LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION May 10, 2011 TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB105 by Davis (Relating to a restriction on the formation into which certain commercial disposal wells permitted by the Railroad Commission of Texas may inject oil and gas waste.), As Engrossed No significant fiscal implication to the State is anticipated. The bill would provide that a permit issued by the Railroad Commission for a commercial disposal well that authorizes the disposal of oil and gas waste may authorize the disposal of the waste only in the Ellenberger formation or a deeper formation. These provisions would only apply to a disposal well proposed to be located in a county that is located wholly or partly above a hydrocarbon-producing geological formation that underlies all or part of two counties that are adjacent to one another; and each of which has a population of more than 1.8 million (Dallas and Tarrant Counties). Passage of the bill would only require minor rulemaking by the Railroad Commission, and is not expected to result in significant costs to the agency. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:455 Railroad Commission LBB Staff: JOB, SZ, TL LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION May 10, 2011 TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB105 by Davis (Relating to a restriction on the formation into which certain commercial disposal wells permitted by the Railroad Commission of Texas may inject oil and gas waste.), As Engrossed TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: John S O'Brien, Director, Legislative Budget Board IN RE: SB105 by Davis (Relating to a restriction on the formation into which certain commercial disposal wells permitted by the Railroad Commission of Texas may inject oil and gas waste.), 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 SB105 by Davis (Relating to a restriction on the formation into which certain commercial disposal wells permitted by the Railroad Commission of Texas may inject oil and gas waste.), As Engrossed SB105 by Davis (Relating to a restriction on the formation into which certain commercial disposal wells permitted by the Railroad Commission of Texas may inject oil and gas waste.), As Engrossed No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would provide that a permit issued by the Railroad Commission for a commercial disposal well that authorizes the disposal of oil and gas waste may authorize the disposal of the waste only in the Ellenberger formation or a deeper formation. These provisions would only apply to a disposal well proposed to be located in a county that is located wholly or partly above a hydrocarbon-producing geological formation that underlies all or part of two counties that are adjacent to one another; and each of which has a population of more than 1.8 million (Dallas and Tarrant Counties). Passage of the bill would only require minor rulemaking by the Railroad Commission, and is not expected to result in significant costs to the agency. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 455 Railroad Commission 455 Railroad Commission LBB Staff: JOB, SZ, TL JOB, SZ, TL