By: Averitt S.B. No. 1698
(In the Senate - Filed March 11, 2005; March 30, 2005, read
first time and referred to Committee on Natural Resources;
April 29, 2005, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 8, Nays 0; April 29, 2005,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1698 By: Lindsay
A BILL TO BE ENTITLED
AN ACT
relating to fees and penalties for oil and gas operations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 85.2021, Natural Resources Code, is
amended to read as follows:
Sec. 85.2021. DRILLING PERMIT FEE. (a) With each
application or materially amended application for a permit to
drill, deepen, plug back, or reenter a well, the applicant shall
submit to the commission a nonrefundable fee of:
(1) $300 [$200] if the total depth of the well is 2,000
feet or less, of which $200 shall be deposited in the oil-field
cleanup fund and $100 shall be deposited in the general revenue fund
to be used for the administration of the state's conservation laws;
(2) $350 [$225] if the total depth of the well is
greater than 2,000 feet but less than or equal to 4,000 feet, of
which $225 shall be deposited in the oil-field cleanup fund and $125
shall be deposited in the general revenue fund to be used for the
administration of the state's conservation laws;
(3) $400 [$250] if the total depth of the well is
greater than 4,000 feet but less than or equal to 9,000 feet, of
which $250 shall be deposited in the oil-field cleanup fund and $150
shall be deposited in the general revenue fund to be used for the
administration of the state's conservation laws;
(4) $500 [$300] if the total depth of the well is
greater than 9,000 feet, of which $300 shall be deposited in the
oil-field cleanup fund and $200 shall be deposited in the general
revenue fund to be used for the administration of the state's
conservation laws.
(b) An applicant shall submit an additional nonrefundable
fee of $200 when a Rule 37 spacing or a Rule 38 density exception
review is requested. All fees collected under this subsection
shall be deposited in the oil-field cleanup fund.
(c) An applicant shall submit an additional nonrefundable
fee of $225 [$150] when requesting that the commission expedite the
application for a permit to drill, deepen, plug back, or reenter a
well, of which $150 shall be deposited in the oil-field cleanup fund
and $75 shall be deposited in the general revenue fund to be used
for the administration of the state's conservation laws.
[(d) All fees collected under this section shall be
deposited in the state oil-field cleanup fund.]
SECTION 2. Subchapter F, Chapter 85, Natural Resources
Code, is amended by adding Section 85.2022 to read as follows:
Sec. 85.2022. INACTIVE WELL FEE. (a) If two-thirds or
more of the wells of an operator with five or more wells have been
inactive for three years or more, the operator shall submit to the
commission a nonrefundable inactive well fee of $100 for each well
that has been inactive for three years or more.
(b) The inactive well fee shall be paid annually at the time
an operator's organization report is due. An organization report
may not be approved until any inactive well fee due under this
section has been paid.
(c) All fees collected under this section shall be deposited
in the oil-field cleanup fund.
SECTION 3. Section 91.1013, Natural Resources Code, is
amended to read as follows:
Sec. 91.1013. APPLICATION FEES. (a) With each application
for a fluid injection well permit, the applicant shall submit to the
commission a nonrefundable fee of $300, of which $200 shall be
deposited in the oil-field cleanup fund and $100 shall be deposited
in the general revenue fund to be used for the administration of the
state's conservation laws. In this section, "fluid injection well"
means any well used to inject fluid or gas into the ground in
connection with the exploration or production of oil or gas other
than an oil and gas waste disposal well regulated by the commission
pursuant to Chapter 27, Water Code.
(b) With each application for a permit to discharge to
surface water under this chapter and commission rules, other than a
permit for a discharge that meets National Pollutant Discharge
Elimination System requirements for agricultural or wildlife use,
the applicant shall submit to the commission a nonrefundable fee of
$500, of which $300 shall be deposited in the oil-field cleanup fund
and $200 shall be deposited in the general revenue fund to be used
for the administration of the state's conservation laws.
[(c) Fees collected under this section shall be deposited in
the state oil-field cleanup fund.]
SECTION 4. Section 91.111, Natural Resources Code, is
amended by adding Subsection (b-1) and amending Subsection (c) to
read as follows:
(b-1) When the sum of the general revenue portion of the
fees collected under Sections 85.2021(a) and (c), 91.1013, and
91.605 of this code and Section 27.0321, Water Code, exceeds $2.9
million in a fiscal year, the amount exceeding $2.9 million shall be
transferred to the oil-field cleanup fund.
(c) The fund consists of:
(1) penalties imposed under Section 85.381 for
violation of a law, order, or rule relating to well plugging
requirements;
(2) proceeds from bonds and other financial assurances
required by this chapter, subject to the refund provisions of
Section 91.1091;
(3) private contributions, including contributions
made under Section 89.084;
(4) expenses collected under Section 89.083;
(5) fees imposed under Section 85.2021;
(6) civil penalties collected for violations of
Chapter 89 or of rules or orders relating to plugging that are
adopted under this code;
(7) proceeds collected under Sections 89.085 and
91.115;
(8) interest earned on the funds deposited in the
fund;
(9) fees collected under Section 91.104;
(10) civil penalties or costs recovered under Section
91.457 or 91.459;
(11) oil and gas waste hauler permit application fees
collected under Section 29.015, Water Code;
(12) costs recovered under Section 91.113(f);
(13) [hazardous oil and gas waste generation fees
collected under Section 91.605;
[(14)] oil-field cleanup regulatory fees on oil
collected under Section 81.116;
(14) [(15)] oil-field cleanup regulatory fees on gas
collected under Section 81.117;
(15) [(16)] fees for a reissued certificate collected
under Section 85.167;
(16) [(17)] fees collected under Section 91.1013;
(17) [(18)] fees collected under Section 89.088;
(18) [(19)] penalties collected under Section
81.0531;
(19) [(20)] fees collected under Section 91.142;
(20) [(21)] fees collected under Section 91.654;
(21) [(22)] costs recovered under Sections 91.656 and
91.657;
(22) fees collected under Section 85.2022;
(23) amounts transferred under Subsection (b-1);
(24) two-thirds of the fees collected under Section
81.0521; and
(25) [(24)] legislative appropriations.
SECTION 5. Section 91.142, Natural Resources Code, is
amended by adding Subsections (i) and (j) to read as follows:
(i) Notwithstanding the provisions of Subsection (g), if
the fee required by this section has not been paid in full to the
commission on or before the fifth business day after the due date as
determined by the commission, the commission shall suspend the
organization report of the delinquent organization until both the
unpaid organization report fee required by Subsection (g) and a
penalty amount equal to that fee have been paid in full.
(j) All fees and penalties collected under this section
shall be deposited in the oil-field cleanup fund.
SECTION 6. Subsection (e), Section 91.605, Natural
Resources Code, is amended to read as follows:
(e) The fees collected under this section shall be deposited
in the general revenue fund to be used for the administration of the
state's conservation laws [oil-field cleanup fund].
SECTION 7. Section 27.0321, Water Code, is amended to read
as follows:
Sec. 27.0321. APPLICATION FEE. With each application for
an oil and gas waste disposal well permit, the applicant shall
submit to the railroad commission a nonrefundable fee of $300, of
which $100 shall be deposited in the oil-field cleanup fund and $200
shall be deposited in the general revenue fund to be used for the
administration of the state's conservation laws.
SECTION 8. This Act takes effect September 1, 2005.
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