FISCAL NOTE

Date Requested: January 12, 2022
Time Requested: 03:38 PM
Agency: Environmental Protection, Department of
CBD Number: Version: Bill Number: Resolution Number:
1414 Introduced HB4054
CBD Subject: Actions, Suits and Liens


FUND(S):

escrow account

Sources of Revenue:

Other Fund creates an escrow account

Legislation creates:

Creates New Program



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


HB4054 will require oil and gas well operators to deposit money in a "plugging money set aside escrow account", to be established by the State Treasurer, for each new 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, WV 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
2022
Increase/Decrease
(use"-")
2023
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):


HB4054 will require oil and gas well operators to deposit money in a "plugging money set aside escrow account", to be established by the State Treasurer, for each new 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, WV 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.



Memorandum


None



    Person submitting Fiscal Note: Gary Rogers
    Email Address: Gary.W.Rogers@wv.gov