LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 5, 1999
TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on
Natural Resources
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB 1403 by Fraser (Relating to the deposit to the credit
of the oil-field cleanup fund of certain fees and
penalties collected by the Railroad Commission of
Texas.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1403, As Introduced: negative impact of $(1,400,000) 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. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(700,000) *
* 2001 (700,000) *
* 2002 (700,000) *
* 2003 (700,000) *
* 2004 (700,000) *
****************************************************
All Funds, Five-Year Impact:
**************************************************************************
*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 $(700,000) $9,341,000 $(7,425,553) *
* 2001 (700,000) 9,264,000 (10,492,387) *
* 2002 (700,000) 7,602,000 (7,602,000) *
* 2003 (700,000) 7,516,000 (7,516,000) *
* 2004 (700,000) 7,433,000 (7,433,000) *
**************************************************************************
Fiscal Analysis
The bill would redirect the deposit of fees for expediting drilling
permits, certain administrative penalties and fees for applications for
fluid injection well permits from the General Revenue Fund to the General
Revenue-Dedicated Oil Field Clean Up Account.
The bill would also repeal the provision which would otherwise sunset the
regulatory fee on oil and the regulatory fee on gas which are deposited
to the Oil Field Clean Up Account.
Methodology
Certain fees and administrative penalties currently deposited to the
General Revenue Fund would be deposited to the credit of the General
Revenue-Dedicated Oil Field Clean Up Account and are estimated to be
$700,000 each fiscal year.
Revenue estimates for the Oil Field Clean Up Account are incremental
above those in the Biennial Revenue Estimate, include fees redirected
from the General Revenue Fund, 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 currently under consideration by
the Legislature.
Costs identified in this fiscal note are similar to those included in
Senate Bill 115, as enrolled.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, DE, MF