Tex. Gov't Code Section 404.0245
Crude Oil and Natural Gas Futures Contracts

(a)

In this section, “hedging” means the buying and selling of crude oil and natural gas commodity futures or options on crude oil and natural gas commodity futures as a protection against loss due to price fluctuations. Hedging at all times shall comply with Commodity Futures Trading Commission regulations.

(b)

Subject to the limitations of Subsection (c), the comptroller may determine and designate the amount of state funds that shall be invested by the comptroller in hedging transactions in crude oil and natural gas futures contracts and options on crude oil and natural gas futures contracts that are traded on an established exchange regulated by the Securities and Exchange Commission or the Commodity Futures Trading Commission.

(c)

The principal amount of state funds invested and outstanding in hedging transactions on any one day may not exceed $500,000 with a maximum risk of loss of $5,000,000 in a biennium. The total principal amount of state funds that may be invested by the comptroller in hedging transactions during any one biennium may not exceed the amount of money credited to the unclaimed money fund for that biennium and attributable to the remittance of mineral proceeds under Chapter 75 (Texas Minerals), Property Code. Any premium incurred in connection with hedging transactions may be paid only from funds appropriated for that purpose.

(d)

The comptroller shall invest state funds in crude oil and natural gas futures contracts or options on crude oil and natural gas futures contracts under the restrictions and procedures for making investments that persons of ordinary prudence, discretion, and intelligence, exercising the judgment and care under the circumstances then prevailing, would follow in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital. The investments may be made only for hedging purposes.

(e)

, (f) Repealed by Acts 1995, 74th Leg., ch. 426, Sec. 32, eff. June 9, 1995.
Added by Acts 1991, 72nd Leg., ch. 871, Sec. 1, eff. June 16, 1991. Amended by Acts 1993, 73rd Leg., ch. 939, Sec. 4, eff. Aug. 30, 1993; Acts 1995, 74th Leg., ch. 426, Sec. 6, 32, eff. June 9, 1995; Acts 1997, 75th Leg., ch. 891, Sec. 3.09, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 7.33, eff. Sept. 1, 1997.

Source: Section 404.0245 — Crude Oil and Natural Gas Futures Contracts, https://statutes.­capitol.­texas.­gov/Docs/GV/htm/GV.­404.­htm#404.­0245 (accessed May 18, 2024).

404.001
Definitions 404.0011
Transfer of Treasurer’s Powers and Duties 404.013
Rules 404.021
Eligible Institutions 404.022
Applications 404.023
Designation 404.024
Authorized Investments 404.026
Eleemosynary Funds 404.027
Liquidity 404.028
Investment Advisory Board 404.031
Collateral Requirements 404.032
Deposits 404.033
Withdrawals and Remittances 404.041
Trustee 404.043
Security Officers 404.045
Receipt of Money 404.046
Payment from Treasury 404.047
Accounts 404.048
Report 404.049
Money in Treasury 404.050
Delivery to Successor 404.051
Money Returned to County or Municipality 404.052
Obligations of Municipalities, Districts, and Political Subdivisions 404.054
Daily Totals 404.055
Time and Demand Deposits 404.056
Information Concerning Warrants 404.057
Warrants Payable Accounts 404.058
Outstanding Warrants 404.059
General Ledger Accounts 404.060
Priority of Warrants 404.062
Undetermined Remittances 404.063
Violation 404.064
Office Fees 404.065
Cash Balancing 404.066
Ledger 404.067
Safekeeping 404.068
State Regulatory Agencies Safekeeping and Pledged Collateral 404.069
Trust Funds 404.070
Validity of Voided Warrants 404.071
Disposition of Interest on Investments 404.072
Examination by State Auditor 404.073
Funds Outside Treasury 404.091
Short Title 404.092
Definition 404.093
Applicability of Subchapter 404.094
Funds to Be Deposited in Treasury 404.095
Electronic Transfer of Certain Payments 404.096
Rapid Deposits, Transactions, and Transfers Required 404.097
Deposit of Funds Recovered by Litigation or Settlement 404.101
Definitions 404.102
Creation of Trust Company 404.103
Powers 404.104
Duties of Comptroller 404.105
Capital or Reserve 404.106
Earnings 404.107
Fees 404.108
Trust Company Investment Advisory Board 404.109
Restrictions on Advisory Board Appointment, Membership, and Employment 404.110
Removal of Advisory Board Members 404.111
Advisory Board Member Training 404.112
Compensation 404.113
Meetings 404.114
Investment Management 404.115
Personnel 404.116
Liability Insurance for Certain Board Members, Officials, and Staff 404.121
Definitions 404.122
Cash Management Committee 404.123
Notes Authorized 404.124
Shortfall Forecast 404.125
Issuance of Notes 404.126
Fund Transfers 404.0211
Conflict of Interest 404.0212
Depository Rating Under Certain Federal Law 404.0221
Eligible Collateral 404.0241
Investment of Certain Economic Stabilization Fund Balances 404.0245
Crude Oil and Natural Gas Futures Contracts
Green check means up to date. Up to date

Accessed:
May 18, 2024

§ 404.0245’s source at texas​.gov