78R11318 MI/SMH-F


By:  Chisum, Rose                                                 H.B. No. 942

Substitute the following for H.B. No. 942:                                    

By:  Farabee                                                  C.S.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.