June 27, 2007 01:05 AM UTC

GOP Senators Propose Plan for Roan Money

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• by: Colorado Pols

From a press release:

Sen. Josh Penry and Rep. Al White announced today they are developing legislation for next legislative session to dedicate half of the revenue derived from natural gas production on the Roan Plateau to a permanent trust fund for Colorado’s colleges and universities.

The legislators would dedicate the other half of the anticipated billions in revenues from the Roan to a trust fund for energy-impacted communities, with the interest providing a secure revenue stream for West Slope roads and bridges in perpetuity.

Click below for the full release…

Sen. Josh Penry and Rep. Al White announced today they are developing legislation for next legislative session to dedicate half of the revenue derived from natural gas production on the Roan Plateau to a permanent trust fund for Colorado’s colleges and universities.

The legislators would dedicate the other half of the anticipated billions in revenues from the Roan to a trust fund for energy-impacted communities, with the interest providing a secure revenue stream for West Slope roads and bridges in perpetuity.

Estimates of the bonus paid to the State of Colorado for leasing the Roan range from $500 million to $1 billion.  In addition to that, the State would collect well in excess of $100 million each year for the next 20 to 30 years in mineral royalties and state and local energy taxes, according to industry estimates.  Under the Penry-White plan, half of the lump sum and half of the annual revenue stream would be diverted into the higher education trust fund.  The other half would be deposited into the energy communities’ permanent trust fund.

According to White, who serves on the Legislature’s powerful Joint Budget Committee, “A recent study indicates that Colorado is over $800 million behind our peers in funding our institutions of higher education.  The plan we are contemplating would enable us to quickly close that gap, while ensuring energy impacted areas will have the money needed to mitigate impacts both in the short and long run.  If we do this right, it can be a classic win-win for Colorado.”

Penry concurred, “Colorado’s colleges and universities are looking for a funding fix, and communities at the center of the energy boom need to prepare their financial houses for the moment that the drilling stops.  The anticipated Roan royalty windfall could go a very long way in ensuring both.  “

Both White and Penry said they believe Colorado can reap the financial benefits of production on the Roan in an environmentally responsible way.  The plan adopted by the BLM that would allow leases on the Roan to proceed was first proposed by Rifle resident and former Speaker of the Colorado House, Russell George, during his tenure as head of the Department of Natural Resources.  His plan limits surface impact to 1 percent of the Roan’s surface at any one time, ensuring wildlife migration patterns and other environmental values are balanced.

Concluded Penry, “It’s convenient for some to try to make this debate about President Bush, but it was Russell George who wrote this plan, not George W. Bush. The only question now is, will Congress allow Russ’ 1 percent plan to proceed in exchange for an unprecedented investment in our colleges and impacted communities that will benefit Colorado quite literally forever?”