LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 30, 2009 TO: Honorable Kip Averitt, Chair, Senate Committee on Natural Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB2170 by Seliger (Relating to the amount and use of certain fees imposed in connection with oil and gas activities.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB2170, Committee Report 1st House, Substituted: an impact of $0 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 30, 2009
TO: Honorable Kip Averitt, Chair, Senate Committee on Natural Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB2170 by Seliger (Relating to the amount and use of certain fees imposed in connection with oil and gas activities.), Committee Report 1st House, Substituted
TO: Honorable Kip Averitt, Chair, Senate Committee on Natural Resources
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB2170 by Seliger (Relating to the amount and use of certain fees imposed in connection with oil and gas activities.), Committee Report 1st House, Substituted
Honorable Kip Averitt, Chair, Senate Committee on Natural Resources
Honorable Kip Averitt, Chair, Senate Committee on Natural Resources
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB2170 by Seliger (Relating to the amount and use of certain fees imposed in connection with oil and gas activities.), Committee Report 1st House, Substituted
SB2170 by Seliger (Relating to the amount and use of certain fees imposed in connection with oil and gas activities.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB2170, Committee Report 1st House, Substituted: an impact of $0 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 SB2170, Committee Report 1st House, Substituted: an impact of $0 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 $0 2011 $0 2012 $0 2013 $0 2014 $0
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromOil-field Cleanup Acct145 Probable Revenue Gain/(Loss) fromNew General Revenue Dedicated--Oil and Gas Regulatory and Development Fund 2010 ($7,961,000) $4,676,000 2011 ($8,791,000) $5,523,000 2012 ($9,405,000) $6,153,000 2013 ($10,057,000) $6,822,000 2014 ($10,726,000) $7,507,000
Fiscal Year Probable Revenue Gain/(Loss) fromOil-field Cleanup Acct145 Probable Revenue Gain/(Loss) fromNew General Revenue Dedicated--Oil and Gas Regulatory and Development Fund 2010 ($7,961,000) $4,676,000 2011 ($8,791,000) $5,523,000 2012 ($9,405,000) $6,153,000 2013 ($10,057,000) $6,822,000 2014 ($10,726,000) $7,507,000
2010 ($7,961,000) $4,676,000
2011 ($8,791,000) $5,523,000
2012 ($9,405,000) $6,153,000
2013 ($10,057,000) $6,822,000
2014 ($10,726,000) $7,507,000
Fiscal Analysis
The bill would reduce the Oil Cleanup Regulatory Fee for oil production 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 deposit one half of the Oil Field Cleanup Regulatory Fee to the General Revenue-Dedicated Oil Field Cleanup Account No. 145, with the other half being deposited to a new General Revenue-Dedicated Account: the Oil and Gas Regulatory and Development Fund. Funds in the Oil and Gas Regulatory and Development Fund would be used by the Railroad Commission for activities related to the regulation and development of oil and natural gas.
Methodology
The bill's passage would result in a loss in the current revenue stream from the Oil Field Cleanup Regulatory Fee deposited to the Oil Field Cleanup Account No. 145. It would also result in a gain to the newly-created Oil and Gas Regulatory and Development Fund. The revenue gain/loss estimates presented in the table above were provided by the Comptroller of Public Accounts' Office. This estimate assumes that appropriations to the Railroad Commission would be adjusted upon passage of the legislation, with the entire revenue stream for the newly-created Oil and Gas Regulatory and Development Fund being appropriated to the agency to cover costs relating to oil and gas resource development that are currently paid out of the Oil Field Cleanup Account No. 145. Likewise, this estimate assumes that General Revenue appropriations to the agency would have to be increased to cover the difference between the loss in the Oil Field Cleanup Account No. 145 and the gain to the Oil and Gas Regulatory Fund (net loss in revenues to the Oil Field Cleanup Regulatory Fee), which would equal approximately $3.3 million per fiscal year.
The bill's passage would result in a loss in the current revenue stream from the Oil Field Cleanup Regulatory Fee deposited to the Oil Field Cleanup Account No. 145. It would also result in a gain to the newly-created Oil and Gas Regulatory and Development Fund. The revenue gain/loss estimates presented in the table above were provided by the Comptroller of Public Accounts' Office.
This estimate assumes that appropriations to the Railroad Commission would be adjusted upon passage of the legislation, with the entire revenue stream for the newly-created Oil and Gas Regulatory and Development Fund being appropriated to the agency to cover costs relating to oil and gas resource development that are currently paid out of the Oil Field Cleanup Account No. 145. Likewise, this estimate assumes that General Revenue appropriations to the agency would have to be increased to cover the difference between the loss in the Oil Field Cleanup Account No. 145 and the gain to the Oil and Gas Regulatory Fund (net loss in revenues to the Oil Field Cleanup Regulatory Fee), which would equal approximately $3.3 million per fiscal year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 455 Railroad Commission, 582 Commission on Environmental Quality, 304 Comptroller of Public Accounts, 347 Public Finance Authority, 352 Bond Review Board
455 Railroad Commission, 582 Commission on Environmental Quality, 304 Comptroller of Public Accounts, 347 Public Finance Authority, 352 Bond Review Board
LBB Staff: JOB, SZ, ZS, TL, SD
JOB, SZ, ZS, TL, SD