S.B. 45

1

OIL AND GAS CONSERVATION ACCOUNT
2 AMENDMENTS
3 2006 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Mike Dmitrich
6 House Sponsor: John G. Mathis
7
8 LONG TITLE
9 General Description:
10 This bill amends the Oil and Gas Conservation Account statute.
11 Highlighted Provisions:
12 This bill:
13 . increases the maximum amount that may be retained in the Oil and Gas
14 Conservation Account at the end of the fiscal year; and
15 . removes obsolete language.
16 Monies Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 None
20 Utah Code Sections Affected:
21 AMENDS:
22 40-6-14.5, as last amended by Chapter 88, Laws of Utah 2003
23
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 40-6-14.5 is amended to read:
26 40-6-14.5. Oil and Gas Conservation Account created -- Contents -- Use of
27 account monies.

28 (1) There is created within the General Fund a restricted account known as the Oil and
29 Gas Conservation Account.
30 (2) The contents of the account shall consist of:
31 (a) revenues from the fee levied under Section 40-6-14 , including any penalties or
32 interest charged for delinquent payments; and
33 (b) interest and earnings on account monies.
34 (3) Account monies shall be used to pay for the:
35 (a) administration of this chapter; and
36 (b) plugging and reclamation of abandoned oil or gas wells or bore, core, or
37 exploratory holes for which:
38 (i) there is no reclamation surety; or
39 (ii) the forfeited surety is insufficient for plugging and reclamation.
40 (4) Priority in the use of the monies shall be given to paying for the administration of
41 this chapter.
42 (5) Appropriations for plugging and reclamation of abandoned oil or gas wells or bore,
43 core, or exploratory holes [shall be] are nonlapsing.
44 (6) [The] If, at the end of the fiscal year, the balance of the Oil and Gas Conservation
45 Account [at the end of a fiscal year may not exceed $750,000. Any] exceeds $1,500,000, the
46 Division of Finance shall transfer the excess monies [shall be transferred to] into the General
47 Fund.
48 [(7) (a) As used in this Subsection (7), "excess fee revenue" means revenue collected in
49 fiscal year 1999-2000 from the fee levied under Section 40-6-14 that exceeds the fee revenue
50 appropriated to the Division of Oil, Gas, and Mining in fiscal year 1999-2000.]
51 [(b) If there is a General Fund surplus for fiscal year 1999-2000, the Division of
52 Finance shall transfer General Fund surplus monies to the Oil and Gas Conservation Account
53 in an amount up to the excess fee revenue.]
54 [(c) The transfer provided in Subsection (7)(b) shall be made after General Fund
55 surplus monies are transferred to the General Fund Budget Reserve Account pursuant to
56 Section 63-38-2.5 .]

Legislative Review Note
as of 12-6-05 7:06 AM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel