COBI 2015 - Oil and Gas Program

Overview
Issues
Background
Financials

Sources Uses

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.

Statute

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.

Display By:

Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Federal Funds	16,800	24,800	26,100	13,500	81,700	(1,700)	80,000	6,300	86,300
Dedicated Credits Revenue	3,600	1,600	500	100	16,500	0	16,500	0	16,500
GFR - Oil and Gas Conservation Account	2,968,000	2,956,800	3,123,600	3,266,500	3,393,200	0	3,393,200	192,000	3,585,200
Closing Nonlapsing	0	(185,000)	(114,700)	0	0	0	0	0	0
Lapsing Balance	(355,200)	(65,600)	(8,100)	0	0	0	0	0	0
Total	$2,633,200	$2,732,600	$3,027,400	$3,280,100	$3,491,400	($1,700)	$3,489,700	$198,300	$3,688,000

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	2,070,800	2,036,600	2,116,400	2,163,400	2,219,700	70,300	2,290,000	230,100	2,520,100
In-state Travel	12,300	22,800	13,800	10,800	25,000	(4,000)	21,000	0	21,000
Out-of-state Travel	12,000	9,600	16,600	14,000	21,000	6,000	27,000	0	27,000
Current Expense	311,600	473,600	469,400	1,081,900	640,800	(800)	640,000	21,000	661,000
DP Current Expense	226,500	190,000	411,200	252,200	484,900	(73,200)	411,700	(68,000)	343,700
Other Charges/Pass Thru	0	0	0	0	100,000	0	100,000	0	100,000
Total	$2,633,200	$2,732,600	$3,027,400	$3,522,300	$3,491,400	($1,700)	$3,489,700	$183,100	$3,672,800

Show Table | Show Additional Information

Other Indicators	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Budgeted FTE	28	26	26	26	26	0	26	1	27
Actual FTE	25.20	25	25.60	25	0	0	0	0	0

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.