On April 27, 2012, Rep. Jerry Sonnenberg and Sen. Greg Brophy introduced HB 12-1356 – Concerning a Prohibition on a Local Government that Impacts Oil and Gas Extraction from Receiving Any Moneys from the Local Government Severence Tax Fund. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.
Currently, moneys in the local government severance tax fund are primarily used for 2 purposes:
- For the executive director of the Department of Local Affairs to provide grants and loans to political subdivisions impacted by development, processing, or energy conversion of minerals and mineral fuels; and
- For direct distributions to counties and municipalities based on factors related to oil and gas production.
The bill prohibits any local government that restricts or delays the ability of an oil and gas producer to exercise the producer’s property right as a lessee or owner to extract oil and gas from receiving any grants or direct distributions from the local government severance tax fund.
The bill is assigned to the Assigned to Agriculture, Livestock, & Natural Resources Committee. Committee review of the bill is scheduled for Monday, April 30 at 1:30 p.m.
Summaries of other featured bills can be found here.