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F I S C A L I M P A C T R E P O R T
SPONSOR Silva
DATE TYPED 02/24/05 HB HJM58
SHORT TITLE Study Natural Gas Gathering Services
SB
ANALYST Padilla-Jackson
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY05
FY06
NFI
NFI
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Energy, Minerals & Natural Resources Department (EMNRD)
SUMMARY
Synopsis of Bill
House Joint Memorial 58 would direct the Revenue Stabilization and Tax Policy Committee to
examine whether the Oil Conservation Division (OCD) of the Energy, Minerals & Natural Re-
sources Department should be authorized to investigate complaints from natural gas producers of
unfair, inequitable, or discriminatory practices by natural gas gatherers. Additionally, the study
would examine whether the OCD should be authorized to require that natural gas gathering ser-
vices be provided on terms and conditions that are fair, equitable and nondiscriminatory.
Significant Issues
EMNRD notes that, at present, the OCD regulates gas gathering systems for the prevention of
waste of natural gas and regulates disposition of waste from such facilities, but does not currently
regulate rates and terms of service to customers.
PERFORMANCE IMPLICATIONS
EMNRD notes that the study would not have performance implications, though if the OCD
would be required to regulate natural gas gathering systems it would likely require additional
staff and funding.