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.