Arkansas House Bill HB1047

Arkansas 2022 Regular Session

• Introduced: 2/7/22
• Refer: 2/14/22
• Report Pass: 2/15/22
• Engrossed: 2/16/22
• Enrolled: 2/18/22
• Chaptered: 2/23/22
• Passed: 2/23/22

Caption

An Act For The Department Of Energy And Environment - Oil And Gas Commission Appropriation For The 2022-2023 Fiscal Year.

Impact

The impact of HB 1047 involves significant appropriations that will bolster the operational capabilities of the Oil and Gas Commission, allowing for more effective oversight and management of the energy sector. By funding employee salaries and operational costs, the bill aims to enhance the regulatory framework governing oil and gas activities, particularly in the context of handling potentially hazardous abandoned wells. This move is likely beneficial in promoting environmental protection and public safety efforts within the state as it seeks to balance energy production with ecological responsibilities.

Summary

House Bill 1047 addresses the financial needs of the Department of Energy and Environment, specifically focusing on the Oil and Gas Commission for the fiscal year ending June 30, 2023. The bill outlines appropriations for personal services, operating expenses, and a well plugging program aimed at managing abandoned and orphaned oil and gas wells. Notably, it allocates a total of approximately $12.5 million for well plugging expenses and sets a framework for fund transfers to support these activities. This indicates a proactive legislative effort to address environmental concerns associated with orphaned wells.

Sentiment

The sentiment around HB 1047 appears to be generally positive among legislators, especially those advocating for environmental reforms and sustainable energy practices. The bipartisan support reflected in the voting history, with no dissenting votes, underscores a shared acknowledgment of the importance of properly managing oil and gas operations and addressing the state's environmental challenges through adequate funding. However, some concerns may exist regarding the adequacy of the appropriations to sufficiently cover the extensive needs of well plugging and other operational expenses.

Contention

While HB 1047 has gained attention for its funding provisions, there is potential contention regarding how effectively the funds will be utilized and whether they will meet the comprehensive needs of the Oil and Gas Commission. Critics may also question the long-term strategy behind biennial funding for well plugging and whether it adequately addresses the backlog of abandoned wells. Ensuring that the commissioned body can perform these duties efficiently could be a challenge, suggesting a need for ongoing assessment of the program's effectiveness.