LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 9, 2001
  
  
          TO:  Honorable J.E. "Buster" Brown, Chair, Senate Committee on
               Natural Resources
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2436  by Merritt (Relating to a requirement that the
               Bureau of Economic Geology of The University of Texas at
               Austin conduct a study of the East Texas Oil Field.), As
               Engrossed
  
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*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2436, As Engrossed:  negative impact of $(2,243,794) through the    *
*  biennium ending August 31, 2003.                                      *
*                                                                        *
*  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                *
          *       2002                         $(1,079,665)  *
          *       2003                          (1,164,129)  *
          *       2004                                    0  *
          *       2005                                    0  *
          *       2006                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
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*Fiscal    Probable Savings/(Cost) from     Change in Number of State     *
* Year         General Revenue Fund           Employees from FY 2001      *
*                      0001                                               *
*  2002                      $(1,079,665)                            11.2 *
*  2003                       (1,164,129)                            11.2 *
*  2004                                 0                             0.0 *
*  2005                                 0                             0.0 *
*  2006                                 0                             0.0 *
***************************************************************************
  
Technology Impact
  
The Bureau of Economic Geology will utilize state-of-the-art reservoir
technology to study the East Texas Oil Field and then will hold
workshops for independent companies in the area to demonstrate and
explain the technology.
  
  
Fiscal Analysis
  
The bill would require the Bureau of Economic Geology at The University
of Texas at Austin to conduct a study of the East Texas Oil Field and
make recommendations regarding maximizing the recovery of oil and gas
from that field. The bill would require salaries for additional FTEs,
travel and operating expenses during the next biennium.
  
  
Methodology
  
It is estimated that salary and benefits for scientists, engineers,
computer technologists and administrative staff would be $857,565 in
fiscal year 2002 and $998,579 in fiscal year 2003.  In addition, travel
and operating expenses are expected to total $141,100 in fiscal year
2002 and $81,550 in fiscal year 2003. Computer time charges are
anticipated to be $81,000 in the first year and $84,000 in the second
year.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   720   The University of Texas System, 455   Railroad
                   Commission of Texas, 304   Comptroller of Public
                   Accounts
LBB Staff:         JK, CL, PF, DC