FY 2016 Appropriation

The mission of the Oil and Gas Conservation program is to encourage development of Utah's crude oil and natural gas resources in a manner that obtains the greatest possible recovery while preventing waste and protecting the environment. This program includes the Underground Injection Control (UIC) Program, which is an EPA program that has been assigned to the division. The intent of the UIC program is to prevent water pollution that could result from injecting produced oil field waters into underground reservoirs with water quality equivalent to or lower than that of the produced water. The program provides technical assurance that injected waters will not impact underground sources of drinking water.

Funding History
Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $3,688,000 from all sources for Oil and Gas Program. This is a 5.7 percent increase from Fiscal Year 2015 revised estimated amounts from all sources.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time Attorney General Dedicated Credit Adjustments$4,700$0
OngoingOne-TimeFinancing Source
$4,700$0Federal Funds
This item designates additional funding appropriated to an agency to pay higher costs for Attorney General services, due to statewide and AG-specific compensation increases.
Oil and Gas FTE$168,500$0
OngoingOne-TimeFinancing Source
$168,500$0GFR - Oil and Gas Conservation Account
Funding from the Oil and Gas Restricted Account funding for an additional FTE for the oil and gas activities.

The Oil and Gas Conservation program is created under the authority of UCA 40-6-16. Statute requires an inspection program, issuance of monthly production reports, and provision of technical support to the board by reviewing and evaluating evidence that accompanies petitions to the board.

Intent Language

HB0003: Item 102

Under the terms of 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Division of Oil, Gas, and Mining in Item 6, Chapter 5, Laws of Utah 2014, shall not lapse at the close of FY 2015. Expenditures of these funds are limited to: Mining Special Projects/Studies $250,000; Computer Equipment/Software $50,000; Employee Training/Incentives $50,000; Equipment/Supplies $50,000.

The Environmental Protection Agency (EPA) provides partial funding, but the majority comes from the Oil and Gas Conservation Restricted Account.

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COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.