TITLE 31.NATURAL RESOURCES AND CONSERVATION

Part 1. GENERAL LAND OFFICE

Chapter 3. GENERAL PROVISIONS

Subchapter C. SERVICES AND PRODUCTS

31 TAC §3.31

The Texas General Land Office proposes an amendment to Title 31, Part 1, Chapter 3, Subchapter C of the Texas Administrative Code, §3.31(b)(16)(A) relating to fees for services and products. The amendment provides the Commissioner the discretion to waive the currently required in-kind contract maintenance fees. The Texas General Land Office will develop guidelines based on economies of scale to determine whether the fees shall be imposed.

The change will increase the flexibility of the Texas General Land Office to supply natural gas to its customers.

Marshall Enquist, Attorney with the Energy Section, has determined that for each of the first five years that the amendment as proposed will be in effect, there will be no significant negative fiscal impact to state or local government as a result of administering the section as amended.

Marshall Enquist, Attorney with the Energy Section, has determined that there will be a slight public benefit due to potential savings as a consequence of reduced service charges for sales of natural gas by the State. There will not be an effect on small or micro businesses. There is no anticipated economic cost to persons who are required to comply with the amendment as proposed.

Marshall Enquist, Attorney with the Energy Section, has determined that for each of the first five years that the amendment as proposed will be in effect, there will be no impact on local employment.

Comments may be submitted to Deborah Cantu, Legal Services, Texas General Land Office, 1700 N. Congress Avenue, Austin, Texas 78711 or by fax at (512) 463-6311, no later than 30 days after publication.

The amendment to this section is proposed under Texas Natural Resources Code §31.051, which authorizes the Texas General Land Office to make and enforce suitable rules consistent with the law.

The proposed amendment affects Sections 35.101 through 35.106 of the Utilities Code.

§3.31.Fees.

(a) (No change.)

(b) General Land Office fees. The commissioner is authorized and required to collect the following fees where applicable.

(1) - (15) (No change.)

(16) Miscellaneous services and fees:

(A) In-kind contract maintenance fee. Processing and accounting for in-kind oil, gas, and other related product contracts, from purchaser of state-owned products unless deemed unnecessary by the Commissioner : per barrel delivered: $.05; per MMBTU delivered: $.03.

(B) - (H) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 28, 2004.

TRD-200404271

Trace Finley

Policy Director

General Land Office

Earliest possible date of adoption: August 8, 2004

For further information, please call: (512) 305-8598