Texas Senate Bill SB2170

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/30/09
• Voted on by Senate: 5/5/09

Caption

Relating to the amount and use of certain fees imposed in connection with oil and gas activities.

Impact

The introduction of SB2170 has significant implications for Texas state laws concerning oil and gas production. It modifies existing fee structures that directly impact revenue allocated from oil and gas production to environmental cleanup efforts. By establishing a dedicated funding stream through these regulatory fees, the legislation aims to bolster initiatives designed to mitigate the ecological damage caused by drilling and extraction practices, which is increasingly seen as a necessity in preserving natural resources.

Summary

SB2170 proposes amendments to the Texas Natural Resources Code, establishing new regulatory fees associated with oil and gas activities, specifically focusing on the oil-field cleanup fees. The bill readsjusts the fees imposed on oil and gas products in an effort to ensure that the funds generated are adequately allocated for cleanup efforts related to oilfield operations. The bill is seen primarily as a measure to enhance financial support for the oil-field cleanup fund which is critical for managing environmental impacts of oil and gas extraction.

Contention

While supporters argue this bill is essential for enhancing environmental protection measures, there are concerns among certain stakeholders regarding the financial burden that increased fees may impose on oil and gas companies. Critics worry that higher fees could lead to higher costs for consumers or deter investment in Texas's influential oil and gas sector, potentially stunting economic growth. Furthermore, discussions around the bill highlight the delicate balance between maintaining robust environmental safeguards and promoting a favorable business climate for energy producers.