The Fiscal I m- pacts of Oil and Gas Production in New …c.ymcdn.com/.../Studies_and_Reports/2014_NMTRI_Oil_and_Gas_Study.pdfImpacts of Oil and Natural Gas Production in New Mexico

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The Fiscal Im-

pacts of Oil and

Gas Production in

New Mexico

2014 Fiscal Year End

New Mexico Tax Research Institute © 2015 all

rights reserved www.nmtri.org P.O. Box 91657

Albuquerque, NM 87199 505 842-5833

Impacts of Oil and Natural Gas Production in New Mexico on the State General Fund February 2015

Tabular Summary of Study Results General fund contributions from current and historical oil and natural gas production. This is the principal output of this sponsored study.

FY2014 ($ in Millions) FY2013 Updated ($ in millions)

Total Gen Fund OGAS Portion OGAS % Total Gen Fund OGAS Portion OGAS %

Gross Receipts 1,992.0 151.5 7.6% 1,917.7 127.5 6.7%

Compensating 78.4 17.8 24.9% 50.9 16.7 32.8%

Personal Income Tax 1,254.9 143.2 11.4% 1,240.9 124.0 10.0%

Corporate Income 196.8 42.0 21.4% 267.2 54.0 20.2%

Estate Taxes 0.0 0.0 0.0% 0.0 0.0 0.0%

Oil & Gas School Tax 500.7 500.7 100.0% 379.9 379.9 100.0%

7% Oil Conservation 27.2 27.1 99.4% 20.8 20.7 99.5%

Natural Gas Processors 16.2 16.2 100.0% 24.2 24.2 100.0%

Land Grant Perm. Fund Income 449.4 434.8 96.7% 440.9 425.8 96.6%

Earnings on State Balances 19.0 6.0 31.5% 14.7 4.7 31.8%

Sev Tax Perm. Fund Income 170.5 147.6 86.6% 176.2 152.0 86.3%

Federal Mineral Leasing 569.9 566.9 99.5% 459.6 446.4 97.1%

Land Office Income 47.5 32.9 69.3% 44.6 30.2 67.6%

Misc. Receipts (Sm.Cities & Counties) 45.0 1.2 2.7% 41.3 0.4 0.9%

Reversions 96.5 30.9 32.0% 65.8 21.8 33.1%

All other revenues 576.6

0.0% 564.0

0.0%

GRAND TOTAL REVENUES 6,040.5 2,118.8 35.1% 5,708.6 1,828.4 32.0%

In order to compile the summaries included in the main table, it was necessary to compile and summarize an extensive amount of data either di-

rectly or indirectly relating to the summary information. Some of this collateral data is detailed below, as well as in the main report.

Percentage of LGPF attributed to Oil and Natural Gas Production

96.7% for FY 2014; 96.6% for FY 2013

Percentage of STPF attributed to Oil and Natural Gas Production 86.6% for FY 2014; 86.3% for FY 2013.

Percentage of general fund attributed to OGAS Production 34.8% for FY 2014; 31.7% for FY 2013

Severance Taxes paid to STBF and a portion thence to STPF (after bond repayments) $518,371 ,000 with $124,996 ,000 to STPF for FY

2014; $419,992,937, with $0 to STPF for FY 2013.

Severance Tax Bond projects

FY 2014: 823 projects for $182,237,387, of which $163,419,000 can

be reasonably attributed to OGAS production. An additional 24 pro-jects for $33,048,330 were funded through the water trust fund, of

which $31,000,000 is attributable to OGAS production. The Colonias

Projects Fund Board approved 47 projects for $16.8 million, of

which $16.0 million is attributable to OGAS production.


FY 2013: 769 projects for $218,132,000, of which $207,225,000 is at-

tributable to OGAS production. Additional projects were funded

through the water trust fund, the colonias project fund and by the

public school capital outlay council. These additional projects were

not quantified for the 2013 report and only partially quantified for

this 2014 report.

8-year total Severance Tax Bond Projects $1,471,935,000, of which, $1,388,298,000 is attributable to OGAS

production.

Ending Balances in Severance Tax Permanent Fund $4,740,033,351 for FY 2014; $3,873,169,911 for FY 2013.

Royalties paid for production on State Lands

$726,387,126 for FY 2014; $494,082,929 for FY 2013

Bonus Payments to SLO for the right to produce on State Lands For FY2014: 399 leases for 93,098 acres with bonus payments of

$45,926,783 or $493.32 per acre.

For FY2013: 332 leases for 100,624 acres with bonus payments of

$44,005,984 or $437.33 per acre.

For FY2012: 380 leases for 131,362 acres with bonus payments of

$102,282,174 or $778.63 per acre.

Ending Balance in the Land Grant Permanent Fund $14,243,640,593 for FY 2014; $12,418,363,864 for FY 2013

Royalties paid to Federal Government for production on Federal lands of which a portion is returned as federal revenue sharing

$1,094,877,037 with $536,489,748 returned as revenue sharing for

FY 2014.

$838,154,739, with $410,695,822returned as revenue sharing for FY

2013.

Royalties Paid for Production on Indian Lands

For FY 2014: $30,776,502 royalties on natural gas and $8,292,828 in

royalties on oil for a total of $39,069,330.

For FY 2013: $25,452,961 in royalties on natural gas and $5,658,700

in royalties on oil for a total of $31,111,661.

In Lieu of School and Severance Taxes paid for production on Indian Land

$4,245,952 for FY 2014; $3,159,824 for FY 2013.

Total Ad Valorem Production Taxes paid For FY 2014: $168,378,986 (approximately $8.4 million for State GO

bond debt service and $159.9 million for all local property tax bene-

ficiaries).

For FY 2013: $126,391,042 (approximately $6.3 million for State GO

bond debt service and $120.1 million for all local property tax bene-

ficiaries).

Total Ad Valorem Production Equipment Tax

For FY 2014, $24.9 million in obligations (approximately $1.45 million

state GO bond debt service and $23.5 million for all local property

tax beneficiaries) For FY 2013, $26.7 million in obligations (approximately $1.57 million

State GO bond debt service and $25.1 million for all local property

tax beneficiaries.

Note: For FY 2015, obligations are expected to be $30.0 million with

approximately $1.67 million State GO bond debt service and $28.3

million for all local property tax beneficiaries.

General Fund School Support to 89 local school districts

For FY 204, $2,355,691,514 for all state-supported programs, of

which $826,847,800, or 35.1% from OGAS. For FY 2013, $2,110,187,814 for only the state equalization guaran-

tee, of which $664,709,160 or 31.5% from OGAS

General Fund Higher Education Funding (35.1% for FY14; 31.5% for

FY13)

For FY 14, $734,795,530.7 total, of which $263,056,800 is attributed

to OGAS production.

For FY13 $723,167,619.0 total, of which $227,797,800 is attributed

to OGAS production.


Share of General Fund Attributed to Current and Historical Oil and Gas Production Taxes and Royalties FY14 FY13 Updated FY 12 FY 11

Total Gen

Fund

OGAS

Portion OGAS %

Total Gen

Fund

OGAS Por-

tion OGAS %

Total Gen

Fund

OGAS

Portion OGAS %

Total Gen

Fund

OGAS

Portion OGAS %

Gross Receipts 1,992.0 151.5 7.6% 1,917.7 127.5 6.7% 1,928.5 138.6 7.2% 1,822.5 93.1 5.1%

Compensating 78.4 17.8 24.9% 50.9 16.7 32.8% 62.1 15.6 25.1% 69.1 11.8 17.0%

Personal Income Tax 1,254.9 143.2 11.4% 1,240.9 124.0 10.0% 1,150.5 121.5 10.6% 1,096.9 56.2 5.1%

Corporate Income-net of refunds 196.8 42.0 21.4% 267.2 54.0 20.2% 281.0 56.8 20.2% 229.8 46.5 20.2%

Oil & Gas School Tax 500.7 500.7 100.0% 379.9 379.9 100.0% 399.6 399.6 100.0% 376.1 376.1 100.0%

7% Oil Conservation 27.2 27.1 99.4% 20.8 20.7 99.5% 21.5 20.6 96.2% 19.4 19.1 98.8%

Natural Gas Processors 16.2 16.2 100.0% 24.2 24.2 100.0% 23.3 23.3 100.0% 18.2 18.2 100.0%

Land Grant Perm. Fund Income 449.4 434.8 96.7% 440.9 425.8 96.6% 461.7 445.6 96.5% 446.2 430.5 96.5%

Earnings on State Balances 19.0 6.0 31.5% 14.7 4.7 31.8% 17.4 5.4 31.2% 17.6 5.5 31.3%

Sev Tax Perm. Fund Income 170.5 147.6 86.6% 176.2 152.0 86.3% 183.4 157.8 86.0% 184.6 158.7 86.0%

Federal Mineral Leasing 569.9 566.9 99.5% 459.6 446.4 97.1% 502.6 440.7 88% 411.8 401.7 98%

Land Office Income 47.5 32.9 69.3% 44.6 30.2 67.6% 92.5 80.5 87.0% 65.6 52.1 79.4%

Small Cities & Counties Reversion 45.0 1.2 2.7% 41.3 0.4 0.9% 45.1 0.6 52.2 0.3

Reversions 96.5 30.9 32.0% 65.8 21.8 33.1% 65.9 20.3 30.8% 73.5 23.4 31.8%

All other, incl. non-recurring revs 576.6

0.0% 564.0

0.0% 582.0

0.0% 605.8

0.0%

GRAND TOTAL REVENUES 6,040.5 2,118.8 35.1% 5,708.6 1,828.4 32.0% 5,817.1 1,926.9 33.1% 5,489.3 1,693.2 30.8% FY 10 FY 09 FY 08 FY 07

Total Gen

Fund

OGAS

Portion OGAS %

Total Gen

Fund

OGAS

Portion OGAS %

Total Gen

Fund

OGAS

Portion OGAS %

Total Gen

Fund

OGAS

Portion OGAS %

Gross Receipts 1,634.4 55.7 3.4% 1,831.9 72.0 3.9% 1,858.4 72.0 3.9% 1,840.5 75.4 4.1%

Compensating 50.9 5.1 10.1% 69.9 7.9 11.3% 64.5 7.0 10.9% 61.4 7.7 12.6%

Personal Income Tax 956.5 51.9 5.4% 958.5 51.5 5.4% 1,213.5 73.2 6.0% 1,180.2 68.1 5.8%

Corporate Income-net of refunds 125.1 25.3 20.2% 192.5 38.9 20.2% 354.6 71.7 20.2% 459.9 93.0 20.2%

Oil & Gas School Tax 324.5 324.5 100.0% 370.4 370.4 100.0% 557.7 557.7 100.0% 420.3 420.3 100.0%

7% Oil Conservation 16.4 15.1 92.1% 18.3 17.0 93.2% 27.1 25.8 95.5% 19.9 19.2 96.5%

Natural Gas Processors 40.4 40.4 100.0% 40.3 40.3 100.0% 30.6 30.6 100.0% 35.6 35.6 100.0%

Land Grant Perm. Fund Income 437.1 421.7 96.5% 433.5 418.7 96.6% 390.5 377.5 96.7% 364.7 352.6 96.7%

Earnings on State Balances 22.1 6.9 31.2% 67.8 21.5 31.8% 93.7 28.3 30.2% 66.5 18.3 27.5%

Sev Tax Perm. Fund Income 187.1 160.8 85.9% 191.3 164.4 85.9% 177.2 152.0 85.8% 171.0 146.7 85.8%

Federal Mineral Leasing 355.3 356.6 100% 507.2 348.4 68.7% 564.2 579.0 103% 501.1 459.3 92%

Land Office Income 67.7 57.4 84.8% 36.4 24.6 67.5% 46.1 32.2 69.8% 50.4 36.9 73.1%

mall Cities & Counties Reversion 44.4 0.2 52.2 0.4 50.3 1.0 37.0 0.0

Reversions 391.3 117.2 29.9% 322.3 107.7 33.4% 59.0 17.8 30.2% 36.9 10.7 29.0%

All other, incl.non-recurring revs 499.6

0.0% 530.1

0.0% 575.4

0.0% 529.2

0.0%

GRAND TOTAL REVENUES 5,152.8 1,638.8 31.8% 5,622.7 1,683.8 29.9% 6,062.6 2,025.8 33.4% 5,774.5 1,743.8 30.2%



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Impacts of Oil and Natural Gas Production in New Mexico on the

State General Fund

Introduction: The oil, natural gas and carbon dioxide extraction industry is an important contributor to the “tate’s e o o .

Over the previous 17 years, oil and natural gas p odu tio i the state has a e aged . % of the “tate’s total gross state product a d . % of the “tate’s p i ate gross state product. Gross state product is also known as

gross domestic product by state.

Gross Domestic Product for New Mexico (Dollars in Millions)

State

GSP

State Private

GSP

OGAS Contri-

bution

OGAS Share of

Private GSP

OGAS Share of

Total GSP

1997 52,746 40,907 1,712 3.2% 4.2%

1998 50,639 38,375 1,325 2.6% 3.5%

1999 53,310 40,645 1,488 2.8% 3.7%

2000 55,735 42,457 2,524 4.5% 5.9%

2001 57,088 43,012 3,178 5.6% 7.4%

2002 59,066 43,955 2,890 4.9% 6.6%

2003 63,763 47,781 3,943 6.2% 8.3%

2004 70,255 53,244 4,563 6.5% 8.6%

2005 74,208 56,467 6,245 8.4% 11.1%

2006 77,716 59,532 6,740 8.7% 11.3%

2007 80,755 62,147 7,363 9.1% 11.8%

2008 84,456 65,049 8,663 10.3% 13.3%

2009 81,358 61,370 5,385 6.6% 8.8%

2010 83,800 63,288 6,004 7.2% 9.5%

2011 87,332 66,396 6,937 7.9% 10.4%

2012 89,187 68,051 6,221 7.0% 9.1%

2013* 92,245 70,879 7,045 7.6% 9.9% Although the aggregate OGAS production industry has only averaged around % of the state’s p i ate e on-

omy, no other aggregate private industry, including health care, exceeds the contribution of oil and gas extrac-

tion, oil and gas well drilling and oil and gas support. A complete table of the contributions of various sectors is

included as Appendix A. These data have been obtained from the federal Bureau of Economic Analysis (BEA). A

portion of this table for the most recent published year is included here:

CY 2014 New Mexico GDP Contribution by Sector

Description 2013 Amount

($ Millions)*

2013 %

of Total

State and local government 10,830 11.7%

Federal civilian government 6,641 7.2%

Oil and gas extraction incl. prorata support 7,045 7.6%

Health care and social assistance 6,337 6.9%

Retail trade 5,373 5.8%

Misc. professional, scientific, and technical services 4,948 5.4%


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Description 2013 Amount

($ Millions)*

2013 %

of Total

Federal military 3,895 4.2%

Construction 3,524 3.8%

Wholesale trade 3,008 3.3%

Computer and electronic products manufacturing 2,872 3.1%

Finance and insurance 2,796 3.0%

Accommodation and food services 2,541 2.8%

Over the years, state legislators and leaders of the industry have noticed that although the industry seems to

contribute an important share of the State economy, the industry plays an even larger role in public finance –

both at the state level and the county/municipality level. Severance taxes paid by OGAS producers fund virtu-

ally the entire State-level severance tax bonding program. In addition, OGAS taxes and other payments sup-

port a substantial portion of the State general fund. The State general fund supports K-12 education, the col-

lege and university system, public safety and general government, as well as looking after the environment,

the health needs of our citizens and provides a significant share of the social safety net system. The OGAS

share of the State general fund is typically calculated and quoted by State economists and the media in the

range from 15% to over 20% of the State’s general fund. The resulting traditional calculation is shown in the

table below:

Traditional Calculation FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007

Sum of School Tax, Conservation,

NGPT, FML and SLO ($ millions) $1,161 $929 $1,039 $891 $804 $973 $1,226 $1,027

Percentage Contribution 19.2% 16.3% 17.9% 16.2% 15.6% 17.3% 20.2% 17.8%

Note that the components included in the traditional calculation include the direct sources of payments by

members of the industry to the general fund. These are the emergency school tax, the oil and gas conserva-

tion tax, natural gas p o esso ’s tax, federal mineral leasing, including royalties and bonus payments, and

lease bonus payments made to the State land office for the right to produce oil and gas on State lands.

There are two significa t iti is s of this t aditio al ough justi e estimate app oa h. The fi st is that the traditional calculation slightly overestimates the contribution of oil and gas production within these listed

sources. For example, approximately 3% to 5% of the conservation tax is contributed by coal or uranium, but

100% of the amount recorded as general fund revenue is considered as OGAS-related in the traditional calcu-

lation. Similarly, royalties, fees and lease bonus payments are collected from Federal oil and gas leases and

other non-OGAS sources. Since the share of other minerals is somewhat difficult to determine, the traditional

calculation for this source and the State land office general fund income have been included in this calculation

at 100 percent.

Offsetting the overestimate of OGAS share of general fund are a number of other direct and indirect payments

that support the State general fund and local services. For example, the oil and gas industry incurs a substan-

tial amount of direct compensating tax liability pursuant to the provisions of the Gross Receipts and Compen-

sating Tax Act and an even larger amount of direct state and local gross receipts tax liability paid by drilling

and well-services contractors from funds reimbursed to the contractors by producers. In the sense that the

drilling and well-service contractors are an essential component of the aggregate OGAS producing industry,

there is not much distinction between direct and indirect gross receipts taxes. Including these directly tracea-


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ble tax payments made by the industry increases the estimated OGAS share of general fund by almost three

percentage points.

The largest underestimate within the traditional calculation of the OGAS share of the general fund is from in-

terest accruing to the general fund from the earnings from the corpus of the land grant permanent fund

(LGPF) and the severance tax permanent fund (STPF). In FY 2014, for example, over 10 percent of general fund

revenues come from the two permanent funds ($449.4 million from the LGPF and $170.5 million from the

STPF.) In the investigation and analysis accomplished in the course of this project, we can reasonably attribute

96.7 percent of the corpus of the LGPF at the end of FY 2014 to royalties paid for OGAS production on State

lands. Similarly, we have been able to establish that 86.6 percent of the FY 2014 ending corpus of the STPF can

be attributed to severance taxes paid on OGAS production from when the fund was established at the end of

the 1972 Fiscal Year to date. Including these two interest payments increases the estimated share of the gen-

eral fund by almost ten percentage points.

Fo this ea ’s effo t, e have included several other non-controversial items in the share calculation: TRD produces a RP-90 report that details, by industrial sector, payments of compensating taxes and payments of

withheld personal income taxes from industry employees. Both of these components – one direct and the

other indirect – are appropriate for inclusion in the share calculation. TRD also collects oil and gas withholding

payments from persons who receive either royalty payments from private leases or from investments in pro-

ducing partnerships or corporations. Twenty percent of the compensating taxes paid fund the small cities and

small counties assistance funds. An additional cut of approximately 7.3 percent provides the funding for the

municipal equivalency distribution. While the entire small cities assistance fund is distributed to the cities,

there is usually a reversion of funds to the general fund from the Small Counties Assistance fund. This rever-

sion has been credited to the OGAS share. Similarly, the State Treasurer holds all of the savings accounts of

the state and invests these funds in various financial instruments. Approximately 32 percent of the amount of

interest earned by the t easu e ’s i ested funds can be reasonably assumed to be derived from OGAS

sources.

For FY 2014, the most reasonable estimate of the share of the State general fund attributable to current and

historic OGAS direct and indirect payments is 35.1 percent. To investigate how stable this share might be, we

compiled all of the relevant data and calculated the OGAS share of the State general fund for the period from

FY 2007 to FY 2014. A summary of that investigation follows:

OGAS Share of General Fund ($ millions)

Total Gen Fund OGAS Portion OGAS %

FY 07 $5,774.5 $1,743.8 30.2%

FY 08 $6,062.6 $2,025.8 33.4%

FY 09 $5,622.7 $1,683.8 29.9%

FY 10 $5,152.8 $1,638.8 31.8%

FY 11 $5,489.3 $1,693.2 30.8%

FY 12 $5,817.1 $1,926.9 33.1%

FY13 Updated $5,708.6 $1,828.4 32.0%

FY14 $6,040.5 $2,120.5 35.1%

Average Share FY 07 to FY 14 32.0%

The same legislators and industry leaders who wished to know the true contribution of the OGAS industry to

the State general fund also wanted the citizens and leaders in communities both within and outside the oil pat h ou ties of “a Jua , “a do al, Rio A i a, Lea, Edd a d Roose elt Cou ties to gai a app e iatio


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that thei o u it as i the oil id ess. If a a e age of 32 percent of the State general fund can be

reasonably attributed to current and historical OGAS production in the State, it must follow logically that an

average of 32 percent of all state governmental services, 32 percent of K-12 public education and 32 percent

of the higher education funding fo ula suppo t of the “tate’s olleges a d u i e sities ust e fu ded current and historical oil and gas production in the state.

This is a somewhat controversial statement. According to one view, once general taxes, such as personal in-

come tax, corporate income tax or the gross receipts and compensating taxes leave the pockets of the taxpay-

ers, these taxpayers lose all control or ownership of the tax payments. However, the des iptio of ge e al ta es e tai l does ot fit as a des iptio of p odu tio ta es su h as the atu al gas p o esso ’s ta , the severance tax or the emergency school tax. In addition, the atio et ee the i dust ’s pa ti ipatio i the “tate’s e o o oughl percent of the “tate’s p i ate e o o as easu ed G“P a d the oughl

percent share of the State general fund puts the industry in a special and unique position.

Another criticism leveled at the statement concerning contribution to the general fund is that it is alleged that OGAS production still bears a relatively low burden of taxes, compared to the value of product produced and

sold. Let us look at that contention for just the general fund and not consider the severance taxes that support

the “tate’s apital outlay program. The CY 2013 GSP for New Mexico is about $92 billion. The general fund for

FY 2014 was about $6 billion. Thus, each $100 of GSP should contribute about $6.50 in general taxes and other

payments to the general fund.

For CY 2013, BEA has determined that the oil and gas industry produces about $7 billion in value-added on

about $15 billion in total production value. Applying these same ratios to FY 2014 production, the $7.8 billion

in OGAS industry contributions for FY 2014 should account for about $500 million in general fund taxes and

other revenues. Instead, this project indicates that the industry contributes on the order of $2.1 billion to the

general fund or about four times the i dust ’s fai sha e.

FY 2014 was a hugely successful year for

oil producers and a weak year for natu-

ral gas producers. As the chart to the

right and table on the following page

indicates, the total production value of

$17.1 billion for the industry was second

highest in history to the $17.8 billion

produced in FY 2008. In the years from

1935 to 1992, natural gas and crude oil

production values were comparable.

From 1993 through 2012, natural gas

production values led, largely because of

the exploitation of coal bed methane in

the San Juan basin. New Mexico was a

natural gas province. After decades in

which natural gas production value out-

stripped crude oil production value, FY 2014 was the third straight year in which oil led the production value

derby. New Mexico is now an oil province.

0

20

40

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100

$0

$4,000

$8,000

$12,000

$16,000

$20,000

19

35

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00

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05

20

10

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15

CO

2 V

alu

e (

$ m

illi

on

)

Va

lue

($

mil

lio

ns)

OGAS Component and Total Value

Total Value Oil Value Gas Value CO2 Value


– 5 –

Both oil volume and oil price contributed in FY

2014. The price record for an entire fiscal year

occurred in FY 2014, with an average price of

$98.72 per barrel. Oil volumes produced were

higher than any previous year in history since

1971.

However, the technological innovations of hori-

zontal drilling and h d auli f a tu i g frack-

ing were not equally appropriate for crude oil

production in the shale sands of the Permian and

the natural gas production in the traditional gas

fields in the San Juan basin. Production of natural

gas in New Mexico peaked in the late 1990s,

when the industry produced over 1,600 billion

cubic feet (bcf) of gas annually. The price peak occurred in mid 2008 at over $8 per thousand cubic feet (mcf).

Drilling in shale sands is now occurring in the

southern Colorado portion of the San Juan ba-

sin and production volumes and values are

somewhat recovering. Drilling in the New Mexi-

co portion of the San Juan basin continues at a

modest pace. An average 87 rigs were drilling in

the New Mexico portion of the Permian basin

for the entire 2014 calendar year while an aver-

age of five rigs were drilling in the New Mexico

portion of the San Juan basin. Statewide, al-

most three-quarters of the rigs and projects

e e lassified as ho izo tal. 1

Recovery to the 1,600 bcf level for natural gas is

unlikely. However, the BLM is expecting a signifi-

cant increase in demand for federal leases in the

shale sands areas of the San Juan basin. Envi-

ronmental groups have filed suit to prohibit the

BLM from approving leases near Chaco Canyon.

If natural gas prices (with the liquids premium)

remain in the $4.50 to $5.50 per thousand cubic

feet (mcf) range, volumes will probably stabilize

near the 1,200 billion cubic feet (bcf) level.

Crude oil is a commodity that, for the most part,

is internationally priced, while natural gas is

1 These data were provided by Baker-Hughes. This company gathers and publishes comprehensive data on drilling activity in the

United States and internationally.

$0

$2

$4

$6

$8

$10

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400

800

1,200

1,600

2,0001

93

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90

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95

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00

20

05

20

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20

15 N

atu

ral

Ga

s P

rice

($

/ m

cf)

Vo

lum

e (

BC

F)

Natural Gas Volume and Price

Gas Volume Gas Price

$0

$20

$40

$60

$80

$100

$120

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140

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45

19

50

19

55

19

60

19

65

19

70

19

75

19

80

19

85

19

90

19

95

20

00

20

05

20

10

20

15

Oil

Pri

ce (

$/b

bl)

Vo

lum

e (

mil

lio

n b

bls

)

Oil Volume and Price

Oil Production Oil Price

0

50

100

150

Jan-90 Jan-95 Jan-00 Jan-05 Jan-10 Jan-15Nu

mb

er

of

Act

ive

Dri

llin

g R

igs

New Mexico OGAS Rig Counts

New Mexico Total Permian Total


– 6 –

largely regionally or nationally priced. While there is some substitution between natural gas and crude oil, the

linkage is weak2. However, there is certainly predictability year-over-year in other aspects of production statis-

tics, such as deductions ratios or location of production. The following table, showing some aspects of produc-

tion for the most recent five-year period, is interesting.

As natural gas production on federal lands has declined in proportion, production on state lands has taken up

the slack. With the advent of horizontal drilling and fracking in oil production, the federal lands share of oil

production has increased from 48 percent of oil production to 52 percent. At the same time, production on

private lands has declined from 17 percent to 11 percent or 12 percent.

While oil production value increased from $4.5 billion in FY 2010 to $10.9 billion in FY 2014, natural gas pro-

duction softened slightly, as production value dipped to $5.1 billion in FY 2013 then recovered somewhat to

$6.1 billion in FY 2014.

Background and History of the Project: As mentioned above, this research study has been partially funded by the New Mexico Oil and Gas Association

(NMOGA). The principal investigator, Laird Graeser, has used this funding to work toward assembling the data

f o hi h he ould pu lish a ook oughl e titled, A Histo of Pu li Fi a e i Ne Me i o. 3 During the

2 There is substitution between crude oil and components of natural gas such as ethane as a a substitute for naphtha as a feedstock

for plastics manufacture. 3 There is virtually no quantitative history of taxes or spending in the Spanish Colonial period or the Mexican Colonial period alt-

hough there is some descriptive material that can be used. During the territorial period, there is a good record of enacted revenue

and budget laws, including a record of abuses and failures, but little quantitative data. Beginning roughly with the Ferguson Act in

1898, however, two entities began recording data regarding budgets and revenue collections. The State land office, primarily under

the leadership of Commissioner Ray Powell, scanned an almost complete set of annual reports of the Commissioners and made

All Counties Production Statistics

Fiscal

Year Product

Volume

(Million mcf

or bbls)

Value

($ millions) Price

Deductions

%

Production by Land Type

% Federal % Indian % Private % State

FY 2010 GAS 1,274.6 $6,614.7 $5.19 24.0% 65% 3% 15% 17%

FY 2011 GAS 1,215.5 $6,693.9 $5.51 23.3% 65% 4% 14% 17%

FY 2012 GAS 1,223.1 $6,180.4 $5.05 24.5% 64% 5% 14% 18%

FY 2013 GAS 1,155.0 $5,063.6 $4.38 23.5% 63% 4% 15% 19%

FY 2014 GAS 1,168.7 $6,115.0 $5.23 23.0% 62% 4% 14% 20%

FY 2010 OIL 62.43 $4,469.0 $71.59 10.6% 48% 1% 17% 35%

FY 2011 OIL 68.97 $5,824.5 $84.45 10.7% 49% 1% 14% 36%

FY 2012 OIL 80.31 $7,239.7 $90.15 10.7% 50% 1% 13% 37%

FY 2013 OIL 100.23 $8,169.0 $81.50 11.0% 50% 0% 11% 39%

FY 2014 OIL 110.46 $10,905.3 $98.72 11.6% 52% 1% 12% 36%

FY 2010 CO2 72.43 $74.4 $1.03 26.3% 7% 0% 53% 40%

FY 2011 CO2 71.49 $90.1 $1.26 22.2% 8% 0% 54% 38%

FY 2012 CO2 66.99 $89.3 $1.33 23.3% 7% 0% 55% 38%

FY 2013 CO2 68.69 $91.2 $1.33 26.2% 6% 0% 57% 37%

FY 2014 CO2 64.33 $95.3 $1.48 23.9% 6% 0% 57% 37%


– 7 –

years that Graeser spent at Taxation and Revenue Department and then at the Department of Finance and

Administration he took several opportunities to capture and save quantitative data on revenue collections and

corresponding expenditures. These antique data need a medium for archiving. The offer of some funding cou-

pled with the opportunity to extend knowledge was

irresistible.

