HBA-NIK H.B. 2549 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2549
By: Janek
State Recreational Resources
3/26/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, in the Gulf of Mexico's Outer Continental Shelf (OCS) there are
approximately 4,800 platforms in Texas and Louisiana state waters.  About
25 percent of the platforms in OCS are over 25 years old, and having
reached or exceeded their design life, will have to be removed soon.
Current regulations require platform removal within a year following lease
termination.  Removal costs vary with the size, type, and distance of the
platforms from shore or alternative disposal site, but generally the costs
range between one and five million dollars per platform.  H.B. 2549 allows
the transfer of the title for a standing oil and gas platform to the state
for use as an artificial reef. This bill also authorizes the department to
determine and collect as a fee a percentage of the cost an owner of an oil
and gas platform would normally be required to pay for the removal of the
platform. 
 
RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends 89.002, Parks and Wildlife Code, by adding Subsection
(c) to authorize the Parks and Wildlife Department (department) to
determine and collect as a fee a fair percentage of the cost an owner of an
oil and gas platform would normally be required to pay for the removal or
destruction of the platform for the transfer of title for a standing oil
and gas platform to the state for use as an artificial reef. 

SECTION 2.  Amends Section 89.025, Parks and Wildlife Code,  by adding
Subsection (c) to require the department, whenever possible, to leave
standing in its present location an oil and gas platform that it holds
title to and that may serve as a potential artificial reef. 

SECTION 3.  Amends Section 89.061, Parks and Wildlife Code, by adding
Subsection (c) to provide that a person who has transferred title of a
standing oil and gas platform to the state for use as an artificial reef is
not liable for damages arising from the use of the platform as an
artificial reef if the applicable requirements of the National Fishing
Enhancement Act and applicable regulations of the United States Department
of the Interior are met. 

SECTION 4.  Emergency clause.
            Effective date: upon passage.