By: Walle, Morales Shaw, Zwiener H.B. No. 3973
(Senate Sponsor - Nichols)
(In the Senate - Received from the House May 3, 2021;
May 17, 2021, read first time and referred to Committee on Finance;
May 21, 2021, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 12, Nays 0; May 21, 2021,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 3973 By: Nichols
A BILL TO BE ENTITLED
AN ACT
relating to a study on abandoned oil and gas wells in this state and
the use of the oil and gas regulation and cleanup fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) A joint interim committee is created to
study abandoned oil and gas wells in this state and the use of the
oil and gas regulation and cleanup fund.
(b) The committee shall be composed of:
(1) five members appointed by the lieutenant governor;
and
(2) five members appointed by the speaker of the house
of representatives.
(c) The committee shall convene at the call of the presiding
officer.
(d) The committee has all other powers and duties provided
to a special or select committee by the rules of the senate and
house of representatives, by Subchapter B, Chapter 301, Government
Code, and by policies of the senate and house committees on
administration.
(e) Not later than the 60th day after the effective date of
this Act, the lieutenant governor and the speaker of the house of
representatives shall appoint the members of the interim committee
created under this section.
(f) The committee shall:
(1) study matters related to abandoned oil and gas
wells in this state, including the costs associated with plugging
abandoned wells and bonding requirements imposed on owners or
operators of oil and gas wells;
(2) identify potential solutions to reduce the need
for general revenue spending to plug abandoned wells;
(3) conduct review of the oil and gas regulation and
cleanup fund, including:
(A) revenue sources of the fund;
(B) projected revenue for the fund through fiscal
year 2025 based on the fund's existing fee and fine structure; and
(C) an assessment of the rules and statutory
limits that determine the amount of the fees and fines that
contribute to the fund; and,
(4) evaluate and identify other sources of potential
revenue, including federal funds and other existing taxes and fees
paid to the benefit of the state which could be utilized to meet the
goals of the committee.
(g) The Railroad Commission of Texas shall provide
information to the committee necessary to conduct the study under
Subsection (f) of this section, including information related to:
(1) budget and performance measures of the commission
and fees and fines collected by the commission; and
(2) any regulatory or statutory changes needed to
assure adequate operating revenue for the commission, including
revenue used to plug abandoned oil and gas wells.
(h) Not later than December 1, 2022, the joint interim
committee shall report the committee's findings and
recommendations to the legislature.
(i) The committee is abolished and this section expires
January 1, 2023.
SECTION 2. This Act takes effect September 1, 2021.
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