In response to the enquiry and offer, NMTRI and the

PI prepared a proposal that included the following

elements:

The study would be divided into phases, with

each phase extending the analysis into different

areas. The results of each phase would be avail-

able concurrent with each annual legislative ses-

sion and each phase would update the previous

phase’s data gathe i g a d a al sis. It was ex-

pected that there would be new areas to ex-

plore after the initial phase for approximately

three or four phases in total.

The phase 1 study would determine the plausi-

ble total contribution of the industry to the

State general fund for FY 2013 that would in-

clude not just the traditional reckoning of emer-

ge s hool ta , atu al gas p o esso ’s ta , the

conservation tax and federal royalty sharing, but

other revenues contributed by the industry. The

most important non-traditional inclusion in this

reckoning is interest paid to the general fund

from the Land Grant and the Severance Tax

Permanent Funds. Also to be included in the

phase 1 study would be the economic burden of

the gross receipts tax paid by OGAS producers

for oil and gas support services, drilling and pe-

troleum production. Finally, working with Taxa-

tion and Revenue Department, the study would

also determine the OGAS contribution to per-

sonal income tax withholding, oil and gas with-

holding and compensating tax.

The phase 1 study would then determine, on a county-by-county basis, the contribution of OGAS to each

county – directly, in terms of the ad valorem production and production equipment taxes in the producing

counties, and indirectly, in terms of the amount of general fund support of K through 12 public schools,

charter schools and higher education. If time allowed, the phase 1 study would determine the contribution

of the industry to capital outlay, whether the local capital projects in each county were funded via general

these scans available to the public. The records of the Territorial and State Treasurers are similarly available from about 1895 for-

ward.

Project Background In September, 2013, the New Mexico Oil and Gas

Association (NMOGA) contacted the New Mexico

Tax Research Institute (NMTRI) to assess interest in

having NMTRI research, analyze and report on the

direct and indirect economic impacts of the Oil and

Gas exploration, drilling and production industry in

New Mexico. The query and implicit RFP fit nicely

i to a eti e e t p oje t of NMTRI’s p i ipal investigator, Laird Graeser. This project is to re-

search and write a definitive history of revenue and

public finance in New Mexico starting from the first

property tax imposed in the State to fund free pub-

lic education. This is an ongoing story. However,

NMOGA offered financial support to NMTRI and the

PI to investigate and document the portions of the

overall story having to do with oil and gas produc-

tion in the state, the role of the oil and natural gas

production industries o the state’s apital outla through the severance tax bond fund and the pro-

portion of the general fund that the oil and natural

gas i dust a plausi l lai to o . That is, what proportion or percentage of the general fund,

which is used to fund public school education, high-

er education, Medicaid and some other public wel-

fare programs, general government, environmental

protection, tourism support and promotion and

economic development efforts , will reasonable

people, when presented with unbiased analysis and

data, understand is attributable to current or his-

torical taxes, royalties and other money paid by the

oil and gas production industry in New Mexico?


– 8 –

fund appropriations or Severance Tax Bonds. Thus, the phase 1 study would generate a partial economic

impact estimate for producing and non-producing Counties.

To ensure that the study would be independent and professional, NMOGA would fund a portion of the

research, analysis, documentation and report-writing, but not all. (Note, NMOGA funded approximately

1/3rd the cost of the phase 1 study reported last year and a somewhat greater share of the phase 2 study

reported here.) NMOGA would have the unlimited right to all data, data tables and would have the right to

republish any portions of the final report, but would not own the copyright.

To ensure preservation of all of the rare, antique data gathered in the course of the project, NMOGA

would provide a website or cloud location for the PI and NMTRI to mount a searchable database of all of

the data developed in the course of the study. (Note: while all of the data are available to the public, me-

dia and other researchers by request, we have been unable to provide easy Internet access. This will be a

major goal of phase 3 of the study.

The most important tasks in phase 2 of the study would be to reconcile the various data sources to im-

prove both the LGPF and the STPF models. These reconciliations will not materially affect the estimate of

OGAS attribution to the general fund performed in phase 1, but will provide an increased level of confi-

dence in the models.

What was originally scheduled for Phase 2 was to extend the study to other general fund revenue sources

that can be attributed to OGAS. These could include motor vehicle excise tax and insurance premiums tax.

Via survey of the OGAS industry, we might be able to refine the CIT attribution and the compensating tax

and PIT withholding directly attributed to OGAS. The survey would also e te d the e o o i u de analysis for Gross Receipts Tax to all other categories of taxable purchases and extend the analysis to MVX

and insurance premiums tax. However, there were sufficient glitches in this phase 2 year that the originally

scheduled Phase 2 work has now become Phase 3 work.

Phase 3 will also extend the study to other general fund supported programs that can be assigned to

ou ties. These a eas ould i lude pu li s hool t a spo tatio , elo -the-li e s hool g a t p og a s, pre-K education funding, Medicaid funding, other state-funded income support, LICTR and elderly property

tax rebate. The linkages here between OGAS production and the expenditures are weaker than for the

linkages developed in Phases 1 and 2.

In phase 4 we will extend the analysis to some Other State Funds , including unemployment insurance

(direct and indirect) and the State road fund. In this phase, the full impact of the OGAS industry on all gov-

ernment funds will be determined. This oade s the assess e t of the i dust ’s itical importance as a

major source of funding for cities, counties, some Indian tribes or nations and many other activities of

state government.

In phase 4, as well, working with the Taxation and Revenue Department, we will attempt to assign person-

al income tax withholding and total personal income taxes paid by oil and gas industry employees to coun-

ties and refine the assumption that PIT withholding and oil and gas withholding are good surrogates for

net personal income taxes contributed by employees and contractors to the industry.

In phase 4, we might also be able to piggy-back on an NMSU IMPLAN study of direct, indirect and induced

employment effects of OGAS to claim a greater amount of PIT withholding than in Phases 1 and 2.

Accomplishing these various analytic tasks required unearthing and assembling a vast amount of data. In some

cases, the data were gathered from 1986-2001 when the PI was chief economist for the New Mexico Taxation

and Revenue Department (TRD) or from 2006-2010 when the PI was chief economist for the Department of

Finance and Administration (DFA). Other data were obtained from the Anderson School Library at UNM or the

Oil Recovery project at New Mexico Institute for Mining and Technology (NMIMT). Data for the land grant


– 9 –

permanent fund (LGPF) model were obtained directly from the State land office (SLO), where staff graciously

provided access to the entire series of annual reports of the State land commissioner. These data will be dis-

cussed later in the report as supporting the individual taxes and revenue sources contributing to the State

general fund, the severance tax bonding fund (STBF) and county-level capital outlay, operating and school

funding from the same revenue sources as the State general fund. These data will be made available to other

researchers through a mechanism to be developed.

Summary of Results: The following table exhibits the significant findings of this project:

Fund or Program Revenue Detail % Attrib. to

OGAS

Severance Tax Permanent

Fund

Interest transferred to the general fund for FY 2013 and FY

2014 attributable to OGAS.

86.6 %

Land Grant Permanent Fund Interest transferred to the general fund for FY 2013 and FY

2014 attributable to OGAS.

96.6-96.7%

State General Fund GRT paid by industry in OGAS-related categories, CIT, PIT

withholding , OGAS withholding, Emergency School Tax, Con-

servation Tax, Natural Gas Processors Tax, STPF interest, LGPF

interest, federal royalty sharing and SLO revenues, for FY the

period from FY 2007 to FY 2014 attributable to OGAS.

32.0%

FY 2014 estimate 35.1%

School funding (State Equali-

zation Guarantee)

General fund portion of K-12 education attributable to OGAS.

Percent varies by year, but for FY 2014

35.1%

Higher Education funding General fund portion of Higher Ed Funding Formula allocated

to Constitutional institutions attributable to OGAS for FY

2012, FY 2013 and FY 2014.

32%+

Severance Tax Bonds 2007-2014 STBs total listed by county and portion attributa-

ble to OGAS.

95% 5-year aver-

age

There are some intriguing results in this table. The percentage attributable to OGAS for the severance tax

permanent fund (STPF) f o the fu d’s i eptio i 3 to date is influenced by the periodic booms in pot-

ash, molybdenum, coal and uranium as much as from the peaks and valleys of the oil and gas production cy-

cles. Data supporting this attribution included annual bond disclosure documents from FY 1994 forward. OGAS

and hard-mineral severance tax data were sourced to old Bureau of Revenue and Oil and Gas Accounting

Commission annual reports, as well as TRD reports after 1978. To the extent possible, data from TRD were

reconciled with bond disclosure documents available from the State Board of Finance website. While there are

still a few holes in the analysis, this is the most credible estimate of the OGAS contributions percentage for the

STPF performed to date.

The land grant permanent fund (LGPF) estimate is probably the single, most interesting aspect of the overall

study. After assembling a large amount of data from Bureau of Revenue and, post-1978, from Taxation and

Revenue Department reports (most of the old data was provided to the project through the invaluable assis-

ta e of D . Ro ald P. B oadhead, p i ipal se io pet oleu geologist fo NMIMT’s Bureau of Geology.) While

this approach was productive and provided a credible estimate of OGAS contributions to the corpus of the

LGPF, there were a number of annoying holes in the data. A somewhat casual query to the State land office


– 10 –

resulted in being granted access to scans of a virtually complete set of annual reports of the State land com-

missioner, going back to the first report dated 1900. Data from these reports were hand entered into a com-

prehensive database, from which a highly credible and robust model was built. With an uncertainty of less

than .5 percent, we assert that the current proportion of the amount of annual interest transferred to the

general fund from investments of the LGPF is 96.7 percent. This year, we were able to plug some of the an-

noying gaps left at the conclusion of the FY 2013 report with another tranche of data from the old SLO annual

reports.

Before delving into some of the other general fund revenue sources, we will discuss the two general fund In-

terest models – the LGPF interest model and the STPF interest model.

The General Fund Interest Models: The most interesting and useful portion of this study was to quantify the proportion of interest transferred to the

general fund from oil and gas taxes and royalties paid. In 2014, $449.4 million in earnings from the land grant per-

manent fund (LGPF) was transferred, of which $434.8 million, or 96.7 percent of the transfer can be plausibly and

reasonably attributed to royalty payments for production on State lands made by OGAS companies. Similarly,

$170.5 million of earnings from the severance tax permanent fund (STPF) was transferred, of which $147.6 million,

or 86.7 percent was attributed to the oil and gas severance taxes paid by the OGAS industry. To arrive at 96.7 per-

cent for LGPF attributable to the OGAS industry in the state we had to develop data for the LGPF model extending

back in time to 1900 – 12 years prior to statehood, when first the Ferguson Act and subsequently the Organic Act

transferred over 12 million acres of federal land to the New Mexico Territory and then the new State of New Mexi-

co for the purpose of providing funds for public schools, higher education and other public purposes. To arrive at

86.6 percent for STPF attributable to severance taxes paid by OGAS interests, we had to develop data for the STPF

model extending back in time to 1973 when Hard Mineral and Oil and Gas Severance Taxes were restructured and

the portion of severance tax collections not needed to amortize capital outlay bonds used to fund a Land Grant

Permanent Fund.

Of the two investigations, the far larger and older LGPF required the

most data grubbing. Before discussing the data and the model, we

should briefly describe the evolution of the revenue sources con-

tributing to the corpus of the LGPF.

The so-called Ferguson Act transferred about 5,000,000 acres of

federal land to the territory of New Mexico for purpose of providing

for public schools, higher education, an insane asylum, a deaf and

du s hool, a li d as lu , a pe ite tia , a i e ’s hospital, im-

provements to the water supply delivered from the Rio Grande and

other purposes. The initial grant designated sections 16 and 36 in

every township for these purposes. Almost 40 percent of these sec-

tions were Indian lands, Spanish or Mexican land grants, land previ-

ously patented by individuals and other types of land for which title could not be transferred. A commission con-

sisting of the Governor (M.A. Otero), the Surveyor General and the Solicitor-General of the Territory selected over

2,000,000 acres of land k o as i -lieu la ds o si pl lieu la ds.

Dates of Tenure

Land Commis-sioner

Revenue during Ten-

ure

1899-1906 Alpheus A. Keen $462,998 1907-1918 Robert P. Ervien $3,320,975

1918 Fred Muller $980,937 1919-1922 N.A. Field $4,053,441 1923-1925 Justiniano Baca $1,942,248 1925-1926 E.B. Swope $2,182,039 1927-1929 B.F. Pankey $2,673,979 1929-1930 Autin D. Crile $3,568,894 1931-1932 L.F. Hinkle $3,514,881 1933-1936 Frank Vesely $7,905,354 1937-1940 Frank Worden $13,320,696


– 11 –

Land Grant Permanent Fund ($ millions)

Fiscal Year Beginning

Balance

Land

Sales

Oil, Gas &

CO2

Minerals &

Misc

Total

Revenues

Change in

Market Value

Ending Balance

of Corpus

% OGAS This

Period

%OGAS End of

Period

1900-1924 $0.0 $2.6 $0.0 $0.0 $2.6 $0.0 $2.6 0.0% 0.0%

1925-1929 $2.6 $0.5 $0.6 $0.0 $1.1 $0.0 $3.6 53.0% 15.5%

1930-1934 $3.6 $0.6 $1.8 $0.8 $3.2 $0.0 $6.8 55.7% 34.2%

1935-1939 $6.8 $0.5 $6.1 $0.6 $7.2 $0.0 $14.1 84.1% 60.0%

1940-1944 $14.1 $0.8 $9.2 $0.4 $10.4 $0.0 $24.5 88.8% 72.2%

1945-1949 $24.5 $1.0 $17.6 $0.5 $19.2 -$0.5 $43.1 91.9% 80.8%

1950-1954 $43.1 $0.4 $37.1 $1.8 $39.4 $0.7 $83.2 94.3% 87.3%

1955-1959 $83.2 $0.8 $75.6 $2.0 $78.4 -$0.2 $161.4 96.4% 91.7%

1960-1964 $161.4 $3.2 $84.7 $3.4 $91.3 $0.0 $252.7 92.8% 92.1%

1965-1969 $252.7 $3.1 $116.5 $3.1 $122.7 $0.0 $375.4 94.9% 93.0%

1970-1974 $375.4 $4.0 $144.2 $4.0 $152.3 $12.6 $540.3 94.7% 93.5%

1975-1979 $540.3 $4.3 $336.2 $5.2 $345.6 $27.5 $913.4 97.3% 95.0%

1980-1984 $913.4 $3.1 $911.0 $13.2 $927.3 $66.5 $1,907.2 98.2% 96.7%

1985-1989 $1,907.2 $13.7 $662.6 $18.5 $694.7 $325.1 $2,927.1 95.4% 96.1%

1990-1994 $2,927.1 $11.2 $539.2 $18.6 $569.0 $353.9 $3,850.0 94.8% 96.1%

1995-1999 $3,850.0 $2.2 $560.4 $17.3 $579.8 $2,883.2 $7,313.0 96.6% 96.2%

2000-2004 $7,313.0 $0.8 $1,087.9 $10.9 $1,099.7 -$812.7 $7,600.0 98.9% 96.3%

2005-2009 $7,600.0 $23.8 $2,027.5 $38.3 $2,089.6 -$1,226.8 $8,462.9 97.0% 96.6%

2010-2014 $8,462.9 $5.4 $2,447.9 $65.0 $2,518.2 $3,262.6 $14,243.6 97.2% 96.7%


– 12 –

Severance Tax Permanent Fund Model ($ millions)

Fiscal Year Beg. Mar-

ket Value Earnings

Chg. in Mar-

ket Value

Contribu-

tions

Distribu-

tions

End Market

Value

End Value

OGAS

End Value

Coal/Uranium

OGAS % this

period

OGAS % End

of Period

1970-1974 $0.0 $3.5 $2.0 $54.2 $0.0 $59.7 $57.5 $2.1 95.3% 96.4%

1975-1979 $59.7 $56.7 $75.4 $214.2 $26.3 $379.7 $349.8 $29.8 88.5% 92.1%

1980-1984 $379.7 $277.1 $93.4 $532.7 $277.1 $1,005.8 $896.5 $109.4 86.9% 89.1%

1985-1989 $1,005.8 $546.2 $252.2 $524.8 $546.2 $1,782.8 $1,577.7 $205.1 87.0% 88.5%

1990-1994 $1,782.8 $655.1 ($312.4) $509.4 $655.1 $1,979.8 $1,694.5 $285.2 81.5% 85.6%

1995-1999 $1,979.8 $672.4 $1,370.9 $393.5 $672.4 $3,744.1 $3,184.0 $560.1 81.5% 85.0%

2000-2004 $3,744.1 $615.9 ($155.8) $295.1 $789.0 $3,710.2 $3,168.8 $541.4 90.9% 85.4%

2005-2009 $3,710.2 $521.9 ($212.6) $217.6 $884.5 $3,352.7 $2,881.1 $471.6 95.8% 85.9%

2010-2014 $3,352.7 $608.7 $1,412.9 $267.5 $901.7 $4,740.0 $3,342.8 $530.3 96.3% 86.6%


– 13 –

The Ferguson Act provided some guidelines as to suitable lieu lands, but there was some contentious squabbling

between Territorial and Federal interests. Laws of 1901, Chapter 74, established the office of State land commis-

sioner. The initial act set the salary of the State land commissioner at $2,500 per annum, which was six to seven

times the wages of a working cowboy4. The State land commissioner was allowed to hire clerks to assist in the op-

erations of the office with an initial appropriation of $1,500, which was probably enough for two or three clerks. Of

course, the cowboy was provided with horses to ride, a bed in a bunkhouse and grub. The Land Commissioner had

to furnish his own food, housing and transportation. This law replaced the Surveyor General on the Commission

charged with designating the lieu lands with the State Land Commissioner. The first State Land Commissioner was

Alpheus A. Keen, who served from 1899 to 1906, which was two years longer than the statutory authority for the

position. For the e ti e pe iod of M . Kee ’s te u e, he olle ted e e ue e ual to about 10 times the costs of the

“tate La d Co issio e ’s ope atio s. Total e pe ses of the “tate La d Offi e du i g the ou se of e e $5,707. One other interesting note, the Ferguson Act assumed that the state would sell the land outright to farm-

ers and ranchers, thus contributing to the settlement of the American West. However, the 1901 laws required that

5 percent of the money received from outright sales of land or from land contracts would be transferred to a per-

manent fund. At the end of calendar year 1901, the total corpus of the permanent funds stood at $70,069.After

1913, proceeds from land which was sold on contract that extended the purchase over 30 years at a 5 percent

annual interest rate were transferred to the permanent fund. The contract principal could be paid on a self-

amortizing basis or a lump sum basis. The federal establishment designated some lands as $5 lands (per acre)

and some as $3 lands. Grazing leases were priced roughly based on these designations, with the annual charge

for grazing leases on land without water of $12.80 per section per year and $30 per section for land with wa-

ter. A section is 640 acres.

At statehood in 1912, virtually all of the 5,584809.03 acres granted to the Territory in the Ferguson Act had

been selected. 2,072,000 acres were leased – primarily for ranching. About 75,000 acres had been sold out-

right or via contracts. The remainder of the original allotment was vacant. The Organic Act, also known locally

as the Enabling Act transferred an additional 6,569,520 acres of federal land to the new State of New Mexico

for the purpose of providing funds for public schools and higher education. The total of over 12 million acres is

but little smaller than the entire states of Maryland, New Jersey and Delaware 5. By the end of 1914, all but 2

million of the 12 million acres total had been selected and title vested in the State. The Federal Government

contested about 1 million acres of the 2 million unconfirmed. The 1910 grant gave sections 2 and 32 to the

state, with about half of the new grants being already entailed or otherwise withdrawn, either as Indian reser-

vations, federal forest reservations, residual Spanish or Mexican land grants, military reservations, patented

mining claims, mineral and oil reservations, homesteads and patented lands, small holding claims, reserva-

tions for irrigation purposes and Indian allotments. Between the 1898 and 1910 grants, over 4,000,000 acres

were lieu lands.

In the early going, the corpus of the LGPF consisted of five percent of the amount realized from sales of State

land. In 1924, oil royalties began flowing to the LGPF. Somewhat later, mineral royalties (primarily from coal

production on state lands) and timber sales were added to 100 percent of land sales and contracts and OGAS

4 F o the s th ough , o ki g o o ’s ages e e ge e all $ pe da plus oo i a u khouse, eals a d o ki g

horses. Cowboys provided a saddle and other tools of the trade. Young apprentices were frequently paid $15 a month or less.

(http://www.lemen.com/qa261.html … A working cowhand in the late 1800s was paid $25 to $30 a month "and found." The

phrase "and found" meant he also got his meals (and a bunk when he was at the ranch headquarters.) A top hand might even get

$40 a month and a foreman $50 or more. On a drive, a trail boss was sometimes paid as much as $100. For comparison, back then a

typical school teacher's wage was $30 a month, and dinner in a restaurant would usually cost about 25 cents. 5 “tate La d Co issio e ’s 1914 Annual Report of the State Land Commissioner

http://www.lemen.com/qa261.html


– 14 –

royalties. By State Law, all royalties and proceeds from the sale of State land are transferred to the LGPF. The

FY2014 ending balance in the fund was $14,243,600,000. In building the general fund interest model, we de-

termined that the first flow of OGAS royalties to the permanent fund occurred in CY 19246, when the State

land commissioner required all royalties paid on oil and gas production on state lands, as well as hard mineral

production on state lands to be transferred to the permanent funds maintained on behalf of each of the insti-

tutions. By June 30, 1932, the book value of transfers to the permanent funds stood at $4,767,590 with the

cumulative contribution from OGAS of $1,289,143, mean-

ing that 36 percent of the contributions to the permanent

funds from the beginning in 1900 were from OGAS royal-

ties from production on State Lands and the remainder

represented land sales, contracts and hard mineral royal-

ties. By the end of FY 1964 (52nd fiscal year), contributions

from OGAS has steadily increased in comparison to land

sales and hard mineral royalties. At the end of the year,

92.1 percent of the LGPF could be reasonably attributed to

OGAS. The table to the right exhibits this estimate of the

history of the OGAS contribution to the LFPF through the

decades.

The current LGPF interest model is not perfect. The various sources of information about OGAS and hard min-

eral royalties for production on State Lands cannot be perfectly reconciled. Part of the problem is that some

early SLO data is expressed in calendar years and not fiscal years. Another part of the problem is that SLO has

booked royalty revenue on an as-received basis while BOR, the Oil and Gas Accounting Commission (pre-1978)

and the TRD have booked the revenue first on a distribution month basis, then on a receipt month basis and

finally, after July 1, 2004 on an accrual basis which lags two months from the returns month. Over a long peri-

od, these differences do not matter greatly (with the

exception of the extra month of revenue recognized at

the end of FY 2004), but matter significantly in trying to

reconcile individual years. On the other hand, during

the course of the Phase 2 investigation relative to FY

2014, about half of the data gaps in the FY 2013 study

were resolved.

The STPF model was considerably easier to construct,

since actual oil and gas severance and hard mineral

severance data were available for the entire period from inception of the STPF in 1973 to date. The model,

with a few uncertainties, indicates that OGAS percentage of the STPF is 86.6 percent. The uncertainty in this

estimate is perhaps .5 percent, similar to the uncertainty in the LGPF general fund Interest model. As for the

LGPF model, this result is robust. As shown in the table to the right, for the most part, the average contribu-

tion ratio differed little from 86 percent for the first 20-years of the STPF. The contributions over the last dec-

ade have not influenced the aggregate estimate significantly since residual contributions from the STBF to the

STPF have fallen with the advent of aggressive bonding programs where the state sells not only senior bonds,

6 In FY 1924, over $9,700 in oil royalties were collected. Only $1,611.71 of this total was transferred to the permanent funds as State

Land Commissioner Justiniano Baca determined that the royalties from depleting the oil and gas reserves should be treated differ-

ently than proceeds from grazing leases (sustainable) and similar to the sales of land. By 1925, 100% of land sales, hard mineral and

oil and gas lease royalties were being transferred to the permanent funds.

Contributions Attributable to OGAS

Land Grant Permanent Fund

Average

During Period At end of period

Pre-1965 62.4% 92.1%

1965-1974 94.4% 93.5%

1975-1984 97.1% 96.7%

1985-1994 95.9% 96.1%

1995-2004 95.9% 96.3%

2005-2014 97.5% 96.7%

Contributions Attributable to OGAS Severance Tax Permanent Fund

Average during

decade At end of period

1972 -1984 89.1% 89.1%

1985-1994 84.2% 85.6%

1995-2004 86.2% 85.4%

2005-2014 96.4% 86.6%


– 15 –

but subordinate bonds, and short-te spo ge o ds of oth se io a d su o di ate lasses. This means

that the earlier data is critical in determining the percent of STPF interest attributable to oil and gas severance

taxes.

The FY2013 ending market value of the LGPF is $4,740,000,000. There is a minor defect of the model in that

the portion of total severance taxes used to retire bonds is not directly available prior to 1994 when the Board

of Finance bond disclosure documents have been available. During the period from 1973 through the late

1980s/early 1990s, only senior bonds were issued. These were, generally, five-year bonds with a two-to-one

coverage ratio. Since there was always uncertainty in the amount of severance tax revenue available for semi-

annual bonding, somewhat more than 50 percent of the severance tax stream was transferred in this period to

the STPF. Board of Finance disclosure documents exhibit the details of the STBF for the period 1995 through

2012 by fiscal year. This affects in a minor way the timing of transfers to the STPF.

Another minor defect is that these data do not directly reconcile with the data obtained from ONGARD for

that period. It should be noted that the STBF records both oil and gas and hard mineral severance taxes when

received. The State general fund was converted to full accrual accounting at the end of FY 2004. This essen-

tially means that production from May through April is reported to TRD (and paid) from July through June, but

accrued to the general fund based on the production months of May through April. This similar accrual con-

version was not implemented for the STBF. This reconciliation problem is high on the list of issued for the next

phase of this study.

General Fund Revenues: Gross Receipts and Compensating Taxes The inclusion of Gross Receipts and Compensating Tax is as unconventional as the inclusion of STPF and LGPF

interest in calculating the percentage of the general fund attributable to OGAS production in the state. Con-

ventionally, only taxes imposed directly on and paid by the industry members are included in the calculation.

However, although the New Mexico Gross Receipts Tax is a sales tax paid by the vendor or seller, the econom-

ic burden of the tax is borne by the buyer. This is a subtlety that is largely ignored in determining the contribu-

tion to the general fund of any particular industry. It is not an insignificant burden, but is estimated as a total

of $207,036,418 -- $151,478,540 for the general fund and $54,292,130 for counties and municipalities for

FY2014 for the four NAICS7 classifications listed in the following table.

These gross receipts contributions vary over time – primarily because expected prices change and drilling

plans change in response to the price changes.

OGAS Gross Receipts Tax

Total OGAS

GRT

General

Fund GRT

Local

Gov't GRT

% of Total

GF GRT

FY 2006 $88.14 $63.87 $23.41

FY 2007 $103.53 $75.38 $26.91 4.1%

7 NAIC“ sta ds fo No th A e i a I dust ial Classifi atio “ ste . E o o i epo ts i Ca ada, the U ited “tates a d i Me ico

are generated conforming to the NAICS classifications.

Gross Receipts Tax NAICS Categories 6-Digit NAICS Class Description

211110 Oil and Gas Extraction 213111 Drilling Oil and Gas Wells 213112 Support Activities for Oil and Gas Operations 213118 Support Activities for Oil and Gas Extraction


– 16 –

Total OGAS

GRT

General

Fund GRT

Local

Gov't GRT

% of Total

GF GRT

FY 2008 $100.77 $71.97 $27.82 3.9%

FY 2009 $101.85 $72.02 $28.71 3.9%

FY 2010 $78.89 $55.69 $22.39 3.4%

FY 2011 $133.90 $93.12 $39.37 5.1%

FY 2012 $187.84 $138.58 $47.53 7.2%

FY 2013 $176.16 $127.55 $47.58 6.7%

FY 2014 $207.04 $151.48 $54.29 7.6%

There are two methods for estimating the portion of total general fund gross receipts tax that can be reasona-

bly attributed to direct reimbursements to vendors the OGA“ i dust i the state. The top-do ethod determines the amount of general fund separately and lumps the county, municipality and tribe, nation and

Pueblo piece as a residual. This method uses the Mu i ta of the o thl RP-80 available from TRD. This

report is detailed to the six-digit NAICS level. It is this level of necessary detail that requires the use of the RP-

80, rather than the more accurate RP-500. The top do app oa h is o l minimally obstructed by the re-

daction required by Section 7-1-8 NMSA 1978. The method uses the fact that the state tax collected within

municipal boundaries is the state rate (5.125 percent) less the municipal share of 1.225 percent. This is a net

to the general fund of 3.9 percent. The state rate for taxable gross receipts reported from nation/tribe/pueblo

areas is either 25 percent of the State rate (5.125% * 25% = 1.2815%) or zero, depending on whether the tax-

payer is an enrolled member of the particular tribe or not. The State rate of 5.125 percent applies to out-of-

state transactions or to transactions arising in county areas outside of municipal boundaries. Some care must

be taken with the RP-80 report because the u lassified atego means different things in different parts of

the report.

