Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us). Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and attachments may also be obtained from the LFC in Suite 101 of the State Capitol Building North.

F I S C A L I M P A C T R E P O R T

SPONSOR	Bratton		DATE TYPED	2/12/04		HB	572/aHENRC
SHORT TITLE		Oil & Gas Hearing Transcript Requirements				SB
					ANALYST		Wilson

APPROPRIATION

	Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY04		FY05	FY04	FY05
				($10.0)	Recurring	General Fund

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Energy, Minerals & Natural Resources (EMNRD)

State Land Office (SLO)

SUMMARY

Synopsis of HENRC Amrndment

The House Energy & Natural Resources Committee amendment requires a transcript of the testimony shall be prepared when deemed necessary by the Oil Conservation (OCD) or at the request of a party, when the request is accompanied by a statement of the necessity for preparation of a transcript deemed reasonable by the OCD. The amendment clarifies the language and removes the requirement that a party who requests the transcripts had to have appeared at the hearing.

Synopsis of Original Bill

House Bill 572 amends the provisions of the Oil and Gas Act and the Geothermal Resources Act governing procedures for hearings conducted by hearing examiners appointed by EMNRD’s Oil Conservation Division (OCD) to eliminate the requirement that a transcript of the testimony be prepared in every case.

This bill provides that a transcript may be requested by the OCD or by any party.

Significant Issues

Both the Oil and Gas Act and the Geothermal Resources Act require that a transcript be made of every hearing conducted by a hearing examiner. Statutes providing for administrative hearings conducted by other agencies do not impose this requirement. Most of the hearings conducted by OCD examiners are uncontested, and a very large number result in the issuance of essentially fill-in-the-blank, form orders. In such cases, neither the OCD nor the parties have any need for a transcript of the testimony. Review of such decisions is de novo, so that no reviewing authority will need a transcript.

FISCAL IMPLICATIONS

OCD estimates that transcript preparation costs the agency $25-$30 thousand per year, of which at least $10 thousand can be saved by not preparing transcripts in cases where they are neither needed nor requested.

TECHNICAL ISSUES

EMNRD provided the following:

The bill as presently drafted provides, "A transcript of the testimony shall be prepared, accompanied by a reasonable statement of the necessity therefor, when deemed necessary by the Division, or at the request of a party who appeared at the hearing. [emphasis added]" The underlined language should be moved to the end of the sentence, so that it would read, "A transcript of the testimony shall be prepared when deemed necessary by the Division, or at the request of a party who appeared at the hearing, accompanied by a reasonable statement of the necessity therefor." That is, the request for a transcript, not the transcript, should be accompanied by a reasonable statement of necessity.

DW/dm