LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 30, 2025 TO: Honorable Drew Darby, Chair, House Committee on Energy Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3158 by Darby (Relating to imposition of application fees for certain permits and permit amendments for the disposal of oil and gas waste.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3158, As Introduced: an impact of $0 through the biennium ending August 31, 2027. 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 toGeneral Revenue Related Funds2026$02027$02028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromOil & Gas Regulation51552026$1,217,5002027$1,217,5002028$1,217,5002029$1,217,5002030$1,217,500 Fiscal AnalysisThis bill would amend the Natural Resources Code to revise application fees for permits related to the disposal of oil and gas waste under the jurisdiction of the Railroad Commission of Texas (RRC). The bill would define land application, land farm, and land treatment permits, which authorize different methods of disposing of oil and gas waste by incorporating it into soil. The bill would establish new permit and amendment fees, including $500 for a land farm, land treatment, or land application permit or amendment; $2,000 for a commercial oil and gas waste separation facility permit; $1,000 for an amendment to a commercial waste separation facility permit; $3,000 for a commercial surface oil and gas waste facility permit; and $1,000 for an amendment to a commercial surface waste facility permit.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 30, 2025
TO: Honorable Drew Darby, Chair, House Committee on Energy Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3158 by Darby (Relating to imposition of application fees for certain permits and permit amendments for the disposal of oil and gas waste.), As Introduced
TO: Honorable Drew Darby, Chair, House Committee on Energy Resources
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3158 by Darby (Relating to imposition of application fees for certain permits and permit amendments for the disposal of oil and gas waste.), As Introduced
Honorable Drew Darby, Chair, House Committee on Energy Resources
Honorable Drew Darby, Chair, House Committee on Energy Resources
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB3158 by Darby (Relating to imposition of application fees for certain permits and permit amendments for the disposal of oil and gas waste.), As Introduced
HB3158 by Darby (Relating to imposition of application fees for certain permits and permit amendments for the disposal of oil and gas waste.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3158, As Introduced: an impact of $0 through the biennium ending August 31, 2027. 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 HB3158, As Introduced: an impact of $0 through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
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:
2026 $0
2027 $0
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 $1,217,500
2027 $1,217,500
2028 $1,217,500
2029 $1,217,500
2030 $1,217,500
Fiscal Analysis
This bill would amend the Natural Resources Code to revise application fees for permits related to the disposal of oil and gas waste under the jurisdiction of the Railroad Commission of Texas (RRC). The bill would define land application, land farm, and land treatment permits, which authorize different methods of disposing of oil and gas waste by incorporating it into soil. The bill would establish new permit and amendment fees, including $500 for a land farm, land treatment, or land application permit or amendment; $2,000 for a commercial oil and gas waste separation facility permit; $1,000 for an amendment to a commercial waste separation facility permit; $3,000 for a commercial surface oil and gas waste facility permit; and $1,000 for an amendment to a commercial surface waste facility permit.
Methodology
Based on the analysis of the Comptroller of Public Accounts and the RRC, it is assumed that there would be a revenue gain to General Revenue-Dedicated Account No. 5155 from permit application fee changes totaling $1,217,500 in fiscal year 2026 and continuing each subsequent fiscal year. Based on information provided by the RRC, it is assumed that any costs associated with implementing the provisions of the bill could be absorbed within existing resources.
Based on information provided by the RRC, it is assumed that any costs associated with implementing the provisions of the bill could be absorbed within existing resources.
Technology
This analysis assumes no technology costs associated with the bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 455 Railroad Commission
304 Comptroller of Public Accounts, 455 Railroad Commission
LBB Staff: b > td > JMc, RStu, MW, JOc
JMc, RStu, MW, JOc