HBA-NMO H.B. 3005 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3005
By: Lewis, Ron
Energy Resources
3/21/1999
Introduced



BACKGROUND AND PURPOSE 

Under current law the Railroad Commission of Texas (commission) does not
bar the renewal of the P-5 (operation permit) of an oil or gas well
operator (operator) who owes the commission reimbursement for plugging or
cleanup costs until such costs are assessed by the commission or adjudged
by a court.  H.B. 3005 requires the commission to approve an operation
permit renewal only if an operator has paid all reimbursements of any
plugging or cleanup costs and expenses incurred, rather than assessed or
adjudged. 

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 Section 91.104(b), Natural Resources Code, to authorize
person required to file a bond as provided under Section 91.103 (Persons
Required to Execute Bond or Alternate Form of Financial Security) to file a
nonrefundable annual fee of $100 if the person meets certain other criteria
and  has paid all reimbursements of any costs and expenses incurred, rather
than assessed, by the Railroad Commission of Texas (commission) in relation
to any violation of commission rules, orders, licenses, permits, or
certificates.  Makes nonsubstantive changes. 

SECTION 2.  Amends Section 91.1091, Natural Resources Code, to require the
commission to refund proceeds from a bond or other form of security
required under this subchapter (General Provisions) if the commission has
been reimbursed for all costs and expenses incurred, rather than assessed,
by the commission in relation to those conditions.  Deletes references to
collection of costs and expenses.  

SECTION 3.  Amends Section 91.114(d), Natural Resources Code, to delete
reference to the assessment or ajudgment of costs concerning commission
acceptance of the report or application or approval of the certificate. 

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