LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 8, 1997
TO: Honorable Steve Holzheauser, Chair IN RE: House Bill No. 2691
Committee on Energy Resources By: Merritt
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2691 ( Relating
to a requirement that the Railroad Commission of Texas conduct
a study of the East Texas Oil Field.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by HB2691-As Introduced
Implementing the provisions of the bill would result in a
net negative impact of $(1,115,849) 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 create the East Texas Oil Field Advisory Committee.
The bill would require the Railroad Commission to conduct a
study of the East Texas Oil Field for the purpose of making
recommendations to maximize the recovery of oil and gas from
the field. The advisory committee would advise the commission
with regard to the required study. Advisory committee costs
would be paid from money appropriated to the commission. The
commission would be required to report to the Legislature its
recommendations for maximizing the recovery of oil and gas from
the field. The advisory committee and its responsibilities
would expire September 1, 2008.
Methodolgy
According to the Railroad Commission, sophisticated geologic
and engineering modeling would be required. The commission
would contract for these services. Additional staff would be
required for historical research, reviewing and directing the
contract work, and computer programming and analysis.
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 Change in Number
Savings/(Cost) of State
from General Employees from
Revenue Fund FY 1997
0001
1998 ($490,037) 6.0
1998 (625,812) 2.6
2000 (427,152) 2.6
2001 (425,812) 2.6
2002 (327,152) 2.6
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 ($490,037)
1999 (625,812)
2000 (427,152)
2001 (425,812)
2002 (327,152)
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