FISCAL NOTE
Date Requested: February 16, 2016 Time Requested: 04:08 PM |
Agency: |
Natural Resources, Division of |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2216 |
Introduced |
HB4567 |
|
CBD Subject: |
Natural Resources, Taxation |
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|
FUND(S):
3265
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Generally speaking, the Division of Natural Resources owns the minerals underlying the state’s rivers and streams unless otherwise sold or conveyed. This bill appears to redirect all revenues derived from leases executed after July 1, 2016, to develop minerals underlying the state’s rivers and streams to the state road fund and away from the division. It is not possible to forecast and assign a future value to these minerals with any accuracy. The value of these properties is subject to unpredictable market conditions and fluctuates constantly depending on the location and nature of the minerals, commodity prices, and the strength of the balance sheets of the companies that nominate and bid on these properties, among other factors. To our knowledge, there has been no production occur yet on any of these properties and no royalty income has been generated.
For historical reference, the Division of Natural Resources has received approximately $5.7 Million in up-front, one-time bonus payments to lease minerals under the State’s waterways since December of 2014. This funding is being dedicated to finance much needed repairs of existing State Park system facilities.
If future lease revenues prove substantial the funds could be utilized to finance a bond issue for renovation of the lodge and supporting recreational facilities at Cacapon Resort State Park.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2016 Increase/Decrease (use"-") |
2017 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
0 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Memorandum
For additional information concerning this fiscal note, please contact:
Emily J. Fleming
Deputy Director
WV Division of Natural Resources
324 4th Avenue
South Charleston, WV 25303
304-558-2754 phone
304-558-2768 fax
Person submitting Fiscal Note: Emily Fleming
Email Address: Emily.J.Fleming@wv.gov