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F I S C A L I M P A C T R E P O R T
SPONSOR Papen
ORIGINAL DATE
LAST UPDATED
3/1/07
HB
SHORT TITLE Produced Water Options Task Force
SB SM 53
ANALYST Wilson
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
Senate Memorial 53 requests the secretary of Energy, Minerals & Natural Resources (EMNRD)
to convene an executive task force to review options for use of produced water. The task force
shall include the director of the Oil Conservation Division (OCD), the state director of the
Bureau of Land Management and members of the oil and gas industry and produced water
disposal industry.
The secretary of EMNRD shall report the findings of the task force and its recommendations for
legislation to the appropriate interim committee by December 1, 2007.
FISCAL IMPLICATIONS
NFI
SIGNIFICANT ISSUES
The oil and gas industry in the course of drilling wells produces incidental by-products defined
as produced water. Significant amounts of produced water are re-injected into the ground in this
process. This produced water may have other applications authorized by existing law.
The OCD of EMNRD has regulatory authority over produced water and the alternative
application of produced water has not been allowed by the OCD in previous years.