SE_SCEE_2018A 03/22/2018 10:31:15 AM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGSELECT 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 hOil 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