Texas House Bill HB3404

Texas 2009 - 81st Regular

Caption

Relating to fees imposed by certain counties on operators of gas wells and oil and gas waste disposal wells.

Impact

If enacted, HB 3404 empowers county commissioners to levy fees appropriate for maintaining roads that become damaged due to oil and gas activities. The fees collected would funnel into the county's general fund but would be earmarked specifically for road maintenance related to the aforementioned activities. This allocation would ensure that funds directly support the infrastructure most impacted by the oil and gas industry.

Summary

House Bill 3404 seeks to establish a regulatory framework wherein certain counties can impose fees on operators of gas wells and oil and gas waste disposal wells. The bill specifies that this regulation is applicable to counties with populations exceeding 1.4 million, or those adjacent to such counties and certain other specified counties. It aims to address the detrimental impact that drilling activities have on county road infrastructure, which can suffer significant wear due to the heavy machinery and transportation involved in gas exploration and production.

Contention

The introduction of HB 3404 could lead to contentious debates regarding fiscal responsibility and the economic implications for the oil and gas sector. Proponents argue that the bill represents a necessary measure for ensuring infrastructure maintenance in regions heavily utilized by energy production operations. However, it is likely to face opposition from industry stakeholders concerned about additional financial burdens imposed on gas well operators, which they may argue could stifle growth and development within the sector. The balance between economic development and infrastructure maintenance will be a key point of contention amidst discussions surrounding this bill.