LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION

April 5, 2013

TO:	Honorable Jim Keffer, Chair, House Committee on Energy Resources
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB3537 by Gutierrez (Relating to the treatment and reuse or discharge of fluid produced from oil or gas wells on which a hydraulic fracturing treatment has been performed.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would require the Railroad Commission to adopt rules to require treatment of flowback and produced water from oil and gas wells on which a hydraulic fracturing treatment has been performed. The agency would be required to adopt such rules no later than December 1, 2013. The bill would only apply to fluid produced from an oil and gas well on or after the effective date of the bill.

The bill would be effective September 1, 2013.

The Railroad Commission does not anticipate any significant fiscal implications to the agency as a result of the bill's passage.

Local Government Impact

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

Source Agencies:

455 Railroad Commission

LBB Staff:

UP, SZ, TL