Bill > SB339

This bill revises how oil and natural gas production taxes are distributed, specifically focusing on the Oil and Gas Production Damage Mitigation Account. Under the new provisions, if the unobligated cash balance in this account reaches or exceeds $10 million, no additional funds will be deposited into it. Instead, the funds will remain in the board's expense account as reserves or for legislative transfer related to oil and gas production impacts. The bill maintains the account's existing purpose of paying for well plugging, reclamation, and restoration of drilling sites when responsible parties cannot be identified or fail to address environmental damages. The bill also adjusts how funds are allocated from the Resource Indemnity Trust Fund to the account, ensuring that no more than $650,000 is transferred at the beginning of each biennium if the account's balance is below $1 million. The changes aim to provide more flexibility in managing funds related to oil and gas production while maintaining environmental protection mechanisms. The bill will take effect on July 1, 2025.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC2642