Senate Bill 1100

Senate Bill 1100

by
Phil Haunschild
February 21, 2017

Bill description: This bill would greatly expand reporting requirements for the oil and gas industry and punish individuals for non-compliance.

Rating: -5

Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in the market?

Section 47-305 of the proposed bill calls for a gas or oil producer to provide 16 pieces of information in a specific format with every payment to anyone holding a royalty interest in production. The legislation sets specific measures for calculating royalty payments, to the eighth decimal, measured by specific meters, and including only certain expenses and revenues. (-1)

Does it directly or indirectly create or increase penalties for victimless crimes or non-restorative penalties for non- violent crimes? Conversely, does it eliminate or decrease penalties for victimless crimes or non-restorative penalties for non-violent crimes?

Anyone failing to follow these regulations can face a misdemeanor charge and/or a penalty of up to $1,000. (-1)

Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?

The new Section 47-319(10) would require submission to the Oil and Gas Conservation Commission of all production reports, well test reports and well plats; all permits, gas analyses, perforated zones; test results, completion reports and well schematics; logs, drilling reports, biannual potential tests, and all logs run for any reasons. (-1)

This bill also expands the reporting on meters measuring the flow of gas or oil. Section 47-319A(3) requires producers to register all meters on or before the first day of each year with the Commission. Specific information would include the name, make and model, the size, number and location of the meter and the well. Producers are forbidden to combine production from two wells prior to metering (Section 47-319B), in order to insure accurate reporting. (-1)

Does it increase barriers to entry into the market? Examples include occupational licensure, the minimum wage, and restrictions on home businesses. Conversely, does it remove barriers to entry into the market?

New registration would be required for “all persons engaged in meter proving and testing of oil and gas meters” (Idaho Code 47-319A(5)) in order for these businesses to operate. In the same section, “any meter tests performed by a person not registered with the commission will not be accepted as a valid test.” This erects a barrier to anyone who wants to provide this service and is not already registered. (-1)

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