Several assumptions are necessary for this top do approach. First, all reported taxes are assumed paid.

Over time, probably 99 percent of liabilities are collected. This assumption is required since the RP-80 that

includes the necessary sectoral detail does not track payments, only reported liabilities. Second, the 3 percent

administrative fee imposed on all county GRT local options and on Municipal GRT local options in excess of .5

percent are ignored. There is a rough balance for the State general fund that interest and penalty charged on

delinquencies approximately balances non-payment. If the administrative fees were added, then the State

probably collects more than reported liabilities and the local governments probably collect less than the re-

ported liabilities. “i e the pu pose of the top-do ethod is to easu e the general fund revenue at-

tributed to the four OGAS NAICS codes accurately, or, if in error, to underestimate the OGAS contribution ig-

noring delinquencies and partial payments, interest and penalty and the administrative fee, is probably ap-

propriate. For the next phase, a subtlety could be added. We could assume that these elements, as applied to

the OGAS NAICS are the same as fo the e ti e Mi i g se to . Thus, e ould atio the agg egate data fo the Mining sector that includes the administrative fee, payment data and penalty and interest obtained from

the RP-500 using the ratios of OGAS to total Mining obtained from the sectoral detail in the RP-80. This top do ethod has ee used fo the OGA“ sha e of general fund from FY 2007 to FY 2014.

The second method for estimating the portion of total general fund Gross receipts that can be reasonably at-

tributed to direct reimbursements to vendors by the OGAS industry in the state is a otto -up app oa h and is applicable to the allocation to cities, counties, tribes, nations and pueblos. With this method, all the

data in all the four tabs of the RP-80 are used. This method principally uses the data from the county tab for

control totals for the sum of the sub-jurisdictions within the county. If the county total data is redacted for a


– 17 –

particular NAICS code, then the redaction is allowed to stand. If the county total data are not redacted, but

the sub-jurisdiction data are, then a judicious allocation of the county amounts to the municipalities, Indian

areas and remainder county are made. Tax rates are adopted effective only July 1 and January 1. The bottom

up method adds the first six months of the fiscal year together for each jurisdiction in the county and the sec-

ond six months separately together. The enactment table published by TRD for each six-month period pro-

vides the data to allocate reported tax by sub-jurisdiction to the county, to the city or to a tribe, nation or

pue lo. These a e the data epo ted o the o pa io Cou t I pa ts of Oil and Gas Production in New

Me i o. The otto -up ethod has the sa e i a u a ies as the Top-do ethod, a d additio al un-

derestimates from redactions. The t o ethods ield si ila esults. The Top-Do esti ate fo OGA“ on-

tribution to the State general fund for FY 2014 is $151. illio . The otto -up ethod esti ates the gen-

eral fund contribution to be $148.4 million.

In future versions of this report, we may include the economic burden of other purchases by oil and natural

gas-related companies. We will use the IMPLAN model and tool to determine the plausible amount of taxable

purchases of goods and services that are made by oil and gas industry members. The amount will be at least

equal to the amount above and could be several times that amount. In FY 2014, oil, natural gas and CO2 total

production value was $17.1 billion. This production is not directly taxed under the Gross Receipts and Com-

pensating Tax Act. However, if all this value were taxed, the total tax burden would be almost $1 billion. Con-

sider the $207 million ($151 million general fund) estimate above as a lower bound on the Gross Receipts Tax

economic burden. Alternatively, as discussed previously, we may use an industry survey approach to refine

and extend the phases 1 and 2 results. From BEA data for CY 2013 (see introduction), the industry produced

$15.0 billion of product while contributing $7 billion in value added. The implies that the industry in the state

purchased about $8 billion of goods and services from both in-state and out-of-state vendors. Assuming a 6.5

percent gross receipts tax rate, this implies an additional $325 million in total GRT and nearly $200 million in

non-OGAS-related general fund contributions.

The compensating tax is a tax borne directly by the oil and gas producers and support companies. For exam-

ple, a horizontal drilling rig purchased outside the State, but imported and used in drilling wells in New Mexi-

co, is subject to the compensating tax rate of 5.125 percent.8 NMTRD’s Tax Policy and Research Office gra-

ciously provided the following data.

TRD was unable to update this table of the companion table for personal income tax withholding this year.

However, a simple regression model relating either compensating tax or personal income tax withholding tax

to the taxable gross receipts tax in the designated sectors had correlation coefficients that yielded acceptable

estimates of these two components . The co pe sati g ta esti ate is sho i the FY est. olu . 8 A heavy drilling rig may be eligible for a 50% deduction from compensating tax pursuant to § 7-9-77(A) NMSA 1978.

Compensating Tax ($1,000)

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 est.

Oil and Gas Extraction $2,000 $1,873 $2,255 $2,497 $3,251 $2,930

Drilling Oil and Gas Wells $2,928 $1,067 $2,146 $2,071 $3,349 $3,059

Support Activities for Oil and Gas Operations $4,959 $3,495 $10,288 $14,409 $13,124 $18,413

Total OGAS-related* $9,887 $ 6,434 $14,689 $18,977 $19,725 $24,402

State Funds $7,415 $4,826 $11,016 $14,233 $14,793 $17,813

Local Governments $2,472 $1,609 $3,672 $4,744 $4,931 $6,588 * General fund portion is approximately 73% of this amount, 10% small cities, 10% small ou ties, ≈7% paid as comp to local Governments. A

portion of the Small Counties Assistant Fund not needed to fully fund the distribution formula is reverted to the general fund.


– 18 –

General Fund Revenues: Personal Income Tax Conventionally, when determining the portion of the general fund attributable to taxes and royalties paid by

the oil and natural gas industry, personal income taxes paid by employees or investors in production of the

industry are not included. This is a similar argument to the traditional exclusion of the economic burden im-

posed on the industry of the gross receipts tax. In that case, the argument advanced was that the tax is not

imposed directly on the producers. That argument, however, fails in the case of oil and gas withholding. This is

a tax collected by the producers from investors and persons with royalty interests in oil and gas production.

These taxes, when deducted from royalty payments or profit distributions made to out-of-state investors, are

then remitted to TRD. At personal income tax filing time, these withheld payments are applied to personal

income tax liabilities incurred by the payment of royalties by the producers. In the first few years following

enactment in 2004, this was not a significant revenue source. However, in FY2013, producers remitted

$90,195,333 to TRD on behalf of their royalty holders and investors and in FY 2014, the amount had increased

to $109,600,000. This is not a direct tax. The producers have a fiduciary responsibility to collect and remit this

withholding. Nor is the amount of oil and gas withholding a perfect estimate of the amount of New Mexico tax

liability incurred by the investors and royalty holders. On the other hand, it is likely that refunds will be mod-

est, since the vast majority of investors are subject to the maximum 4.9 percent current income tax rate,

which is the 2014 withholding rate. Thus, the allocated income from oil and gas interests will end up being

taxed at approximately the 4.9 percent tax rate. This may be a specious argument, however. Total production

on private lands in the state in FY 2014 was approximately $2.2 billion. If royalties are a usual 1/8th, or 12.5

percent and the withholding tax rate is 4.9 percent, the total withheld and remitted to TRD should be around

$13.6 million or less. However, royalties are not the only payments subject to OGAS withholding. Producers,

particularly independent producers, have company owners and other investors. Total production value for

FY14, including production on State, Federal and private lands was $17.1 billion. If, in addition to the $13.6

million in royalties on private lands, producers pay investors some portion of the profits from oil and gas pro-

duction and then deduct the oil and gas withholding amounts from dividends, $96 million in oil and gas with-

holding represents about $2.0 billion in profits subject to withholding. Thus, this is consistent with about 18

percent of production in New Mexico is financed by investors.

In addition to the oil and gas withholding amounts, the industry deducts and remits personal income taxes

from wages and salaries of New Mexico residents. For FY 2013, TRD’s Offi e of Ta Poli g a iousl p o ided an extract of the RP-90 which listed the withholding remitted to TRD based on the NAICS code of the remitter.

The same regression technique as for compensating tax was used to estimate the amount of PIT wage with-

holding for the three relevant NAICS codes.

As can be seen in the table above, employers remitted almost $33.6 million in personal income tax withholding

to TRD in the course of FY2104. Again, using this amount as a surrogate for actual PIT liability is appropriate.

These are very well-paid jobs and it is likely that little of the amount withheld will be subject to refund. One ef-

fect previously noted is that roustabouts and field hands are somewhat casual about personal income taxes.

PIT Withholding ($1,000)

FY2009 FY2010 FY2011 FY2012 FY2013

FY 2014

est.

Oil and Gas Extraction $5,321 $4,938 $6,142 $5,554 $6,960 $6,236

Drilling Oil and Gas Wells $3,549 $2,513 $3,343 $3,618 $4,206 $5,439

Support Activities for Oil and Gas Operations $16,652 $12,975 $23,304 $19,269 $18,895 $21,906

Total OGAS-related, $25,521 $20,426 $32,790 $28,441 $30,060 $33,580


– 19 –

They tend to move casually into and out of the state and let the amount of taxes withheld by their employers

suffice instead of filing a New Mexico income tax return in the event that they are no longer resident in the state

at the time of filing. These migrant workers cheerfully abandon any refund they might be due.

For many reasons, then, it is appropriate that we give to the industry $109.6+$33.6 in attribution to the gen-

eral fund for oil and gas withholding and for withholding from wages and salaries.

Now, recognize that investors and royalty holders that are New Mexico residents or are regular corporations

are not subject to the oil and gas withholding. We can only speculate on what portion of the royalty interests

or profits distributed to investors show up on New Mexico personal income tax returns – either as direct in-

come or as income reported from a pass-through entity such as a Subchapter S corporation, an LLC, a MLP or

LLP or other partnership. In addition, resident fiduciaries and estates that have oil and gas income are subject

to the pe so al i o e ta , hi h is epo ted as fidu ia i o e ta . So again, as is the case for Gross Re-

ceipts Tax, it is likely that the estimate included here is a lower bound of the impact of the oil and gas industry

on general fund revenues. All of these ideas will be explored further in phase 3.

General Fund Revenues: Corporate Income Tax “o e of Ne Me i o’s oil and gas producers are among the most profitable corporations in the world. These

regular corporations are subject to the State’s Co po ate I o e Ta . I August , TRD’s Offi e of Ta Poli-cy a d A al sis p ese ted a o p ehe si e a al sis of Ne Me i o’s Co po ate I o e Ta . The full report is

included on the CD.

For the five-year period of Tax Years 2006, 2007, 2008, 2009 and 2010, all mining, including oil and gas pro-

duction, paid an average of 29.8 percent of all corporate income tax. For TY 2010, the report indicates that

23.5 percent of gross CIT was paid by oil and gas and other mining. From a special extract provided by the TRD,

the t o atego ies Oil a d Gas E t a tio a d percent of “uppo t A ti ities fo Mi i g totaled per-

cent for TY 2010 and 14.1 percent for TY 2011. The August report also indicates that a number of oil and gas

producers are reported in other categories. For the purpose of this estimate, we have added 3.5 percentage

points to both TY2010 and TY2011 total of NAICS 211 and 85 percent of NAICS 213. This yields a consistent

picture of the impact of the OGAS industry on the CIT amounts in the general fund. Because of the consistency

of this analysis for TY10 through TY12, we have assumed that the OGAS contribution to the general fund for

FY13 is $54,000,000.

Corporate Income Tax by Tax Year

Est. Gross CIT

Est. OGAS

% AMT Pd. by OGAS

TY06 $425,949,360 36.8% $156,749,365

TY07 $448,914,459 32.0% $143,652,627

TY08 $339,391,816 37.0% $125,574,972

TY09 $213,259,830 20.0% $42,651,966

TY10 $229,632,446 20.0% $52,432,970

TY11 $312,898,177 17.6% $55,005,430

TY12 $300,285,821 18.0% $54,051,448

TY13 $267,200,000 20.3% $54,000,000

TY14 $196,800,000 21.3% $42,000,000


– 20 –

However, the gross amount of corporate income tax for FY 2014 (gross of an assumed $50 million in film pro-

duction tax credits paid via the corporate income tax processing system) was only $247 million. The linkage

between tax year liability and fiscalyYear payments is quite complex and varies year by year. Beginning with

esti ated pa e ts the sa e o th that the p e ious ea ’s etu is o i all due, follo ed th ee o e estimated payments over the next three quarters, followed by a tentative payment in March (or the third

month after the end of the corporate fiscal year) and a final settlement six months later, tax year liabilities and

payments are spread over three fiscal years.

Until TRD is able to update some of these numbers, we choose to allow OGAS to take credit for only $42 mil-

lion of CIT for FY 2014. In Phase 3, several of the survey questions of companies we will sample will be the

amounts of corporate income tax paid by fiscal year, the amounts of oil and gas withholding remitted on be-

half of royalty holders and investors, and the amounts of PIT withholding paid on behalf of employees.

General Fund Revenues: Oil and Gas School Tax TRD distributes all of the revenues from the oil and gas emergency school tax to the general fund. Since the

end of FY2004, the general fund has adopted full accrual accounting. This means that revenues attributed to

July, which are reported to TRD through the ONGARD system in September, are booked as July revenues. This

is not entirely accurate since producers amend returns sometimes for years. The bulk of the volume and value

data are stable on a sales-month basis after three or four months, but the data on processing and transporta-

tion deductions can take up to two years to become stable. It is the distribution month data that correlates

quite closely with the revenue distribution ONGARD reports. Unfortunately, amendments are made in discon-

tinuous fashion and these distribution-month data cannot be used for revenue estimating. However, for this

project, we are mostly interested in revenue, not revenue estimating. Therefore, we have downloaded and

formatted all the ONGARD data on a distribution basis (to correlate between volume, value and deductions),

and have reported the data on an accrual basis corresponding to t the sales month. The revenue report exhib-

its general fund transfers, net of tax incentives (if any) and Indian dual tax credits. These dual tax credits rep-

resent payments from the producers to various Indian tribes (primarily the Ute Mountain tribe and the Jicarilla

Apache tribe). 75 percent of the amount paid to the tribes result in a credit against school tax, conservation

tax, severance tax and the ad valorem production tax. In this work, we report the taxes paid, net of the credits.

As part of this project, we have assembled volume, value, royalties and other deductions data from various

sources going far back in time to 1935, with data on royalties on hard mineral and OGAS production on State

lands available back to 1924. These are listed in some detail in Appendix B. In the course of FY2014, the gen-

eral fund recorded Oil and Gas School Tax revenues of $500,658,590. The industry is credited with an addi-

tional $4,245,952 for FY 2014 in payments to the various tribes pursuant to the 75 percent/25 percent dual tax

credit provisions. These are not State general fund contributions, however.

General Fund Revenues: Oil Conservation Tax The oil conservation tax is somewhat more complex than the oil and gas school tax. This is because there is a

conservation tax imposed on coal that is processed outside the ONGARD system. A further slight complication

is that the conservation tax rate is .24 percent of net value for oil9, but only .19 percent for natural gas and

CO2. A portion of the total proceeds of the conservation tax are distributed to the oil and gas reclamation

fund.

9 If West Texas Intermediate (WTI) price falls below $70 for the previous production quarter, then the tax rate is reduced to .19 per-

cent and the distribution to the oil and gas reclamation fund is reduced from 19.7% to 2/19th

of the conservation tax collections.


– 21 –

The data available from the financial control division of DFA includes both oil and gas conservation tax, as well

as the coal conservation tax. However, these data do not reconcile. The ONGARD system implies that total

OGAS conservation tax collections for FY 2014 were $32,678,485, of which $27,808,652 would have trans-

ferred to the general fund and $4,869,833 would have been transferred to the oil reclamation fund. However,

the financial control division has published an unaudited final amount of $27,244,668 including the coal and

uranium transfers. This amount will be adjusted at audit by $152,000 to back out advanced payments. Resolv-

ing this enigma will be left to Phase 3.

In doing the research for this report, we read that the .24 percent conservation tax rate imposed on oil is con-

tingent upon west Texas intermediate price for the previous quarter averaging over $70 per barrel. The distri-

bution of the oil conservation tax also changes depending on the triggered rate. When the rate is .19 percent,

the distribution to the oil reclamation fund is 2/19ths and to the general fund, 17/19ths. When the rate is .24

percent, the distribution to the oil reclamation fund is 19.7 percent of collections and to the general fund,

81.3%.

General Fund Revenues: Natural Gas Processors Tax TRD transfers all of the natural gas processors tax collections to the general fund. While the calculation of the

tax rate for this tax is somewhat complex, it is relatively simple to determine the total amount attributed to

the OGAS industry. For FY2014, this was $$16,197,464. For FY 2013, the amount was $24,196,501. The tax rate

adjusts annually depending on the average ONGARD gas price the previous year.

General Fund Revenues: Federal Mineral Leasing Another somewhat complex revenue source is federal mineral leasing. Crude oil and natural gas producers pay

for the privilege of developing a particular OGAS site that is located on federal lands. These leases are adminis-

tered by the bureau of land management (BLM). After a well is in production, the producers pay royalties to

the Office of Natural Resource Revenues (ONRR),10 based on a contractual percentage of production value. In

most cases, the royalty percentage is 12.5 percent, or 1/8th of the value of production. There is some contro-

versy over whether the royalty calculation is based on market price less transportation and processing costs or

whether the royalty rate is imposed on the gross wellhead price before deductions. This is a complex issue,

but does not affect the calculation we are presenting in this report. The complexity is that oil and gas royalties

and bonus payments are less than 100 percent of the base for calculation of revenue sharing.11 BLM also leas-

es mineral lands and some grazing land. Based on ONGARD deductions and a download of the results of New

Mexico bonus payments, the OGAS industry paid $1,094,877,037 with $536,489,748 returned as revenue shar-

ing for FY 2014. Since the amount of FML recorded by the State Treasure was $569 million, too much revenue

sharing was remitted. This is unlikely. The ONRR data indicate that for FFY 2014, 95 percent of the total reve-

nues were attributable to Oil and Gas production. The rate of revenue sharing compared to the royalty pay-

ments was about 46 percent. Thus, of the $579 million reported by ONRR paid to New Mexico in the course of

Federal Fiscal Year 2014, $550 million can be attributed to Oil and Gas production. In the attribution table, the

amount reported as paid by the ONRR to New Mexico is shown as $569 million and the amount contributed by

OGAS production shown as $565 million. If we had used the 95 percent ratio as reported by ONRR, then the

10

Prior to 2011, payments were remitted to the Minerals Management Service (MMS), which processed the payments and dis-

bursed the revenue shares to the states. 11

On October 1, 2011, the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), formerly the Minerals Management

Service (MMS), was replaced by the Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement

(BSEE) as part of a major reorganization. At the same time, the Office of Resource Revenues took over the task of processing royalty and other

mineral payments and disbursing the revenue shares to the states.


– 22 –

OGAS share would have been reduced to $541.4 million and the overall contribution percentage reduced from

35.1$ to 34.7 percent. The resolution of this conundrum will be left to Phase 3, but is undoubtedly attributed

to the various lags embedded in the various data. Another conundrum will be to diagnose why the revenue

sharing percentage seems to 46 percent rather than the 49 percent promised (50 percent of collections minus

a 2 percent administrative fee).

General Fund Revenues: Land Office Income The State land office and the State land commissioner are charged with maximizing the income from land

granted to the State at statehood in 1912. Until the late 1950s, the schools and institutions of higher educa-

tion listed in the Constitution were operated largely on this income, supplemented by amounts collected

through fines and forfeitures. In addition, the schools received a portion of local property taxes and money

from the emergency school tax enacted in 1935. Since 1924, all the royalties paid on oil and gas and other

mineral production are deposited in the LGPF. The LGPF generates interest income which is booked as general

fund revenue, as previously discussed. However, the SLO also has a land maintenance fund, that is funded

from grazing fees, leases not in the nature of royalties, interest, and, probably most importantly, bonus pay-

ments from oil and gas producers who bid on the right to drill and extract oil and natural gas from state lands.

SLO operations are self funded from the revenues collected in the land maintenance fund. Any excess over the

SLO budget in the land maintenance fund is distributed to the schools and Constitutional institutions. The por-

tion transferred to the public schools is booked as general fund revenue. Data are available on the SLO web-

site as annual reports and historical data is available at the SLO offices in Santa Fe. In addition, an extensive

history of the bonus payments made for the right to produce oil and gas is available on the SLO website. For

FY2014, SLO revenue paid by the oil and gas producers was $32,905,233 of a total of $47,480,532 transferred

to the general fund.

Proportion of the General Fund Attributable to Oil and Gas Production When presented by DFA, the proportion of the general fund attributable to oil and natural gas production is ob-

tai ed su i g the e eipts f o e e ge s hool ta , o se atio ta , atu al gas p o esso ’s ta , “tate Land Office income and federal mineral leasing (FML). For FY2014, this calculation leads to the conclusion that oil

and gas production in the state contributes 19.2 percent of general fund revenues. This calculation overstates

the percentage contribution on this basis because less than 100 percent of FML and SLO income is derived from

oil and gas. In addition, a small amount of conservation tax is contributed by coal producers.

Portion of the General Fund Attributable to Current

and Historical Oil and Gas Production

General Fund Revenue OGAS Portion OGAS %

Gross Receipts $151,478,540 7.6%

Compensating $17,813,247 22.7%

Personal Income Tax $143,222,891 11.4%

Corporate Income $42,014,342 21.4%

Oil & Gas School Tax $500,658,559 100.0%

7% Oil Conservation $27,093,365 99.4%

Natural Gas Processors $16,197,464 100.0%

Land Grant Perm. Fund Income $434,762,144 96.7%

Earnings on State Balances $5,993,445 31.5%


– 23 –

General Fund Revenue OGAS Portion OGAS %

Sev Tax Perm. Fund Income $147,641,424 86.6%

Federal Mineral Leasing $566,854,412 99.5%

Land Office Income $32,905,233 69.3%

Misc. Receipts (Sm.Cities & Counties) $1,228,423 2.7%

Reversions $30,892,258 32.0%

GRAND TOTAL REVENUES $2,118,755,749 35.1%

This project, in comparison, has calculated that the contribution of the oil and gas production industry in New

Mexico is at least 35.1 percent12, or almost twice the contribution as calculated by DFA. As shown in the table

above, this project has validated inclusion of the gross receipts tax economic burden, compensating tax, PIT

withholding and oil and gas withholding on non-residents and a high percentage of interest from the permanent

funds as attributable to oil and gas production. We have also included the reversion from small counties assis-

tance fu d a d the p e ious ea ’s OGA“ sha e of general fund applied to this yea ’s “tate T easu e ’s ala es.

As mentioned previously, this is probably a lower bound on the estimate of contribution of the industry. Oil

and gas producers and suppliers purchase goods and services subject to the gross receipts tax. The purchaser

bears the economic burden of the tax, but not the legal burden in New Mexico. If the full amount of GRT re-

imbursed to suppliers were included, the GRT attribution would probably double from inclusion of just drilling,

production and support services. In similar fashion, royalties and returns to investment in oil and gas produc-

tion are subject to the personal (or corporate) income tax. There is no convenient means of estimating the

amount of oil and gas production source income included in total personal income of resident investors or

royalty holders. See the discussion earlier on plausible estimates of the origin of $110 million in oil and gas

withholding for FY 2014.

An unknown fraction of the corporate income tax is reported by oil and gas producers or suppliers in NAICS

codes that make it difficult to provide an accurate estimate of the contribution of regular oil and gas producer

or supplier corporations to the corporate income tax total. The $44 million estimated for FY 2014 in this pro-

ject is then a probably lower bound.

OGAS impact on the State general fund has been shown in this project to average about 32% of all general

fund revenues for the FY 07 through FY 14 period. For FY 2014, in order of magnitude, the contributions are:

Revenue Amount

($ millions)

FY 2014

Rank

Federal mineral leasing $567 1

Emergency school tax $500 2

LGPF earnings $435 3

Gross receipts tax $151 4

STPF earnings $148 5

Personal income tax $143 6

12

Note the provisio discussed on page 21 of this report, where the OGAS portion of federal mineral leasing revenue sharing may be

$25 million less than reported here.


– 24 –

Allocation of OGAS General Fund Impact to the Producing Counties The legislators and oil and gas industry leaders who wished to know the true contribution of the OGAS indus-

try to the State general fund also wanted the citizens and leaders in communities both within and outside the

oil pat h ou ties of “a Jua , “a do al, Rio Arriba, Lea, Eddy and Roosevelt Counties to gain an apprecia-

tio that thei o u it as i the oil id ess.

In keeping with this desire, we determined that it was possible to roughly allocate the $2.1 billion in OGAS

share of the general fund to the counties. That is, how much of the $2.1 impact could be assigned to each

producing county? Because of the complexity of the LGPF earnings contribution model, we were somewhat

dubious whether we could allocated royalty payments over time to the counties. From Dr. Ron Broadhead at

NMIMT, we obtained hard copy reports of county volume, value and total royalties (state plus federal) by

county for the period of 1962 through 1978. Of course, ONGARD reports in very fine detail are available from

March 1995 through current date. From the LGPF model, we have total royalty payments by fiscal year. The

issue, then, is not what the absolute contribution to the corpus of the LGPF may be, but the relative contribu-

tion by county. With sufficient accuracy, we developed the following allocation of LGPF interest to the various

producing counties. Only four counties – Eddy, Lea, Rio Arriba and San Juan account for 99% of the corpus of

the LGPF.

County

End Value of LGPF at-

tributable to OGAS roy-

alties paid by County

% of LGPF Interest attributable

to OGAS royalty payments in

each county

Chaves $15,962,015 0.12%

Cibola $0 0.00%

Colfax $0 0.00%

Eddy $4,063,358,476 29.49%

Guadalupe $0 0.00%

Harding $63,354,777 0.46%

Lea $7,919,044,537 57.47%

McKinley $7,092,672 0.05%

Mora $280 0.00%

Quay $4,473,991 0.03%

Rio Arriba $521,838,757 3.79%

Roosevelt $25,886,611 0.19%

Sandoval $23,574,019 0.17%

San Juan $1,135,658,845 8.24%

Union $0 0.00%

$13,780,244,991

Eddy, Lea, Rio Arriba and San Juan share of total 98.98%

The production taxes (emergency school tax, natural gas processors tax and conservation tax) could be easily

allocated to the counties for FY 2014. The gross receipts tax could be allocated to counties. STPF interest could

be allocated based on the production values from ONGARD (1995 to 2014). PIT and CIT were allocated to the

counties based on the gross receipts tax allocation.


– 25 –

While the details of this calculation will be reported on a county-by-county basis in the companion county re-

ports, four counties and out-of-state f o the g oss e eipts ta allo atio a ou ted fo al ost % of the $2.1 billion OGAS impact.

OGAS

Portion

Eddy

County

Lea

County

Rio Arriba

County

San Juan

County

Out-of-

State

Gross Receipts $151.5 39.324 66.767 0.909 6.818 29.602

Compensating $17.8 4.624 7.852 0.107 0.802 3.481

Personal Income Tax $143.2 37.181 63.128 0.859 6.447 27.989

Corporate Income $42.0 10.907 18.519 0.252 1.891 8.210

Oil & Gas School Tax $500.7 202.92 172.97 44.04 62.14

7% Oil Conservation $27.1 11.47 9.95 1.97 2.72

Natural Gas Processors $16.2 $4.32 $2.88 $3.49 $4.91

Land Grant Perm. Fund Income $434.8 128.198 249.843 16.464

Earnings on State Balances $6.0

Sev Tax Perm. Fund Income $147.6 $54.45 $50.18 $15.63 $21.22

Federal Mineral Leasing $566.9 139.22 56.99 158.32 205.45

Land Office Income $32.9 12.26 18.19

1.05

Misc. Receipts $1.2

Reversions $30.9

GRAND TOTAL REVENUES $2,118.8 644.866 717.278 242.036 313.454 69.282

30.4% 33.9% 11.4% 14.8% 3.3%

Severance Tax and Royalties – Contributions to the STBF, STPF and LGPF attributable to Oil

and Gas Production In addition to the payment of emergency school tax and the conservation tax (both fully or partially general

fund sources), OGAS producers make other payments to State funds, including the severance tax bonding fund

(STBF), the severance tax permanent fund (STPF) and the land grant permanent fund (LGPF). We have exten-

sively discussed these payments that are included in the models for interest transfers to the State general

fund. The State land office is charged with managing almost 8,000,000 acres of State lands for the benefit of

the common school fund and the other revenue beneficiaries. Both revenue streams of interest to the general

fund have been discussed previously: general fund – LGPF Interest and general fund – SLO income. In FY 2014,

OGAS producers paid a total of $726.4 million in royalties for production on State lands.13 All of this, plus an

additional $15.5 million in hard mineral royalties were deposited as contributions to the LGPF.

We have also discussed the STBF and the STPF in previous sections of this report. There are two forms of sev-

erance ta . The “e e a e Ta is i posed at a ious ates o the production (severing) of hard minerals. The

Oil a d Gas “e e a e Ta is i posed o the p odu tio se e i g of ude oil, atu al gas, a o dio ide or helium from the ground. The basic rate of the oil and gas severance tax is 3.75 percent of wellhead value.

Since both oil and gas are priced at some distance from the wellhead, the taxable value is usually the sales

price at the remote market point, less transportation costs, processing costs and federal, state or Indian royal-

13

Note: this is the amount reported by SLO. From ONGARD, the reported royalties for FY 2013 and FY 2014 do not reconcile. This

difference will be diagnosed and reconciled in the next phase of this study.


– 26 –

ties. There is no royalty deduction for production on private lands. These severance taxes are collected by TRD

and transferred monthly to the severance tax bonding fund. From its creation in 1973, funds in the STBF were

used to amortize bonds, called severance tax bonds (STBs). The proceeds of the bonds were used for various

state and local capital projects. Over the years, the state has used the money deposited in the STBF to make

principal and interest payments on senior bonds, which have a two-for-one coverage ratio. In the wake of the

Zuni school capital lawsuit, the state began using a portion of the othe half of the o e deposited in the

STBF to purchase supplemental bonds, which are allocated by the public school capital outlay council (PSCOC)

to fairly allocate school construction grants around the State. In some years, the legislature and the governor

determine that it is appropriate to use up any unneeded funds in the STBF and make no transfer to the sever-

ance tax permanent fund. These short-term (frequently 24 hours in duration) bonds are called, in the vernacu-

la , spo ge o ds . I ea s past, e ha e sold egula spo ge o ds a d supple e tal spo ge o ds14.

Severance Tax Bonding Fund Receipts, Disbursements and Transfers

Fiscal Year ending June 30 --$ in thousands

2010 2011 2012 2013 2014 est

Beginning Balance 172,318 130,346 161,190 254,810 142,806

Oil & Gas Severance Tax 325,761 350,718 449,283 400,959 518,371

Other Minerals Severance Taxes 24,362 16,009 13,548 13,416 12,297

Total Severance Tax Receipts 350,123 366,727 462,831 414,375 530,668

Other income: 24,111 28,925 17,072 9,549 10,550

Total Bonding Fund Receipts 374,234 395,652 479,903 423,923 541,218

Disbursements:

Senior Bond Debt Service 96,290 103,867 121,367 127,951 246,999

Senior Short-term Funding Notes 178,594 27,273 76,220 111,999 90,545

Supplemental Bond Debt Service 15,452 19,212 29,300 21,483 28,084

Supplemental Short-term Funding Notes 97,001 206,130 148,745 167,832 175,161

Fiscal charges 1,396 4,838 3,034 2,774 (1,331)

Total Disbursements 388,734 361,320 378,665 432,039 539,458

Transfers:

To Severance Tax Permanent Fund 27,472 3,488 7,617 103,888 124,996

Ending Balance 130,346 161,190 254,810 142,806 124,995

OGAS % of total contributions 93.0% 95.6% 97.1% 96.8% 97.7%

Judging by the table, the State has become quite aggressive in the utilization of the STBF stream. On net, we

are transferring more money to the general fund as STPF interest than we are earning. Thus, we are eating

our seed corn. In FY 2014, OGAS producers paid $518,371,000 in Oil and Gas Severance Taxes to the STBF.

Mineral producers paid $12,297,000 in Severance Taxes to the STBF. These funds were partially consumed –

through two semi-annual payments to amortize previously issued regular or supplemental bonds or were

spo ged. The e as a FY 2014 transfer to the STPF of $124,996,000.

General Fund and Severance Tax Bonds – State and Local Capital Outlay Although severance ta o ds a e f e ue tl efe ed to as PORK, “TBs a d o asio all di e t app op ia-

tions of general fund surpluses) are important sources of funding for state and local capital projects. STBs

14

Apparently, when sponge bonds are sold, the proceeds are divided approximately 40% to listed capital projects and 60% to the

PSCOC. However, this ratio has varied substantially over the years.


– 27 –

build schools, roads, buildings, support senior centers and water projects and build infrastructure in the colo-

nias and in Indian country. Over the years, several billion dollars in projects have been funded – either fully or

partially by STBs. In FY 2007 and FY 2008, there was an oil and gas driven surplus in the general fund. The fol-

lowing table details over a billion dollars in capital outlay funds allocated during the 2007 and 2008 legislative

sessions.

GRAND TOTAL ($1,000)

2007 CAPITAL OUTLAY PROJECTS BY COUNTY Projects Amount

Summary for county (including reauthorizations) 3,050 $721,609

General Fund 2,887 $488,382

STBs 156 $211,999

Other 7 $19,178

Reauthorizations 377 $0

Amount Attributable to Oil and Gas (STBs and GF) $527,563


Summary for county 1,777 $341,187


STBs 340 $215,491

Other Funds 3 $2,700

Amount Attributable to Oil and Gas (STBs and GF) 0 $241,615

Vetoes 187 $7,033 For these years, the proportion of the general fund contributed by OGAS was assumed to be 30 percent (a low

estimate) and of severance taxes, 95 percent (also a low estimate). For these two years, the total amount of

capital outlay funds allocated was about $769 million of a total allocated of about $1,060 million. In the fall of

, oil a d atu al gas p i es ta ked – falling from almost $132 per barrel and $12.60 per Mcf for gas in

July 2008 to $32.36 for oil in February 2009 and $3.46 for natural gas in April 2009. Since severance taxes are

calculated as a percentage of value, plummeting prices also meant declining collections for severance taxes.

The legislature authorized a very modest $139 million in STBs during the 2009 legislative session. The follow-

ing table details the extraordinary actions taken by the State legislature and Governor to fix the problem.


2009 CAPITAL OUTLAY PROJECTS Projects Amount Summary for State 143 $139,960

STBs 143 $139,960 Amount Attributable to Oil and Gas (STBs and GF)

$132,962

2009 SS CAPITAL OUTLAY SWAPS AND VOIDS Projects Amount Voids and reversions 236 $185,971 Voided GF funding swapped for STB funding 240 $144,697 New Project Added 1 $1,500 PSCO Funding Omitted 1 $31,600 Net Amount Attributable to Oil and Gas (STBs and GF) $81,671 Vetoes 45 $12,902

2010 2ND SS CAPITAL OUTLAY PROJECTS AND REAUTHS Projects Amount Summary for county 49 $42,150 STB funding 23 $41,800 Other Funding 1 $350 Reauthorizations 25 Amount Attributable to Oil and Gas – STBs $38,760


– 28 –

2010 SS CAPITAL OUTLAY SWAPS AND VOIDS Projects Amount

Voids and reversions 2,516 $177,457


STB 490 $54,346

Vetoes 74 $44,783

Voided GF funding swapped for STB funding 0 $5,679

STB 29 $5,679

Net Attributable to Oil and Gas Production -$83,167

Attributable to Oil and Gas Production Voids -$88,562

Attributable to Oil and Gas Production Swaps $5,395


Summary Reauthorizations by county 123

No new STBs were authorized

By 2012, oil and gas prices had somewhat recovered, although not to the levels of 2008. Beginning in 2008,

however, producers and support companies began investing in horizontal drilling rigs and learning how to

f a k. Oil olu es have now recovered to levels not seen since the early 1970s.15 There has been a corre-

sponding recovery of severance taxes and the bonding program these bonds support, although not to the levels

previously seen. This is at least in part due to fact that the water trust fund receives 10 percent of senior STB

capacity16, while the Tribal infrastructure trust fund receives 5 percent of the senior STB capacity each year.17


2012 CAPITAL OUTLAY PROJECTS Projects Amount

Summary for county 484 $137,318

STBs 280 $107,514



Amount Attributable to Oil and Gas Production

$102,138

Vetoes 194 $22,906

2013 CAPITAL OUTLAY PROJECTS Projects Amount

15

Of some slight interest, NMIMT provided data from the old Oil and Gas Accounting Commission that indicated that the peak of oil

production in New Mexico was 1969 (Calendar year), when producers extracted and sold 128 million barrels. In FY 2013, in compari-

son, producers extracted and sold 98 million barrels. The low point in crude oil production was FY 2007, when producers extracted

and sold 56,737,000 barrels. 16

http://uttoncenter.unm.edu/pdfs/water-matters-2014/28-water-trust-board.pdf for more information on the Water Cabinet and

the Water Trust Fund. 17

From http://www.iad.state.nm.us/docs/funding/FY2014%20TIF%20NOFA%20101513.pdf. TRIBAL INFRA“TRUCTURE ACT: The

T i al I f ast u tu e A t, sig ed i to la i , e og izes that a of Ne Me i o’s t i al o u ities la k asi t i al infra-

structure, including but not limited to water and wastewater systems, roads, and electrical power lines, and that the lack of such

infrastructure results in poor social, health, and economic conditions in such communities. The Act created the Tribal Infrastructure

Trust Fund and the Tribal Infrastructure Project Fund and also created a thirteen-person Tribal Infrastructure Board. The purpose of

the Board is to evaluate project proposals and to award grants and loans to qualified projects from money available in the Tribal

Infrastructure Project Fund. –- Pursuant to 7-27-10.1.NMSA 1978 (BONDING CAPACITY--AUTHORIZATION FOR SEVERANCE TAX

BONDS--PRIORITY FOR WATER PROJECTS AND TRIBAL INFRASTRUCTURE PROJECTS). Laws of 2010, Chapter 37, the board of finance

shall allocate five percent (5%) of the estimated senior severance tax bonding capacity each year for tribal infrastructure projects,

and the state board of finance will issue severance tax bonds in the annually allocated amount for use by the Tribal Infrastructure

Boa d to fu d ualified t i al i f ast u tu e p oje ts.

http://uttoncenter.unm.edu/pdfs/water-matters-2014/28-water-trust-board.pdf

http://www.iad.state.nm.us/docs/funding/FY2014%20TIF%20NOFA%20101513.pdf


– 29 –


STBs 769 $218,132


Amount Attributable to Oil and Gas Production 0 $207,225

Vetoes 72 $4,402



STBs 823 $182,237


Water Trust Fund Projects 24 $33,048

Colonias Projects 37 $16,640

Amount Attributable to Oil and Gas Production

$222,699

Vetoes 62 $2,584

The lists above do not include funds allocated to the public school capital outlay council for school building,

renovation and repair around the state. These amounts are more difficult to allocate to the counties and this

level of detail is deferred until phase 3 of this study.

Despite the tumult in the U.S. economy from 2007, with an oil boom and ust, the a ki g isis, the g eat recession and a slow, nearly jobless recovery, oil and gas production has sustained the state. This can be

clearly seen in the capital outlay table above. For the period from FY07 through FY14, the legislature and Gov-

ernor provided a total of $1,727,494,000 in capital outlay, for an average of $240 million per year. Of that total

investment in capital projects, the oil and gas production industry in New Mexico, through oil and gas sever-

ance taxes, emergency school tax and conservation tax payments, as well as the other payments made by the

industry to contribute to the general fund provided $1,471,466 or over $200 million per year.

For the 2014 fiscal year, a total of $278,400,000 in capital projects were approved, of which $222,699,000 was

attributed to severance taxes paid by the OGAS industry. These include projects funded through the water

trust fund and colonias projects fund, but do not include any projects funded by the tribal infrastructure trust

Fund. 95 percent of these latter amounts were attributed to oil and gas.

Allocation of 35.1 Percent of Public School Funding Formula to the Counties This study has estimated a lower bound on the contribution of OGAS to the State general fund of an average

of 32 percent for the period FY 2007 through FY 2014 and an FY 2014 share of 35.1 percent. By inference, that

means that all of the activities and funding of the State that receive general fund support can be considered to

be funded to that extent by oil and gas production in the State. It has often been said that if you live in New

Mexico, you are implicitly in the oil business. Thus, OGA“ a take edit fo .1 percent of the FY 2014

State equalization guarantee (SEG) that pays for K-12 public school education. OGAS can take credit for 35.1

percent of the FY 2014 higher education funding, 35.1 percent of the 28 percent of Medicaid paid by the gen-

eral fund, 35.1 percent of State police and public safety, 35.1 percent of general government and 35.1 percent

of the activities of the economic development department, tourism department, department of cultural af-

fairs and the department of health. In dollar terms, OGAS can reasonably take credit in FY 2014 for over $2.1

billion dollars in general fund appropriations.


– 30 –

Some of this general fund spending directly affects activities at the county level. Probably the most important

appropriations are those that keep the public schools and charter schools operating. Total SEG and other state

e e ues fo the “tate’s pu li s hools fo FY was $$2,355,691,514, with $$826,847,800 attributed

through the 35.1 percent to OGAS. With ease, these amounts can be assigned to the 89 school districts. With a

little creativity and blind luck, these amounts can be aggregated from the school districts to the counties. For

about half the districts, all of the land area and all of the students are completely within one county. For the

other half of the districts, a rough assignment of school districts to counties can be done by determining rela-

tive land area. The two maps on the following page were used to do this. There is an alternative procedure

that could have been used. That would have been to obtain data from DFA/LGD on residential property tax

valuation by school district. Each school district in the state makes separate decisions regarding operating and

debt levies. The rate sheets can be easily manipulated so that allocation of districts to counties could be done

on the basis of relative valuations of split districts into the various counties. This confirming procedure will be

adopted for the next phase. Unfortunately, the value of property may be inversely correlated with the location

of students. And adjacent counties may have quite different sales-assessment ratios. For this phase, then, the

disadvantages of the proposed property tax valuation method far exceeded the simplicity and relative accura-

cy of the relative land area method. And, in truth, the accurate determination of overall support of OGAS of

the statewide education establishment is the more important determination.

State Source Education Expenditures:

Amounts Attributed to OGAS

Total State Sources Attributed to OGAS

State Charter Schools $95,212,014 $33,419,300

District Charter Schools $70,126,094 $24,614,400

Districts $2,190,353,406 $768,814,100

Total Public Schools $2,355,691,514 $826,847,800 35.1%

Note: Revenue from State Sources includes the following:

State Equalization Guarantee

Emergency – Supplemental

Charter School Administrative Revenue

State Flow-through Grants

PED Tuition for Students Attending out of State

Indirect Costs (State Flow-through Grants)

Indirect Costs (State Direct Grants)

Inter-Governmental Contract Revenue/REC

Inter-Governmental Contract Revenue

Fees - Governmental Agencies


– 31 –

A word or two concerning public finance in this area may be useful. At statehood, public schools, universities,

higher education institutions, a reformatory, an insane asylum, Rio Grande improvements, the blind school

and the deaf school were granted federal lands. The State Land Commissioner has and will administer this land

on behalf of the beneficiaries. In addition to current income from grazing fees and the like, bonus payments,

business leases there is the interest income from the Land Grant Permanent Fund. Fines and forfeitures also

are allocated to the Co o “ hool Fu d. I the ea l ’s, p ope t ta es a d i o e f o the la d g a ts were not sufficient to keep the schools operating. By 1936, after a series of missteps18, the State enacted an

emergency school tax odeled afte Mississippi’s sales tax.19 The sales tax had been modeled after gen-

eral excise taxes that had been used in Europe since the middle ages. The proceeds of the new emergency

school tax kept the schools open. By 1958, the entire state level of school support was rolled into the general

fund. Yes, the State land office continued to generate income for the schools and other institutions, but more

support was needed. The emergency school tax (imposed at the time on both oil and gas production, hard

mineral production, construction and all other goods and services) became a general fund source and no long-

er earmarked for education. In the late 1960s, the emergency school tax on goods and services became the

g oss e eipts a d o pe sati g ta a t. B , Big Ma got the state out of property tax for operating

osts a d assig ed the state’s po tio of the ill o stitutio al li it o p ope t ta es fo ope ati g to the counties, cities and school districts – 11.85 mills for the Counties, 7.65 mills for the municipalities and .5 mills

for the schools. In addition, the State, the Counties, the municipalities, the schools and a number of special

districts could impose debt with approval of the voters. Throughout these successive changes in the nature of

public school financing, the State land office continued to manage state lands on behalf of the beneficiaries

and distribute income and interest to the schools and other Constitutional institutions. However, in 2013, the

SEG totaled $2,267 billion, while SLO income and LGPF interest plus fines and forfeitures and federal mineral

leasing totaled was $951 million, or 42 percent of need.

18

Ne Mexico’s Sales Taxation of Ser ices – A Plausible Ontogeny. New Mexico Taxation and Revenue Department, (1996) tells the

story of how New Mexico expanded the new sales tax idea to taxing services and construction, as well as goods. Often, when asked

how other states could add services to their sales tax bases, the author answers – go back and ask for a do-over in the 1930s. 19

http://bobmannblog.com/2013/04/15/a-thrilling-mississippi-sales-tax-saga/ provides a lively account of the factors leading up to

Mississippi’s fo a i to eg essi e sales taxation.

http://bobmannblog.com/2013/04/15/a-thrilling-mississippi-sales-tax-saga/


– 32 –

Public School Finance

Perm. Fund Income * $449.4

Land Office Income * $47.5

Federal Mineral Leasing * $569.9

Fines & Forfeitures * $11.5

Total Dedicated School Funding $1,078.3

FY 2014 SEG and other state funding $2,355.7

Portion of the SEG contributed by dedicated sources 46%

The detailed allocations of the SEG to counties are reported in the companion county allocation portion of this

report.

Allocation of PSCOC funding and Ad Valorem Production and Production Equipment Taxes to

the Counties If the oil and gas producers can plausibly take credit for 1/3rd of the funds provided for operating the schools,

a subsequent question can then be posed: hat po tio of the total osts of uildi g, e o ati g a d epair-

i g ou s hools is p o ided oil a d gas p odu e s?

Schools are funded through the following mechanisms:20

1) School districts may impose up to 10 mills ($10 per $1,000 of taxable value, which is $3.33 per $1,000

of assessed value) under the authority of Article IX Section 11 of the New Mexico Constitution, where

school district debt is limited to 6 percent of assessed value. Note that the 6% limit is total school debt

outstanding, while $10 per $1,000 of taxable value is an annual debt service amount. This debt must be

initially and periodically authorized by the voters.

2) School districts may, with the approval of a majority of those voting in school bond elections, impose

debt under the authority of the Public School Capital Improvements Act,. commonly referred to as SB-9

o the t o-mill levy. This funding mechanism allows districts to ask local voters to approve a proper-

ty levy of up to two mills for a maximum of six years.

3) School districts may, with the approval of a majority of those voting in school bond elections, impose

debt under the authority of the Public School Buildings Act. This act, commonly referred to as HB-33,

allows districts to impose a tax not to exceed 10-mills for a maximum of six years on the net taxable

value of property upon approval of qualified voters. The voters of Albuquerque public schools have im-

posed a 3.84 mill levy, which is the largest levy in the state. This authority has not been heavily used.

4) Since 2007, when the Zuni v. Department of Education was decide, school districts may apply to the

Public School Capital Outlay Council for capital funding supported by the annual sale of supplemental

severance tax bonds. For the most part, the Public School Capital Outlay Act funding is based on the

annual sale of short-te , o spo ge o ds. The “tate Boa d of Fi a e is statuto il li ited to issu-

ing bonds which can be sold or serviced by up to 95% of severance tax revenue stream. Only in 2010

did the state board of finance sell long-term supplemental severance tax bonds -- $100 million in par

value. In every other year, SBoF determines a prudent amount of sponge bonds to be issued and splits

20

http://www.ped.state.nm.us/div/fin/school.budget/dl09/How%20NM%20schools%20are%20fundedFY0209.pdf


– 33 –

the amount realized 60% to regular severance tax bond projects and 40% to the PSCOC based on a

combination of need and resources.

5) In the annual authorization of severance tax bonds (STBs), legislators frequently allocate relatively

modest sums of money to school projects that are not eligible for PSCOC allocated funds. Typical pro-

jects funded through STBs would be information technology, security and playground equipment.21

6) A relatively recent mechanism for financing public school projects is the Public School Lease Purchase

Act. We do not consider this here because these leases are generally negotiated outside of the proper-

ty tax system.

Oil and gas producers contribute to this complex funding stream in two ways: through oil and gas severance

tax payments and through direct payments of ad valorem production and ad valorem production equipment

taxes. Using the property tax rate sheets available from the local government division of the department of

finance and administration, we were able to calculate, on a school district-by-school district basis, the amount

of property tax obligations (taxable value times imposed rates) attributable to the three property tax rates

(Local GO bonds, 2-mill levy and HB-33) and the amounts of these obligations established for payments by the

oil and gas producers. The following table exhibits these calculations.

School Debt Service Revenues

Total Residential

Non-

Residential Total OGAS

Supplemental

STBs Ad Val Prod

Ad Val Prod

Equip

All School Districts

TY 2012 $613,496,002 $261,097,964 $134,562,037 $217,836,001 $172,833,000 $37,525,842 $7,477,159

TY 2013 $646,173,139 $275,437,012 $141,480,555 $229,255,572 $183,185,000 $38,453,876 $7,616,696

TY 2014 $674,651,743 $276,102,033 $145,933,365 $252,616,345 $198,535,000 $45,078,322 $9,003,023

3-Year Total $1,934,320,884 $812,637,009 $421,975,957 $699,707,918 $554,553,000 $121,058,040 $24,096,879

100.0% 42.0% 21.8% 36.2%

Thus, the a s e to the uestio , hat p opo tio of the total ost of building, renovating and maintaining

ou s hool uildi gs a e plausi l lai ed the oil a d gas p odu e s, is so ethi g o e / rd of the

osts.

Allocation of 35.1 Percent of Higher Ed Formula to the Constitutional Institutions by County In the same way that the OGAS industry can reasonably take credit for 35.1 percent of the SEG, it can also take

credit for the money that goes to the universities and named Constitutional institutions. The FY2014 total is

over $755.9 million, of which OGAS contributed 35.1 percent or $265 million. In addition to OGAS support of

the institutions, OGAS also supports the budget of the New Mexico higher education department. Note in the

follo i g ta le that N“A ea s ot sepa atel app op iated.

21

In FY 2014, the legislature authorized about $30 million in projects through the PSCOC -- $7,038,365 for one project at the New

Mexico school for the deaf in Santa Fe, $8,255,419 for three projects at the New Mexico school for the blind and visually impaired in

Alamogordo and almost $15 million for pre-kindergarten classrooms, school bus replacements and educational technology comput-

er-based assessments appropriated to the public education department.


– 34 –

FY 2014 HIGHER ED

FUNDING

Higher Ed Funding

Attrib. to OGAS

UNIVERSITY OF NEW MEXICO $296,686.2 $104,136.9

Albuquerque Main Campus $188,090.3 $66,019.7

Albuquerque UNMH $88,956.7 $31,223.8

Gallup Branch $9,061.3 $3,180.5

Los Alamos Branch $1,861.9 $653.5

Valencia Branch $5,316.5 $1,866.1

Taos Branch $3,399.5 $1,193.2

NEW MEXICO STATE UNIVERSITY $194,153.3 $68,147.8

Las Cruces -- Main Campus $156,759.4 $55,022.5

Alamogordo Branch $7,586.7 $2,662.9

Carlsbad Branch $4,393.7 $1,542.2

Dona Ana Branch $21,868.2 $7,675.7

Grants Branch $3,545.3 $1,244.4

NEW MEXICO HIGHLANDS UNIVERSITY $29,860.3 $10,481.0

Las Vegas Main Campus $29,860.3 $10,481.0

Rio Rancho Campus NSA

WESTERN NEW MEXICO UNIVERSITY $18,968.5 $6,657.9

Silver City - Main Campus $18,968.5 $6,657.9

EASTERN NEW MEXICO UNIVERSITY $43,825.8 $15,382.9

Hobbs -- Main Campus $30,134.8 $10,577.3

Roswell Branch $11,618.4 $4,078.1

Ruidoso Branch $2,072.6 $727.5

NEW MEXICO INSTITUTE OF MINING & TECHN. $36,435.1 $12,788.7

Socorro $36,435.1 $12,788.7

Lea County satellite NSA

NORTHERN NEW MEXICO COLLEGE $11,154.2 $3,915.1

El Rito Campus $2,000.0 $702.0

Espanola Campus $9,154.2 $3,213.1

SANTA FE COMMUNITY COLLEGE $13,350.0 $4,685.9

Santa Fe Campus $13,350.0 $4,685.9

CENTRAL NM COMMUNITY COLLEGE $51,647.3 $18,128.2

Albuquerque - Main campus & Satelites $51,647.3 $18,128.2

Rio Rancho Campus NSA

LUNA COMMUNITY COLLEGE $8,172.3 $2,868.5

Las Vegas Campus $8,172.3 $2,868.5

Mora Office NSA

Santa Rosa satellite NSA

Springer satellite NSA

MESALANDS COMMUNITY COLLEGE $4,296.7 $1,508.1

Tucumcari $4,296.7 $1,508.1

NEW MEXICO JUNIOR COLLEGE $6,220.5 $2,183.4

Hobbs $6,220.5 $2,183.4

SAN JUAN COLLEGE $24,172.5 $8,484.5

Farmington $24,172.5 $8,484.5

Aztec NSA

Kirtland NSA

CLOVIS COMMUNITY COLLEGE $9,640.6 $3,383.9

Clovis $9,640.6 $3,383.9


– 35 –

FY 2014 HIGHER ED

FUNDING

Higher Ed Funding

Attrib. to OGAS

NEW MEXICO MILITARY INSTITUTE $2,185.0 $766.9

Roswell $2,185.0 $766.9

NM SCHOOL FOR BLIND & VISUALLY IMPAIRED $1,125.5 $395.1

Alamogordo $1,125.5 $395.1

NM SCHOOL FOR THE DEAF $4,016.6 $1,409.8

Santa Fe $4,016.6 $1,409.8

TOTAL -- INSTITUTIONS $755,910.4 $265,324.6

NMHED $34,725.7 $12,188.7

$790,636.1 $277,513.3

FY 2013 Higher Ed

Funding

Higher Ed Funding

Attrib. to OGAS

UNIVERSITY OF NEW MEXICO $284,966

UNM Albuquerque Main Campus $180,996 $57,014

Albuquerque UNMH $85,414 $26,905

UNM Gallup Branch $8,704 $2,742

UNM Los Alamos Branch $1,784 $562

UNM Valencia Branch $5,032 $1,585

UNM Taos Branch $3,037 $957

NEW MEXICO STATE UNIVERSITY $186,431

NMSU Las Cruces – Main Campus $151,715 $47,790

NMSU Alamogordo Branch $7,043 $2,219

NMSU Carlsbad Branch $4,410 $1,389

NMSU Dona Ana Branch $19,827 $6,245

NMSU Grants Branch $3,436 $1,082

NEW MEXICO HIGHLANDS UNIVERSITY $29,160

NMHU Las Vegas Main Campus $29,160 $9,185

NMHU Rio Rancho Campus $0 $0

WESTERN NEW MEXICO UNIVERSITY $17,555

WNMU Silver City - Main Campus $17,555 $5,530

EASTERN NEW MEXICO UNIVERSITY $42,007

ENMU Hobbs – Main Campus $28,521 $8,984

ENMU Roswell Branch $11,428 $3,600

ENMU uidoso Branch $2,059 $648

NEW MEXICO INSTITUTE OF MINING & TECHN $35,246

NMIMT Socorro $35,246 $11,102

NMIMT Lea County satellite $0 $0

NORTHERN NEW MEXICO COLLEGE $10,526

NNMC El Rito Campus $2,000 $630

NNMC Espanola Campus $8,526 $2,686


– 36 –

FY 2013 Higher Ed

Funding

Higher Ed Funding

Attrib. to OGAS

SANTA FE COMMUNITY COLLEGE $12,501

SFCC Santa Fe Campus $12,501 $3,938

CENTRAL NM COMMUNITY COLLEGE $47,750

CNMCC Albuquerque - Main campus & Satel-

lites $47,750 $15,041

CNMCC Rio Rancho Campus

$0

LUNA COMMUNITY COLLEGE $7,762

Luna Community College $7,762 $2,445

MESALANDS COMMUNITY COLLEGE $4,290 $1,351

NEW MEXICO JUNIOR COLLEGE $6,215

New Mexico Junior College $6,215 $1,958

SAN JUAN COLLEGE $23,199 $7,308

CLOVIS COMMUNITY COLLEGE $8,751

Clovis $8,751 $2,757

NEW MEXICO MILITARY INSTITUTE $2,066

NMMI Roswell $2,066 $651

NM SCHOOL FOR BLIND & VISUALLY IMPAIRED $975

NMSBVI Alamogordo $975 $307

NM SCHOOL FOR THE DEAF $3,768

NMSD Santa Fe $3,768 $1,187

$723,168 $227,798

Two small notes a e e ui ed. The “tate’s universities and colleges are permitted to have main campuses,

branch campuses (with the approval of the State Board of Finance and the legislature) and satellites. Main

campuses and branch campuses are explicitly funded in HB-2 each year. However, satellite campuses and op-

erations are not separately budgeted. Therefore, operational funding for the satellites is internally budgeted

within the university or college. The authors of this study do not have access to these operating budget data

which would have been required to allocate the funding to a satellite in a different county. There were several

e a ples of this i ludi g NMHU’s satellite i Rio Ra ho a d Lu a Co u it College’s operations in Mora

and Guadalupe counties.

County Data – General Fund and Severance Tax Bonds Allocated to Counties Every year, after the legislative session, the Legislative Council Service publishes Highlights of the xxxx Session.

These highlight documents become a permanent record of each sessio ’s a tio s. I particular, Table 10 list

the severance tax and general fund capital outlay actions by county. Although it was very messy technically to

convert the .pdf highlights to Excel format, the authors persisted and were able to allocate all of the capital

outlay approvals and appropriations from FY 2007 to FY 2013 by county. The swaps and reversions done in the

2009 and 2010 Special Sessions were particularly troublesome.

The details of these allocations are also included in the companion county Impacts document.


– 37 –

What this Study Accomplished? 1) Applied a consistent methodology and calculated the share of general fund attributable to OGAS taxes,

royalties, fees and indirect economic burdens for the period from FY 2007 to FY 2014.

2) Built a model quantifying the proportion of the LGPF interest attributable to OGAS with accuracy of .5

percent.

3) Built a model quantifying the proportion of the STPF interest attributable to OGAS with accuracy of 1

percent.

4) Included some of the economic burden of the gross receipts tax in the calculation of the share of the

general fund attributable to OGAS.

5) Included oil and gas withholding and direct PIT withholding on certain categories of wages and salaries

for inclusion in determining the proper portion of the general fund to attribute to OGAS.

6) Properly calculated the share of SLO revenues in the general fund attributable to OGAS bonus pay-

ments.

7) Extended the calculation of proportion of the general fund attributable to oil and natural gas produc-

tion (35.1 percent in this study) to allocate public school support to school districts and aggregating the

89 school districts impacts to counties.

8) Extended the calculation of proportion of the general fund attributable to oil and natural gas produc-

tion (35.1 percent in this study) to allocate higher education funding formula to the Constitutional uni-

versities institutions, as well as the community colleges.

9) Allocated capital outlay to the counties at an aggregate level, assuming 95 percent of the contributions

to the STBF are attributable to oil and gas production.

10) Provided a current data point on the importance of oil and gas production to non-OGAS producing

counties through the public school funding formula and the annual capital outlay (severance tax bond

fund) appropriations.

11) Assembled and organized a great deal of old, even antique data, and rendered this data into organized

databases.

What investigations remain for Phases Three and Four? 1) Reconcile the LGPF disclosure documents with ONGARD data.

2) Reconcile the SLO annual reports with other data sources.

3) Improve the STPF interest model by determining the percentage of contributions to the STBF that were

used for bond payments and the percentage transferred to the STPF in the period before disclosure

statements were filed.

4) Work with TRD and DFA to extract net PIT liability when returns show credits from oil and gas with-

holding. In addition, determine if there are any data that would allow calculation of net PIT from em-

ployees of companies within the industry. Finally, is it possible to allocate oil and gas withholding and

PIT withholding to counties?

5) Work with TRD to refine the true total of compensating tax, corporate Income tax, gross receipts tax

and personal income tax withholding to account for the fact that some members of the industry – par-

ticularly in support services do not report using the proper, attributable NAICS code.

6) Work with TRD to allocate PIT withholding and final liability of OGAS employees to Counties.

7) Unravel the mystery of too much money for oil and gas withholding, or at least confirm the speculation

that the bulk of oil and gas withholding is attributed to payments to investors and not to royalties. De-

termine if the entire amount of withholding show up as liabilities.


– 38 –

8) Properly calculate the FML royalty share, including bonus payments, to attribute these federal revenue

shares to OGAS. Determine the non-OGAS royalty payments to close the loop.

9) Consider investigating the gross receipts taxable procurement of the industry through survey under

NMOGA’s auspices. This would provide direct evidence, supplemented by IMPLAN and RIMS II coeffi-

cients, of the amount of economic burden borne by the industry in addition to the burden of gross re-

ceipts tax on oil and gas extraction, oil and gas drilling and oil and gas support services.

10) If such a survey were to be implemented (on a statistically valid sampling basis), we would also like to

survey motor vehicle excise tax amounts, corporate income tax payments and liabilities and details of

the amounts of oil and gas withholding payments remitted.

11) Include Tribal infrastructure grants and projects in the capital outlay by county tables. Consider sepa-

rate tables for Jicarilla and Navajo nations.

12) Add to the county allocations amounts awarded by the public school capital outlay council.

13) Reconcile sales month detail and distribution month summaries with the ONGARD revenue report and

determine why the data are not exactly congruent. Is this because some of the gas plant products are

reported in different counties than the county in which the gas was extracted?

14) Build multi-year tables, similar to Appendix C, detailing all payments and economic burdens incurred

by the industry to all local, tribal, state and federal governments.

15) Complete updating the History of Mineral Taxes document enclosed her as Appendix F.


– 39 –

Appendix A: Sectoral Contributions to State Gross State Product

Contributions to Gross State Product by Industry (In Million Dollars)

Description 2008 2009 2010 2011 2012

Oil and gas extraction 8,423 5,239 5,894 6,736 6,014

Share of State Private GSP 12.9% 8.5% 9.3% 10.1% 8.8%

Share of State Total GSP 10.0% 6.4% 7.0% 7.7% 6.7%

State and local government 10,584 10,840 10,802 10,857 10,983

Real estate (imputed rent) 8,346 9,007 9,538 10,262 10,528

Federal civilian 5,845 6,032 6,310 6,485 6,448

OGAS Extraction & support 8,663 5,385 6,004 6,937 6,221

Health care and social assistance 5,242 5,597 5,743 5,932 6,208

Retail trade 4,943 4,952 4,903 4,926 5,220 Miscellaneous professional, scientific, and technical ser-vices 5,085 5,024 5,091 5,079 5,057

Federal military 2,978 3,116 3,400 3,594 3,705

Construction 4,365 3,858 3,541 3,459 3,517

Wholesale trade 2,871 2,572 2,741 2,753 2,933

Computer and electronic products manufacturing 1,823 2,453 2,650 2,769 2,805

Finance and insurance 2,432 2,485 2,514 2,535 2,690

Accommodation and food services 2,272 2,295 2,290 2,300 2,447

Information 2,118 2,083 2,117 2,133 2,399

Administrative and waste management services 2,366 2,268 2,283 2,405 2,399

Transportation and warehousing 2,180 1,918 2,012 2,299 2,381

Other services, except government 1,937 1,911 1,848 1,824 1,961

Nondurable goods manufacturing 2,087 1,921 1,625 1,660 1,918

Non-OGAS mining & Support 1,532 1,232 1,301 1,545 1,867

Agriculture, forestry, fishing, and hunting 1,240 972 1,495 1,787 1,822

Utilities 1,273 1,374 1,461 1,521 1,266 Rental and leasing services and lessors of intangible assets 972 894 909 1,027 1,009

All other durable goods manufacturing 980 825 850 806 855

Legal services 616 600 581 615 627

Educational services 428 452 469 468 494

Management of companies and enterprises 443 439 456 469 489

Arts, entertainment, and recreation 447 447 448 456 478

Computer systems design and related services 391 404 420 431 462


– 40 –

APPENDIX B: OGAS Volume, Value and Price History

OGAS Volume, Value and Price

Year* Total

Value

Oil

Production

Oil

Value

Oil

Price

Gas

Production

Gas

Value

Gas

Price

CO2

Production

CO2

Value

CO2

Price

($ million) (million bbls) ($ million) ($/bbl) BCF ($ million) ($ / mcf) BCF ($ million) ($ / mcf)

1935 $16.6 20.5 $16.1 $0.78 20.6 $0.5 $0.03

1936 $23.8 27.2 $22.9 $0.84 37.9 $0.9 $0.02

1937 $37.8 38.9 $36.6 $0.94 78.8 $1.2 $0.02

1938 $34.4 35.8 $33.3 $0.93 86.0 $1.1 $0.01

1939 $32.3 37.6 $30.9 $0.82 96.0 $1.4 $0.01

1940 $33.8 39.1 $32.5 $0.83 97.4 $1.3 $0.01

1941 $39.4 39.6 $37.2 $0.94 140.5 $2.2 $0.02

1942 $33.5 31.5 $31.6 $1.00 112.8 $1.9 $0.02

1943 $40.8 38.9 $38.9 $1.00 125.3 $1.9 $0.02

1944 $41.6 39.6 $39.6 $1.00 122.9 $2.0 $0.02

1945 $39.7 37.4 $37.6 $1.01 124.5 $2.1 $0.02

1946 $46.8 36.8 $44.5 $1.21 123.2 $2.3 $0.02

1947 $76.0 40.9 $72.4 $1.77 153.4 $3.6 $0.02

1948 $124.6 48.0 $117.5 $2.45 211.9 $7.0 $0.03

1949 $123.2 47.6 $116.3 $2.44 211.5 $6.9 $0.03

1950 $123.0 47.4 $115.1 $2.43 225.2 $7.9 $0.03

1951 $141.4 52.8 $129.2 $2.45 290.0 $12.2 $0.04

1952 $162.5 58.7 $144.9 $2.47 352.8 $17.6 $0.05

1953 $207.6 70.5 $181.9 $2.58 479.3 $25.7 $0.05

1954 $240.7 75.2 $202.3 $2.69 461.2 $38.3 $0.08

1955 $269.7 82.4 $224.2 $2.72 520.2 $45.5 $0.09

1956 $296.2 88.7 $241.4 $2.72 640.4 $54.8 $0.09

1957 $354.5 95.0 $289.7 $3.05 678.1 $64.7 $0.10

1958 $358.3 98.5 $291.6 $2.96 714.7 $66.7 $0.09

1959 $378.5 104.8 $299.6 $2.86 716.9 $78.9 $0.11

1960 $394.3 107.4 $307.1 $2.86 792.5 $87.2 $0.11

1961 $406.4 112.4 $321.6 $2.86 757.1 $84.9 $0.11

1962 $400.0 109.2 $312.3 $2.86 764.8 $87.7 $0.11

1963 $408.2 109.9 $318.8 $2.90 763.3 $89.4 $0.12

1964 $439.1 113.9 $330.2 $2.90 889.4 $108.9 $0.12

1965 $458.3 119.1 $345.5 $2.90 901.5 $112.8 $0.13

1966 $495.8 124.2 $366.3 $2.95 1,013.9 $129.5 $0.13

1967 $511.1 126.1 $372.1 $2.95 1,050.4 $139.0 $0.13

1968 $534.6 128.6 $381.8 $2.97 1,138.2 $152.8 $0.13

1969 $555.4 129.2 $401.9 $3.11 1,117.9 $153.5 $0.14

1970 $574.6 128.2 $410.2 $3.20 1,131.6 $164.4 $0.15

1971 $577.0 118.4 $402.6 $3.40 1,142.7 $174.4 $0.15

1972 $606.3 110.5 $381.3 $3.45 1,194.4 $225.0 $0.19

1973 $699.7 101.0 $414.0 $4.10 1,192.3 $285.7 $0.24

1974 $1,106.1 98.7 $712.6 $7.22 1,229.7 $393.5 $0.32

1975 $1,289.7 94.4 $788.3 $0.00 1,202.0 $501.3 $0.42

1976 $1,479.1 91.1 $805.2 $0.00 1,198.6 $673.9 $0.56

1977 $1,793.3 87.1 $802.0 $0.00 1,185.9 $991.3 $0.84

1978 $1,975.0 83.3 $834.4 $0.00 1,132.3 $1,140.7 $1.01

1979 $2,158.6 81.5 $847.5 $0.00 1,141.0 $1,311.1 $1.15

1980 $3,210.2 79.6 $1,400.0 $0.00 1,158.0 $1,810.2 $1.56

1981 $4,312.0 74.8 $2,123.8 $0.00 1,118.0 $2,188.2 $1.96

1982 $4,985.6 71.3 $2,417.7 $0.00 1,105.4 $2,567.9 $2.32

1983 $4,627.3 72.4 $2,220.2 $0.00 903.0 $2,407.1 $2.67

1984 $4,639.1 76.3 $2,215.2 $0.00 874.1 $2,424.0 $2.77

1985 $4,821.4 79.7 $2,239.9 $0.00 941.2 $2,581.5 $2.74

1986 $3,962.0 79.3 $1,909.5 $0.00 811.0 $2,052.4 $2.53

1987 $2,203.5 73.9 $1,043.9 $0.00 677.9 $1,159.6 $1.71

1988 $2,726.4 73.2 $1,256.5 $0.00 828.0 $1,470.0 $1.78

1989 $2,330.0 70.9 $1,074.0 $0.00 761.6 $1,256.0 $1.65


– 41 –

OGAS Volume, Value and Price

Year* Total

Value

Oil

Production

Oil

Value

Oil

Price

Gas

Production

Gas

Value

Gas

Price

CO2

Production

CO2

Value

CO2

Price

($ million) (million bbls) ($ million) ($/bbl) BCF ($ million) ($ / mcf) BCF ($ million) ($ / mcf)

1990 $2,709.0 68.7 $1,257.9 $0.00 873.8 $1,451.1 $1.66

1991 $3,176.4 69.8 $1,567.1 $0.00 990.8 $1,609.3 $1.62

1992 $2,793.3 71.9 $1,334.3 $0.00 1,073.6 $1,459.0 $1.36

1993 $3,783.7 71.4 $1,328.9 $0.00 1,371.4 $2,454.8 $1.79

1994 $3,786.0 71.6 $1,039.1 $0.00 1,506.5 $2,746.8 $1.82

1995 $2,825.0 65.1 $1,166.6 $17.91 1,219.5 $1,658.0 $1.36 29.8 $9.4 $0.32

1996 $3,496.3 81.4 $1,308.1 $16.08 1,544.6 $2,187.8 $1.42 75.9 $25.9 $0.34

1997 $5,067.0 72.1 $1,600.9 $22.21 1,605.9 $3,465.7 $2.16 72.9 $26.7 $0.37

1998 $4,552.6 70.2 $1,175.1 $16.75 1,633.2 $3,377.2 $2.07 71.5 $26.0 $0.36

1999 $3,675.5 67.0 $871.5 $13.02 1,537.4 $2,803.5 $1.82 60.0 $27.0 $0.45

2000 $6,214.4 70.6 $1,716.6 $24.31 1,639.7 $4,497.5 $2.74 55.2 $22.7 $0.41

2001 $10,317.6 71.3 $2,008.2 $28.17 1,660.9 $8,308.5 $5.00 59.1 $60.2 $1.02

2002 $5,586.9 65.7 $1,536.7 $23.37 1,615.8 $4,049.6 $2.51 55.0 $36.5 $0.66

2003 $8,065.6 72.4 $1,956.9 $27.04 1,559.8 $6,108.1 $3.92 47.7 $30.2 $0.63

2004 $9,625.3 64.0 $2,139.4 $33.44 1,585.5 $7,485.3 $4.72 62.4 $31.4 $0.50

2005 $11,889.3 65.1 $2,843.1 $43.66 1,562.5 $9,045.4 $5.79 55.0 $40.8 $0.74

2006 $15,050.1 60.3 $3,623.4 $60.09 1,518.7 $11,426.0 $7.52 53.5 $34.8 $0.65

2007 $13,440.8 56.7 $3,501.1 $61.70 1,514.8 $9,938.9 $6.56 51.5 $43.8 $0.85

2008 $17,633.4 61.9 $5,625.8 $90.85 1,459.1 $12,006.1 $8.23 50.4 $70.0 $1.39

2009 $12,104.7 63.0 $4,121.3 $65.43 1,378.9 $7,982.4 $5.79 49.3 $51.3 $1.04

2010 $11,156.4 62.5 $4,471.0 $71.51 1,291.3 $6,684.3 $5.18 53.8 $57.5 $1.07

2011 $12,588.3 69.0 $5,827.9 $84.48 1,233.3 $6,759.1 $5.48 52.1 $64.5 $1.24

2012 $13,471.4 80.3 $7,237.8 $90.12 1,243.3 $6,232.4 $5.01 48.9 $64.4 $1.32

2013 $13,291.8 100.2 $8,167.8 $81.52 1,173.8 $5,122.6 $4.36 49.0 $64.9 $1.32

2014 $17,094.7 110.4 $10,904.4 $98.73 1,187.5 $6,188.9 $5.21 45.1 $66.2 $1.47


– 42 –


– 43 –

Appendix C: Matrix of FY 2013 Tax and Royalty Payments from Oil and Gas Producers

to the General Fund and other Entities

FY 2013 General

Fund Amount

($ millions)

Amounts Paid by

Industry to State

and Local Gov'ts

Approx. %

OGAS

State General

Fund

($ million)

Land Grant Per-

manent Fund

($ million)

Severance Tax

Bond Fund

($ million)

Other State

Funds

Counties &

Municipalities

Gross Receipts Tax $1,912.7 $175.1 6.7% $127.5

$47.6

Compensating Tax $50.7 $19.7 29.2% $14.8

$4.9

Gross PIT Withholding (CRS) $1,071.4 $30.1 2.8% $30.1

PIT TAA - Oil & Gas Withholding $90.2 $90.2 100.0% $90.2

Net Personal Income $1,225.7 $120.3 9.8% $120.3

Corporate Income Tax $263.0 $54.0 20.5% $54.0

Oil & Gas School Tax (see Note: below) $385.0 $385.0 100.0% $385.0

7% Oil Conservation $21.2 $24.9 95.2% $20.2

$4.7

Natural Gas Processors $24.2 $24.2 100.0% $24.2

Perm. Fund Income * $440.9 $425.9 96.6% $425.9

Sev Tax Income Fund $176.2 $151.5 86.0% $151.5

Federal Mineral Leasing * $459.6 $407.6 88.7% $407.6

Land Office Inc. * $44.6 $30.3 68.0% $30.3

Recurring General Fund/Total $5,590.2

31.5% $1,761.2

31.5%

Non-General Fund Sources

Severance Taxes – Total

$420.0

$1,761.2

$420.0

Royalties

$500.9

$500.9

Ad Valorem Production Tax

$126.4

$6.3 $120.1

Ad Valorem Equipment Tax

$79.8

$4.0 $75.8

Column Totals $5,590.2 $2,945.6

$1,761.2 $500.9 $420.0 $15.0 $248.4

SEG & Charter Schools Allocation $2,090.8 $658.6

$658.6

Higher Education Distribution $757.7 $237.9

$237.9

Note: * – the table does not show amounts paid to Indian tribes, nations or pueblos representing Indian dual tax credits – primarily Navajo and Jicarilla. The dual tax credits are in lieu of the named emergency school tax, conservation tax, severance tax and ad valorem production taxes. There is also a small amount of gross re-ceipts tax paid to tribes in the three oil and gas-related categories.


– 44 –

Appendix D: Capital Projects – Severance Tax and Water Trust Board Projects

Supported by OGAS Contributions

2014 Capital Outlay

County Appropriated After Vetoes STBs OGAS Contribution Other Sources

Projects $ Projects $ Projects $ $ Projects $ Bernalillo 329 $32,901,513 301 $31,681,913 301 $31,681,913 $11,025,306 0 $0

Catron 1 $143,000 1 $143,000 1 $143,000 $49,764 0 $0

Chaves 16 $2,303,200 16 $2,303,200 16 $2,303,200 $801,514 0 $0

Cibola 13 $2,198,000 11 $2,148,000 11 $2,148,000 $747,504 0 $0

Colfax 12 $3,683,000 11 $3,615,000 9 $2,215,000 $770,820 2 $1,400,000

Curry 8 $1,480,000 8 $1,480,000 8 $1,480,000 $515,040 0 $0

Debaca 2 $204,000 2 $204,000 2 $204,000 $70,992 0 $0

Doña Ana 55 $18,971,200 53 $18,903,200 53 $18,903,200 $6,578,314 0 $0

Eddy 21 $3,064,800 21 $3,064,800 21 $3,064,800 $1,066,550 0 $0

Grant 10 $1,438,000 10 $1,438,000 10 $1,438,000 $500,424 0 $0

Guadalupe 14 $1,555,000 14 $1,555,000 13 $1,305,000 $454,140 1 $250,000

Harding 2 $70,000 2 $70,000 2 $70,000 $24,360 0 $0

Hidalgo 3 $599,000 3 $599,000 3 $599,000 $208,452 0 $0

Lea 15 $2,926,000 15 $2,926,000 15 $2,926,000 $1,018,248 0 $0

Lincoln 21 $1,734,000 21 $1,734,000 21 $1,734,000 $603,432 0 $0

Los Alamos 1 $375,000 1 $375,000 1 $375,000 $130,500 0 $0

Luna 3 $963,000 3 $963,000 3 $963,000 $335,124 0 $0

McKinley 37 $3,806,000 30 $3,598,000 30 $3,598,000 $1,252,104 0 $0

Mora 7 $1,199,987 7 $1,199,987 7 $1,199,987 $417,595 0 $0

Multiple 16 $10,584,387 15 $10,524,387 15 $10,524,387 $3,662,487 0 $0

Otero 19 $14,655,419 19 $14,655,419 16 $6,400,000 $2,227,200 3 $8,255,419

Quay 7 $916,000 7 $916,000 7 $916,000 $318,768 0 $0

Rio Arriba 38 $11,109,000 33 $10,689,000 30 $9,189,000 $3,197,772 3 $1,500,000

Roosevelt 11 $1,430,000 11 $1,430,000 11 $1,430,000 $497,640 0 $0

San Juan 16 $6,306,000 16 $6,306,000 16 $6,306,000 $2,194,488 0 $0

San Miguel 33 $14,330,000 28 $14,200,000 26 $10,050,000 $3,497,400 2 $4,150,000

Sandoval 45 $8,372,700 42 $8,307,700 41 $8,207,700 $2,856,280 1 $100,000

Santa Fe 60 $14,964,165 56 $14,794,165 52 $6,445,800 $2,243,138 4 $8,348,365

Sierra 4 $634,000 4 $634,000 4 $634,000 $220,632 0 $0

Soccorro 10 $2,290,000 10 $2,290,000 10 $2,290,000 $796,920 0 $0


– 45 –

2014 Capital Outlay

County Appropriated After Vetoes STBs OGAS Contribution Other Sources

Projects $ Projects $ Projects $ $ Projects $ Statewide 26 $56,164,000 25 $56,139,000 14 $33,969,000 $11,821,212 11 $22,170,000

Taos 25 $2,054,000 24 $2,004,000 23 $1,704,000 $592,992 1 $300,000

Torrance 12 $1,935,000 11 $1,910,000 11 $1,910,000 $664,680 0 $0

Union 3 $227,000 3 $227,000 3 $227,000 $78,996 0 $0

Valencia 18 $5,708,400 17 $5,683,400 17 $5,683,400 $1,977,823 0 $0

Grand Total 913 $231,294,771 851 $228,711,171 823 $182,237,387 $63,418,611 28 46,473,784

(Vetoed) 62 $2,583,600

2014 Water Project Fund Awards As Approved by Water Trust Board June 9, 2014 ENTITY COUNTY PROJECT NAME RECOMMENDED RECOMMENDED SCOPE

WTB FUNDING OF WORK

ENDANGERED SPECIES ACT COLLABORATIVE PROGRAM

Office of the State Engi-

neer/Interstate Stream Commission

Bernalillo, Socorro, Valen-

cia, Sandoval

Middle Rio Grande ESA Habitat Restoration

and Captive Propagation Facility Improve-

ments

$450,000 Plan, Design, Construct

FLOOD PREVENTION PROJECTS

Grants, City of Cibola Second Street Flood Control Improvements $700,000 Construction

Middle Rio Grande Conservation

District Socorro San Acacia Levee Project-Phase II $1,500,000 Construction

Milan, Village of Cibola Milan Track Farms Diversion Channel $1,200,000 Construction

WATERSHED RESTORATION AND MANAGEMENT PROJECTS

Claunch-Pinto SWCD Bernalillo, Santa Fe, Tor-

rance

Estancia Basin Watershed Health, Restoration

and Monitoring Project $600,000 Plan, Design, Construct

Canadian River SWCD Quay Riparian Restoration $600,000 Plan, Design, Construct

Ute Creek SWCD Harding Riparian Restoration $400,000 Plan, Design, Construct

Claunch-Pinto SWCD Bernalillo, Rio Arriba,

Santa Fe, Valencia

Riparian Restoration Project through the

Greater Rio Grande Watershed Alliance $600,000 Plan, Design, Construct

WATER CONSERVATION OR RECYCLING, TREATMENT, OR REUSE PROJECTS


– 46 –

Clovis, City of Curry Reuse Pipeline Construction $3,200,000 Construction

Hobbs, City of Lea Effluent Reuse Project Phase II $3,200,000 Construction

Los Alamos County Los Alamos Non-Potable Water System Priority 1 Phase 2

Projects Construction $1,406,000 Construction

Deming, City of Luna Effluent Reuse Expansion Project $800,356 Design and Construct

Chama, Village of Rio Arriba Chama Water Treatment Plant Improvements $980,000 Design and Construct

WATER STORAGE, CONVEYANCE OR DELIVERY PROJECTS

ENMWUA Curry, Quay, and Roose-

velt Eastern NM Rural Water System $3,200,000 Plan, Design, Construct

Las Vegas, City of San Miguel Bradner Enlargement $4,000,000 Construction

El Creston MDWCA San Miguel Distribution Lines Design/Construct $701,895 Plan, Design, Construct

Alto Lakes WSD Lincoln Replacement of Distribution Lines $1,502,000 Design and Construct

Ruidoso, Village of Lincoln Grindstone Reservoir Dam Liner $3,157,600 Design and Construct

Cuatro Villas MDWUA Santa Fe Regional Water System-Phase IV $1,156,000 Plan, Design, Construct

Ancones MDWCA Rio Arriba Ancones Water System Phase I $174,074 Plan and Design

Eldorado Area Water & Sanitation

District Santa Fe Regional Water Supply Interconnection $399,200 Plan, Design, Construct

Deming, City of Luna Water Distribution Improvements-Pear

Street Revitalization Improvements Phase III $1,017,705 Construction

Carlsbad, City of Eddy Double Eagle Water Wells $1,500,000 Construction

Tijeras, Village of Bernalillo Village of Tijeras Water System $603,500 Construction

2014 Recommended Funding $33,048,330


– 47 –

Appendix E: Total NMFA Project Funding w/o reference to OGAS Contribution Source: NMFA annual report for 2013

FY Year Created

in Law Program Name

Total Project Funding

Provided

(6/30/2013)

Total Projects Fund-

ed

(6/30/2013)

Enabling Act Statute

1992 Public Project Revolving Fund $ 2,303,283,709 1,176 New Mexico Finance Authority Act 6-21-6.0

1994 Primary Care Capital Fund $ 10,924,659 18 Primary Care Capital Funding Act 24-1C-4

1997 Drinking Water State Revolving Loan Fund $ 120,287,716 55 Drinking Water State Revolving Loan Fund Act 6-21A-4

1999 Water and Wastewater Grant Fund $ 60,072,102 159 New Mexico Finance Authority Act 6-21-6.3

2001 Water Project Fund $ 252,673,344 239 Water Project Finance Act 72-4A-9

2002 Local Government Planning Fund $ 2,224,769 83 New Mexico Finance Authority Act 6-21-6.4

2003 Economic Development Revolving Fund (Smart Money) $ 5,093,162 4 Statewide Economic Development Finance Act 6-25-1

2003 Child Care Revolving Loan Fund $ 50,000 1 Child Care Facility Loan Act 24-24-4.0

2004 Acequia Project Fund $ 15,000 1 Water Project Finance Act 72-4A-9.1

2004 Behavioral Health Capital Fund $ 580,000 2 Behavioral Health Capital Funding Act 6-26-4

2005 Energy Efficiency & Renewable Energy Bonding Act $ 1,152,354 3 New Mexico Finance Authority Act 6-21D-5

2005 Local Transportation Infrastructure Fund $ 4,700,000 21 New Mexico Finance Authority Act 6-21-6.8

2006 New Markets Tax Credit $ 127,286,000 10 Statewide Economic Development Finance Act 6-25-6.1

2007 Local Government Transportation Fund $ 2,835,538 96 New Mexico Finance Authority Act 6-21-6.12

2009 DWRLF (American Recovery & Reinvestment Act) $ 16,697,182 17 Drinking Water State Revolving Loan Fund Act 6-21A-4

2010 Colonias Infrastructure Project Fund $ 11,690,114 35 Colonias Infrastructure Finance Act 6-30-1.0

2011 Collateral Support Participation Program $ 4,054,318 7 Statewide Economic Development Finance Act 6-25-13

Total Projects Funded $ 2,923,619,967 1,927


– 48 –

Oil and Natural Gas Production in New Mexico -- County Information Project

– 49 –

Appendix F – Statutory History of Mineral Severance Taxes in New Mexico Note: the bulk of these history tables were last updated in 2001, when the PI was Chief Economist for TRD.

These tables will be updated in the future editions of this report.

Fiscal Year OGAS Sev-erance Tax

School Tax Conservation

Tax Ad Valorem Production

Ad Valorem Equipment

NGPT

1935-1936 2% .125% 1937-1949 2% 2% 1949-1955 2.5% 2% 1956-1959 .14%

1959 Oil and gas severance tax separated from the severance tax and imposed at a rate of 2.5%. School Tax

separated from new Gross Receipts Tax 1960-1963 2.5% 2% .14% 1964-1970 2.5% 2.55% .14% .45% on all mfg. products 1971-1974 2.5% 2.55% .14% .45% on gas plants

1973 Oil and gas severance tax removed from general fund, allowed for capital assets bonding (50%) with resi-

due deposited in new Oil and Gas Severance Tax Permanent Fund. 1975-1987 3.75% 2.55% .18% .45% on gas plants 1978-1982 3.75% 2.55% .18%/.19% .45% on gas plants 1977-1987 Oil and gas severance tax rates adjusted, but approximated 3.75% 1982-1993 3.75% 3.15% .45% on gas plants 1994-1998 3.75% 4.00% on gas .45% on gas plants

1999-2014 3.75% 4.00% on gas 65¢ per MMBTU, gas plants

only; adj. annually

Year Oil and Gas Conservation Tax Action

1935 Oil and gas conservation tax imposed at a rate of .125% on the proceeds of oil and gas produced in

the State, less federal, state and Indian royalties. (Indian royalties were deductible by the taxpayer,

but taxes on these royalties were remitted by the USGS until 1978). Reported and collected "at the

same time and in the same manner" as the Emergency School Tax. Tax earmarked for support of Oil

Conservation Department.

1955 Rate raised to .14%.

1959 Administration transferred to the Oil and Gas Accounting Commission, with technical changes in val-

uation language.

1975 Rate raised to .18% and tax made applicable to coal (sales value less federal, state and Indian royal-

ties) and a portion of the value of uranium. Tax earmarked for support of the Energy Resources Board

(subsequently, Energy and Minerals Department).

1977 Allocation of 7% of receipts to general fund (previously, this allocation was accomplished through the

general appropriations act). Rate increased to .19%, with allocation of additional .01% to the Oil Rec-

lamation Fund, except the rate is reduced to .18% if the balance in the Fund exceeds $1 million.

1986 Reporting period shortened from 65 days to the 25th day of the second month following the month

of sales.

1991 Monthly advanced payments required, adjusted each July, based on the average monthly payment

for the year ending the prior March 31. Advance payments to be credited against tax due. [When the

State went to accrual accounting in 2004, the comptroller recharacterized all of the advanced pay-

e ts as due to ta pa e s. Thus, the ad a ed pa e ts a e ot o side ed e e ue fo the pur-

pose of the general fund report.]

2007? Rate for oil increased to .24% if WTI for previous quarter in excess of $70. Distribution of .24% rate is

.197% to general fund, .043% to Oil Reclamation Fund.


– 50 –

Year Natural Gas Processors Tax Action

1963 Oil and gas manufacturer’s privilege tax imposed at the rate of .45% of the value of products (oil,

natural gas and liquid hydrocarbons) which have been refined or processed by manufacturers. Cer-

tain deductions allowed. Collected by the Oil and Gas Accounting Commission, 25 days following end

of sales month. Allocated to the general fund.

1970 Tax base changed to apply only to products of natural gas processing plants.

1998 This tax is totally revamped with the imposition shifted to processing plants from producers. Tax will

be measured by the MMBTUs of natural gas at the plant inlet. The rate is set initially at .65¢ per

MMBTU but will be adjusted every July 1. The adjustment factor is equal to the average value of nat-

ural gas produced in New Mexico the preceding calendar year divided by $1.33. The initial rate for

the six-month period January 1, 1999 through July 1, 1999 will be similarly adjusted. New deductions

are added for gas legally flared or lost through plant malfunction.

Year Severance Tax Action

1933 A unit tax imposed of $.02-$.06 per 42 gallon barrel of oil (depending on gravity) and $.01 per mcf of

natural gas. Note: this tax was challenged under the provisions of Article IV, Section 1 of the New Mexi-

co Constitution. A petition calling for a referendum of this law bearing the signature of 25 per cent of

the qualified electors of three-fourths of the counties in the state was filed in the office of the secretary

of state. This would suspend the action of the law until voted on at the general election in November

1934. Flynn, Welsh & Yates, Inc. v. State Tax Commission, 38 NM 131, 28 P2d 889 (1934). Enacted by

Laws 1933, Chapter 72. Law also attacked on grounds that oil and gas severed from the soil was tax on

tangible property not taxed in proportion to its value as provided in the NM Constitution Article VIII,

Section 1). Court determined that an excise tax imposed upon articles of manufacture or sale, and upon

license to pursue certain trades, or to deal in certain commodities was not a property tax under the

meaning of the state constitution. See also Todd v. Tierney, 38 NM 15, 27 P2d 991 (1933) decided just

prior to Flynn, et. al. that the constitutional referendum was limited. Note: $548,123 was collected for

Oil “e e a e Ta the “tate Co pt olle i the ou se of fis al ea . A additio al $ , was collected from delinquent taxpayers in the course of fiscal year 1935.

1934 1933 tax repealed. The 1933 act was held to be a constitutionally valid excise tax, instead of an imper-

missible property tax. This Supreme Court finding overturned a lower court which had issued an injunc-

tion against the State Tax Commission staying implementation of the provisions of the act. The Su-

preme Court decision was handed down on January 6, 1934, in time for consideration in the special

session of 1934. (See Emergency School Tax above). The p i ilege ta o se e i g i e al as olled into the Emergency School Tax enacted in 1934.

1937 A tax on the value of specified products severed and saved imposed at the following rates: Oil and nat-

ural gas, 2%; potash, 1%; coal, gold, lead, stone, timber, zinc, silver, copper and asphalt, .125%. Deduc-

tions allowed for state and federal royalties. Taxes due 15 days following the end of the month of sev-

erance, except extensions up to 30 days were allowable. Collections were deposited in the general fund

after a 3% allowance for administrative costs.

1949 Changed definition of value to specify sales value at first marketable point. For production with posted

or market price, value defined as that price less deductions for hoisting, crushing and loading. For pro-

cessed or beneficiated products, value defined as proceeds from first sale after deducting freight and

processing costs. An exemption of $200,000 per taxpayer allowed (declared void as applied to oil and

gas in State, ex rel. Salazar v. Humble Oil and Ref. Co.). Potash rate raised to 2.5%; oil and gas raised to

2.5%; copper raised to .5%; base broadened to include "all other natural resources", taxed at .125%.

Changed distribution so that 3%, up to $4 million, allowed for administration to the general fund with

the excess to go to a severance tax permanent fund.

1959 Deleted references to oil and gas, which became taxable under the oil and gas severance tax.

1961 Raised taxable gross value for potash to 80%, less deductions. Limited deductions for hoisting, loading


– 51 –


and crushing to 50% of value. Raised rate on uranium and "other fissionable material" to 1%; thorium

and rare earths reduced to .125%. Severance Tax Bonding Act enacted; revenues credited to Severance

Tax Bonding Fund and amounts needed for debt retirement set aside for that purpose with residual

going to the general fund.

1970 Reduced taxable gross value for potash to 40% of posted or market price, less deductions.

1971 Clarified royalty deduction; established value for potash at 33% of the value of proceeds less 50% for

hoisting, loading, crushing, processing and beneficiation (mine-run salt still taxed at 40% of reported

value, less deductions).

1972 Changed taxable value for uranium to % of the ta pa e ’s a e age u it sales p i e pe pou d of U3O8

during the preceding calendar year, less 50% for hoisting, loading and crushing.

1973 Severance Tax Permanent Fund created; revenues not required for bond retirement credited to the

Permanent Fund. Gross value of molybdenum changed to allow a straight 50% deduction for specified

expenses.

1974 Coal tax rate raised from 1/8% to 1/2%.

1977 Unit tax on coal of $.38 per ton for steam coal and $.18 per ton for metallurgical coal. A surtax provided

annual rate adjustment, based on increase in CPI. A graduated rate table, based on price per pound of

U3O8 adopted for uranium. Rates ranged from 1% at prices up to $5 per pound to $3.24 per pound for

U3O8 with taxable value over $50. Top rate subject to surtax adjusted annually in accordance with the

increase in the CPI. Sales under certain existing contracts with no tax pass-through eligible for a flat

1.25% rate.

1980 Coal tax base rates raised to $.57 per ton. Step rate table for uranium raised, but with substantial cred-

its phasing out over 3 years. New table provided rates ranging from 2% at prices up to $5 to $3.15 at

$40 plus 12.5% for excess over $40.

1981 Taxable value of uranium reduced to 60% of sales price for three years, and the rate table adopted in

1980 applied to this computed price. Temporary credits retained.

1982 Base tax rate on coal from underground mines reduced to $.55 per ton.

1983 Tax on uranium reduced to 3.5%, applicable to 50% of sales value.

1984 Definition of taxable value changed for copper, lead, zinc, gold and silver. Value established by refer-

ence to published prices for processed metals, less fixed percentage deductions for specified costs.

1989 For the period July 1, 1989-June 30, 1993, the severance tax surtax (which had been set annually on the

basis of the increase in the Consumer Price Index) is frozen at $.60 per ton for surface coal and $.58 per

ton for underground coal, bringing the total coal severance tax rate to $1.17 for surface coal and $1.13

for underground coal.

1990 Surtax eliminated on sales of coal under new contracts meeting certain criteria so that such coal will be

subject to a tax of $.55 (underground) or $.57 (surface) per ton only.

1992 Expanded coal surtax exemption to incremental sales of coal under renegotiated contracts.

1993 Escalation of surtax on coal postponed until July 1, 1994, to be based on a producer price index for coal,

rather than the CPI.

1994 Coal surtax exemption is extended to July 1, 1995.



1999 New contracts for sales of coal are exempt from the severance tax surtax on coal. The potential cut-off

of the partial exemption for contracts entered into prior to 7/1/90 is postponed until 6/30/09. (Chapter

86 – HB-536).

2001 The dual taxation by the Navajo Nation and New Mexico of coal mined on the Navajo Reservation is

resolved. Two credits are enacted, phased in over two years. When fully implemented, the State and its

local governments recede from 75% of the combined gross receipts tax due on sales of coal mined on


– 52 –


the Navajo Reservation while the Nation recedes from 25% of its business activity tax. The State will

also recede from 75% of the combined severance tax and surtax due on that coal and the Nation re-

cedes from 25% of its possessory interest tax. The Department is authorized to enter into cooperative

agreements with the Navajo Nation on exchange of information or joint administration of enforcement

of any tax. (Chapter 134 – HB-293).

Year Oil and Gas Severance Tax Action

1959 Oil and gas severance tax separated from the severance tax and imposed at a rate of 2.5% (as under

prior law) on the sales value of products, less deductions for federal, state and Indian royalties and

cost of trucking to nearest market. (Indian royalties were deductible by the taxpayer, but taxes on

these royalties were paid to the states by the U.S. Geological Survey until 1978).

1961 Severance Tax Bonding Act enacted allowing use of certain portion of revenues for retiring severance

tax bonds. Residual allocated to the general fund.

1973 Severance Tax Permanent Fund created. Severance tax revenues not required for debt retirement

allocated to Permanent Fund.

1974 Rate increased from 2.5% to 3.75%.

1977 Rates converted to a unit basis, with oil taxed at a rate of $.45 per barrel and gas taxed at $.05 per

mcf. A deduction for federal, state and Indian royalties was allowed under A.G. rulings. Rates subject

to a surtax, adjusted annually in accordance with increases in the CPI.

1980 Natural gas base tax rate increased to $.087 per mcf. Oil rate of 3.75% of sale value, less deductions,

restored. Carbon dioxide, which had been taxed as natural gas, explicitly included and taxed at a rate

of 3.75% of sales value, less deductions.


of sales.

1987 The surtax on natural gas eliminated. Tax rate established at $.163 per mcf or 3.75% of value, which

ever is greater, until June 30, 1990, when the rate on all gas sales reverts to 3.75% of value. Mean-

time, the 3.75% rate applicable to gas from certain "new" wells, effective July 1, 1987.


for the year ending the prior March 31. Advance payments to be credited against tax due.

1992 A reduced "recovered oil rate" applicable to oil from enhanced recovery projects (secondary and

tertiary) approved by the OCD. Rate is 1.875%–instead of 3.75%–and applies to period beginning with

the month for which a positive production response is certified through the month 5 or 7 years (de-

pending on technology) after original project approval. Prior to January 1, 1994, applies only to pro-

jects using CO2 recovery methods.

1995 A 50% credit is allowed for projects approved by the Oil Conservation Division which restore non-

producing wells to production, or which increase the production from currently producing wells. A

credit against state production taxes is allowed for taxes paid to Indian tribes on production from

new wells drilled after June 30, 1995 on Indian land. The credit amount is the smaller of 75% of the

Indian taxes or 75% of the State taxes.

1999 O&G Production Restoration Projects: to qualify originally for the reduced oil and gas severance tax

granted to qualified production restoration projects, a well must have been shut in for a specific two-

year period. Now any period of twenty-four months beginning on or after 1/1/93 counts. More pro-

jects will qualify for the lower tax rate. (Chapter 7/HB-11).

Marginal Wells Conditional Tax Reduction: This relatively complex act provides either a 50% or a 25%

reduction in both oil and gas severance tax and oil and gas emergency school tax to stripper wells

when prices are low. Stripper wells are oil wells that have been certified by the Oil Conservation Divi-

sion to have produced less than 10 barrels per day in the previous calendar year and natural gas wells


– 53 –

Year Oil and Gas Severance Tax Action

certified to have produced less than 60 mcf per day in the previous calendar year. Because produc-

tion and taxes are not reported on a well-by-well basis, production units instead qualify for the re-

du ed ta es if the u it’s a e age p odu tio pe eligi le ell fits the st ippe ell definition. (Injec-

tion wells may be eligible.) The average taxable value reported to this Department for the preceding

calendar year determines whether a lower rate applies. O & G severance tax rate for Level 1 oil or gas

is 1.875%; for level 2 oil or gas, 2.8125%. The tax rate for O & G emergency school tax for level 1 oil is

1.58% and for natural gas 2.0%; the level 2 emergency school tax rates are 2.36% for oil and 3.0% for

natural gas. A level 1 price is either $15 or less per barrel for oil or $1.15 or less per mcf of natural

gas. A level 2 price is more than $15 but not more than $18 per barrel for oil or more than $1.15 but

not more than $1.35 per mcf for natural gas. (Chapter 256 – CS/HB-281 & 436).

Year Oil and Gas School Tax Action

1959 Oil and gas removed from under the "Emergency School Tax" and placed under separate law. Tax

imposed at the rate of 2% (same as prior law) of sales, less deductions for federal, state and Indian

royalties and cost of trucking to the nearest market. (Indian royalties were deductible by the taxpay-

er, but taxes on these royalties were remitted by the USGS until 1978). Also deductible were oil and

gas sold for processing in the state which were subsequently taxed under the manufacturers privilege

tax.

1963 Rate increased to 2.55%. Eliminated deduction for products subsequently taxable under the manu-

facturers privilege tax.

1983 Rate increased to 3.15%.

1986 Reporting period shortened from 65 days to 25th day of the second month following the month of

sales.



1993 Tax rate increased from 3.15% to 4% on natural gas.

1999 A one-time drilling credit of $15,000 is available for the first 600 new crude oil or natural gas wells

drilled between January 1, 1999, and June 30, 2000. The Oil Conservation Division of the Energy,

Minerals and Natural Resources Department must certify that drilling commenced after January 1,

1999, and the well was completed before July 1, 2000. The credit is to be claimed by the operator

and may be applied only against oil and gas emergency school tax liability; no cash refunds will be

made. (Chapter 218 – CS/HB-280).

Marginal Wells Conditional Tax Reduction: This relatively complex act provides either a 50% or a 25%

reduction in both oil and gas severance tax and oil and gas emergency school tax to stripper wells

when prices are low. Stripper wells are oil wells that have been certified by the Oil Conservation Divi-

sion to have produced less than 10 barrels per day in the previous calendar year and natural gas wells

certified to have produced less than 60 mcf per day in the previous calendar year. Because produc-

tion and taxes are not reported on a well-by-well basis, production units instead qualify for the re-

du ed ta es if the u it’s a e age p odu tio pe eligi le ell fits the st ippe ell defi itio . I jec-

tion wells may be eligible.) The average taxable value reported to this Department for the preceding

calendar year determines whether a lower rate applies. O & G severance tax rate for Level 1 oil or gas

is 1.875%; for level 2 oil or gas, 2.8125%. The tax rate for O & G emergency school tax for level 1 oil is

1.58% and for natural gas 2.0%; the level 2 emergency school tax rates are 2.36% for oil and 3.0% for

natural gas. A level 1 price is either $15 or less per barrel for oil or $1.15 or less per mcf of natural

gas. A level 2 price is more than $15 but not more than $18 per barrel for oil or more than $1.15 but

not more than $1.35 per mcf for natural gas. (Chapter 256 – CS/HB-281 & 436).

Year Oil and Gas Ad Valorem Production Tax Action


– 54 –

Year Oil and Gas School Tax Action

1959 Oil and gas ad valorem production tax imposed in lieu of property tax. Tax rates set in the same man-

ner as are property tax rates. Taxable value is half the amount of the sales value less state, federal

and Indian royalties. Taxes due 65 days following the end of the sales month.


of sales.



Year Oil and Gas Production Equipment Ad Valorem TaxError! Bookmark not defined. Action

1969 Production equipment ad valorem tax enacted in lieu of property taxes on lease equipment. Tax rate

set in the same manner as property tax rates. Tax base established as 9% of the prior calendar year

sales value. Taxes collected by the Oil and Gas Accounting Division (later absorbed in the Taxation

and Revenue Department). Tax due in November.

Year Resources Excise Tax Action

1966 Resources excise tax imposed at a rate of .75% of the amount of money or the reasonable value of severed or processed resources, except for unprocessed potash and processed timber for which the rates were 3% and .375%, respectively. Deductions allowed for state and federal royalties and sales to federal agencies. Tax not applied to oil and gas, coal or carbon dioxide (effective July 1, 1967). Gen-erally replaced taxes imposed under the Emergency School Tax. Taxes due the 20th day of the month following the month in which the taxable event occurs.

1968 Tax base expanded to include unprocessed timber. 1969 Tax base expanded to include coal. 1970 Potash rates reduced to .5% for the unprocessed mineral and .125% for the processed product. Re-

port date changed from 20th to 25th day of the month. 1971 Clarified which tax exempt organizations qualify for tax exempt sales. 1972 Deleted provision for valuation by a court-ordered formula for uranium. 1973 Molybdenum rate reduced to .125%. 1985 Rate on copper reduced from .75% to .25% for a 3-year period, beginning July 1, 1985. 1986 Deduction allowed for royalties paid to Indian tribes. 1999 The resources and processors taxes on copper are cut by two-thirds. The rate reduction applies for

three-years only, to July 1, 2002. [This mirrors a temporary cut in 1985-88, the last time copper prices were low.] (Chapter 177 – SB-337).

Note: following history only extends to 1959 when oil and gas were not rolled into the Gross Receipts and Compensating Tax Act, but rather, were included in the Oil and Gas School Tax Act.

Year Emergency School/Gross Receipts Tax Action

1850 Under the Kearney Code, licenses were required for certain occupations and occupation fees were permitted. The territorial permit fee to keep a billiard table was set at $60 per table per year. Fees for distillers were $50 per still per year. Grocer’s and dramshop keepers were assessed $20 to $100 a year. Merchants paid on a sliding scale ranging from $20 per year for merchandise received for sale of value less than $2,000 for six month to $80. A portion of the semi-annual fee was apparently calculated as a ¼% ad valorem tax on the value of merchandise received each six months.

1933 A graduated “license and occupation” tax imposed on retail sales of merchandise, with a maximum tax rate of 2.5%, applicable for sales by merchants whose annual gross sales exceed $400,000. Oil, natural gas, gasoline and other motor fuels, liquor, itinerant vendors, and dealers in new or used automobiles were exempt. Tax administered and collected by State Comptroller (although may have been adminis-tered in practice by the State Tax Commission). Funds distributed 1/3 to municipality or county where business activity reported, 1/3 to common school fund (state) and 1/3 to state general fund. Tax due on 15th of month following business activity. Penalty for non payment of 5% imposed, and interest at 1% per month until paid. Criminal penalties provided for failure to register or pay tax. State Comptroller au-


– 55 –


thorized to deduct up to 10% of proceeds for administrative costs. Tax enactment was subjected to suc-cessful petition drive under Article IV, Section 1 of the NM Constitution. This petition did not stay the action of the act until it could be reviewed by state supreme court, or until election on the act’s provi-sions could be scheduled. The State Treasurer’s biennial report for the period lists a total of $65,526 collected and transferred for “Retail Dealer’s Licenses” in FY 1934. Tax repealed by judicial action about 1936.

1934 Emergency School Tax enacted for one year. Provisions same as permanent tax enacted in 1935 and summarized below. Reenacted the 1933 graduated “license and occupation tax, which was also stayed by action of the NM Supreme Court. The State Comptroller was charged with the administra-tion of the new tax. In the course of FY 1934, the Comptroller collected and transferred $109,176 to the general fund. Apparently, the new emergency school tax law was effective for less than a month of collections in FY 1934. In FY 1935, the State Comptroller collected and transferred $1,211,222.08 from July through the end of January. The newly-created Bureau of Revenue collected and transferred an additional $790,176.23 for the February through June 30 period of FY 1935.

1935 Emergency School Tax enacted. For the privilege of doing business, taxes enacted on gross receipts at rates varying from .125% to 2% in accordance with the type of business: oil, gas and potash mining, 2% and all other mining, .25% (except natural resource subject to processing instate subject only to manufacturing tax); mineral processing treated as part of manufacturing, and subject to .5% for pro-cessing oil and gas and .25% for other minerals; general manufacturing and generation of electricity, .25%; wholesalers, including electricity and gas sales to manufacturers, .125%; retailers, 2% except sales of automobiles and farm implements (.5%) and trucks and tractors (.25%) and except plants, fertilizers and livestock feeds, not taxable; sales to consumers of electricity and gas, intrastate tele-phone service and transportation services, 2%; construction, 1%; entertainment, professional, tech-nical and scientific services, 2%; a wide variety of other specified services, 2%; real estate commis-sions, 2%; broker fees, 2%. Taxes not applicable to sales made to U.S. Government, state or political subdivisions. The act specifically taxed receipts from sales of unprocessed mining products, specified types of services and brokers services regardless of whether or not delivery made outside the state, although interstate commerce sales exempt if taxation prohibited by the U.S. Other exemptions were: sales by nonprofit organizations, sales of farm products by producers; insurance premiums taxed un-der separate law; wages and salaries; hospital receipts; interest, dividends, real estate rentals; news-papers and magazines; motor fuel subject to separate taxes; banks; sale of water; dormitories and dining halls of state educational institutions. Freight charges deductible for natural resource extraction and processing, for wholesalers and contractors. Tax explicitly applied a second time if property taxed under natural resource, manufacturing and wholesalers tax subsequently sold at retail. Taxes did not apply to sales of items taken in on trade but trade-in deduction not allowed. Taxes due 15th day of month. Credited to the "Emergency School Fund" with 5% administrative allowance for the Bureau of Revenue.

1937 Deleted exclusion for sale of products taken in on trade. Income from hotels, campgrounds and room-ing houses not real estate rentals and therefore taxable. Tax due on gasoline for which refunds claimed.

1941 Raised mining taxes other than oil, gas, carbon dioxide and potash to .5% while carbon dioxide taxed at 2% along with oil and gas. Coal excluded from natural resource extraction tax (presuming taxed as processed minerals). Processed minerals raised to .5%. Raised construction tax to 2% but allowed a deduction for materials used in project. Raised taxes on automobiles, trucks and tractors to 1% but eliminated tax on other agricultural implements. Trade-in deduction allowed. Deleted specific refer-ences to interstate commerce. Exclusion for sales to governments does not apply to gold and silver shipped to mints.

1945 Added exemption for wholesalers services to retailers subject to tax. 1947 Added exclusion for sales to societies, hospitals, fraternal or religious organizations not organized for

profit. 1949 Changed definition of gross (taxable) receipts to exclude separately stated tax amounts. 1955 Sales of new and used automobiles removed from school tax base and taxed under separate law at a

rate of 1%. 1957 Municipal sales tax authorization extended to all cities but made subject to approval by electorate in

cities under 70,000. 1959 Emergency School Tax Code extensively revised, with a moniker given to each component of the tax


– 56 –


(e.g., natural resources, manufacturing–which only applied to certain resource processing, wholesale, etc.). Oil and gas made subject to separate law (Oil and Gas School Tax); coal and carbon dioxide eliminated from unprocessed mineral section, unprocessed potash rate of 2% retained and all other minerals, processed or unprocessed, taxed at .5% as before except timber (under manufacturing), .25%; wholesalers rate of .125% retained; rates for retailers, furnishing electricity to consumers, transport services, entertainment remained at 2%; contractors reduced to 1% and deduction for their materials eliminated. Tax applied to natural resource sales, service sales and commissions of agents and brokers regardless of whether or not deliveries made out-of-state, as before. Restored exclusion for sale of tangible personal property (but not services) to federal government. Terminology for exclu-sion of sales to state and local government and to non-profits changes to specify sales of tangible personal property and services. Additional 2% applicable where resource processors and wholesalers sell at retail, except if sale is for resale or incorporation into a manufactured product. Other exemptions similar to original law.


– 57 –

The Impacts of Oil and Natural Gas Production in New Mexico on Berna-

lillo County A Summary of Important Economic and Revenue Issues

Bernalillo County Summary

Bernalillo County is not an oil and natural gas producing area. However, oil and natural gas production is im-

portant to the county indirectly. This summary details some of these important issues.

In FY 2010, all New Mexico producers shipped 62.4 million barrels of oil worth $4,469 million, 1,275 million

mcf of natural gas worth $6,615 million and 72.4 million mcf of CO2 worth $74.4 million. In FY 2014, all New

Mexico producers shipped 110.5 million barrels of oil worth $10,905 million and 1,169 million mcf of natural

gas worth $6,115 million and 64.3 million mcf of CO2 worth $95.3.million. Note: f is , u i feet of gas at standard temperature and pressure.)

1. What products and land types generate the OGAS production in Bernalillo County? Bernalillo County is not

an oil and natural gas producing area.

2. Is there more detail on specific product, such as natural gas liquids or condensate? Yes, the ONGRD sys-

tem has for several years published details by product category. However, Bernalillo County is not an oil

and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Bernalillo County?

Bernalillo County is not an oil and natural gas producing area.

4. The industry also makes bonus payments for the rights to lease federal and state lands for production.

These leases are primarily in the producing counties, but exploratory leases are also executed. Bonus

payments for leases on federal land are shared with the State general fund. Bonus payments for leases on

state lands become part of the land maintenance fund at the State Land Office, distributed to beneficiar-

ies after deducting the expenses of the SLO. For the Period 2010 through 2014, no leases were sold for

State or Federal lands in the county.

5. How about Gross Receipts Tax revenue to county and municipal governments for the NAICS codes 211110 -

Oil & Gas Extraction; 213111 Drilling oil and gas wells; 213112 - Support activities for oil and gas operations;

and 213118 - Services to oil and gas extraction? Refer to the main document for an explanation of the eco-

nomic burden concept for Gross Receipts Tax. This year, the methodology for calculating the State tax

amount was improved somewhat, but those improvements are not reflected in the following table. Note

that in the course of 2013, 30 counties had reported activity in at least one of the three NAICS codes. Only

DeBaca, Los Alamos and Mora Counties reported no gross receipts activity. For FY 2014, only Los Alamos

County reported no GRT activity. Although the methodology has been improved this year, most of the dif-

ferences between 2013 and 2014 for this county are real. Extraction activity was significantly less in FY 2014

than in FY 2013. Drilling activity was approximately flat. However, well services, completion, fracking and

other recurring and non-recurring services significantly expanded.

Bernalillo County Gross Receipts Tax Activity

Fiscal NAICS Descrip- Count Gross Re- Txbl Gross Gross GRT Rate Approx Approx


– 58 –

Year tion ceipts

($1,000)

Rcpts

($1,000)

Tax

($1,000)

(%) State

($1,000)

Cnty/ Muni

($1,000)

FY2013 OGAS Support

Activities 141 $106,107 $17,661 $1,131 6.41% $826 $157

FY2013 Total OGAS-

related 141 $106,107 $17,661 $1,131 6.41% $826 $157

FY 2014 Oil and gas extrac-

tion * * * * * * *

FY 2014 Drilling oil and gas

wells * * * * * * *

FY 2014 OGAS operations

support 136 $147,174 $19,417 $1,256 6.47% $893 $363

FY 2014 All OGAS Total 136 $147,174 $19,417 $1,256 6.47% $893 $363

* Items designated "*" mean there was some reported activity in that industry classification during the fiscal year. These

have been redacted for confidentiality.

6. Put into context, the FY 2013 amount of $1.1 million of total GRT paid by OGAS interests in Bernalillo

County in the three NAICS codes represents a very small portion of the $176 million total GRT impact.

(0.64%). Similarly, the FY 2014 amount of $1.3 million of total GRT paid by OGAS interests in Bernalillo

County Summary in the four NAICS codes represents a very small portion of the $207 million total GRT

impact. (0.61%).

Statewide OGAS Gross Receipts Tax Analysis

Fiscal

Year

NAICS Descrip-

tion Count

Gross Re-

ceipts

($1,000)

Txbl Gross

Rcpts

($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt

($1,000)

Coun-

ty/Muni

Amt

($1,000)

Nation

Amt

($1,000)

FY 2013 Drilling Oil and Gas

Wells 829 $380,096 $373,871 $21,231

5.679

% $19,083 $2,141 $7

FY 2013 Oil and Gas Extrac-

tion 764 $160,652 $149,735 $8,657

5.782

% $7,294 $1,350 $13

FY 2013 OGAS Operations

Support 9,984 $6,432,412 $2,303,156 $146,270

6.351

% $101,170 $44,094 $1,006

FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158

6.232

% $127,548 $47,584 $1,026


Wells 1,342 $576,347 $537,875 $31,104

5.783

% $27,214 $3,766 $123

FY 2014 OGAS Extraction

Services 114 $11,145 $9,761 $589

6.034

% $454 $135 -


Support 10,075 $4,748,518 $2,653,350 $167,144

6.299

% $117,021 $48,993 $1,130


tion 709 $154,767 $141,100 8,200

5.811

% $6,790 $1,398 $13

FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036

6.195

% $151,479 $54,292 $1,266

7. If you include the gross receipts tax indirect economic burden and a substantial portion of the interest

accruing to the general fund from the land grant permanent fund (96+%) and the severance tax perma-

nent fund (86+%) attributable to oil and gas production in the state, what is the plausible percentage of


– 59 –

the total general fund derived from oil and gas production? Answer – 32.0% for FY 2013 and 35.1.5% for

FY 2014 – see the main document for further information. We can allocate the resulting $2,119 billion

general fund share attributable to oil and gas production to the producing counties.

FY2014 ($ in Millions)

FY2013 Updated ($ in Mil-

lions)

Total

Gen

Fund

OGAS Portion Bernalillo Con-

trib. Total

Gen

Fund

OGAS Portion

Amoun

t %

Amou

nt

% of

OGAS

Amoun

t %

Gross Receipts

$1,992.

0 $151.5 7.6% $0.9 0.6% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8

22.7

% $0.1 0.6% $50.9 $16.7 32.8%

Personal Income Tax

$1,254.

9 $143.2

11.4

% $0.9 0.6% $1,240.9 $124.0 10.0%

Corporate Income $196.8 $42.0

21.4

% $0.3 0.6% $267.2 $54.0 20.2%

Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 $0.0 0.0%

Oil & Gas School Tax $500.7 $500.7

100.0

% $0.0 0.0% $379.9 $379.9 100.0%

7% Oil Conservation $27.2 $27.1

99.4

% $0.0 0.0% $20.8 $20.7 99.5%

Natural Gas Processors $16.2 $16.2

100.0

% $0.0 0.0% $24.2 $24.2 100.0%

Land Grant Perm. Fund

Income $449.4 $434.8

96.7

% $0.0 0.0% $440.9 $425.8 96.6%

Earnings on State Bal-

ances $19.0 $6.0

31.5

% $0.0 0.0% $14.7 $4.7 31.8%

Sev Tax Perm. Fund

Income $170.5 $147.6

86.6

% $0.0 0.0% $176.2 $152 86.3%

Federal Mineral Leasing $569.9 $566.9

99.5

% $0.0 0.0% $459.6 $446.4 97.1%

Land Office Income $47.5 $32.9

69.3

% $0.0 0.0% $44.6 $30.2 67.6%

Misc. Receipts $45.0 $1.2 2.7% $0.0 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9

32.0

% $0.0 0.0% $65.8 $21.8 33.1%

All other revenue

sources $576.6 0.0% $0.0 $564.0

0.0%

GRAND TOTAL REVE-

NUES

$6,040.

5

$2,118.

8

35.1

% $2.2 0.1% $5,708.6

$1,828.

4 32.0%

8. Since the oil and gas producing industry supports 35.1% of the State General Fund, this same percentage is

the level of support by the OGAS industry is attributable to public school and higher education funding in

the county. The table below for FY 2014 contains more detail for charter schools in the county. The similar

chart for FY 2013 is also included below.


– 60 –

Bernalillo County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%

DISTRICT 2012-2013 Program

Costs ($1,000) % In county

County Total

($1,000)

OGAS Supported

($1,000) # Charters

l Charter Schools $157,189 $50,300

ernalillo County Charters $99,438 100% $99,438 $31,820

hool Districts

Albuquerque $592,566 100% $592,566 $189,621

ernalillo County Total $692,005 $692,005 $221,442

Statewide Dist. Total $2,110,188 $675,260

Bernalillo County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%

DISTRICT Operating Budgets

($1,000) % In county

County Total

($1,000)

OGAS Supported

($1,000) # Charte

l Charter Schools $165,338 $58,034

State Charter Schools $95,212 $33,419

District Charter Schools $70,126 $24,614

ernalillo County Charters $102,630 100% $102,630 $36,023

State Charter Schools $63,004 100% $63,004 $22,115

District Charter Schools $39,625 100% $39,625 $13,909

hool Districts

Albuquerque $614,931 100% $614,931 $215,841

ernalillo County Total $717,561 $717,561 $251,864

atewide District Total $2,190,353 $768,814

Bernalillo County Higher Education

Fiscal Year Institution Total Approp ($1,000) OGAS Amount ($1,000)

FY 2012 UNM Main Campus $168,876 $55,898

FY 2012 UNMH $82,409 $27,277

FY 2012 CNMCC ABQ $43,086 $14,261

FY 2012 County Total $294,371 $97,437


FY 2013 UNMH $85,414 $26,820

FY 2013 CNMCC ABQ $47,750 $14,994

FY 2013 County Total $314,161 $98,646


FY 2014 UNMH $88,957 $31,224

FY 2014 CNMCC ABQ $51,647 $18,128

FY 2014 County Total $294,371 $97,437

9. The oil and natural gas production industry also supports the lion's share of state-authorized and funded

capital outlay projects whether supported by severance tax bonds or via general fund appropriations. All

counties benefit from this funding. In addition to the somewhat regular capital outlay detailed here, the

state has also established a water trust fund that receives an annual tranche of 10% of the amount of

severance tax bonds. There is also a tribal projects permanent fund and a Colonias project fund that get

an annual tranche of a percentage of severance tax bonds. Details on these special funds are provided on-


– 61 –

ly for FY 2014. For this purpose, oil and natural gas production provide 95% of severance tax bond funding

and 30.0% of general fund appropriations.

Oil and Gas Support of Severance Tax and Other Capital Outlay Bond Programs OGAS % of STBs 95% 95%

OGAS % of General Fund 30% 30%

Bernalillo County (Amts in

$1,000)

Grand Total (Amts in

$1,000)

2007 CAPITAL OUTLAY PROJECTS Projects Amount Projects Amount

Summary 911 $168,826 3,448 $721,609

General Fund 821 $108,106 2,887 $488,382

STBs 22 $60,021 156 $211,999

Other 1 $700 7 $19,178

Reauthorizations 67 $0 377 $0

Amount Attrib. to OGAS $120,707 $527,563


Summary 515 $77,064 1,777 $341,187

STBs 56 $37,677 340 $215,491

General Fund 459 $39,388 1,434 $122,996

Other Funds 0 $0 3 $2,700

Amount Attrib. to OGAS 0 $47,609 0 $241,615

Vetoes 75 $2,290 187 $7,033


Summary

STBs 17 $28,893 143 $139,960

General Fund

Other Funds

Amount Attrib. to OGAS $27,448 0 $132,962

Vetoes 0 $0 0 $0

2009 SS CAPITAL OUTLAY SWAPS AND VOIDS Projects Amount Projects Amount

Voids and reversions 62 $12,587 236 $185,971

Voided GF funding swapped for STB funding 63 $10,869 240 $144,697

New Project Added 1 $1,500

PSCO Funding Omitted 1 $31,600


Vetoes 16 $1,718 45 $12,902

2010 2ND SS CAPITAL OUTLAY PROJECTS AND

REAUTHORIZATIONS Projects Amount Projects Amount

Summary 14 4400 49 42150

STB funding 5 $4,400 23 $41,800

Other Funding 0 $0 1 $350

Reauthorizations 9 25



Voids and reversions 898 $43,017 2,516 $177,457

General Fund 741 $29,612 2,026 $123,111

STB 157 $13,405 490 $54,346


– 62 –

Bernalillo County (Amts in

$1,000)


$1,000)

Vetoes 11 $7,039 74 $44,783

Voided GF funding swapped for STB funding 0 $0 0 $5,679

STB 0 $0 29 $5,679

Amount Attrib. to OGAS -$21,618 -$83,167

Attrib. to OG Prod. Voids 0 -$21,618 -$88,562

Attrib. to OG Prod. Swaps 0 $0 $5,395



No news STBs were authorized


Summary 113 $48,240 484 $137,318

STBs 66 $43,206 280 $107,514


Reauthorizations 0 3 $0


Vetoes 47 $5,034 194 $22,906


Summary 224 $45,841 785 $269,340

STBs 224 $45,841 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 23 $1,227 72 $4,402


Summary 301 $31,682 852 $228,711

STBs 301 $31,682 823 $182,237

Other Funds, ex. WTF and Colonias projects 0 $0 28 $46,474

Water Trust Fund Projects 1 $604 24 $33,048

Colonias Projects 0 $0 37 $16,640


Vetoes 28 $1,220 62 $2,584


– 63 –

10. For questions, comments or criticisms of this work, contact:

Laird Graeser

[email protected]

505 424-9023

or

Richard L. Anklam, President & Executive Director, New Mexico Tax Research Institute

[email protected]

505-269-6791

mailto:[email protected]


Oil and Natural Gas Production in New Mexico -- County Information Project March 2015

– 64 –

The Impacts of Oil and Natural Gas Production in New Mexico on Catron County A Summary of Important Economic and Revenue Issues

Catron County Summary Catron County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This

summary details some of these important issues.

In FY 2010, all New Mexico producers shipped 62.4 million barrels of oil worth $4,469 million, 1,275 million mcf of natural gas worth $6,615 mil-

lion and 72.4 million mcf of CO2 worth $74.4 million. In FY 2014, all New Mexico producers shipped 110.5 million barrels of oil worth $10,905 mil-

lion and 1,169 million mcf of natural gas worth $6,115 million and 64.3 million mcf of CO2 worth $ . . illio . Note: f is , u i feet of gas at standard temperature and pressure.)

1. What products and land types generate the OGAS production in Catron County? Catron County is not an oil and natural gas producing area.

2. Is there more detail on specific product, such as natural gas liquids or condensate? Yes, the ONGRD system has for several years published de-

tails by product category. However, Catron County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Catron County? Catron County is not an oil and natural

gas producing area.

4. The industry also makes bonus payments for the rights to lease federal and state lands for production. These leases are primarily in the pro-

ducing counties, but exploratory leases are also executed. Bonus payments for leases on federal land are shared with the State general fund.

Bonus payments for leases on state lands become part of the land maintenance fund at the State Land Office, distributed to beneficiaries after

deducting the expenses of the SLO. Neither State nor Federal leases have been sold in the county from FY 2005 through FY 2014.

5. How about Gross Receipts Tax revenue to county and municipal governments for the NAICS codes 211110 - Oil & Gas Extraction; 213111 Drill-

ing oil and gas wells; 213112 - Support activities for oil and gas operations; and 213118 - Services to oil and gas extraction? Refer to the main

document for an explanation of the economic burden concept for Gross Receipts Tax. This year, the methodology for calculating the State tax

amount was improved somewhat, but those improvements are not reflected in the following table. Note that in the course of 2013, 30 coun-

ties had reported activity in at least one of the three NAICS codes. Only DeBaca, Los Alamos and Mora Counties reported no gross receipts ac-

tivity. For FY 2014, only Los Alamos County reported no GRT activity. Although the methodology has been improved this year, most of the dif-

ferences between 2013 and 2014 for this county are real. Extraction activity was significantly less in FY 2014 than in FY 2013. Drilling activity

was approximately flat. However, well services, completion, fracking and other recurring and non-recurring services significantly expanded.


– 65 –

Catron County Gross Receipts Tax Activity

Fiscal Year NAICS Description Count Gross Receipts

($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

GRT

Rate (%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)

FY2013 OGAS Support Activities 18 $1,191 $1,191 $67 5.63% $61 $6

FY2013 Total OGAS-related 18 $1,191 $1,191 $67 5.63% $61 $6

FY 2014 OGAS operations support * * * * * *

FY 2014 All OGAS Total * * * * * * $0

* Items designated "*" mean there was some reported activity in that industry classification during the fiscal year. These have been redacted for confidentiality.

6. Put into context, the FY 2013 amount of $67.0 thousand of total GRT paid by OGAS interests in Catron County in the three NAICS codes repre-

sents an insignificant portion of the $176 million total GRT impact. (0.04%).

Similarly, the redacted amount of total GRT paid by OGAS interests in Catron County in the four NAICS codes represents an insignificant por-

tion of the $207 million total GRT impact.



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax Amt

($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)

FY 2013 Drilling Oil and Gas Wells 829 $380,096 $373,871 $21,231 5.679% $19,083 $2,141 $7

FY 2013 Oil and Gas Extraction 764 $160,652 $149,735 $8,657 5.782% $7,294 $1,350 $13

FY 2013 OGAS Operations Support 9,984 $6,432,412 $2,303,156 $146,270 6.351% $101,170 $44,094 $1,006

FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026

FY 2014 Drilling Oil and Gas Wells 1,342 $576,347 $537,875 $31,104 5.783% $27,214 $3,766 $123

FY 2014 OGAS Extraction Services 114 $11,145 $9,761 $589 6.034% $454 $135 -


FY 2014 Oil and Gas Extraction 709 $154,767 $141,100 8,200 5.811% $6,790 $1,398 $13

FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266

7. If you include the gross receipts tax indirect economic burden and a substantial portion of the interest accruing to the general fund from the

land grant permanent fund (96+%) and the severance tax permanent fund (86+%) attributable to oil and gas production in the state, what is

the plausible percentage of the total general fund derived from oil and gas production? Answer – 32.0% for FY 2013 and 35.1.5% for FY 2014 –

see the main document for further information. We can allocate the resulting $2,119 billion general fund share attributable to oil and gas pro-

duction to the producing counties.


– 66 –

8. Since the oil and gas producing industry supports 35.1% of the State General Fund, this same percentage is the level of support by the OGAS

industry is attributable to public school and higher education funding in the county. The table below for FY 2014 contains more detail for char-

ter schools in the county. The similar chart for FY 2013 is also included below. There is an apparent discrepancy between the FY 2013 and FY

2014 appropriations for Quemado and Reserve. However, it might be because the FY 2013 values do not include school transportation.

FY2014 ($ in Millions) FY2013 Updated ($ in Millions)

Total Gen

Fund

OGAS Portion Catron County Contrib. Total Gen

Fund

OGAS Portion

Amount % Amount % of OGAS Amount %

Gross Receipts $1,992.0 $151.5 7.6% $0.105 0.1% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.012 0.1% $50.9 $16.7 32.8%

Personal Income Tax $1,254.9 $143.2 11.4% $0.099 0.1% $1,240.9 $124.0 10.0%

Corporate Income $196.8 $42.0 21.4% $0.029 0.1% $267.2 $54.0 20.2%

Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%

Oil & Gas School Tax $500.7 $500.7 100.0% 0.0% $379.9 $379.9 100.0%

7% Oil Conservation $27.2 $27.1 99.4% 0.0% $20.8 $20.7 99.5%

Natural Gas Processors $16.2 $16.2 100.0% 0.0% $24.2 $24.2 100.0%

Land Grant Perm. Fund Income $449.4 $434.8 96.7% 0.0% $440.9 $425.8 96.6%

Earnings on State Balances $19.0 $6.0 31.5% 0.0% $14.7 $4.7 31.8%

Sev Tax Perm. Fund Income $170.5 $147.6 86.6% 0.0% $176.2 $152 86.3%

Federal Mineral Leasing $569.9 $566.9 99.5% 0.0% $459.6 $446.4 97.1%

Land Office Income $47.5 $32.9 69.3% 0.0% $44.6 $30.2 67.6%

Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%

All other revenue sources $576.6 0.0% $564.0

0.0%

GRAND TOTAL REVENUES $6,040.5 $2,118.8 35.1% $0.246 0.0% $5,708.6 $1,828.4 32.0%


– 67 –

Catron County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters

All Charter Schools $157,189

$50,300 95

Catron County Charters

100%

School Districts

Quemado $1,040 100% $1,040 $333

Reserve $1,130 100% $1,130 $361

Catron County Total $2,170

$2,170 $694

Statewide Dist. Total $2,110,188

$675,260

Catron County -- FY 2014 Public School Support

General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters

All Charter Schools $165,338 $58,034 97

State Charter Schools $95,212 $33,419 57

District Charter Schools $70,126 $24,614 40

School Districts

Quemado $2,148 100% $2,148 $754

Reserve $2,322 100% $2,322 $815

Catron County Total $4,470 $4,470 $1,569


Catron County Higher Education Institutions

Fiscal Year Institution Total Approp

($1,000)

OGAS Amount

($1,000)

FY 2012 No higher educational institutions in the county




– 68 –

9. The oil and natural gas production industry also supports the lion's share of state-authorized and funded capital outlay projects whether sup-

ported by severance tax bonds or via general fund appropriations. All counties benefit from this funding. In addition to the somewhat regular capi-

tal outlay detailed here, the state has also established a water trust fund that receives an annual tranche of 10% of the amount of severance tax

bonds. There is also a tribal projects permanent fund and a Colonias project fund that get an annual tranche of a percentage of severance tax

bonds. Details on these special funds are provided only for FY 2014. For this purpose, oil and natural gas production provide 95% of severance tax

bond funding and 30.0% of general fund appropriations.



Catron County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 15 $1,569 3,448 $721,609

General Fund 14 $1,269 2,887 $488,382

STBs 1 $300 156 $211,999

Other 0 $0 7 $19,178




Summary 6 $761 1,777 $341,187

STBs 2 $570 340 $215,491

General Fund 4 $191 1,434 $122,996


Amount Attrib. to OGAS 0 $599 0 $241,615

Vetoes 3 $85 187 $7,033


Summary

STBs 1 $563 143 $139,960

General Fund

Other Funds

Amount Attrib. to OGAS $535 0 $132,962

Vetoes 0 $0 0 $0


– 69 –



Voids and reversions 236 $185,971




Amount Attrib. to OGAS $81,671

Vetoes 45 $12,902

2010 2ND SS CAPITAL OUTLAY PROJECTS AND REAUTHORIZATIONS Projects Amount Projects Amount

Summary 1 0 49 42150

STB funding 0 $0 23 $41,800



Amount Attrib. to OGAS $0 $38,760


Voids and reversions 7 $63 2,516 $177,457

General Fund 6 $54 2,026 $123,111

STB 1 $9 490 $54,346

Vetoes 1 $23 74 $44,783


STB 0 $0 29 $5,679

Amount Attrib. to OGAS -$25 -$83,167

Attrib. to OG Prod. Voids 0 -$25 -$88,562



Reauthorizations 123



Summary 4 $160 484 $137,318

STBs 2 $60 280 $107,514




Vetoes 2 $100 194 $22,906


– 70 –



Summary 2 $250 785 $269,340

STBs 2 $250 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 2 $204 852 $228,711

STBs 2 $204 823 $182,237





Vetoes 0 $0 62 $2,584


– 71 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 72 –

The Impacts of Oil and Natural Gas Production in New Mexico on Chaves County A Summary of Important Economic and Revenue Issues

Chaves County Summary Chaves County is an oil and natural gas producing area in the San Juan Basin. Oil and natural gas production is important to the County both direct-

ly and indirectly. This summary details some of these important issues.

In FY 2010, county producers shipped 1,408 thousand barrels of oil worth $102.4 million and 26.0 million mcf of natural gas worth $112 million. In

FY 2014, county producers shipped 1,459 thousand barrels of oil worth $137.5 million and 15.5 million mcf of natural gas worth $72 million.

Although the advent of horizontal drilling and fracking (hydraulic and chemical treatment of new wells to enhance early production) has resulted

generally in an increase in volumes, Chaves County has experienced a decrease of 24.4% in oil volume from FY 2011 to FY 2014 while county natu-

ral gas volumes have experienced a 40.3% decline during the same period. Overall produced product value has fallen from about $214.7 million to

$209.2 million. Eddy, Lea and Roosevelt Counties, however, have experienced a different pattern.

In FY 2010, all New Mexico producers shipped 62.4 million barrels of oil worth $4,469 million, 1,275 million mcf of natural gas worth $6,615 million

and 72.4 million mcf of CO2 worth $74.4 million. In FY 2014, all New Mexico producers shipped 110.5 million barrels of oil worth $10,905 million

and 1,169 million mcf of natural gas worth $6,115 million and 64.3 million mcf of CO2 worth $ . . illio . Note: f is , u i feet of gas at standard temperature and pressure.)

1. What products and land types generate the OGAS production in Chaves County?

Chaves County

Fiscal Year Product Volume

(Million mcf)

Value

($ million) Price Dedns %



FY 2010 GAS 26.0 $112.34 $4.33 19.4% 42% 0% 23% 34%

FY 2011 GAS 22.6 $105.95 $4.69 19.9% 45% 0% 20% 35%

FY 2012 GAS 18.4 $77.45 $4.20 20.0% 43% 0% 19% 38%

FY 2013 GAS 18.0 $67.92 $3.77 15.5% 41% 0% 20% 39%

FY 2014 GAS 15.5 $71.71 $4.63 16.5% 44% 0% 19% 38%

FY 2010 OIL 1.4 $102.36 $72.70 11.2% 63% 0% 9% 28%

FY 2011 OIL 1.9 $165.25 $85.65 11.4% 41% 0% 9% 49%

FY 2012 OIL 1.9 $171.00 $89.30 11.3% 35% 0% 14% 51%

FY 2013 OIL 1.8 $148.86 $83.80 10.5% 43% 0% 15% 42%

FY 2014 OIL 1.5 $137.47 $94.22 11.5% 46% 0% 12% 42%

Note : % Fede al desig ates the po tio of total p odu tio fo the pa ti ula p odu t o fede al su su fa e la d, si ila l % I dia , %P i ate a d % “tate desig ate p odu tio o T i al o Natio lands, private lands and state lands.


– 73 –

2. Is there more detail on specific product? Yes, the ONGRD system has for several years published details by product category. Data for FY 11, FY

12 and FY 13 are included below. Data for FY14 and earlier data will be included in the next edition of this report

Product Sale Period Volume Value

($1.000) Price

Ratio to Spot

Price

Total Dedns

($1.000) Dedns %

Net Value

($1.000)

Oil (bbls) FY11 1,936,890 $167,945 $86.71 97.00% $19,488 11.6% $148,457

Oil (bbls) FY12 1,880,558 $165,768 $88.15 92.80% $18,399 11.1% $147,369

Oil (bbls) FY13 1,723,235 $146,129 $84.80 91.90% $15,446 10.6% $130,682

Condensate (bbls) FY11 719 $56 $77.70 86.90% $6 11.3% $50

Condensate (bbls) FY12 28,704 $2,542 $88.55 93.20% $319 12.6% $2,223

Condensate (bbls) FY13 15,207 $1,326 $87.23 94.60% $166 12.5% $1,161

Processed gas (mcf) FY11 1,267,063 $6,061 $4.78 115.20% $1,288 21.3% $4,773

Processed gas (mcf) FY12 1,620 $1,435 *** *** $708 49.4% $727

Processed gas (mcf) FY13 952,091 $3,357 $3.53 102.30% $860 25.6% $2,496

Unprocessed gas (mcf) FY11 20,908,329 $93,384 $4.47 107.50% $18,772 20.1% $74,612



Gas plant products (mcf) FY11 414,295 $6,505 $15.70 378.00% $1,020 15.7% $5,485

Gas plant products (mcf) FY12 410,563 $7,244 $17.64 579.90% $1,155 15.9% $6,090

Gas plant products (mcf) FY13 484,824 $4,921 $10.15 294.40% $769 15.6% $4,152

Pit, skim, other (bbls) FY11 8,359 $681 $81.45 0.00% $38 5.5% $643

Pit, skim, other (bbls) FY12 8,521 $777 $91.14 0.00% $51 6.6% $725

Oil lost (bbls) FY13 151 $13 $86.82 0.00% $2 13.5% $11

Note the highlighted prices and ratio to Henry Hub Spot Price for Gas Plant Products. Over a three-year period, processed gas price conforms closely to the Henry Hub spot

price. Unprocessed gas, with a component of ethane, butane and propane commands a premium to the spot price.

3. What does this mean for state and local direct revenues from production in Chaves County?

Chaves County

Product Sale Period School Tax

($1,000)

Severance Tax

($1,000)

Conservation

Tax ($1,000)

AV Production

($1,000)

Total Eff. Tax

Rate

AV Prod Equip

Tax ($1,000)1

Natural Gas FY10 $3,637 $3,410 $173 $952 9.25%

Natural Gas FY11 $3,404 $3,191 $162 $905 9.27% $146

Natural Gas FY12 $2,478 $2,323 $118 $656 9.26% $154

Natural Gas FY13 $2,300 $2,156 $109 $611 9.27% $136

Natural Gas FY14 $2,399 $2,249 $114 $668 9.33% $134


– 74 –

Chaves County


($1,000)

Severance Tax

($1,000)

Conservation

Tax ($1,000)

AV Production

($1,000)

Total Eff. Tax

Rate

AV Prod Equip

Tax ($1,000)1

Oil FY10 $2,818 $3,354 $174 $866 8.06%

Oil FY11 $4,795 $5,709 $364 $1,506 8.13% $143

Oil FY12 $4,767 $5,675 $361 $1,500 8.13% $276

Oil FY13 $4,170 $4,964 $318 $1,314 8.13% $332

Oil FY14 $3,893 $4,634 $295 $1,382 8.26% $309

1. The Ad Valorem Production Equipment Tax is collected by County Treasurers in the various producing counties. The obligations are roughly 20% of the previ-

ous year's ad valorem production tax amounts. These data are for the 2010 through 2013 taxable year. Payments were largely made in FY10 throughFY14. Data

are from Property Tax Rate Sheets (DFA/LGD) and are ratioed to the product by total taxable value.

Note: all of the School Tax and the bulk of the Conservation Tax are transferred to the State General Fund. The Severance Tax is transferred to

the Severance Tax Bonding Fund (STBF), where is used to pay off severance tax bonds (STBs). In some years, the residual in the STBF is subse-

quently transferred to the Severance Tax Permanent Fund (STPF).


ducing counties, but exploratory leases are also executed. Bonus payments for leases on federal land are shared with the State General Fund

(49% of payments). Bonus payments for leases on state lands become part of the land maintenance fund, distributed to beneficiaries after de-

ducting the expenses of the State Land Office.

State Land Office Lease Sales Recent History

Chaves County Fiscal Year Acres Bid Amount Price/Acre

2005 16,240 $1,763,866 $109

2006 34,418 $7,613,406 $221

2007 23,043 $8,144,011 $353

2008 39,244 $15,499,474 $395

2009 25,610 $5,420,095 $212

2010 13,120 $3,493,061 $266

2011 10,241 $1,620,064 $158

2012 8,696 $1,472,884 $169

2013 23,548 $2,731,868 $116

2014 20,403 $1,174,602 $58

Grand Total 214,564 $11,491,220 $54


– 75 –

Federal OGAS Lease Sale Recent History

Chaves County

Fiscal Yr Bid Amount Acres Price/Acre

FY04 Total $568,772 14,404 $39

FY05 Total $4,163,130 21,901 $190

FY06 Total $12,866,060 62,638 $205

FY07 Total $5,354,906 14,875 $360

FY08 Total $12,366,450 36,224 $341

FY09 Total $7,903,640 23,992 $329

FY10 Total $3,237,695 16,642 $195

FY11 Total $964,960 840 $1,149

FY12 Total $392,000 2,000 $196

FY13 Total $917,100 1,906 $481

FY14 Total $1,604,140 6,126 $262

Grand Total $50,338,853 201,547 $0

Note: Highlighted amounts are bids in excess of $1,000 per acre.









Chaves County Gross Receipts Tax Activity


($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)

FY 2013 Oil & Gas Extraction 76 $3,632 $3,310 $221 7.10% $146 $75

FY 2013 Drilling Oil and Gas Wells 22 $603 $552 $34 6.76% $28 $7

FY 2013 OGAS Support Activities 366 $36,999 $34,844 $2,434 6.93% $1,415 $1,019

FY 2013 Total OGAS-related 464 $41,235 $38,705 $2,689 6.93% $1,588 $1,101



– 76 –

Chaves County Gross Receipts Tax Activity


($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)

FY 2014 Drilling Oil and Gas Wells 58 $1,190 $908 $58 6.35% $44 $14

FY 2014 OGAS Support Activities 372 $33,239 $31,433 $2,195 6.98% $1,275 $920

FY 2014 Extraction Services * * * * * * *

FY 2014 Total OGAS-related 493 $36,966 $34,602 $2,403 6.94% $1,420 $983

* Items designated "*" mean there was some reported activity in that industry classification during the fiscal year. These have been redacted for confidentiality. 6. Put into context, the FY 2013 amount of $2.7 million of total GRT paid by OGAS interests in Chaves County in the three NAICS codes represents

a small portion of the $176 million total GRT impact. (1.53%). Similarly, the FY 2014 amount of $2.4 million of total GRT paid by OGAS interests

in Chaves County Summary in the four NAICS codes represents a relatively small portion of the $207 million total GRT impact.(1.16%).

