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, (f) Repealed by Acts 1995, 74th Leg., ch. 426, Sec. 32, eff.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 Jun. 5, 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

Accessed:
Jun. 5, 2024

§ 404.0245’s source at texas​.gov