Honorable George "Buddy" West, Chair, House Committee on Energy Resources
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:
HB2482 by West, George "Buddy" (Relating to the financial security requirements for certain operators of oil and gas wells.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would increase the amount of financial assurance bonds oil and gas well operators would have to maintain for oil and gas wells from $2 per foot to $3 per foot based on well depth. The bill also would provide that the increased level of blanket bonding apply to wells that are transferred from one owner to another. The Railroad Commission does expect to incur additional computer programming costs as a result of the bill's passage and the staff costs associated with tracking bonding levels. However, these costs are not anticipated to be signficant to the agency's overall budget.
Local Government Impact
No fiscal implication to units of local government is anticipated.