The Comptroller of Public Accounts adopts an amendment to §9.4031, concerning manual for discounting oil and gas income, without changes to the proposed text as published in the September 9, 2011, issue of the Texas Register (36 TexReg 5791).

This section is amended to implement Senate Bill 1505, 82nd Legislature, 2011, effective January 1, 2012, which changes the method to be used in the appraisal of oil and gas in place that is appraised by a method that takes into account the future income from the sale of oil or gas to be produced from the interest. The section is also amended to separately identify the appendices and to delete the list of references.

No comments were received regarding adoption of the amendment.

The amendment is adopted under Senate Bill 1505's amendment to Tax Code, §23.175 which requires the comptroller by rule to develop and distribute to each appraisal office appraisal manuals that specify the formula to be used in computing the limit on the price for an interest used in the second through the sixth year of an appraisal and the methods and procedures to discount future income from the sale of oil or gas from the interest to present value.

The amendment implements Tax Code, §23.175(b).