Chris Treese, Colorado River Conservancy District and Colorado Water Congress, and Dianna Orf, Colorado Water Congress, provided a brief background on funding for water projects. There are two major sources for water programs and projects: severance tax revenue and Federal Mineral Lease revenue (FML). Severance tax funds are distributed to the Department of Natural Resources (DNR) and the Department of Local Affairs. DNR uses the money to fund the perpetual base fund and the operational fund, which funds Tier I and Tier II programs. Tier I programs are mainly regulatory and statutory programs with guaranteed funding. Tier II programs do not have a guaranteed source of funding. Ms. Orf discussed the volatility of severance tax and FML funds.