LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
March 21, 1995
TO: Honorable Tom Craddick, Chair IN RE: House Bill No. 1892
Committee on Ways & Means By: Holzheauser
House of Representatives
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
1892 (Relating to an exemption from the oil and gas production
taxes for hydrocarbons produced from wells that use new recovery
techniques; providing a civil penalty.) this office has
determined the following:
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 provides for severance tax exemptions or credits for
hydrocarbon (oil, natural gas, condensate, etc.) production from
wells at which new hydrocarbon recovery techniques were used.
The new recovery techniques would be defined by the Railroad
Commission as being a previously unknown recovery, completion, or
drilling technique that has a reasonable possibility of
increasing the ultimate recovery of hydrocarbons.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Revenue Administrative Change in
Year Loss from General Cost to the Number of State
Revenue Fund 001 Comptroller's Employees from
Office FY 1995
1996 $27,677,000 $174,805 3.0
1997 34,043,000 211,009 4.0
1998 41,872,000 132,329 4.0
1999 51,503,000 132,329 4.0
2000 63,349,000 132,329 4.0
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
The fiscal implication to units of local government cannot be
determined.
Source: Comptroller of Public Accounts, Railroad Commission
LBB Staff: JK, CT, DF