H. B. 3090
(By Delegates Martin and D. Poling)
[Introduced February 10, 2011; referred to the
Committee on Roads and Transportation then Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-13A-5b; and to amend said code by adding thereto a new article, designated §17C-17C-1 and §17C-17C-2, all relating to oversight, care and maintenance of certain highways used in natural gas and oil production, and protection of highway users, dedicating a portion of the oil and gas severance tax for highway maintenance on certain roads, and the development of legislative rules.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §11-13A-5b; and that said code be amended by adding thereto a new article, designated §17C-17C-1 and §17C-17C-2, all to read as follows:
CHAPTER 11. TAXATION.
ARTICLE 13A. SEVERANCE AND BUSINESS PRIVILEGE TAX ACT.
§11-13A-5b. Distribution of oil and gas severance tax for maintenance of highways.
For any fiscal year ending after June 30, 2011, when the tax collected under the authority of section three-a of this article on the privilege of severing natural gas or oil for sale, profit or commercial use is in excess of $58.4 million, net of refunds and distributions authorized by section five-a of this article, the State Tax Commissioner shall deposit fifty percent of the excess in the State Road Fund created by article three, chapter seventeen of this code and the remainder of the excess shall be deposited in the General Revenue Fund: Provided, That this section shall have no force or effect for any fiscal year beginning on or after July 1, 2017.
CHAPTER 17C. TRAFFIC REGULATIONS AND LAWS OF THE ROAD.
ARTICLE 17C. REGULATION OF COMMERCIAL VEHICLES USED IN THE DEVELOPMENT OF DRILL SITES FOR OIL AND GAS.
§17C-17C-1. Legislative findings and creation of program.
The Legislature finds and declares that:
(1) The industry recognizes that the development of oil and natural gas well sites is affecting the people and communities of this state.
(2) The increase in oil and natural gas well drilling has resulted in an increased usage of public highways designed mainly as two-lane rural roads and highways of varying grades and conditions. The daily presence of large commercial motor vehicles on these roads and highways causes significant impact to local communities and the local transportation infrastructure.
(3) The excessive weights of these vehicles have also resulted in the rapid deterioration of state roads and bridges, creating significant costs to the state of millions of dollars in lost road and bridge use and life.
(4) The oil and natural gas industry has worked diligently and responsibly to assist in developing a policy to protect the state roads and bridges and to abate the concerns of the citizens who share the roads with that industry.
(5) To address the increased use of rural roads and highways by large commercial vehicles in conjunction with oil and natural gas well drilling activity, it is necessary to grant the Commissioner of Highways the express authority to enter into agreements or permits, as required, with developers of oil and natural gas well sites and other persons for the purposes provided in this article, and such further powers as are necessary and convenient to carry out the provisions of this article.
§17C-17C-2. Authority of the Commissioner of Highways generally.
(a) In addition to all other powers provided to the Commissioner of Highways in section eight, article two-a, chapter seventeen, he or she may enter into agreements or permits, as required, with developers of oil and natural gas well sites in this state, or with any other persons, for the purpose of replacing, repairing, widening, reconstructing, altering, improving or maintaining public highways. These agreements shall contain necessary criteria, including bonding, to assure any damages created by the development of the oil and natural gas well site are ameliorated.
(b) All moneys collected by the commissioner pursuant to such agreements shall be deposited into the State Road Fund and shall be expended solely on construction or repairing secondary highways affected by increased oil and natural well gas drilling activity. (c) Notwithstanding any provision of this code to the contrary, the Division of Highways may propose emergency rules for legislative approval pertaining to the provisions of this article.
NOTE: The purpose of this bill is to require the annual equal distribution of annual proceeds of natural gas and oil severance tax in excess of a $58.4 million, between the General Revenue Fund and the State Road Fund for a period of five fiscal years. The bill also mandates that the Division of Highways to enter into agreements or permits to protect the state road system and its users, and authorizes the Division of Highways to develop legislative rules for the article.
§11-13A-5b is new; therefore, it has been completely underscored.
§17C-17C-1 and §17C-17C-2 are new; therefore, it has been completely underscored.