The Oklahoma Corporation Commission voted this week to increase regulatory fees, something opposed by some oil and gas groups.
The staff had recommended an increase that will raise an estimated $5 million a year and the commission voted 2-1 for the recommendation. But commissioner Todd Hiett pushed for higher fees, enough to produce $7.3 million.
He argued the commission will now be faced with a shortage of enough money to pay for services it offers the oil and gas industry. And he claimed the new fees won’t pay the bills, according to a report in the Journal Record.
The larger fee hike was opposed by A.J. Ferate, vice president of regulatory affairs for the Oklahoma Independent Petroleum Association before the Commission as OIPA and Oklahoma Oil and Gas Association members rallied at the capitol in opposition to a proposed 5% gross production tax as part of a teacher pay-raise bill.
“As a result of (the House budget), my chairman advised me to withhold our recommendation,” Ferate said. “We’re withholding to see what happens with 1010xx; if it succeeds, we’ll oppose this.”
Hiett didn’t like his answer and wondered, “How do you propose we pay the bills?”
“The result is if you allow this decision, we are $1.8 million short of even paying the bills,” he responded. “If the vote results in your position, then we will have $3.1 million to fill a $4.85 million budget hole. I can’t write that check in good conscience.”
The Oklahoma Oil and Gas Association also opposed the increase.
However, the increase in fees had the support of the Oklahoma Energy Producers Alliance. President Mike Cantrell noted that some regulatory fees had not been increased in nearly 30 years.
Governor Fallin has to sign off on the fee increases before they can take effect.
