LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION
 
April 12, 2005

TO:
Honorable George "Buddy" West, Chair, House Committee on Energy Resources
 
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
 
IN RE:
HB1512 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 Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB1512, As Introduced: a negative impact of ($2,210,066) through the biennium ending August 31, 2007.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006 ($1,115,740)
2007 ($1,094,326)
2008 $0
2009 $0
2010 $0




Fiscal Year Probable Savings/(Cost) from
GENERAL REVENUE FUND
1 		Change in Number of State Employees from FY 2005
2006 ($1,115,740) 8.6
2007 ($1,094,326) 8.6
2008 $0 0.0
2009 $0 0.0
2010 $0 0.0

Fiscal Analysis

The bill would require the Bureau of Economic Geology of The University of Texas at Austin to conduct a study of the East Texas Oil Field for the purpose of making comprehensive recommendations regarding ways to maximize the ultimate recovery of oil and gas from the field. The bill would establish the East Texas Oil Field Advisory Committee. The report must be completed on or before January 1, 2007.

Methodology

Based on previous studies conducted by the Bureau of Economic Geology, The University of Texas System assumes that 8.6 full-time employee's would be needed to conduct the study. Salaries and wages for these additional employees represent $585,398 in fiscal year 2006 and $614,676 in fiscal year 2007. The remaining costs, including retirement benefits and other operating expenses, would be $530,342 in fiscal year 2006 and $479,650.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
455 Railroad Commission, 720 The University of Texas System Administration
LBB Staff:
JOB, WK, RT, GO