EN-91-1-Federal Mining Leasing Payments

WHEREAS production of minerals including, oil, and natural gas, and coal on federal lands is authorized under the Mineral Lands Leasing Act of 1920 (as amended). Through that act each state receives a portion of the revenue from leasing activity. The State of Colorado distributes a portion of those revenues to local governments impacted by the mineral leasing development activities; and

WHEREAS many local governments receive payments for non-taxable federal land, and production of materials on that land; and

WHEREAS the income local governments receive from Mineral Leasing revenues can be substantial and impacts the calculation of the Department of Interior’s Payment in Lieu of Taxes value for each qualifying entity; and

WHEREAS counties are allowed to create a new “Federal Mineral Lease District”. In the case where a county creates such a district, The Department of Local Affairs is required to forward the Direct Distribution Payment that would have otherwise gone to the county, to the FML District; and

WHEREAS local governments are responsible for the infrastructure and services to support these public land energy development activities and related population growth (i.e. highways, roads, schools, water and sewer, police and fire protection, etc), and these communities struggle with inadequate funds to effectively meet this responsibility; and

WHEREAS there are huge deficits for the Federal government and without notice or hearings, Congress reduced the historical state share of  Federal Mineral Lease royalties; and

WHEREAS sequestrations have become a common political tool that affects income for the State of Colorado.

NOW THEREFORE BE IT RESOLVED that CLUB 20 supports the historic distribution of Federal Mineral Lease (FML) payments which provides for a 50:50 split between the federal government and the states of origin; and

BE IT FURTHER RESOLVED that CLUB 20 urges Congress to utilize the pending Supplemental Appropriations Bill to repeal its previous action. Which reduced the states’ share of FML revenues from 50% to 48%, and if such a repeal cannot be accomplished, CLUB 20 urges Congress to recapture the states’ lost revenue retroactively; and

BE IT FURTHER RESOLVED that CLUB 20 supports the Congressional priority established that the states’ share of these FML revenues .shall be used . for the source communities impacted by the development of these resources; and

BE IT FURTHER RESOLVED that CLUB 20 opposes the redirectionucion of these funds away from the impacted communities for any reason.

 

Adopted 9/13/91

Amended 4/4/08

Amended 3/22/13