LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 5, 1997
         
         
      TO: Honorable J.E. "Buster" Brown, Chair            IN RE:  Senate Bill No. 632, Committee Report 1st House, Substituted
          Committee on Natural Resources                              By: Brown
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB632 ( Relating 
to payment of a nonrefundable annual fee in lieu of a bond or 
other form of financial security required of a person applying 
for or acting under a Railroad commission permit to store, handle, 
treat, reclaim, or dispose of oil and gas waste.) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB632-Committee Report 1st House, Substituted
         

Implementing the provisions of the bill would result in a 
net impact of $0 to General Revenue Related Funds through the 
biennium ending August 31, 1999.
         
The bill would amend the Natural Resources Code to allow payment 
of a nonrefundable annual fee in lieu of a bond when applying 
for or acting under a Railroad Commission permit to store, handle, 
treat, reclaim, or dispose of oil and gas waste.  Fees would 
be deposited in the Oil Field Cleanup Fund (145).  

It is 
assumed that most facilities would opt for the fee instead of 
bonds, due to reduced costs, and that the Railroad Commission 
would absorb administrative costs related to collecting fee 
revenue.  This would produce a savings to the Oil Field Cleanup 
Account (145), but those savings would be insignificant.  
         
 
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   455   Railroad Commission
                                         
                      LBB Staff:   JK ,BB ,JH