LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

May 7, 2009

TO:	Honorable Jim Keffer, Chair, House Committee on Energy Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB2915 by McReynolds (Relating to oil and gas operations in connection with certain state land.), Committee Report 1st House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would provide that oil and gas underlying land that is owned by the state, was acquired to construct or maintain a highway, road, street, or alley, is located in an oil and gas producing area, and is subject to an oil or gas lease may be pooled or unitized (available for lease); however, the bill does not authorize drilling or other operations on the surface of land during which the land is used by the state as a highway, road, street, or alley. The amount of revenue that the state might gain from the bill's passage would depend on the number of leases taken and the amount of production of a lease. The General Land Office, the agency that would presumably manage such leases, reports that the bill's passage would not have a significant fiscal impact to the state.  

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

305 General Land Office and Veterans' Land Board, 455 Railroad Commission, 304 Comptroller of Public Accounts, 601 Department of Transportation, 696 Department of Criminal Justice, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 802 Parks and Wildlife Department

LBB Staff:

JOB, SZ, TL