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| SPONSOR: | McKibben | DATE TYPED: | 03/08/99 | HB | |||
| SHORT TITLE: | Eliminate Oil and Gas Production Council | SB | 521 | ||||
| ANALYST: | Valenzuela | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY99 | FY2000 | FY99 | FY2000 | ||
| NFI | |||||
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates/Conflicts with/Companion to/Relates to
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
Senate Bill 521 would repeal the statute [Section 7-27-5.8 to 7-27-5.12 NMSA 1978] that creates the Oil and Gas Production Assistance Council.
Significant Issues
The purpose of statute was to provide a mechanism to stimulate private financial institutions in lending to qualified oil and gas producers to initiate increased drilling and production from new wells in the state. However, according to the Energy, Minerals and Natural Resources department, only one application was made to the Council in its ten-year history. The industry has not used this mechanism and has little interest in it.
FISCAL IMPLICATIONS
Senate Bill 521 does not contain an appropriation. Enactment would have no fiscal impact.
ADMINISTRATIVE IMPLICATIONS
Enactment of Senate Bill 521 would have no administrative impact.
MV/prr