SRC-TAG H.B. 2301 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 2301
78R7768 MI-FBy: Jones, Elizabeth (Ambrister)
Natural Resources
5/19/2003
Engrossed


DIGEST AND PURPOSE 

Currently, the regulatory fee on crude petroleum and natural gas
production that is deposited into the Oil Field Cleanup Fund is 5/8th of 1
cent on a barrel of oil and 1/15th of 1 cent for each 1000 cubic feet
(mcf) of natural gas produced.  This fee is collected in addition to
severance taxes on crude petroleum and natural gas.  H. B. 2301 maximizes
the assessment and collection of the regulatory fee on crude petroleum and
Natural Gas production that is deposited into the Oil Field Cleanup Fund. 

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 Sections 81.116(b) and (d), Natural Resources Code, as
follows: 

(b)  Provides that the fee is an addition to, and independent of any
liability for, the taxes imposed under Section 81.111 of this code and
Chapter 202 (Oil Production Tax), Tax Code.   

(d)  Provides that the exemptions and reductions set out in Sections
202.052, 202.054, 202.056, 202.057, and 202.059, Tax Code, do not affect
the fee imposed by this section. 

SECTION 2.  Amends Sections 81.117(b) and (d), Natural Resources Code, as
follows: 

(b)  Provides that the fee is in addition to, and independent of any
liability for, the tax imposed under Section 201.052 (Rate of Tax), Tax
Code. 

(d)  Provides that the exemptions and reductions set out in Sections
201.053, 201.057, and 201.058, Tax Code, do not affect the fee imposed by
this section.  

SECTION 3.  Effective date: September 1, 2003.