FORTY-EIGHTH LEGISLATURE

FIRST SESSION, 2007

February 26, 2007

Mr. Speaker:

    Your ENERGY AND NATURAL RESOURCES COMMITTEE, to whom has been referred

HOUSE BILL 827, as amended

has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:

     1. On page 2, lines 11 and 12, strike "oil and gas operations are to take place" and insert in lieu thereof "the operator has the legal right to conduct oil and gas operations".

     2. On page 2, line 23, after "for" strike the remainder of the line and strike line 24 and insert in lieu thereof the following:

"damages sustained by the surface owner, as applicable, for loss of agricultural production and income, lost land value, lost use of and lost access to the surface owner's land and lost value of improvements caused by oil and gas operations. The payments contemplated by this section only cover land affected by oil and gas operations.".

     3. On page 4, line 8, after "minimum" insert "and to the extent known".

     4. On page 4, line 9, strike "to the extent known,".

     5. On page 4, line 15, strike "to the extent known,".

     6. On page 5, lines 8 and 9, strike "the use of and damages to the surface resulting from the" and insert in lieu thereof "damages to the surface affected by".

     7. On page 6, between lines 7 and 8, insert the following subsection:

          "F. The operator and the surface owner may enter into a mutually acceptable agreement that sets forth the rights and obligations of the parties with respect to the surface activities conducted by the operator.".