HBA-SEB H.B. 3444 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3444
By: Lewis, Ron
Energy Resources
4/5/1999
Introduced



BACKGROUND AND PURPOSE 

The recent downturn in the oil and gas industry has caused a decline in the
fees collected for the state's oil-field cleanup fund.  Additionally, fund
expenditures have increased due to remediation activities at abandoned
oil-field sites.  In order to increase the amount of money being deposited
into the oil-field cleanup fund, H.B. 3444 requires certain penalties and
fees that are currently being deposited into the general revenue fund to be
deposited instead into the oil-field cleanup fund.  That money includes
receipts from administrative penalties, fees collected for the expedited
processing of drilling permit applications, and application fees for fluid
injection well permits.     

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 81.0531, Natural Resources Code, by adding
Subsection (d), to require a penalty collected under this section
(Administrative Penalty) to be deposited to the credit of the oil-field
cleanup fund.   

SECTION 2.  Amends Section 85.2021(d), Natural Resources Code, to delete a
requirement that fees collected under this section (Drilling Permit Fee)
for expediting a drilling permit application be deposited in the general
revenue fund.   

SECTION 3.  Amends Section 91.1013(c), Natural Resources Code, to require
fees collected under this section (Application Fees), rather than under
only Subsection (b) (regarding a permit to discharge to surface water), to
be deposited in the state oil-field cleanup fund. 

SECTION 4.  Amends Section 91.111(c), Natural Resources Code, to include
penalties collected under Section 81.0531 in the composition of the
oil-field cleanup fund.  Makes conforming and nonsubstantive changes.   

SECTION 5.  Repealer:  Section 34, Chapter 603, Acts of the 72nd
Legislature, Regular Session, 1991, which currently repeals fees imposed
under Sections 85.2021, 81.116 (Oil-Field Cleanup Regulatory Fee on Oil),
and 81.117 (Oil-Field Cleanup Regulatory Fee on Gas), Natural Resources
Code.  

SECTION 6.  Effective date: September 1, 1999.
            Makes application of this Act prospective. 

SECTION 7.  Emergency clause.