78R11318 MI/SMH-F
By: Chisum, Rose H.B. No. 942
A BILL TO BE ENTITLED
AN ACT
relating to certain bond requirements for persons engaged in
certain activities under the jurisdiction of the Railroad
Commission of Texas other than the ownership or operation of wells.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 91.109(b), Natural Resources Code, as
effective September 1, 2004, is amended to read as follows:
(b) In addition to the financial security requirements of
Subsection (a) and Section 91.104(b), a person required to file a
bond, letter of credit, or cash deposit under Section 91.103 who is
involved in activities other than the ownership or operation of
wells must file the bond, letter of credit, or cash deposit at the
time of filing or renewing an organization report required by
Section 91.142 according to the following schedule [in an amount
equal to]:
(1) no bond, letter of credit, or cash deposit if the
person is a:
(A) local distribution company;
(B) gas marketer;
(C) crude oil nominator;
(D) first purchaser;
(E) well servicing company;
(F) survey company;
(G) salt water hauler;
(H) gas nominator;
(I) gas purchaser; or
(J) well plugger [$250,000]; or
(2) a bond, letter of credit, or cash deposit in an
amount not to exceed $25,000 if the person is involved in an
activity that is not associated with the ownership or operation of
wells and is not listed in Subdivision (1) [a lesser amount
determined by the commission if the person is able to demonstrate
that the risk associated with an operation or group of operations
warrants a lesser amount].
SECTION 2. This Act takes effect September 1, 2004.