Date Requested:February 01, 2011
Time Requested:11:03 AM
Agency: Transportation, Department of
CBD Number: Version: Bill Number: Resolution Number:
2011R2155 Introduced SB314
CBD Subject: NATURAL GAS RESOURCES TRANSPORTATION ROAD SYSTEM
FUND(S)
6700-16 STATE ROAD FUND
Sources of Revenue
Special Fund
Legislation creates:
A New Program

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    
    The legislation will require the DOH to develop a temporary natural gas resource transportation system with permits and signage denoting the roadways impacted. It will require the DOH to issue a permit to a well owner for two year period with a one-time extension.
    
    The DOH will need to have at least one employee in each district stationed in the field monitoring the well roads to determine any violations.
    
    Additionally, office personnel will require at least one supervisor to develop permits and coordinate with the Division of Environmental Protection. One clerk will be needed to assist in the tracking of all the permits.
    
    While no funding is specifically allocated, 17C-17C-5(f) requires the DOH to develop a schedule of permit fees.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 -995,000 -995,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    IN FIELD PERSONNEL:
    Engineering Technician w/overhead $60,000
    1 4x4 Vehicle 11,000
     Subtotal $71,000
     x 10 Districts 10
    Total Cost of In-field Monitoring $710,000
    
    CENTRAL OFFICE PERSONNEL:
    1 Office Supervisor w/overhead $60,000
    1 Clerk w/overhead 45,000
    Total Central Office Personnel $105,000
    
    MATERIALS:
    Signage $ 450
    20 roads w/2 signs x 10 districts 400
    Total Signage costs $180,000
    
    TOTAL ESTIMATED COST $995,000*
    
    *Costs can be offset by a fee schedule as noted in 17C-17C-5(f)


Memorandum
Person submitting Fiscal Note:
Kathy Holtsclaw
Email Address:
Kathy.J.Holtsclaw@wv.gov
    1. The bill states in 17C-17C-5 that a permit issued by the DOH shall only be for two years with a one-time one-year extension. This may not be a sufficient time frame.
    
    2. The DOH has worked with the industry to develop a highway maintenance policy which addresses well owners involved in both the small wells and the large Marcellus wells. The policy provides options for both types of well owners:
    
    1. Agreements for large wells
    2. Permits for small wells
    3. Bonding options based on single, district or statewide well drilling
    4. Allows for negotiations on bonding amounts for district or statewide use.
    
    The policy has been accepted by both WVONGA and IOGA.