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Panel approves overhaul of oilfield site restoration fees aimed at easing burden on low-output wells
Summary
The committee reported House Bill 637 favorably; sponsor said the bill creates a simplified fee structure for an orphan-well cleanup fund, reducing rates for marginal and low-output wells to lessen disproportionate burdens on those operators.
The Senate Committee on Natural Resources on May 14 voted to report House Bill 637, which revises the fee structure that funds oilfield site restoration and cleanup of abandoned wells.
Sponsor remarks explained current calculations tie some fees to severance-tax formulas that can unduly burden marginal and stripper wells. The proposed structure lowers the per-well fee for various categories — for example, production wells at reduced rates, stripper wells at substantially lower levels, and reduced percentages for gas wells — to reflect economic realities for low-output operators.
Representatives of industry groups including LOGA and Americans for Prosperity were present in support for information; the committee reported the bill favorably by voice vote with no objection.
Next steps: HB 637 will proceed in the legislative process.
