LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
February 16, 1999
TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on
Natural Resources
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB115 by Brown, J.E. "Buster" (Relating to the repeal of
the expiration of certain fees imposed by the Railroad
Commission of Texas.), As Introduced
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* Two-year Net Impact to General Revenue Related Funds for SB115, As *
* Introduced: positive impact of $800,000 through the biennium *
* ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $400,000 *
* 2001 400,000 *
* 2002 392,000 *
* 2003 392,000 *
* 2004 392,000 *
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All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Probable Revenue Probable *
* Year Gain/(Loss) from Gain/(Loss) from Savings/(Cost) from *
* General Revenue Fund Oil-Field Cleanup Oil-Field Cleanup *
* 0001 Account/ Account/ *
* GR-Dedicated GR-Dedicated *
* 0145 0145 *
* 2000 $400,000 $8,641,000 $(6,725,553) *
* 2001 400,000 8,564,000 (9,792,387) *
* 2002 392,000 6,902,000 (6,902,000) *
* 2003 392,000 6,816,000 (6,816,000) *
* 2004 392,000 6,733,000 (6,733,000) *
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Technology Impact
The technology costs are estimated to be $13,573 for
microcomputer/peripherals and software for the 2000-01 biennium.
Fiscal Analysis
The bill would continue the drilling permit application fee, the plugging
extension fee, the oil-field cleanup regulatory fee on gas, and the oil
field cleanup regulatory fee on gas beyond the current expiration date of
August 31, 1999. Revenue from these four fees would continue to be
deposited to the credit of the Oil Field Cleanup Account. In addition,
the bill would continue the expedited drilling permit application fee
which is also set to expire August 31, 1999. Revenue from this fee would
continue to be deposited to the credit of the General Revenue Fund.
Estimated costs reflect amounts needed to continue activities related to
the regulation, reclamation and remediation of abandoned wells and
cleanup of polluted oil and gas sites.
Methodology
Revenue estimates are incremental above those in the Biennial Revenue
Estimate and assume that balances in the Oil Field Cleanup Account will
not exceed $10 million, therefore collections would continue throughout
the forecast period. In addition, revenue projections assume a decline
in the number of drilling permits and decreased production due to lower
oil and gas prices.
Costs for the Railroad Commission reflect incremental amounts above those
included in the Appropriations Bill, As Introduced, and assume continued
appropriation authority for balances between biennia and fiscal years.
Appropriations would total approximately $12.2 million in fiscal year
2000 and $11.9 million in fiscal year 2001. No Full-time Equivalent
Positions (FTEs) are identified in this estimate because sufficient FTEs
are included in the Appropriations Bill, As Introduced.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, DE, MF