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Gov. Hickenlooper announces payments of more than $54 million for local governments

Gov. John Hickenlooper and Reeves Brown, executive director of the Colorado Department of Local Affairs (DOLA), announced today $54,655,280 in annual state Severance Tax and Federal Mineral Lease Direct Distribution payments will be made to 506 Colorado counties, municipalities and school districts.


DOLA distributes the payments, which are derived from energy and mineral extraction statewide. Last year’s distribution to Colorado communities was $37 million.


“This direct distribution of energy impact funds is an important resource for local governments,” Hickenlooper said. “These funds help make vital, day-to-day operations possible, ensure needed public improvement projects become reality and bolster government services offered to local communities.”


“Responsible energy development provides energy for our quality of life and jobs in local communities,” Brown said. “This year’s increase in energy impact funds is a very positive indicator of the health of Colorado’s energy industry.”


Ken Parsons, a Rio Blanco County Commissioner and member of the State’s Energy and Mineral Impact Advisory Committee said, “In these difficult economic times, this is a critical source of funding statewide for communities impacted by energy and mineral production. These funds help communities address the ongoing impacts of development, processing, or energy conversion on local infrastructure and provide assistance in sustaining the economies of their communities.”


Direct distribution is based on the number of employees in the energy impacted communities in which they resided and the following factors: permits, production, employee residence, population and highway user miles.


Click here for a report listing distributions by local government recipients.