SRC-JLB S.B. 1954 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1954
78R16646 SMH-DBy: Ratliff
Natural Resources
5/21/2003
As Filed


DIGEST AND PURPOSE 

The East Texas Oil Field is the largest oil field in Texas.  The field,
which covers several counties,  has produced more than 5.3 billion barrels
of oil since its discovery in 1930.  However, production has been
declining rapidly, and if new approaches to capturing oil from the field
are not implemented, effective production of oil could end by 2006. 

As proposed, S.B. 1954 requires the Bureau of Economic Geology of The
University of Texas at Austin (bureau) to conduct a study of the East
Texas Oil Field to make recommendations regarding ways to maximize the
recovery of oil and gas from the field and creates the East Texas Oil
Field Advisory Committee (advisory committee) composed of representatives
of Kilgore ISD, White Oak ISD, Pine Tree ISD, Kilgore Junior College, and
the oil industry.  The bill requires the bureau to report the results of
the study to the members of the legislature by 2005, at which time the
advisory committee is abolished. 

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 85, Natural Resources Code, by adding
Subchapter L, as follows: 

SUBCHAPTER L.  STUDY OF EAST TEXAS OIL FIELD

 Sec.  85.401.  DEFINITIONS.  Defines "advisory committee" and "bureau."

Sec.  85.402.  STUDY OF FIELD.  Requires the Bureau of Economic Geology of
The University of Texas at Austin (bureau) to conduct a study of the East
Texas Oil Field for the purpose of making comprehensive recommendations
regarding measures that should be taken to maximize the ultimate recovery
of oil and gas from the field. 

Sec.  85.403.  ADVISORY COMMITTEE.  (a)  Provides that the East Texas Oil
Field Advisory Committee (advisory committee) is composed of certain
persons appointed by the bureau. 

(b)  Requires the advisory committee to advise the bureau with regard to
the study required by Section 85.402. 

Sec.  85.404.  REPORT.  Requires the bureau to make a report on or before
January 1, 2005, to the governor, lieutenant governor, and speaker of the
house of representatives containing comprehensive recommendations
regarding measures that should be taken to maximize the ultimate recovery
of oil and gas from the East Texas Oil Field. 

Sec.  85.405.  EXPIRATION.  Provides that this subchapter expires, and the
advisory committee is abolished September 1, 2005. 

SECTION 2.  (a)  Provides that the bureau is required to implement this
Act only if the  legislature appropriates money specifically for that
purpose.  Authorizes but does not require the bureau, if the legislature
does not appropriate money specifically for that purpose, to implement
this Act using other appropriations available for that purpose. 

(b)  Requires the legislature, if the operators of oil or gas wells in the
East Texas Oil Field implement the recommendations contained in the report
required by Section 85.404, Natural Resources Code, as added by this Act
and that implementation results in an increase in the amount of oil and
gas produced from the field, to provide for recovery of the cost of
implementing this Act from the owners or operators of the wells in the
manner the legislature determines to be most appropriate. 

SECTION 3.  Effective date:  upon passage or September 1, 2003.