LEGISLATIVE COMMITTEE/COMMITTEE CHAIRS
MEET BEFORE ALL IMPORTANT SESSION

TXOGA held its third quarterly Legislative and Regulatory Planning Meeting of 2004 during the Lone Star Forum/Pac joint meeting in October and its final meeting in December before the upcoming legislative session.The chairs of TXOGA’s numerous standing committees reported on the activities of their respective committees and provided updates on the status of pertinent regulatory developments under their jurisdiction.Committee reports included the following:

Regulatory Practices   Legal E&P   Marketing Environmental Refinery Environmental Legal Environmental  Pipeline

Production Environmental  Refinery Managers Royalty Issues Ad Valorem Tax Excise Tax Tax Advisory

Many legislative issues, both current and prospective, also were reported on and addressed in preparation for the upcoming regular session of the Legislature.The following are key issues expected to be faced by TXOGA during the 2005 regular session of the Texas Legislature agenda for the 2005 Session:

1. Taxes and School Finance
2. Severance Taxes

a.Make all existing tax incentives permanent (no resumption of full revenue tax rate after 10 years of production at reduced rate)

b.Make inactive well incentive permanent (repeal expiration date and repeal resumption of full tax rate after 10 years of production)

1. Texas Land & Mineral Owners’ Association – Surface Damages and Other Legislation
2. Land Vacancies
3. Corpus Christi Pipeline Ordinance – Franchise Fees
4. Pipeline Gathering Lines
5. Royalty Issues
6. RRC Jurisdiction and Exhaustion of Remedies for Alleged Environmental Damage Due to Exploration and Production Activities
7. Coastal Erosion
8. Asbestos Litigation Reform
9. Private Investigators Registration Reform
10. Oil Field Clean Up Fund

a.Leave funding alone

b.Address Risk – double P-5 fee for late renewals

1. Bonding
2. RRC Oil & Gas Migration
3. Workers’ Compensation
4. One-Call Reform
5. PUC Sunset
6. Diesel Fuel
7. Compliance History
8. Enforcement
9. Water Board Letters
10. Water Usage
11. Texas Energy Planning Council

TXOGA’s Legislative Committee, in conjunction with the appropriate regulatory committees, will be meeting continually during the coming months, monitoring legislation, promoting the Association’s positions on the above issues, preparing talking-point papers, developing legislative strategy, and drafting legislation.The Legislative Committee will meet weekly on Monday mornings during the legislative session.