Direct Distribution - Severance Tax and Federal Mineral Lease
This grant distributes Colorado severance tax and federal mineral lease revenues to local governments and schools impacted by energy and mineral extraction, based on employee residence and extraction activity data.
Funder: Department of Local Affairs
Due Dates: January 31, 2027 | March 31, 2027 | April 30, 2027 | June 1, 2027 | June 30, 2027 | July 15, 2027 | July 31, 2027
Funding Amounts: Annual pool varies by year and locality; 2025 distributions: $1.97M (severance), $16.97M (FML); individual awards range from <$10 to $1M+ depending on impact and formula.
Summary: Distributes severance tax and federal mineral lease revenues to Colorado local governments and school districts impacted by energy and mineral extraction, based on employee residence and other statutory factors.
Key Information: Multiple statutory deadlines apply to local governments, reporting parties, and FML Districts.
Description
The Colorado Department of Local Affairs (DOLA) administers the annual direct distribution of State Severance Tax and Federal Mineral Lease (FML) revenues to local governments and school districts across Colorado. These funds are intended to support communities that are economically and socially impacted by energy and mineral extraction activities. Distribution amounts are determined by statutory formulas that consider the number of industry employees residing in each jurisdiction, mining and well permits, mineral production, population, and road miles. The program requires energy industry employers to file annual Colorado Employee Residence Reports (CERR), which are used to calculate allocations. Local governments can review and challenge reported data to ensure fair distribution.
