The Coastal Protection Fee is a fee that is levied on all crude oil and condensate transferred to or from vessels at a marine terminal located in Texas. A particular load of crude oil or condensate is subject to the fee only once.
Who is liable for the fee?
Every person who owns crude oil or condensate in a vessel must pay the Coastal Protection Fee at the time the crude oil or condensate is transferred to or from a marine terminal.
Who reports and pays the Coastal Protection Fee?
Each marine terminal operator, or owner of the crude oil or condensate if the owner is registered with the Comptroller to report the fee, must file a report stating the number of barrels of crude oil and condensate loaded to or from vessels at marine terminals located in Texas and must pay the appropriate fee.
When is the Coastal Protection Fee Report due?
The report and fee payment are due no later than the last day of the month following the month in which the transfers that are subject to the fee occur.
How much is the fee?
The fee is 1.333 cents per barrel of crude oil or condensate. However, the fee can vary or be suspended depending on the balance in the state's Coastal Protection Fund and subject to certification by the General Land Office.
When is the fee increased?
The fee can be increased to 4 cents a barrel if the General Land Office certifies that the balance of the Coastal Protection Fund is less than $20 million, that an unauthorized discharge of oil in excess of 100,000 gallons has occurred in the previous 30 days and that response costs and damages are expected to deplete the fund substantially.
When is the fee suspended?
If the General Land Office certifies that the fund balance exceeds $20 million, the fee will be suspended until there is certification that the balance has fallen below $10 million. At such time, the fee collection will be reinstated.
How will I know if the fee is increased, suspended, or reinstated?
The Comptroller will send a notification letter to you when the fee changes.