LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 9, 2001 TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on Natural Resources FROM: John Keel, Director, Legislative Budget Board IN RE: SB1792 by Ogden (Relating to the Natural Gas Policy Act application fee.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1792, As Introduced: positive impact of $0 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 $0 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Revenue Probable Change in Number of * * Year Gain/(Loss) from Savings/(Cost) from State Employees from * * General Revenue Fund General Revenue Fund FY 2001 * * 0001 0001 * * 2002 $125,000 $(125,000) 1.0 * * 2003 125,000 (125,000) 1.0 * * 2004 125,000 (125,000) 1.0 * * 2005 125,000 (125,000) 1.0 * * 2006 125,000 (125,000) 1.0 * ************************************************************************** Fiscal Analysis The bill would amend Section 81.0522 of the Natural Resources Code and allow the Railroad Commission to increase the Natural Gas Policy Act application fees in an amount necessary to cover the cost of the commission's well category determination program but not to exceed $150. Methodology According to the Railroad Commission, the cost of administering the Natural Gas Policy Act is $125,000 per year. It is assumed that one FTE would be require to administer the program. Raising the application fee to $150 would increase revenue in an amount estimated to be $125,000 per year. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 455 Railroad Commission of Texas LBB Staff: JK, CL, SK