt requested,] an audit
1-12 billing notice notifying the lessee of such additional royalties,
1-13 and interest and penalty, due and of the reasons for such
1-14 determination.
1-15 (c) [The lessee shall have 30 days from the date of the
1-16 receipt of such audit billing notice in which to pay such audit
1-17 deficiency assessment or to request a hearing before the
1-18 commissioner or his representative for redetermination of such
1-19 assessment. A statement of grounds setting out in detail the
1-20 lessee's reasons for disagreement with such assessment and the
1-21 factual and legal grounds on which the claim is based must be
1-22 submitted by a lessee with its request for a hearing. Such hearing
1-23 shall be conducted in accordance with the rules and procedures
1-24 established by the commissioner.]
2-1 [(d)] In order to stop the further accrual of penalty or
2-2 interest, the lessee may pay the additional royalties assessed at
2-3 any time [after receipt of an audit billing notice].
2-4 SECTION 2. Sections 52.137, 52.138, and 52.139, Natural
2-5 Resources Code, are repealed.
2-6 SECTION 3. (a) This Act takes effect September 1, 2001.
2-7 (b) The change in law made by this Act applies only to an
2-8 audit deficiency assessment for which an audit billing notice is
2-9 mailed on or after the effective date of this Act. An audit
2-10 deficiency assessment for which an audit billing notice was mailed
2-11 before the effective date of this Act is governed by the law in
2-12 effect on the date the audit billing notice was mailed, and that
2-13 law is continued in effect for that purpose.