Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 larry.campbell@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Larry L. Campbell, Director Laura Kelly, Governor


February 19, 2019


The Honorable Joe Seiwert, Chairperson
House Committee on Energy, Utilities and Telecommunications
Statehouse, Room 481-W
Topeka, Kansas 66612
Dear Representative Seiwert:
SUBJECT: Fiscal Note for HB 2224 by Representative Probst
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2224 is
respectfully submitted to your committee.
HB 2224 would direct the Kansas Corporation Commission (KCC) to assess a one-time
fee of $100 on each operator of a class II disposal well in the state. The bill would also direct the
Kansas Department of Health and Environment (KDHE) to assess a one-time fee of $100 on each
operator of a class I well in the state. Both fees must be collected before January 1, 2020 and the
fee receipts must be deposited into the State Geological Survey Monitoring Well Fund created by
the bill. The fund would be administered by the State Geologist and used to pay the costs to drill
monitoring wells in the Arbuckle formation for the purpose of measuring underground pressure in
the formation and monitoring the effectiveness of confining beds in the injection zone of the
formation.

Estimated State Fiscal Effect
FY 2019 FY 2019 FY 2020 FY 2020
SGF All Funds SGF All Funds
Revenue -- -- -- $500,000
Expenditure -- -- -- $500,000
FTE Pos. -- -- -- --
The Honorable Joe Seiwert, Chairperson
Page 2—HB 2224

According to the Kansas Geological Survey (KGS), a program at the University of Kansas,
there are approximately 5,000 disposal wells in Kansas. Enactment of HB 2224 would result in
revenues of $500,000 (5,000 X $100) to the State Geological Survey Monitoring Well Fund and
would result in expenditures of $500,000 to drill ten monitoring wells at $50,000 each.
The KCC indicates that enactment of HB 2224 would not result in increased expenditures
or revenues for the agency. The KDHE reports that it would be responsible for invoicing and
processing approximately 18 one-time payments. The costs related to these duties could be
handled within existing resources. Any fiscal effect associated with HB 2224 is not reflected in
The FY 2020 Governor’s Budget Report.


Sincerely,

Larry L. Campbell
Director of the Budget


cc: Jake Fisher, KCC
Dianne Goddard, University of Kansas
Dan Thimmesch, Health & Environment


Statutes affected:
As introduced: 76-326