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<br />~ <br /> <br />DNR and the MEGA Board <br /> <br />- <br /> <br />The passage of SB 96-170 was due in large part to the efforts of the state Minerals, <br />Energy, and Geology Policy Advisory Board which was established in 1995 pursuant to Section <br />34-20-104, C.R.S. <br /> <br />- <br /> <br />For the fiscal years commencing on or after July 1, 1997, the Executive Director of the <br />Department of Natural Resources shall submit with the department's budget request for each fiscal <br />year a list and description of the programs the Executive Director recommends to be funded fro m <br />the Operational Account. The MEGA Board shall provide advice to the Executive Director on <br />programs or projects that should receive a grant of funds from the Opera tional Account and shall <br />also review the Executive Director's recommendation before submittal. <br /> <br />At their July 10, 1996 meeting, the MEGA Board recommended that use of the Severance <br />Tax Trust Fund for water project construction and water planning "give preference to energy <br />impacted areas." It should be noted, however, that several counties historically active in the <br />mining industry are not currently active in severance tax collections or distributions. <br /> <br />Projected Balance of the Per\letual Base Account <br /> <br />In September 19%, the Department of Local Affairs revised their projections of severance <br />tax revenue and the beginning balance in the Perpetual Base Account (PBA) as shown below. <br /> <br />. <br /> <br /> Projected Severance Tax Revenue ($M) <br />Year ~ Coal Molv Total PBA Balance <br />1997 8.312 6.782 0.277 15.371 2.593 3.583 <br />1998 11.736 6.755 0.311 18.802 4.701 6.176 <br />1999 5.569 6.778 0.367 12.715 1.786 10.876 <br />2000 9.123 6.767 0.390 16.281 4.070 12.663 <br /> <br />The above projection assumes no loans from the account, and therefore, no interest <br />income. <br /> <br />Pro DOsed Criteria for Loans from the Peroetual Base Account <br /> <br />Potential uses of the Perpetual Base Account as a funding source for the CWCB's Water <br />Project Construction Loan Program could include the following types of projects: <br /> <br />1. Construction of new or enlarged raw water reservoirs <br /> <br />2. <br /> <br />Rehabilitation of existing reservoirs restricted by the State Engineer <br /> <br />. <br /> <br />6 <br />