EARTHWORKS: Bill Would Prohibit Municipalities that Regulate Extractive Industries from Receiving Severance Tax Revenue

From EARTHWORKS:

To see a web version of the alert below, go to:
http://www.commongroundunited.org/index.php?option=com_content&task=view&id=1119&Itemid=1&mosmsg=Item+successfully+saved.


Bill Would Prohibit Municipalities
that Regulate Extractive Industries
from Receiving Severance Tax Revenue

Call New Mexico state legislators now to allow common sense to prevail
(see legislator list at bottom of alert)

Jurisdictions that host drilling and mining should be able to govern it in the public interest AND receive taxes generated by it

WHAT:

House Bill 254
Sponsored by: Representative Keith Gardner (Roswell)
Is scheduled to be heard in House Health and Government Affairs Committee tomorrow
WHEN:

Tuesday, February 9, 2010
8:30 am
Room 309
State Capitol Building - Santa Fe, New Mexico
SUGGESTED TALKING POINTS:

Urge legislators to vote NO on House Bill 254
Counties with oil and gas and other types of mineral development bear the most impact and should be recipients of severance tax funds - regardless of the regulations they have in place!
One of the core ideas behind "severance" taxes is to give something back to the regions that have minerals that have been "severed" - or "extracted" from the earth. Once they are gone, they are gone.
Severance taxes provide communities with an opportunity to develop projects and programs that will have a lasting legacy.
This bill appears to be an attempt to punish counties that have adopted (or are considering adopting) common sense regulations that prevent and reduce the impacts caused by mining and oil and gas development.
This bill is similar to Senate Bill 8 sponsored by Senator Bill Sharer from Farmington. Stay tuned for alerts on this bill.

BACKGROUND:
The Fiscal Impact Report for HB 254 states:

Significant issues
HB 254 would have a significant impact on the funding of vital capital projects in those municipalities and counties whose ordinances are construed as having an onerous effect on extractive industries. Some municipalities and counties may have unique, very compelling reasons for such ordinances due to serious past pollution, probability of complications and associated costs, fragile terrain, vulnerable populations, etc. However, HB 254 will penalize all the same regardless of their distinct circumstances and severity of risk associated with some ordinances deemed burdensome.
The New Mexico Municipal League is concerned that the funding capabilities for the counties and municipalities would be adversely affected and could result in significantly restricting reliable funding resources. This bill will also affect certain Local Tribal Government Agencies by limiting the availability of future severance tax funding for projects within targeted counties. Santa Fe County is opposed to this bill since they have enacted oil and gas ordinance that could be later deemed onerous and result in prohibiting severance tax bond proceeds for needed capital projects.
FOR MORE INFORMATION:

House Bill 254 - bill language:
http://legis.state.nm.us/Sessions/10%20Regular/bills/house/HB0254.pdf
HB 254 - Fiscal Impact Report:
http://legis.state.nm.us/Sessions/10%20Regular/firs/HB0254.pdf
LEGISLATORS TO CALL

Committee Members:
Please contact these legislators today! For a full list of committee members:
http://legis.state.nm.us/lcs/committeedisplay.aspx?CommitteeCode=HHGAC

IF YOU ONLY HAVE TIME TO MAKE A FEW CALLS:

House Health and Government Affairs:
Please contact these Committee Members today!
http://legis.state.nm.us/lcs/committeedisplay.aspx?CommitteeCode=SCONC
Representative Mimi Stewart - (D) - Committee Chair
Capitol Phone: (505) 986-4840
Email: mstewart@osogrande.com
Representative Jeff Steinborn - (D) - Committee Vice-Chair
Capitol Phone: (505) 986-4248
Email: jeff.steinborn@nmlegis.gov
Representative Eleanor Chavez
Capitol Phone: (505) 986-4464
Email: eleanorchavez@gmail.com
Representative John Heaton
Capitol Phone: (505) 986-4432
Email: jheaton@caverns.com
Representative Luciano "Lucky" Varela
Capitol Phone: (505) 986-4318
Representative Jeannette Wallace
Capitol Phone: (505) 986-4452
Email: wallace@losalamos.com