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<br />. <br /> <br />. <br /> <br />. <br /> <br />! <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Minerals, Energy, and Geology Policy Advisory (MEGA) Board Members- <br />Summary of March CWCB Actions <br /> <br />FROM: <br /> <br />William P. Stanton, P. E., Chief, Water Conservation Planning Section <br />Michael G. Serlet, P. E., Chief, Project Planning and Construction Section <br /> <br />DATE: <br /> <br />May 12, 1999 <br /> <br />SUBJECT: <br /> <br />Severance Tax Trust Fund Operational Account - FY 2001 Proposed Projects <br /> <br />Introduction <br /> <br />The Severance Tax Trust Fund Operational Account is a valuable financial resource in addition to the <br />Construction Fund for water resource studies and investigations. However, use of these moneys requires <br />about IS - 18 months advance planning. The CWCB staff has developed several proposals for <br />consideration by the Board for use of such funds which would become available on July 1,2000 for <br />expenditure in the fiscal year (FY) 200 I. <br /> <br />Background <br /> <br />After July 1995, one-half of the severance tax receipts credited to the Severance Tax Trust Fund are <br />credited to the Operational Account of the Severance Tax Trust Fund. The programs supported by the <br />Operational Account must promote and encourage sound natural resource planning, management, and <br />development related to minerals, energy, geology, and water. The General Assembly may appropriate <br />moneys from the total moneys available in the Operational Account to fund recommended programs as <br />follows: <br /> <br />Colorado Oil and Gas Conservation Commission 45% <br />Colorado Geological Survey 20% <br />Division of Minerals and Geology 30% <br />Colorado Water Conservation Board 5% <br /> <br />The Executive Director of the Department of Natural Resources is required to submit with the <br />department's annual budget request a list and description ofthe programs the Executive Director <br />recommends to be funded from the Operational Account. <br /> <br />The state Minerals, Energy, and Geology Policy Advisory Board (MEGA Board) was established in <br />1995 to advise the Executive Director on programs or projects that should receive a grant of funds from <br />the Operational Account. The MEGA Board also reviews the Executive Director's s recommendation <br />before it is included in the state's annual "Long Bill." <br /> <br />The MEGA Board has recommended that use ofthe Severance Tax Trust Fund for water project <br />construction and water planning give preference to energy impacted areas. <br /> <br />Discussion <br /> <br />In the past, the four.state agencies involved and the MEGA Board have proposed using significantly <br />less than the full allotted amount per agency in order to build up the cash reserves in the Operational <br />Account. The following table lists the total annual revenues available and the funds available to the <br />CWCB compared with the proposed, appropriated, and expended funds since inception of the account. <br />