LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

April 10, 2009

TO:	Honorable Kip Averitt, Chair, Senate Committee on Natural Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB752 by Davis, Wendy (Relating to a restriction on the formation in which certain commercial disposal wells permitted by the Railroad Commission of Texas may inject oil and gas waste.), Committee Report 1st House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would require that any permit issued by the Railroad Commission (RRC) for a commercial disposal well in Tarrant County only authorize disposal into the Ellenburger formation or a deeper formation.

The RRC reports that the agency already has adopted a policy that generally limits commercial disposal into the Ellenburger; therefore, the agency would only have to create rules to include this prohibition. Based on analysis by the agency, it is assumed that any associated costs could be absorbed within existing resources.

Local Government Impact

Because the bill would not have statewide impact on units of local government of the same type or class, no comment from this office is required by the rules of the House/Senate as to its probable fiscal implication on units of local government.

Source Agencies:

455 Railroad Commission

LBB Staff:

JOB, SZ, DB