Texas House Bill HB4166

Texas 2009 - 81st Regular

Caption

Relating to the provision of severance tax credits and exemptions and other incentives and procedures for producing oil from certain wells.

Impact

The implementation of HB 4166 is poised to impact state laws relating to environmental protection and resource management. By incentivizing the processing of contaminated waters, the bill not only addresses the environmental concerns associated with hydraulic fracturing but also facilitates the reuse of water, thus influencing legislative frameworks concerning water pollution and resource management. The Texas Commission on Environmental Quality will oversee the rules regulating any water reclamation programs benefiting from these tax credits.

Summary

House Bill 4166 is designed to provide severance tax credits and exemptions to oil producers in Texas, particularly those utilizing hydraulic fracturing techniques. The bill aims to encourage the processing of contaminated produced waters generated during oil production, establishing a credit system that rewards taxpayers for reusing this water. Specifically, oil well operators who process contaminated water and pay a fee for such service can earn a credit amounting to fifty cents per barrel of water reclaimed. This initiative supports water conservation efforts in the context of the oil industry while promoting the reuse of resources rather than their disposal.

Contention

Notably, the bill could foster debate among stakeholders, including environmental advocacy groups and the oil industry. Proponents argue that the bill presents a significant opportunity for the oil sector to adopt more sustainable practices, aligning economic interests with environmental responsibility. Conversely, opponents may raise concerns about the adequacy of existing environmental safeguards, expressing apprehension that the bill could lead to leniencies in regulatory measures intended to protect natural water sources. The balance between economic incentives and environmental protections will be critical during ongoing discussions surrounding HB 4166.