Direct Distribution - Severance Tax and Federal Mineral Lease
Forecasted
Direct Distribution - Severance Tax and Federal Mineral Lease supports Colorado local governments and schools with extraction revenues for public facilities and services in mineral-affected communities.
Funder: Department of Local Affairs
Due Dates (Anticipated): April 2027 (CERR filing) | June 2027 (FML District creation) | June 2027 (MOU submission) | July 2027 (Address challenges and FML District FEIN/W9)
Funding Amounts: Formula-based annual distributions; 2026 severance tax distributions totaled $7,453,495.07
Summary: Redistributes Colorado severance tax and federal mineral lease revenues to local communities affected by energy and mineral extraction.
Key Information: This is a statutory revenue distribution to eligible Colorado local governments, not a competitive research-project grant.
Description
The Colorado Department of Local Affairs (DOLA) administers this statutory, formula-based distribution of State Severance Tax receipts and Federal Mineral Lease (FML) non-bonus payments. It returns extraction revenues to Colorado communities economically and socially affected by mineral production and development. Recipients include counties, municipalities, school districts, and county-created Federal Mineral Lease Districts.
Allocations reflect measures of mineral industry activity and community impacts, including employee residence, mineral production, permits, population, and road miles. School district allocations also use funded pupil counts. Severance tax distributions support capital expenses and general operating expenses or services. Federal mineral lease distributions support planning, construction, and maintenance of public facilities and public services. Annual employee residence reporting by mineral producers, followed by local government review and address challenges, helps determine the allocation data.
