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 Supplemental Appropriations Bill or other appropriate means 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 redirection of these funds away from the impacted communities for any reason.