Direct Distribution - Severance Tax and Federal Mineral Lease
Forecasted
The Department of Local Affairs' Direct Distribution program allocates severance tax and mineral lease revenues to Colorado communities impacted by energy and mineral extraction, funding public services and infrastructure.
Funder: Department of Local Affairs
Due Dates (Anticipated): April 2027 (CERR submission) | June 2027 (FML District creation resolution, CERR challenge, MOU submission) | July 2027 (FML District FEIN and W9 submission)
Funding Amounts: Annual pool: $17M–$18M+ statewide; individual awards vary widely by jurisdiction and impact factors.
Summary: Distributes severance tax and federal mineral lease revenues to Colorado local governments and school districts impacted by energy and mineral extraction.
Key Information: This is a direct distribution, not a competitive grant; allocations are formula-based and require annual reporting.
Description
The Direct Distribution program, administered by the Colorado Department of Local Affairs (DOLA), allocates state severance tax and federal mineral lease (FML) revenues to Colorado counties, municipalities, school districts, and FML districts that are socially and economically impacted by energy and mineral extraction. Funding is distributed annually, using statutory formulas that incorporate factors such as local employment in mineral extraction, mineral production, mining/well permits, population, and road miles. The program ensures that communities most affected by extraction activities receive financial support for capital projects, operating expenses, and public services.
