The Wise Report

The Wise Report
Henry M. Wise, P.G.
October 14, 2007
 
The Railroad Commission of Texas (RRC) proposes to amend §3.50, relating to Enhanced Oil Recovery Projects--Approval and Certification for Tax Incentive, to incorporate changes made by House Bill (HB) 3732, 80th Legislature (2007), Regular Session, and to amend §3.80, relating to Commission Oil and Gas Forms, Applications, and Filing Requirements, to adopt a new form related to HB 3732 and to amend and delete other forms.  
Section 9 of HB 3732 amends Chapter 202 of the Texas Tax Code, relating to Oil Production Tax) to add new §202.0545, relating to Tax Exemption for Enhanced Recovery Projects Using Anthropogenic Carbon Dioxide. In general, the bill provides a reduction in the tax rate on oil produced from enhanced recovery projects using anthropogenic carbon dioxide. These changes became effective September 1, 2007. 
These proposals will be published in the October 26, 2007 Texas Register and the comment period will end on November 26, 2007.  On-line coments can be made at:  http://www.rrc.state.tx.us/rules/commentform.html
For more information go to:  http://www.rrc.state.tx.us/rules/documents/prop-amend-3-50and3-80-carbon-dioxide.pdf
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The RRC proposes the repeal of all rules in 16 TAC Chapter 11, relating to Surface Mining and Reclamation Division, and proposes several new rules under newly titled Chapter 11, relating to Uranium Exploration and Surface Mining. The proposed new rules are as follows:
In Subchapter A, entitled General Administrative Rules, new §§11.1-11.4, relating to Practice and Procedure; Definitions; Permit Processing; and Temporary Orders Prior to Notice and Hearing. In new Subchapter B, entitled Permits for Uranium Exploration and Surface Mining, new §§11.21-11.33, and 11.41-11.46, relating to Purpose and Authority; Applicability; Confidentiality; Uranium Exploration Permit Required; Application for Uranium Exploration Activity; Uranium Exploration Permit Application Fees; Uranium Exploration Reclamation and Plugging Requirements; Uranium Exploration Plugging Report; Uranium Exploration Permit Renewal; Uranium Exploration Permit Amendment; Uranium Exploration Permit Transfer; Uranium Exploration Application Notification by the Commission; Information Provided to Groundwater Conservation Districts; Uranium Surface Mining Permits; Bonding, Insurance, and Payment of Fees; Surface Mining Permit Renewal; Surface Mining Permit Transfer; Surface Mining Permit Approval or Denial; and Permit Changes. In new Subsection C, entitled Designation of Lands Unsuitable for Surface Mining, new §§11.71-11.72, relating to Petition Procedure and Determination; and Elements of Unsuitability. In new Subchapter D, entitled Surface Mining Reclamation, Mine Closing, and Release, new §§11.81-11.86, relating to Reclamation Plan; Reclamation Standards; Alternative Reclamation Methods; Amendments; Surface Mine Closing; and Release. In new Subchapter E, entitled Reporting, Record Maintenance and Performance Bonds, new §§11.91-11.94, relating to Annual Report; Maintenance of Records; Performance Bonds; and Release or Reduction of Bonds. In new Subchapter F, entitled Enforcement by the Commission, new §§11.151-11.165, relating to Scope; Inspections; Time and Procedures for Inspection; Violations Creating Imminent Danger or Causing Imminent Harm; Violations Not Creating Imminent Danger or Causing Imminent Harm; Continuous Violations; Notice of Violation or Cessation Order; Civil Action; Injunctive Relief and Civil Penalty; Administrative Penalty; Penalty Assessment Procedures; Payment of Penalty and Refund; Criminal Penalty for Violating Permits and Orders; Criminal Penalty for Corporate Permittee; and Criminal Penalty for False Statement, Representation, or Certification. Although all the proposed new rules will be designated in the Texas Register with underlining to indicate new wording, in fact in only a few of the rules have substantively different wording proposed from what is currently in effect. Most of the rules have only minor differences from the current wording and can be found at:  http://www.rrc.state.tx.us/rules/documents/prop-repeal-and-new-Ch11-uranium-rules.pdf 
On-line comments can be made at:  http://www.rrc.state.tx.us/rules/commentform.html 

Henry M. Wise, P.G.
The Wise Report
10/14/2007
 
source: 
Henry M. Wise
releasedate: 
Sunday, October 14, 2007
subcategory: 
Government Update