LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 15, 2011 TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1556 by Burnam (Relating to a prohibition on the issuance of a drilling permit for an oil or gas well that is proposed to be located within a specified distance of a public school.), As Introduced No significant fiscal implication to the State is anticipated. The bill would prohibit the Railroad Commission from issuing a drilling permit for an oil or gas well that is proposed to be located less than 1,200 feet from a public school. The change would apply only to a drilling permit the application for which is filed with the Commission on or after September 1, 2011. Although the Railroad Commission could incur some costs in determining the location of public schools and check every drilling permit application to determine the distance of the proposed well location to public schools in the area, and the agency reports it could result in the need for as much as the resources of one full-time staff person, this estimate assumes that the additional costs could be absorbed using existing agency resources. There could be some loss of future state revenues based on oil and gas production, such as severance tax collections, if the bill would have the effect of limiting the number of wells that could be put into production in the future. That loss in revenue would depend on the number of wells that would otherwise be located within 1,200 feet of public schools. This estimate does not assume that such a potential loss would be significant to overall severance tax revenues. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts, 455 Railroad Commission LBB Staff: JOB, SZ, SD, TL
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
March 15, 2011
TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1556 by Burnam (Relating to a prohibition on the issuance of a drilling permit for an oil or gas well that is proposed to be located within a specified distance of a public school.), As Introduced
TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB1556 by Burnam (Relating to a prohibition on the issuance of a drilling permit for an oil or gas well that is proposed to be located within a specified distance of a public school.), As Introduced
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
HB1556 by Burnam (Relating to a prohibition on the issuance of a drilling permit for an oil or gas well that is proposed to be located within a specified distance of a public school.), As Introduced
HB1556 by Burnam (Relating to a prohibition on the issuance of a drilling permit for an oil or gas well that is proposed to be located within a specified distance of a public school.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would prohibit the Railroad Commission from issuing a drilling permit for an oil or gas well that is proposed to be located less than 1,200 feet from a public school. The change would apply only to a drilling permit the application for which is filed with the Commission on or after September 1, 2011. Although the Railroad Commission could incur some costs in determining the location of public schools and check every drilling permit application to determine the distance of the proposed well location to public schools in the area, and the agency reports it could result in the need for as much as the resources of one full-time staff person, this estimate assumes that the additional costs could be absorbed using existing agency resources. There could be some loss of future state revenues based on oil and gas production, such as severance tax collections, if the bill would have the effect of limiting the number of wells that could be put into production in the future. That loss in revenue would depend on the number of wells that would otherwise be located within 1,200 feet of public schools. This estimate does not assume that such a potential loss would be significant to overall severance tax revenues.
The bill would prohibit the Railroad Commission from issuing a drilling permit for an oil or gas well that is proposed to be located less than 1,200 feet from a public school. The change would apply only to a drilling permit the application for which is filed with the Commission on or after September 1, 2011.
Although the Railroad Commission could incur some costs in determining the location of public schools and check every drilling permit application to determine the distance of the proposed well location to public schools in the area, and the agency reports it could result in the need for as much as the resources of one full-time staff person, this estimate assumes that the additional costs could be absorbed using existing agency resources.
There could be some loss of future state revenues based on oil and gas production, such as severance tax collections, if the bill would have the effect of limiting the number of wells that could be put into production in the future. That loss in revenue would depend on the number of wells that would otherwise be located within 1,200 feet of public schools. This estimate does not assume that such a potential loss would be significant to overall severance tax revenues.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 455 Railroad Commission
304 Comptroller of Public Accounts, 455 Railroad Commission
LBB Staff: JOB, SZ, SD, TL
JOB, SZ, SD, TL