LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 30, 1997
TO: Honorable Steve Holzheauser, Chair IN RE: House Bill No. 1178
Committee on Energy Resources By: Holzheauser
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1178 ( Relating
to the definition of a marginal gas well.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by HB1178-As Introduced
Implementing the provisions of the bill would result in a
net positive impact of $23,418 to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would amend provisions relating to marginal gas wells
and limits on well restrictions as administered by the Railroad
Commission. The bill would exempt all marginal gas well from
proration, not just those producing 100,000 cubic feet of gas
or less per day.
Methodolgy
The bill may provide some relief for operators who would have
had to conduct and report annual well tests. It is estimated
that an additional 10,500 gas wells would be exempt from proration.
Some costs would be incurred as the Railroad Commission would
need to adjust existing computer programs, however overall savings
would be achieved as there would be a reduction in the number
of test reports reviewed, updated, and stored by the commission.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable Change in Number
Savings/(Cost) Savings/(Cost) of State
from General from General Employees from
Revenue Fund Revenue Fund FY 1997
0001 0001
1998 ($8,060) $15,739 (0.5)
1998 0 15,739 (0.5)
2000 0 15,739 (0.5)
2001 0 15,739 (0.5)
2002 0 15,739 (0.5)
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $7,679
1999 15,739
2000 15,739
2001 15,739
2002 15,739
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 455 Railroad Commission
LBB Staff: JK ,BB ,JH