HBA-SEB H.B. 3719 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3719
By: Merritt
Energy Resources
4/19/1999
Introduced



BACKGROUND AND PURPOSE 

The Oil Spill Prevention and Response Act of 1991 (OSPRA) provides for
funding through a two cent charge for every barrel of oil loaded or
unloaded at Texas ports.  The fund, however, may not exceed $50 million,
and additional funds are given to the Railroad Commission of Texas
(commission). H.B. 3719 eliminates the cap set for the OSPRA fund,
transfers all funds to the commission for the oil-field cleanup fund,  and
increases the fee to four cents per barrel.  This bill also authorizes the
commission to reduce certain statutory fees if the commission determines
that a portion of the revenue from the fees is not necessary to accomplish
the purposes of the fund.    

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Railroad Commission of Texas in
SECTION 10 (Section 91.1111, Natural Resources Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 40.151(b) and (e), Natural Resources Code, as
follows: 

(b)  Deletes existing text requiring the coastal protection fund to be used
only for carrying out the purposes of this chapter (Oil Spill Prevention
and Response Act), and prohibiting the fund from exceeding $50 million. 

(e)  Requires the comptroller to transfer all fees, penalties, judgments,
reimbursements, and charges levied and collected under Section 40.155 to
the Railroad Commission of Texas for the oil-field cleanup fund.  Deletes
existing text regarding the amount of money in the fund. Creates Subsection
(f) from existing text.   

SECTION 2.  Amends Section 40.155, Natural Resources Code, as follows:

Sec. 40.155.  New title:  AMOUNT OF FEE.  Requires the rate of the coastal
protection fee to be four, rather than two, cents per barrel of crude oil.
Deletes the remainder of the section, regarding the determination of the
fee and the balance of the fund.   

SECTION 3.  Amends Section 91.111(c), Natural Resources Code, which
provides that the fund includes income deposited under Section 40.151(e).
Makes a conforming change. 

SECTION 4.  Repealers:  Sections 40.156(b) (requiring the Commissioner of
the General Land Office to publish a specific finding) and (c) (requiring
the Commissioner of the General Land Office to reinstate a fee in the event
of an emergency), Natural Resources Code.   

SECTION 5.  Amends Section 91.112(a), Natural Resources Code, to authorize
money in the fund to be used by the Railroad Commission of Texas
(commission) or its employees or agents for implementing the provisions of
Chapter 40 that relate to the authority of the commission, including
administering or enforcing any permits, rules, or orders adopted by the
commission thereunder.   

SECTION 6.  Amends Sections 85.2021(a) and (c), Natural Resources Code, to
provide an  application for a permit to drill, deepen, plug back, or
reenter a well or for a time extension to plug a well is submitted with a
fee that may be established by the commission, by rule, in accordance with
Section 91.1111, in a lesser amount than already specified.  

SECTION 7.  Amends Section 91.104(c), Natural Resources Code, to make a
conforming change with respect to a fee submitted by a person filing a form
of financial security other than a bond. 

SECTION 8.  Amends Section 81.116(a), Natural Resources Code, to make
conforming changes with respect to an oil-field cleanup regulatory fee for
crude petroleum produced in this state.   

SECTION 9.  Amends Section 81.117(a), Natural Resources Code, to make
conforming changes with respect to an oil-field cleanup fee for gas
initially produced and saved in this state. 

SECTION 10.  Amends Chapter 91, Natural Resources Code, by adding Section
91.1111, as follows: 

Sec. 91.1111.  REDUCTION IN FEES.  Authorizes the commission, by rule, to
reduce certain statutory fees if the commission determines that a portion
of the revenue from the fees is not necessary to fully accomplish the
purposes of the fund.  Authorizes the commission to reinstate all or any
portion of a fee reduction if the commission determines that the additional
revenues are necessary to fully accomplish those purposes.   

SECTION 11.  Repeals Section 34, Chapter 603, Acts of the 72nd Legislature
Regular Session, 1991.  This section currently repeals Sections 85.2021
(Drilling Permit Fee), 81.116 (Oil-Field Cleanup Regulatory Fee on Oil),
and 81.117 (Oil-Field Cleanup Regulatory Fee on Gas), Natural Resources
Code.    

SECTION 12.  Effective date of SECTIONS 1-10 of this Act:  September 1,
1999.   
              Effective date of SECTION 11 of this Act:  August 31, 1999.

SECTION 13.  Emergency clause.