BOARD00537

• Board Meeting Date: 3/21/2002
• Description: CF Section - Severance Tax Trust Fund Operational Account Recommendations
• Board Meetings - Doc Type: Memo

.

.

.

<

STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM

Bill Owens
Governor

Greg E. Walcher
Executive Director

TO:

Colorado Water Conservation Board Members

Rod Kuharich
eWeB Director

FROM:

Dan McAuliffe
Deputy Director

DATE:

March 13,2002

SUBJECT:

Agenda Item 13, March 21 - 22, 2002, Board Meeting -
Severance Tax Trust Fund Operational Account Recommendations

After July 1995, one-half of the severance tax receipts credited to the Severance Tax Trust Fund are
credited to the Operational Account of the Severance Tax Trust Fund. The programs supported by the
Operational Account must promote sound natural resource planning, management, and development
related to minerals, energy, geology, and water. The General Assembly may appropriate moneys from
the total moneys from the total moneys available in the Operational Account as follows:

Colorado Oil and Gas Conservation Commission 45%
Colorado Geological Survey 20%
Division of Minerals and Geology 30%
Colorado Water Conservation Board 5%

The CWCB requests are reviewed by the Board and forwarded to the state Minerals, Energy and
Geology Policy Advisory Board (MEGA Board) for review and approval. The requests are then
forwarded to the DNR Executive Director for further review and inclusion in the DNR's annual budget
request.

The MEGA Board has recommended that the use of the Severance Tax Trust Fund for water project
construction and water planning.preferably be used in energy impacted areas and the MEGA Board
looks for a nexus between our requests and the mineral and energy industry.

The money we have received has been a valuable addition to the Construction Fund for local water
. planning activities. However, use of these moneys requires about 15-18 months advance planning.

For use.in the current Fiscal Year (2001-2002), the CWCB requested $867,000 and received $585,000.
For the Fiscal Year 2002-2003, the CWCB requested $1,576,000 and should receive $585,000. This
money is appropriated through the Long Bill.

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning