LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 8, 2009 TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2853 by Farabee (Relating to the amount and use of certain fees imposed in connection with oil and gas activities.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2853, As Introduced: a positive impact of $10,199,000 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 8, 2009
TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2853 by Farabee (Relating to the amount and use of certain fees imposed in connection with oil and gas activities.), As Introduced
TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB2853 by Farabee (Relating to the amount and use of certain fees imposed in connection with oil and gas activities.), As Introduced
Honorable Jim Keffer, Chair, House Committee on Energy Resources
Honorable Jim Keffer, Chair, House Committee on Energy Resources
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB2853 by Farabee (Relating to the amount and use of certain fees imposed in connection with oil and gas activities.), As Introduced
HB2853 by Farabee (Relating to the amount and use of certain fees imposed in connection with oil and gas activities.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2853, As Introduced: a positive impact of $10,199,000 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2853, As Introduced: a positive impact of $10,199,000 through the biennium ending August 31, 2011.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 $4,676,000 2011 $5,523,000 2012 $6,153,000 2013 $6,822,000 2014 $7,507,000
2010 $4,676,000
2011 $5,523,000
2012 $6,153,000
2013 $6,822,000
2014 $7,507,000
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromOil-field Cleanup Acct145 2010 $4,676,000 ($7,961,000) 2011 $5,523,000 ($8,791,000) 2012 $6,153,000 ($9,405,000) 2013 $6,822,000 ($10,057,000) 2014 $7,507,000 ($10,726,000)
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromOil-field Cleanup Acct145 2010 $4,676,000 ($7,961,000) 2011 $5,523,000 ($8,791,000) 2012 $6,153,000 ($9,405,000) 2013 $6,822,000 ($10,057,000) 2014 $7,507,000 ($10,726,000)
2010 $4,676,000 ($7,961,000)
2011 $5,523,000 ($8,791,000)
2012 $6,153,000 ($9,405,000)
2013 $6,822,000 ($10,057,000)
2014 $7,507,000 ($10,726,000)
Fiscal Analysis
The bill would reduce the Oil Field Cleanup Regulatory Fee deposited to the General Revenue-Dedicated Oil Field Cleanup Account No. 145 by 50 percent. The fee for oil production would drop from five-eights of a cent per barrel to five-sixteenths of a cent and the fee for natural gas production from one-fifteenth of a cent on each 1,000 cubic feet to one-thirtieth of a cent. The bill would reduce to one-half the share of drilling permit fees deposited to the Oil Field Cleanup Account No. 145. However, the bill does not specify where the remaining one-half of fee collections would be deposited.
Methodology
Without a specific provision for the deposit of one-half of drilling permit fee collections deposited to the Oil Field Cleanup Account No. 145, this estimate assumes that one-half of the fees would instead go to the General Revenue Fund. The revenue loss to the Oil Field Cleanup Account No. 145 would result from the reduction of the Oil Field Cleanup Regulatory Fee by 50 percent and the redirection of one-half of drilling permit fees to the General Revenue Fund. The gain to General Revenue would result from the redirection of one-half of drilling permit fees fee proceeds from the Oil Field Cleanup Account. The estimates presented in the table above were provided by the Comptroller of Public Accounts' Office.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 455 Railroad Commission
304 Comptroller of Public Accounts, 455 Railroad Commission
LBB Staff: JOB, ZS, TL, SD
JOB, ZS, TL, SD