BILL ANALYSIS
By: Farabee
Committee Report (Substituted)
BACKGROUND AND PURPOSE
Under existing statute, the Railroad Commission has no authority over lease and royalty matters, including payment of royalties and the right to receive royalties. Nevertheless, because the Commission does collect certain information that is useful to royalty owners, historically the agency has received many requests for assistance from royalty owners. HB1161 clarifies what information the Railroad Commission can provide to royalty interest owners.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
SECTION 1:
Amends Subsection (e), Section 91.504, Natural Resources Code, authorizing the Railroad Commission to provide a royalty interest owner with the production data that has been reported to the Commission if the royalty interest owner provides the commission the identification number and the county in which the lease is located. Authorizes royalty interest owners to obtain reported production data by contacting the commission's oil and gas division or by accessing the commission's web site.
EFFECTIVE DATE
September 1 , 2005
COMPARISON OF ORIGINAL TO SUBSTITUTE
Committee Substitute is a Legislative Council edit.