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SE_SCEE_2018A 03/22/2018 10:31:15 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
SELECT COMMITTEE COMMITTEE ON SENATE SELECT COMMITTEE ON ENERGY AND THE ENVIRONMENT
Date 03/22/2018
Attendance
Garcia X
Guzman X
Priola E
Cooke X
Scott X
Time 10:31:15 AM to 11:48:36 AM
Place SCR 352
This Meeting was called to order by Scott
This Report was prepared by David Beaujon
Hearing Items Action Taken
Oil and Natural Gas Taxes in Colorado: Severance Tax and Ad Valorem Tax - Travis Holland, Anadarko Petroleum; Blake Hill, Extraction Oil and Gas; and Tracee Bentley, Colorado Petroleum Council Committee Discussion Only

10:32:17 AM
The chair called the meeting to order and announced that Senator Garcia is the new Minority Leader.



Oil and Natural Gas Taxes in Colorado: Severance Tax and Ad Valorem Tax - Travis Holland, Anadarko Petroleum; Blake Hill, Extraction Oil and Gas; and Tracee Bentley, Colorado Petroleum Council - Committee Discussion Only


10:34:45 AM  
Tracee Bentley, Executive Director, Colorado
Petroleum Council, explained why her organization requested to brief the
Select Committee on severance tax issues.  The presentation can be
found online here:
http://leg.colorado.gov/sites/default/files/images/180322_presentation_concerning_oil_and_gas_taxes_select_committee.pdf
10:37:11 AM  
The committee recessed due to fire alarm.
10:37:28 AM  
The committee returned from recess and Ms. Bentley resumed her presentation.
10:56:13 AM  
Blake Hill, Extraction Oil and Gas, provided on overview of oil and gas production taxes and explained how these taxes are addressed in accounting documents for energy companies. He also explained how local property taxes on oil and gas affect severance taxes collected by the state.
10:58:34 AM  
Travis Holland, Anadarko Petroleum, discussed
the taxes collected on oil and gas including the conservation mill levy,
the ad valorem tax, and the severance tax.  He also discussed how
revenue from these taxes is used in Colorado.
11:10:24 AM  
Mr. Holland explained how the ad valorem
and severance taxes are assessed.  He identified expenses that can
be deducted from these taxes and identified other expenses, such as costs
incurred developing the resources, that are not deductible from taxes.
 He also compared the property tax on oil and gas and compared it
with taxes paid on other types of property in Colorado and compared tax
rates on oil and gas production in various local jurisdictions in Colorado.
11:18:09 AM  
Mr. Holland explained how the severance
tax is calculated and discussed deadlines to pay severance tax in the state.
 He also discussed property taxes in local jurisdictions.  He
provided the committee an estimated amount of severance taxes that are
distributed to local school districts.


11:48:36 AM   Committee Adjourned






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