A Texas lawmaker wants to charge a 25 cent/boe fee for the transfer of liquefied natural gas (LNG), crude oil and petroleum products to or from marine terminals in order to support a $20 million fund that would pay for measures to combat coastal erosion. However, it is in doubt whether the fee would be in compliance with the U.S. Constitution.

Any surplus collections beyond the $20 million would be deposited to the state’s general fund under HB 4667, sponsored by Rep. Tommy Merritt (R-Longview).

“The fee shall be imposed only once on the same crude oil, petroleum product or liquefied natural gas,” the bill says. “The fee shall be paid monthly by the last day of the month following the calendar month in which liability for the fee is incurred.”

HB 4668, also introduced by Merritt, would impose a 25 cent/Btu fee on natural gas imports and exports in order to fund coastal protection.

According to the state’s Legislative Budget Board, both measures could run afoul of the U.S. Constitution, which prohibits the imposition of state duties on imports/exports.

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