FISCAL NOTE

Date Requested: February 15, 2017
Time Requested: 01:49 PM
Agency: Natural Resources, WV Division of
CBD Number: Version: Bill Number: Resolution Number:
1734 Introduced HB2474
CBD Subject: Roads and Transportation


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, 2017, 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    For historical reference, the Division of Natural Resources has received approximately $5.7 Million in up-front, one-time bonus payments to lease minerals under the State’s waterways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.
    
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
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: Jennifer Snow
    Email Address: jennifer.l.snow@wv.gov