FISCAL NOTE
Date Requested: February 20, 2021 Time Requested: 01:00 PM |
Agency: |
Energy, WV Division of |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2256 |
Introduced |
SB362 |
|
CBD Subject: |
|
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|
FUND(S):
Well Plugging Assurance Account
Sources of Revenue:
Other Fund creates an escrow account with Treasurer
Legislation creates:
Creates New Program, Creates New Fund: Escrow accounts with the Treasurer
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
SB362 will require oil and gas well operators to provide well plugging assurance in the form of a bond, cash/collateral, or an escrow account established by the State Treasurer, for each well, prior to being issued a permit to operate those wells. These funds are to be used to plug the wells once they are no longer viable. Currently, DEP is unable to determine the number of potential new wells that will be applying for permits in the future and therefore cannot provide a reasonable analysis of the expected revenues and expenditures.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2021 Increase/Decrease (use"-") |
2022 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
0 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Upon full implementation of this bill, DEP expects to incur personnel costs to review well operator's compliance with the requirements of this bill and provide an estimated cost of plugging each well prior to issuing permits, as well as approving the release of the assurance funds upon satisfying the plugging requirement. Due to the unknown workload, it has not been determined whether a new employee will be hired or a current employee will be assigned these responsibilities. However, section 22-10A-6(a)(6) of the bill provides funding form the assurance accounts to cover the cost of administering the program, so it is not expected that the current DEP funds will be significantly affected.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
None.
Person submitting Fiscal Note: Gary W Rogers
Email Address: gary.w.rogers@wv.gov