SRC-TBR H.B. 1047 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1047
By: Cook (Armbrister)
Business & Commerce
5/4/2001
Engrossed


DIGEST AND PURPOSE 

The San Miguel Electric Cooperative (cooperative) operates a
lignite-burning electricity plant in Jourdanton, Texas.  The cooperative
has a contract with a large mining contractor to provide lignite from a
surface mine for use in the generating plant.  In accordance with current
law, the two entities have an agreement whereby the mining company
indemnifies the cooperative for accidents and injuries at the surface mine.
H.B. 1047 exempts an electric cooperative corporation from the provisions
regarding indemnity in certain mineral agreements. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 127, Civil Practice and Remedies Code, by adding
Section 127.008, as follows: 

Sec. 127.008.  ELECTRIC COOPERATIVE CORPORATION. (a)  Provides that this
section applies to an electric cooperative corporation operating under
Chapter 161, Utilities Code, that owns or leases real property to mine
lignite using open pit surface mining methods. 

(b)  Provides that this chapter does not affect the right of an electric
cooperative corporation described by Subsection (a) to secure indemnity
from a lessee, operator, contractor, or other person who performs services
for or provides materials or products to the corporation that relate to the
lignite mining. 

SECTION 2.  Effective date: upon passage or September 1, 2001.