04/26/1996 03:50 PM Senate RES

                                                                               
         CSHB 394(FIN) am SHALLOW NATURAL GAS LEASING                        
                                                                               
  CHAIRMAN LEMAN  called the Senate Resources Committee meeting to             
 order at 3:50 p.m.  He introduced HB 394 as the first order of                
 business, and invited Representative Scott Ogan and Hans Neidig to            
 the table to explain a proposed amendment.                                    
                                                                               
      REPRESENTATIVE SCOTT OGAN , prime sponsor of HB 394, explained th        
 amendment was basically technical in nature.  On page 6, line 2,              
 language was added to clarify that the payments will be annual.  On           
 page 7, line 10, the phrase "exploration and before production" was           
 added in case a lessee penetrates a formation capable of producing            
 oil.                                                                          
                                                                               
  HANS NEIDIG , staff to Representative Ogan, added that the change to         
 page 7, line 25, was simply a drafting change because the language            
 had been poorly drafted.                                                      
                                                                               
 Number 080                                                                    
                                                                               
  CHAIRMAN LEMAN  directed attention to a letter dated April 26 from           
 the Department of Natural Resources suggesting that on page 7,                
 lines 21 - 23, the sentence starting with the phrase "consistent              
 with the principle of..." be deleted.   REPRESENTATIVE OGAN  stated           
 he concurred with the suggested change.                                       
                                                                               
  CHAIRMAN LEMAN  asked for a motion to adopt the following Amendment          
 No. 1:                                                                        
                                                                               
 Amendment No. 1                                                             
                                                                               
 Page 6, line  2:  Following "payment to the state of" insert                  
                   "annual"                                                  
                                                                               
 Page 7, line 10:  Before the word "production" insert "exploration         
       and"                                                                 
                                                                               
 Page 7, line 25:  Sentence should read: "may not be mined or                  
       extracted by the coal lessee from the coal lease                        
       without prior"                                                          
                                                                               
  SENATOR PEARCE  moved the adoption of Amendment No. 1.  Hearing no           
 objection, the Chairman stated the amendment was adopted.                     
                                                                               
  CHAIRMAN LEMAN  asked if there was a motion to adopt Amendment No.           
 2, suggested by DNR to delete the sentence on page 7, lines 21 -              
 23.                                                                           
                                                                               
  SENATOR PEARCE  moved the adoption of Amendment No. 2.  Hearing no           
 objection, the Chairman stated the amendment was adopted.                     
                                                                               
  CHAIRMAN LEMAN  asked for the pleasure of the committee on SCS CSHB
(RES).                                                                     
                                                                               
  SENATOR PEARCE  moved SCS CSHB 394(RES), as amended, and the                 
 accompanying fiscal notes be passed out of committee with                     
 individual recommendations.  Hearing no objection, it was so                  
 ordered.