By: Keffer H.B. No. 4246

A BILL TO BE ENTITLED

AN ACT

relating to the reporting of lost or unaccounted gas by the first purchaser and the tax due by the first purchaser on lost or unaccounted for gas.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 201.2035, Subchapter E, Chapter 201, Tax Code, is amended by amending subsection (b) and adding subsections (c) and (d) to read as follows:

Sec. 201.2035. FIRST PURCHASER'S REPORT AND LOST OR UNACCOUNTED FOR GAS REPORTS AND PAYMENT OF TAX. (a) On or before the last day of each calendar month, each first purchaser must file a report with the comptroller on forms prescribed by the comptroller. The report must contain the following information concerning gas purchased from a producer during the preceding calendar month:

(1) the gross amount of gas purchased from each producer;

(2) the price paid for the gas;

(3) the leases from which the gas was produced; and

(4) other information the comptroller may reasonably require.

(b) If the report the first purchaser is required to file pursuant to subsection (a) shows any additional tax due, the first purchaser must pay the tax when he files the report.

(c) On or before the last day of each calendar month, each first purchaser who is either a gatherer, an intra-state pipeline or an affiliate of a gatherer or an intra-state pipeline must also file a lost or unaccounted for gas report with the comptroller on forms prescribed by the comptroller. The report must contain the following information for the preceding calendar month:

(1) the gross volume of lost or unaccounted for gas the first purchaser who is either a gatherer, an intra-state pipeline or an affiliate of a gatherer or an intra-state pipeline reported to all producers in the state of Texas;

(2) two percent of the gross volume of gas the first purchaser received from all producers in the state of texas;

(3) the resulting gross volume when (c)(2) is subtracted from (c)(1). If the report the first purchaser who is either a gatherer, an intra-state pipeline or an affiliate of a gatherer or an intra-state pipeline is required to file pursuant to this subsection shows a positive gross volume reported under (c)(3), then notwithstanding any other provision of this act, the first purchaser who is either a gatherer, an intra-state pipeline or an affiliate of a gatherer or an intra-state pipeline is solely liable for the tax on the positive gross volume reported under (c)(3), the first purchaser who is either a gatherer, an intra-state pipeline or an affiliate of a gatherer or an intra-state pipeline may not transfer or contract away this liability for the tax on the positive gross volume reported under (c)(3) to any other entity or individual by any means and must pay the tax on the positive gross volume reported under (c)(3) at the price reported under (a)(2) when he files the report.

(d) On or before the last day of each calendar month, each gatherer, intra-state pipeline or an affiliate of a gatherer or an intra-state pipeline that transports gas for a fee must also file a lost or unaccounted for gas report with the comptroller on forms prescribed by the comptroller. The report must contain the following information for the preceding calendar month:

(1) the gross volume of lost or unaccounted for gas the gatherer, an intra-state pipeline or an affiliate of a gatherer or an intra-state pipeline that transports gas for a fee reported to all producers in the state of Texas;

(2) two percent of the gross volume of gas the gatherer, an intra-state pipeline or an affiliate of a gatherer or an intra-state pipeline that transports gas for a fee received from all producers in the state of Texas; and

(3) the resulting gross volume when (d)(2) is subtracted from (d)(1). If the report the gatherer, an intra-state pipeline or an affiliate of a gatherer or an intra-state pipeline that transports gas for a fee is required to file pursuant to this subsection shows a positive gross volume reported under (d)(3), then notwithstanding any other provision of this act, the gatherer, an intra-state pipeline or an affiliate of a gatherer or an intra-state pipeline that transports gas for a fee is solely liable for the tax on the positive gross volume reported under (d)(3), the gatherer, an intra-state pipeline or an affiliate of a gatherer or an intra-state pipeline that transports gas for a fee may not transfer or contract away this liability for the tax on the positive gross volume reported under (d)(3) to any other entity or individual by any means and must pay the tax when he files the report on the positive gross volume reported under (d)(3) at the closing price at the Houston Ship Channel on the day before the date when he files the report.

SECTION 2. The revenue derived from Section 201.2035 (c) and (d) shall be deposited in the General Revenue Fund and one-fourth of the funds collected shall be used for the administration of the state's oil and gas conservation laws.

SECTION 3. This Act takes effect September 1, 2009.