Texas House Bill HB4246

Texas 2009 - 81st Regular

Caption

Relating to the reporting of lost or unaccounted gas by the first purchaser and the tax due by the first purchaser on lost or unaccounted for gas.

Impact

If enacted, this bill will impact the existing regulations governing gas taxation and reporting in Texas. The detailed reporting requirements aim to enhance accountability and ensure that appropriate taxes are paid on lost or unaccounted gas. The revenue generated from these taxes will contribute to the General Revenue Fund, with a portion earmarked for the administration of the state's oil and gas conservation laws. This could potentially lead to improved regulation of gas production and distribution and foster greater responsibility among gas purchasers.

Summary

House Bill 4246 proposes amendments related to the reporting and taxation of lost or unaccounted gas by first purchasers, including gatherers and intra-state pipelines. The bill mandates that first purchasers must file monthly reports detailing the volume of gas they have purchased and any gas that has gone unaccounted for. The reports must include specific information such as the gross amount of gas purchased and losses observed, with the intention of ensuring transparency in gas transactions and maintaining accurate tax records.

Contention

There may be contention surrounding the bill, particularly regarding the additional regulatory burden it imposes on first purchasers. Critics might argue that the detailed reporting requirements could lead to significant administrative overhead for these entities, especially smaller operators. Furthermore, there could be debates about how the new tax liabilities are assessed and whether the collection mechanisms could disproportionately affect certain gas purchasers or impact pricing in the market. Proponents, however, would likely counter that these measures are essential for protecting state interests and ensuring a fair gas market.