LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 5, 2009 TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1823 by Seliger (Relating to the state's statutory and contractual liens to secure the payment of unpaid royalty and other amounts due under oil and gas leases of state land.), As Engrossed No significant fiscal implication to the State is anticipated. The bill would contractually obligate a lessee to grant to the state a lien on and security interest in all oil and gas in and extracted from the area covered by the lease, all proceeds which may accrue to the lessee from the sale of the oil and gas extracted from the area covered by the lease or from the area covered by any other lease of state land or minerals held by the lessee. The bill would provide that the Land Commissioner would determine whether to foreclose a lien by securing payment of royalties and damages suffered by the state, and the Land Commissioner would determine the amount of the lien based on a final audit billing notice. The General Land Office reports that the bill would enhance the agency's ability to collect revenues due to the state that might otherwise be non-collectible under existing statute. This estimate does not assume that the amount of additional revenue that might be collected upon passage of the bill would be significant to the state. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:305 General Land Office and Veterans' Land Board LBB Staff: JOB, SZ, TL, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
May 5, 2009
TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1823 by Seliger (Relating to the state's statutory and contractual liens to secure the payment of unpaid royalty and other amounts due under oil and gas leases of state land.), As Engrossed
TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB1823 by Seliger (Relating to the state's statutory and contractual liens to secure the payment of unpaid royalty and other amounts due under oil and gas leases of state land.), As Engrossed
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
SB1823 by Seliger (Relating to the state's statutory and contractual liens to secure the payment of unpaid royalty and other amounts due under oil and gas leases of state land.), As Engrossed
SB1823 by Seliger (Relating to the state's statutory and contractual liens to secure the payment of unpaid royalty and other amounts due under oil and gas leases of state land.), As Engrossed
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would contractually obligate a lessee to grant to the state a lien on and security interest in all oil and gas in and extracted from the area covered by the lease, all proceeds which may accrue to the lessee from the sale of the oil and gas extracted from the area covered by the lease or from the area covered by any other lease of state land or minerals held by the lessee. The bill would provide that the Land Commissioner would determine whether to foreclose a lien by securing payment of royalties and damages suffered by the state, and the Land Commissioner would determine the amount of the lien based on a final audit billing notice. The General Land Office reports that the bill would enhance the agency's ability to collect revenues due to the state that might otherwise be non-collectible under existing statute. This estimate does not assume that the amount of additional revenue that might be collected upon passage of the bill would be significant to the state.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 305 General Land Office and Veterans' Land Board
305 General Land Office and Veterans' Land Board
LBB Staff: JOB, SZ, TL, SD
JOB, SZ, TL, SD