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Minutes for HB2525 - Committee on Agriculture and Natural Resources
Short Title
Providing for additional sources of revenue for the water program management fund and creating additional fees for the regulation of underground injection control wells.
Minutes Content for Wed, Mar 6, 2024
Chairman Peck opened the hearing on HB2525.
Tamera Lawrence, Revisor, gave an overview of the bill. (Attachment 1)
Tom Stiles, Kansas Department of Health and Environment (KDHE) spoke in favor of the bill. (Attachment 2) This bill is to provide adequate resources to meet the growing need and challenges in water resource management and pollution control; to stabilize the funding support for the associated programs in the Bureau of Water addressing those needs and to reduce the subsidization of several of these programs by the fee collected from Underground Hydorcarbon Storage operators.
Mr. Stiles stood for questions.
Michael Gillaspie, Director, Governmental Affairs, ONEOK gave proponent testimony on the bill. (Attachment 3). Said ONEOK has been working on the bill for 4 years. The reason that it took so long was that COVID happened and now they are hoping to move the bill along. ONEOK operates in 20 states with key part of their operations footprint in Kansas. They operate about 250 wells in salt cavern storage. As part of its integrated natural gas liquids processing and storage system in Kansas, they utilize wastewater disposal, or Class 1 disposal wells.
ONEOK pays roughly $200,000 annually to KDHE to the Subsurface Hyrdrocarbon Storage (SUHS) Fund, which consists of a per storage cavern fee as well as a substantial fee per facility. The pupose of this legislation from their perspective is to stop the subsidization of the Underground Injection Control from the SUHS fund and to ensure the longevity of the program and regulated operation of their facility.
Mr. Gillaspie stood for questions.
Wendi Stark, The League of Kansas Municipalities submitted written neutral testimony. (Attachment 4)
Chairman Peck closed the hearing on HB2525 and adjourned the meeting at 8:11 am.
