FISCAL NOTE

Date Requested: January 11, 2023
Time Requested: 10:45 PM
Agency: Environmental Protection, Department of
CBD Number: Version: Bill Number: Resolution Number:
1663 Introduced SB109
CBD Subject: Natural Resources


FUND(S):

assurance account

Sources of Revenue:

Other Fund creates an assurance account

Legislation creates:

Creates New Program



Fiscal Note Summary


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


SB109 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 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
2023
Increase/Decrease
(use"-")
2024
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, WV DEP expects to incur personnel costs to review well operator's compliance with the requirements of this bill and provide an estimated costs of plugging each well prior to issuing permits, as well as approving the release funds from the escrow account upon satisfying the plugging requirement. Due to the unknown workload expected, 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(a)(6) of the bill provides funding from the assurance accounts to cover the cost of administering the program, so it is not expected that the current WV DEP funds will be significantly affected.



Memorandum


None



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