82R9560 JE-F
 
  By: Burnam H.B. No. 2001
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption or tax reduction for certain high-cost
  gas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 201.057(f), Tax Code, is amended to read
  as follows:
         (f)  To qualify for the exemption or tax reduction provided
  by this section, the person responsible for paying the tax must
  apply to the comptroller. Notwithstanding any other provision of
  this section, the application must be filed with the comptroller
  before September 1, 2011. The application must contain the
  certification of the commission that the well produces high-cost
  gas and, if the application is for a well spudded or completed after
  September 1, 1995, must contain a report of drilling and completion
  costs incurred for each well on a form and in the detail as
  determined by the comptroller. Drilling and completion costs for a
  recompletion shall only include current and contemporaneous costs
  associated with the recompletion. Notwithstanding any other
  provision of this section, to obtain the maximum tax exemption or
  tax deduction, an application to the comptroller for certification
  according to Subsection (a)(2)(A) must be filed with the
  comptroller before September 1, 2011, and at the later of the 180th
  day after the date of first production or the 45th day after the
  date of approval by the commission. If the application is not filed
  by the applicable deadline to obtain the maximum tax exemption or
  tax deduction but is filed before September 1, 2011, the tax
  exemption or tax deduction is reduced by 10 percent for the period
  beginning on the 180th day after the first day of production and
  ending on the date on which the application is filed with the
  comptroller. An application to the comptroller for certification
  according to Subsection (a)(2)(B) may not be filed before January
  1, 1990, or after December 31, 1998. The comptroller shall approve
  the application of a person who demonstrates that the gas is
  eligible for the exemption or tax reduction. The comptroller may
  require a person applying for the exemption or tax reduction to
  provide any relevant information in the person's monthly report
  that the comptroller considers necessary to administer this
  section. The commission shall notify the comptroller in writing
  immediately if it determines that an oil or gas well previously
  certified as producing high-cost gas does not produce high-cost gas
  or if it takes any action or discovers any information that affects
  the eligibility of gas for an exemption or tax reduction under this
  section.
         SECTION 2.  The change in law made by this Act does not
  affect tax liability accruing before the effective date of this
  Act. That liability continues in effect as if this Act had not been
  enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2011.