Surface Owners Accommodation Act.

04LSO-0062.C1

                                                         

FISCAL NOTE (HB0070)

 

The non-administrative fiscal impact is indeterminable.

 

As long as operator provision of financial assurance to the WOGCC occurs in a timely manner, there should not be any effect on revenue. 

 

It is unknown how many instances will occur where financial assurance will have to be provided to the WOGCC. Out of 17,800 CBM wells drilled to date, WOGCC is aware of four instances where a CBM operator on fee lands had to obtain a temporary restraining order from a judge in order to drill a well to hold a lease.

 

As currently drafted, the bill excludes state owned lands when the state holds record title to both surface and minerals.  Therefore, this bill should have very little, if any, financial impact on the Office of State Lands. In the event the state owns record title to the surface, but not the minerals, the Office of State Lands could see a revenue increase to the extent it receives a surface damage payment under the provisions of this bill.

 

The fiscal impact to the judicial system is indeterminable due to an unknown number of cases.

 

Prepared by:   Dean Temte, LSO        Phone:   777-7881

(Information provided by Don Likwartz, WOGCC; phone (307)234-7147:

Harold Kemp / Jim Whalen, Office of State Lands; phone 777-7331:

Holly Hansen, Supreme Court; phone 777-7678)

 

 

 

 

 

This bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements. As introduced, the bill does not modify any state agency budget or current personnel authorizations.

The following state agencies will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:

 

Oil and Gas Conservation Commission