81R7170 PAM-D By: King of Parker H.B. No. 3404 A BILL TO BE ENTITLED AN ACT relating to fees imposed by certain counties on operators of gas wells and oil and gas waste disposal wells. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter Z, Chapter 240, Local Government Code, is amended by adding Section 240.908 to read as follows: Sec. 240.908. GAS WELL AND OIL AND GAS WASTE DISPOSAL WELL IMPACT FEE IN CERTAIN COUNTIES. (a) In this section: (1) "Gas well" has the meaning assigned by Section 86.002, Natural Resources Code. (2) "Injection well" and "oil and gas waste" have the meanings assigned by Section 27.002, Water Code. (3) "Oil and gas waste disposal well" means an injection well that is used for the injection of oil and gas waste. (b) This section applies only to a gas well or oil and gas waste disposal well located in: (1) a county that: (A) has a population of 1.4 million or more or is adjacent to such a county; and (B) is located wholly or partly above a hydrocarbon-producing geological formation in which during the preceding year the Railroad Commission of Texas issued more than 2,000 drilling permits authorizing gas wells to be completed; or (2) a county: (A) that has a population of more than 25,000; (B) that borders another state; and (C) in which is located a national forest. (c) The commissioners court of a county may impose a fee on each operator of a gas well or oil and gas waste disposal well located in the county. The fee may be assessed in an amount and on a schedule as determined by the commissioners court to adequately provide funds to the county for maintaining county roads that suffer deterioration caused by activities associated with the exploration for or development or production of gas in the county. (d) Funds collected under this section shall be deposited in the county's general fund. The funds may be used only for maintaining county roads that suffer deterioration caused by activities associated with the exploration for or development or production of gas in the county. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.