An update as the Idaho legislature winds to a close ...

An update on several bills tracked this session by Idaho Council on Industry and the Environment:

H 379:  OIL  AND GAS  The oil and gas severance tax is currently collected and audited by the Oil and Gas Commission while a similar tax is collected by the State Tax Commission. The current tax will not cover the administrative expenses of the oil and gas program.  This bill will allow the State Tax Commission to collect both portion of the severance tax and eliminate the redundant tax collection and enforcement.  It also redirects the general fund portion collected by the State Tax Commission to the Oil and Gas Commission.  The intent is to fund the oil and gas program exclusively from dedicated funds generated by production and permit fees.  Excess funds would be transferred to the general fund.

Passed the House 65-2-3 on 2/14/12; passed the Senate 32-0-3 on 3/8/12; delivered to the Governor on 3/14/12

H460:  OIL ANDGAS WELLS  This bill amends existing code to increase the permit fee for drill permit applications from $100 to $2,000 to cover the additional costs of permitting since there is no production yet to pay for the program.   A fee increase is necessary for the program to become self sufficient and reduce the burden on the general fund.  Fees would be placed into an existing dedicated account for the use of the Commission.

Passed the House 64-3-3 on 2/15/12; passed the Senate 32-0-3 on 3/8/12; delivered to the Governor on 3/14/12

H462: PUBLIC UTILITY REGULATION  The legislation puts the Idaho Public Utilities Commission (IPUC) in charge of safety inspections for the gathering pipelines.  Gathering lines are pipelines and other fixtures used to transport, deliver, or distribute natural gas or crude oil from a well-head to a transmission line or mainline.  IPUC has the program and inspectors because they do safety inspections on main transmission lines. 

Passed the House 67-0-3 on2/15/12; passed the Senate  32-0-3 on 3/8/12; delivered to the Governor on 3/14/12.

H463:  OIL ANDGAS CONSERVATION COMMISSION  The definitions provided in statute are not listed alphabetically and some definitions need revision to be more consistent with current industry standards. The confidentiality of oil and gas well logs currently has no time limit. By changing the confidentiality limitation to one year, other oil and gas operators are can access recent well log data. These changes are consistent with the standards of other states, and are meant to encourage, and promote the development and production of oil and gas in Idaho.  In addition the bill updates the enforcement provisions of the Commission  to give it sufficient authority to conserve oil and gas, protect corrective rights, and prevent the pollution of fresh water supplies more effectively.

Passed the House 64-3-3 on 2/15/12; passed the Senate 32-0-3 on 3/8/12; delivered to the Governor on 3/14/12

H464:  OIL ANDGAS  This legislation updates Idaho’s statutes for oil and gas exploration and production. The changes update the law to align it with currently regulatory standards, protect Idaho’s citizens and clarify the authority of the Oil and Gas Conservation Commission.

This legislation clarifies existing law as follows:

• Provide uniformity and consistency in regulation of oil and gas production in Idaho;

•Clarify the Oil and Gas Conservation Commission’s authority over oil and gas exploration and production;

•Clarify local governments’ role in oversight of the oil and gas industry;

•Provide for mitigation of negative impacts to existing water rights or usable water resources;

•Align the definition of injection wells with the Federal2006 Energy Policy Act.

This was the most controversial of all the measures dealing with the development of natural gas in Idaho.   Those testifying against the bill in committee cited loss of local control as their biggest concern. Under the bill,county ordinances and planning and zoning decisions would be superseded by state control. It passed the House on 2/17/12 and moved on to the Senate.  It survived an attempt in Senate Resource and Environment Committee to send it to the amending order.  The committee sent it to floor with a do pass recommendation.  On 3/9 the Senate voted to send it to the amending order instead. On 3/12 it was returned to the third reading calendar where it passed by a vote of 24-10-1 on 3/14/12.