FY 2014 OGAS Gross Receipts Tax Analysis


($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

State Tax Amt

($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)

FY 2013 Drilling Oil and Gas Wells 829 $380,096 $373,871 $21,231 $19,083 $2,141 $7

FY 2013 Oil and Gas Extraction 764 $160,652 $149,735 $8,657 $7,294 $1,350 $13

FY 2013 OGAS Operations Support 9,984 $6,432,412 $2,303,156 $146,270 $101,170 $44,094 $1,006

FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 $127,548 $47,584 $1,026

FY 2014 Drilling Oil and Gas Wells 1,342 $576,347 $537,875 $31,104 $27,214 $3,766 $123

FY 2014 OGAS Extraction Services 114 $11,145 $9,761 $589 $454 $135 -



FY 2014 Grand Total 12,240 $5,490,776 $3,342,086 $207,036 $151,479 $54,292 $1,266 7. If you include the gross receipts tax indirect economic burden and a substantial portion of the interest accruing to the general fund from the






– 77 –


Total Gen

Fund

OGAS Portion Chaves County Contribution Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $1.5 1.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.2 1.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0%

$0.0 $0.0 0.0%

Oil & Gas School Tax $500.7 $500.7 100.0% $6.3 1.3% $379.9 $379.9 100.0%

7% Oil Conservation $27.2 $27.1 99.4% $0.3 1.3% $20.8 $20.7 99.5%

Natural Gas Processors $16.2 $16.2 100.0% $0.2 1.3% $24.2 $24.2 100.0%

Land Grant Perm. Fund Income $449.4 $434.8 96.7% $0.5 0.1% $440.9 $425.8 96.6%


Sev Tax Perm. Fund Income $170.5 $147.6 86.6% $2.6 1.8% $176.2 $152.0 86.3%

Federal Mineral Leasing $569.9 $566.9 99.5% $4.7 0.8% $459.6 $446.4 97.1%

Land Office Income $47.5 $32.9 69.3% $1.1 3.5% $44.6 $30.2 67.6%

Misc. Receipts $45.0 $1.2 2.7%

0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0%

0.0% $65.8 $21.8 33.1%

All other revenue sources $576.6

0.0%

$564.0

0.0%

GRAND TOTAL REVENUES $6,040.5 $2,118.8 35.1% $19.2 0.9% $5,708.6 $1,828.4 32.0% 8. Since the oil and gas producing industry supports 35.1% of the State General Fund, this same percentage is the level of support by the OGAS


ter schools in the county. The similar chart for FY 2013 is also included below.

Chaves County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


Chaves County Charters $605 100% $605 $194 1


– 78 –


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters

School Districts

Artesia $24,679 40% $9,872 $3,159

Dexter $7,545 100% $7,545 $2,414

Elida $1,438 40% $575 $184

Hagerman $3,717 100% $3,717 $1,190

Lake Arthur $1,417 100% $1,417 $454

Roswell $64,503 100% $64,503 $20,641

Chaves County Total $103,905

$88,235 $28,236


$675,260

Chaves County -- FY 2014 Public School Support



($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters




Chaves County Charters $583 100% $583.29 $205 1

District Charter Schools

1

Sidney Gutierrez Middle School (Roswell) $583 100% $583.29 $205

School Districts

Artesia $24,302 40% $9,721 $3,412

Dexter $7,552 100% $7,552 $2,651

Elida $1,535 40% $614 $216

Hagerman $3,716 100% $3,716 $1,304

Lake Arthur $1,801 100% $1,801 $632

Roswell $67,747 100% $67,747 $23,779

Chaves County Total $107,236 $91,734 $32,199



– 79 –

Chaves County Higher Education Institutions


FY 2012 ENMU Roswell $10,781 $3,569

FY 2012 NMMI $1,816 $601

FY 2012 County total $12,597 $4,170

FY 2013 ENMU Roswell $11,428 $3,588

FY 2013 NMMI $2,066 $649

FY 2013 County total $13,494 $4,237

FY 2014 ENMU Roswell $11,618 $4,078

FY 2014 NMMI $2,185 $767

FY 2014 County total $13,803 $4,845


ported by severance tax bonds or via general fund appropriations. All counties benefit from this funding. In addition to the somewhat regular

capital outlay detailed here, the state has also established a water trust fund that receives an annual tranche of 10% of the amount of sever-

ance tax bonds. There is also a tribal projects permanent fund and a Colonias project fund that get an annual tranche of a percentage of sever-

ance tax bonds. Details on these special funds are provided only for FY 2014. For this purpose, oil and natural gas production provide 95% of

severance tax bond funding and 30.0% of general fund appropriations.


OGAS % of General Fund 30% 30% Chaves County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 146 $11,691 3,448 $721,609

General Fund 127 $11,563 2,887 $488,382

STBs 1 $28 156 $211,999

Other 0 $0 7 $19,178




Summary 55 $6,374 1,777 $341,187

STBs 6 $3,050 340 $215,491

General Fund 49 $3,324 1,434 $122,996


– 80 –

Chaves County (Amts in $1,000) Grand Total (Amts in $1,000)



Vetoes 4 $155 187 $7,033


Summary

STBs 4 $2,392 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0


Voids and reversions 5 $684 236 $185,971





Vetoes 3 $349 45 $12,902


Summary 49 42150

STB funding 23 $41,800

Other Funding 1 $350

Reauthorizations 25




General Fund 52 $1,231 2,026 $123,111

STB 15 $689 490 $54,346

Vetoes 0 $0 74 $44,783


STB 0 $0 29 $5,679





– 81 –

Chaves County (Amts in $1,000) Grand Total (Amts in $1,000)





Summary 9 $1,817 484 $137,318

STBs 6 $1,397 280 $107,514




Vetoes 3 $420 194 $22,906


Summary 16 $3,396 785 $269,340

STBs 16 $3,396 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 2 $185 72 $4,402


Summary 16 $2,303 852 $228,711

STBs 16 $2,303 823 $182,237





Vetoes 0 $0 62 $2,584


Laird Graeser

[email protected]

505 424-9023

or

[email protected]

505-269-6791




– 82 –

The Impacts of Oil and Natural Gas Production in New Mexico on Cibola County A Summary of Important Economic and Revenue Issues

Cibola County Summary Cibola County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This




and 1,169 million mcf of natural gas worth $6,115 million and 64.3 million mcf of CO2 worth $ . . illio . Note: f is , u i feet of gas at standard temperature and pressure.).

1. What products and land types generate the OGAS production in Cibola County? Cibola County is not an oil and natural gas producing area.


tails by product category. However, Cibola County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Cibola County? Cibola County is not an oil and natural

gas producing area.




deducting the expenses of the SLO. No state or federal leases have been sold in Cibola County in the FY 2005 through FY 2014 period.










– 83 –

6. Put into context, the redacted amount of total GRT paid by OGAS interests in Cibola County in the three NAICS codes represents an insignifi-

cant portion of the $176 million total GRT impact. Similarly, the redacted amount of total GRT paid by OGAS interests in Cibola County in the

four NAICS codes represents an insignificant portion of the $207 million total GRT impact.




Cibola County Gross Receipts Tax Activity Fiscal

Year NAICS Description Count

Gross Receipts

($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)

FY2013 Drilling Oil and Gas Wells * * * * * * *

FY2013 OGAS Support Activities * * * * * * *

FY2013 Total OGAS-related * * * * * * *

FY 2014 Drilling oil and gas wells * * * * * * *

FY 2014 OGAS operations support * * * * * * *

FY 2014 All OGAS Total * * * * * * *



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266


– 84 –


Total Gen

Fund

OGAS Portion Cibola County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.1 0.1% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.0 0.1% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%

Oil & Gas School Tax $500.7 $500.7 100.0% $379.9 $379.9 100.0%

7% Oil Conservation $27.2 $27.1 99.4% $20.8 $20.7 99.5%

Natural Gas Processors $16.2 $16.2 100.0% $24.2 $24.2 100.0%

Land Grant Perm. Fund Income $449.4 $434.8 96.7% $440.9 $425.8 96.6%

Earnings on State Balances $19.0 $6.0 31.5% $14.7 $4.7 31.8%

Sev Tax Perm. Fund Income $170.5 $147.6 86.6% $176.2 $152 86.3%

Federal Mineral Leasing $569.9 $566.9 99.5% $459.6 $446.4 97.1%

Land Office Income $47.5 $32.9 69.3% $44.6 $30.2 67.6%

Misc. Receipts $45.0 $1.2 2.7% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% $65.8 $21.8 33.1%


0.0% $564.0

0.0%





Cibola County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.0%


Costs ($1,000)

% In coun-

ty

County Total

($1,000)

OGAS Supported

($1,000) # Charters


$50,300 95

Cibola County Charters

School Districts


– 85 –


Costs ($1,000)

% In coun-

ty

County Total

($1,000)

OGAS Supported

($1,000) # Charters

Grants $23,709 100% $23,709 $7,587

Cibola County Total $23,709 $23,709 $7,587


Cibola County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In coun-

ty

County Total

($1,000)

OGAS Supported

($1,000) # Charters




Cibola County Charters $0 $0 $0 0

School Districts

Grant-Cibola $25,816 100% $25,816 $9,061

Cibola County Total $25,816 $25,816 $9,061


Cibola County Higher Education


($1,000)

OGAS Amount

($1,000)

FY 2012 NMSU Grants $3,258 $1,078

FY 2013 NMSU Grants $3,436 $1,079

FY 2014 NMSU Grants $3,545 $1,244








– 86 –



Cibola County(Amts in $1,000) Grand Total (Amts in $1,000)


Summary 15 $1,569 3,448 $721,609

General Fund 14 $1,269 2,887 $488,382

STBs 1 $300 156 $211,999

Other 0 $0 7 $19,178




Summary 6 $761 1,777 $341,187

STBs 2 $570 340 $215,491

General Fund 4 $191 1,434 $122,996



Vetoes 3 $85 187 $7,033


Summary

STBs 1 $563 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0







Vetoes 45 $12,902



– 87 –


Summary 1 0 49 42150

STB funding 0 $0 23 $41,800






General Fund 6 $54 2,026 $123,111

STB 1 $9 490 $54,346

Vetoes 1 $23 74 $44,783


STB 0 $0 29 $5,679








Summary 4 $160 484 $137,318

STBs 2 $60 280 $107,514




Vetoes 2 $100 194 $22,906


Summary 2 $250 785 $269,340

STBs 2 $250 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 2 $204 852 $228,711


– 88 –


STBs 2 $204 823 $182,237





Vetoes 0 $0 62 $2,584


Laird Graeser


– 89 –

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 90 –

The Impacts of Oil and Natural Gas Production in New Mexico on Colfax County A Summary of Important Economic and Revenue Issues

Colfax County Summary Colfax County is a natural gas producing area in the Raton Basin. Oil and natural gas production is important to the County both directly and indi-

rectly. This summary details some of these important issues.

In FY 2010, county producers shipped 8.9 million mcf of natural gas worth $36.8 million. In FY 2014, county producers shipped 5.8 million mcf of

natural gas worth $28.2 million.


in a an increase in oil volumes generally from FY 2010 to FY 2014, natural gas production in the county has experienced a 34.6% decrease in vol-

ume during the same period. Overall produced product value has declined from about $36.8 million to $28.2 million.




1. What products and land types generate the OGAS production in Colfax County?

Colfax County


(Million mcf)

Value

($ million)

Price per

mcf Dedns %



FY 2010 GAS 8.9 $37 $4.12 22.4% 0% 0% 100% 0%

FY 2011 GAS 7.9 $38 $4.90 22.2% 1% 0% 99% 0%

FY 2012 GAS 7.0 $34 $4.78 21.0% 0% 0% 100% 0%

FY 2013 GAS 7.0 $28 $3.98 16.7% 0% 0% 100% 0%

FY 2014 GAS 5.8 $28 $4.83 18.1% 0% 0% 100% 0%

Note : % Fede al desig ates the po tio of total p odu tio fo the pa ti ula p odu t o fede al su su fa e la d, si ila l % I dia , %P i ate a d % “tate desig ate p odu tio o T i al o Natio la ds, p i ate la ds a d state la ds.

2. Is there more detail on specific product? Yes, the ONGRD system has for several years published details by product category. However, all of

the production in Colfax County is considered 'Unprocessed Gas'

3. What does this mean for state and local direct revenues from production in Colfax County?


– 91 –

Colfax County


($1,000)

Severance Tax

($1,000)

Conservation Tax

($1,000)

AV Production

($1,000)

Total Effective

Tax Rate

AV Prod Equip Tax

($1,000)1

Natural Gas FY10 $3,872 $3,630 $184 $1,111 9.37%

Natural Gas FY11 $3,769 $3,533 $179 $1,074 9.36% $161

Natural Gas FY12 $3,038 $2,848 $144 $755 9.18% $174

Natural Gas FY13 $3,144 $2,947 $149 $740 9.12% $162

Natural Gas FY14 $3,765 $3,529 $179 $890 9.12% $111 1. The Ad Valorem Production Equipment Tax is collected by County Treasurers in the various producing counties. The obligations are roughly 20% of the previous year's

ad valorem production tax amounts. These data are for the 2010 through 2013 taxable year. Payments were largely made in FY10 throughFY14. Data are from Property

Tax Rate Sheets (DFA/LGD) and are ratioed to the product by total taxable value.

Note: all of the School Tax and the bulk of the Conservation Tax are transferred to the State General Fund. The Severance Tax is transferred to the Sever-

ance Tax Bonding Fund (STBF), where is used to pay off severance tax bonds (STBs). In some years, the residual in the STBF is subsequently transferred to

the Severance Tax Permanent Fund (STPF).






No Federal leases in the county were sold from FY 2005 through FY 2014


Colfax County

Fiscal Year Acres Bid Amount Price/Acr

e

2006 9,544 $39,450 $4

2008 1,280 $11,500 $9

2009 2,960 $57,900 $20

2010 6,793 $9,100 $1

2011 6,322 $120,100 $19

2012 8,559 $130,600 $15

Grand Total 35,458 $368,650 $10


– 92 –









Colfax County Gross Receipts Tax Activity


($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)

FY 2013 OGAS Support Activities * * * * * * *

FY 2013 Total OGAS-related * * * * * * *


FY 2014 All OGAS Total * * * * * * *


6. Put into context, the FY 2013 amount of total GRT paid by OGAS interests in Colfax County in the three NAICS codes represents an insignificant

portion of the $176 million total GRT impact. Similarly, the FY 2014 amount paid by OGAS interests in Colfax County in the four NAICS codes

represents an insignificant portion of the $207 million total GRT impact.



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266


– 93 –

7. If you include the gross receipts tax indirect economic burden and a substantial portion of the interest accruing to the general fund from the land

grant permanent fund (96+%) and the severance tax permanent fund (86+%) attributable to oil and gas production in the state, what is the plausi-

ble percentage of the total general fund derived from oil and gas production? Answer – 32.0% for FY 2013 and 35.1.5% for FY 2014 – see the main

document for further information. We can allocate the resulting $2,119 billion general fund share attributable to oil and gas production to the

producing counties.


Total Gen

Fund

OGAS Portion Colfax County Contribution Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.0 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.0 0.0% $50.9 $16.7 32.8%




$0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%

All other revenue sources $576.6 0.0% $564.0 0.0%






– 94 –

Colfax County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


Colfax County Charters $901 100% $901 $288 1

School Districts

Cimarron $3,560 100% $3,560 $1,139

Maxwell $1,180 100% $1,180 $378

Raton $9,090 100% $9,090 $2,909

Springer $2,177 90% $1,959 $627

Colfax County Total $16,908 $16,690 $5,341


Colfax County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters




Colfax County Charters $895 100% $895 $314 1

District Charter Schools 1

Moreno Valley High School (Cimarron) $895 100% $895 $314

School Districts

Cimarron $3,792 60% $2,275 $799

Maxwell $1,663 100% $1,663 $584

Raton $9,149 100% $9,149 $3,211

Springer $2,395 90% $2,156 $757

Colfax County Total $17,893 $16,137 $5,665



– 95 –

Colfax County Higher Education Institutions


FY 2012 LUNA CC Springer NSA NSA


FY 2014 LUNA CC Springer NSA NSA Note: "NSA" means "not separately appropriated". Typically, a non-appropriated branch institution is

appropriated and budgeted with the parent institution.








OGAS % of General Fund 30% 30% Colfax County(Amts in $1,000) Grand Total (Amts in $1,000)


Summary 44 $5,831 3,448 $721,609

General Fund 32 $2,944 2,887 $488,382

STBs 1 $250 156 $211,999

Other 2 $2,636 7 $19,178




Summary 23 $3,080 1,777 $341,187

STBs 8 $2,045 340 $215,491

General Fund 14 $435 1,434 $122,996

Other Funds 1 $600 3 $2,700


Vetoes 1 $25 187 $7,033


– 96 –

Colfax County(Amts in $1,000) Grand Total (Amts in $1,000)


Summary

STBs 3 $1,217 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0







Vetoes 0 $0 45 $12,902


Summary 49 42150



Reauthorizations 25




General Fund 22 $617 2,026 $123,111

STB 5 $487 490 $54,346

Vetoes 0 $0 74 $44,783


STB 0 $0 29 $5,679







– 97 –

Colfax County(Amts in $1,000) Grand Total (Amts in $1,000)



Summary 5 $1,195 484 $137,318

STBs 3 $180 280 $107,514

Other Funds 1 $1,000 7 $6,898



Vetoes 1 $15 194 $22,906


Summary 7 $6,460 785 $269,340

STBs 6 $3,260 769 $218,132

Other Funds 1 $3,200 16 $51,208


Vetoes 1 $75 72 $4,402


Summary 11 $3,615 852 $228,711

STBs 9 $2,215 823 $182,237

Other Funds, ex. WTF and Colonias projects 2 $1,400 28 $46,474




Vetoes 1 $68 62 $2,584


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 98 –

The Impacts of Oil and Natural Gas Production in New Mexico on Curry County A Summary of Important Economic and Revenue Issues

Curry County Summary

Curry County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This




lion and 1,169 million mcf of natural gas worth $6,115 million and 64.3 million mcf of CO2 worth $95.3.million

1. What products and land types generate the OGAS production in Curry County? Curry County is not an oil and natural gas producing area.


tails by product category. However, Curry County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Curry County? Curry County is not an oil and natural

gas producing area.




deducting the expenses of the SLO. No state leases have been sold in Curry County in the FY 2005 through FY 2014 period.


Curry County

Fiscal Yr

Bid

Amount Acres Price/Acre

FY05 Total $306 152 $2.01

FY10 Total $1,920 160 $12.00

FY11 Total $53,818 1,625 $33.11

Grand Total $56,044 1,938 $28.92





– 99 –

amount was improved somewhat, but those improvements are not reflected in the following table. Note that in the course of 2013, a total of

30 counties had reported activity in at least one of the three NAICS codes. Only DeBaca, Los Alamos and Mora Counties reported no gross re-

ceipts activity. For FY 2014, only Los Alamos County reported no GRT activity. Although the methodology has been improved this year, most of

the differences between 2013 and 2014 for this county are real. Extraction activity was significantly less in FY 2014 than in FY 2013. Drilling ac-

tivity was approximately flat. However, well services, completion, fracking and other recurring and non-recurring services significantly ex-

panded.

Curry County Gross Receipts Tax Activity Fiscal


Gross Receipts

($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)



FY 2014 All OGAS Total * * * * * * *

6. Put into context, the redacted amount of total GRT paid by OGAS interests in Curry County in the three NAICS codes represents an insignificant

portion of the $176 million total GRT impact. Similarly, the redacted amount of total GRT paid by OGAS interests in Curry County in the four

NAICS codes represents an insignificant portion of the $207 million total GRT impact.



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax Amt

($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266





– 100 –



FY2014 ($ in Millions) FY2013 Updated (($ in Millions)

Total Gen

Fund

OGAS Portion Curry Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.1 0.1% 1,917.70 127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.0 0.1% 50.9 16.7 32.8%

Personal Income Tax $1,254.9 $143.2 11.4% $0.1 0.1% 1,240.90 124 10.0%

Corporate Income $196.8 $42.0 21.4% $0.0 0.1% 267.2 54 20.2%


0 0 0.0%

Oil & Gas School Tax $500.7 $500.7 100.0%

0.0% 379.9 379.9 100.0%

7% Oil Conservation $27.2 $27.1 99.4%

0.0% 20.8 20.7 99.5%

Natural Gas Processors $16.2 $16.2 100.0%

0.0% 24.2 24.2 100.0%

Land Grant Perm. Fund Income $449.4 $434.8 96.7%

0.0% 440.9 425.8 96.6%

Earnings on State Balances $19.0 $6.0 31.5%

0.0% 14.7 4.7 31.8%

Sev Tax Perm. Fund Income $170.5 $147.6 86.6%

0.0% 176.2 152 86.3%

Federal Mineral Leasing $569.9 $566.9 99.5%

0.0% 459.6 446.4 97.1%

Land Office Income $47.5 $32.9 69.3%

0.0% 44.6 30.2 67.6%


0.0% 41.3 0.4 0.9%

Reversions $96.5 $30.9 32.0%

0.0% 65.8 21.8 33.1%

All other revenue sources $576.6 0.0%

564

0.0%

GRAND TOTAL REVENUES $6,040.5 $2,118.8 35.1% $0.3 0.0% 5,708.60 1,828.40 32.0%


industry is attributable to public school and higher education funding in the county. The table below for FY 2014 contains more detail for

charter schools in the county. The similar chart for FY 2013 is also included below.


– 101 –

Curry County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


Curry County Charters

School Districts

Clovis $54,512 100% $54,512 $17,444

Grady $1,109 100% $1,109 $355

Melrose $2,067 40% $827 $265

Texico $4,839 90% $4,355 $1,394

Curry County Total $62,528 $60,803 $19,458


Curry County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters




Curry County Charters $0 $0 $0 0

School Districts

Clovis $55,967 100% $55,967 $19,644

Grady $1,539 100% $1,539 $540

Melrose $2,391 40% $956 $336

Texico $4,894 90% $4,404 $1,546

Curry County Total $64,790 $62,866 $22,066



– 102 –

Curry County Higher Education


FY 2012 CLOVIS CC $8,429 $2,790

FY 2013 CLOVIS CC $8,751 $2,748

FY 2014 CLOVIS CC $9,641 $3,384

9. The oil and natural gas production industry also supports the lion's share of state-authorized and funded capital outlay projects whether

supported by severance tax bonds or via general fund appropriations. All counties benefit from this funding. In addition to the somewhat

regular capital outlay detailed here, the state has also established a water trust fund that receives an annual tranche of 10% of the amount

of severance tax bonds. There is also a tribal projects permanent fund and a Colonias project fund that get an annual tranche of a percent-

age of severance tax bonds. Details on these special funds are provided only for FY 2014. For this purpose, oil and natural gas production

provide 95% of severance tax bond funding and 30.0% of general fund appropriations.



Curry County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 50 $8,718 3,448 $721,609

General Fund 38 $4,533 2,887 $488,382

STBs 5 $4,185 156 $211,999

Other 0 $0 7 $19,178




Summary 21 $2,797 1,777 $341,187

STBs 6 $1,958 340 $215,491

General Fund 15 $839 1,434 $122,996



Vetoes 2 $400 187 $7,033


– 103 –


Summary

STBs 143 $139,960

General Fund

Other Funds

Amount Attrib. to OGAS 0 $132,962

Vetoes 0 $0







Vetoes 0 $0 45 $12,902


Summary 2 400 49 42150

STB funding 1 $400 23 $41,800






General Fund 25 $2,012 2,026 $123,111

STB 4 $113 490 $54,346

Vetoes 1 $170 74 $44,783


STB 1 $729 29 $5,679

Amount Attrib. to OGAS $0 -$83,167

Attrib. to OG Prod. Voids 0 $0 -$88,562






– 104 –


Summary 8 $1,065 484 $137,318

STBs 6 $960 280 $107,514




Vetoes 2 $105 194 $22,906


Summary 12 $1,471 785 $269,340

STBs 12 $1,471 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 8 $1,480 852 $228,711

STBs 8 $1,480 823 $182,237


Water Trust Fund Projects 1 $3,200 24 $33,048



Vetoes 0 $0 62 $2,584


– 105 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 106 –

The Impacts of Oil and Natural Gas Production in New Mexico on De Baca County A Summary of Important Economic and Revenue Issues

De Baca County Summary

DeBaca County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This





1. What products and land types generate the OGAS production in DeBaca County? DeBaca County is not an oil and natural gas producing area.


tails by product category. However, DeBaca County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in DeBaca County? DeBaca County is not an oil and natu-

ral gas producing area.




deducting the expenses of the SLO.


DeBaca County Fiscal Year Acres Bid Amount Price/Acre

2005 Total 16,258 $177,396 $11

Grand Total 16,258 $177,396 $11


DeBaca County Fiscal Yr Bid Amount Acres Price/Acre

FY05 Total $245,424 22,585 $11

Grand Total $245,424 22,585 $0


– 107 –









DeBaca County Gross Receipts Tax Activity


($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)

FY2013 Total OGAS-related


FY 2014 All OGAS Total * * * * * * *

6. Put into context, the redacted amount of total GRT paid by OGAS interests in FY 2014 in DeBaca County in the four NAICS codes represents an

insignificant portion of the $207 million total GRT impact.



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266




– 108 –

the plausible percentage of the total general fund derived from oil and gas production? Answer – 32.0% for FY 2013 and 35.1.5% for FY

2014 – see the main document for further information. We can allocate the resulting $2,119 billion general fund share attributable to oil

and gas production to the producing counties.


Total Gen

Fund

OGAS Portion DeBaca County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.1 0.1% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.0 0.1% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%


0.0%



industry is attributable to public school and higher education funding in the county. The table below for FY 2014 contains more detail for

charter schools in the county. The similar chart for FY 2013 is also included below.


– 109 –

DeBaca County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In coun-

ty

County Total

($1,000)

OGAS Supported

($1,000) # Charters


DeBaca County Charters 100%

School Districts

Ft. Sumner $3,560 100% $3,560 $1,139

DeBaca County Total $3,560 $3,560 $1,139


DeBaca County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In coun-

ty

County Total

($1,000)

OGAS Supported

($1,000) # Charters




DeBaca County Charters $0 $0 $0 0

School Districts

Ft. Sumner $3,390 100% $3,390 $1,190

DeBaca County Total $3,390 $3,390 $1,190


DeBaca County Higher Education Institutions


($1,000)

OGAS Amount

($1,000)







– 110 –





Oil and Gas Support of Severance Tax and Other Capital Outlay Bond Programs 95% 95%

30% 30%

DeBaca County(Amts in $1,000) Grand Total (Amts in $1,000)


Summary 15 $1,569 3,448 $721,609

General Fund 14 $1,269 2,887 $488,382

STBs 1 $300 156 $211,999

Other 0 $0 7 $19,178




Summary 6 $761 1,777 $341,187

STBs 2 $570 340 $215,491

General Fund 4 $191 1,434 $122,996



Vetoes 3 $85 187 $7,033


Summary

STBs 1 $563 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0





– 111 –





Vetoes 45 $12,902


Summary 1 0 49 42150

STB funding 0 $0 23 $41,800






General Fund 6 $54 2,026 $123,111

STB 1 $9 490 $54,346

Vetoes 1 $23 74 $44,783


STB 0 $0 29 $5,679








Summary 4 $160 484 $137,318

STBs 2 $60 280 $107,514




Vetoes 2 $100 194 $22,906


Summary 2 $250 785 $269,340


– 112 –


STBs 2 $250 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 2 $204 852 $228,711

STBs 2 $204 823 $182,237





Vetoes 0 $0 62 $2,584


– 113 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 114 –

The Impacts of Oil and Natural Gas Production in New Mexico on Doña Ana County A Summary of Important Economic and Revenue Issues

Doña Ana County Summary

Doña Ana County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This





1. What products and land types generate the OGAS production in Doña Ana County? Doña Ana County is not an oil and natural gas producing area.


tails by product category. However, Doña Ana County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Doña Ana County? Doña Ana County is not an oil and

natural gas producing area.






Doña Ana County Fiscal Year Acres Bid Amount Price/Acre

2010 2,559 $14,600 $6

Grand Total 2,559 $14,600 $6


Doña Ana County Fiscal Yr Bid Amount Acres Price/Acre

FY08 Total $52,136 26,062 $2.00

FY10 Total $16,800 4,560 $3.68

Grand Total $68,936 30,622 $2.25


– 115 –









Doña Ana County Gross Receipts Tax Activity

Fiscal


Gross Receipts

($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)

FY2013 Oil & Gas Extraction * * * * * * *






FY 2014 All OGAS Total * * * * * * *


6. Put into context, the redacted amount of total GRT paid by OGAS interests in Doña Ana County in FY 2013 in the three NAICS codes represents

an insignificant portion of the $176 million total GRT impact. Similarly, the redacted amount of total GRT paid by OGAS interests in Doña Ana

County in the four NAICS codes in FY 2014 represents an insignificant portion of the $207 million total GRT impact.



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026



– 116 –



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266







Total Gen

Fund

OGAS Portion Doña Ana County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.0 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.0 0.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% $41.3 $0.4 0.9%


– 117 –


Total Gen

Fund

OGAS Portion Doña Ana County Contrib. Total Gen

Fund

OGAS Portion


Reversions $96.5 $30.9 32.0% $65.8 $21.8 33.1%


0.0% $564.0

0.0%





Doña Ana County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


Doña Ana County Charters $12,658 100% $12,658 $4,050 8

School Districts

Gadsden $95,192 90% $85,673 $27,415

Hatch Valley $9,209 100% $9,209 $2,947

Las Cruces $166,950 100% $166,950 $53,424

Doña Ana County Total $284,008 $274,489 $87,836


Doña Ana County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000)

#

Charters




Doña Ana County Charters $9,219 $7,241 $2,542 6

State Charter Schools 4


– 118 –


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000)

#

Charters

Alma D' Arte Charter High School (Las Cruces) $1,735 100% $1,735 $609

Anthony Charter School (Gadsden) $812 100% $812 $285

J. Paul Taylor Academy (Las Cruces) $1,278 100% $1,278 $449

New America School (Las Cruces) $2,271 100% $2,271 $797


La Academia Dolores Huerta (Las Cruces) $1,145 100% $1,145 $402

Las Montañas Charter School (Las Cruces) $1,977.84 $0 $0

School Districts

Gadsden $96,591 100% $96,591 $33,903

Hatch Valley $9,098 100% $9,098 $3,193

Las Cruces $170,509 100% $170,509 $59,849

Doña Ana County Total $114,908 $112,931 $39,638


Doña Ana County Higher Education

Fiscal

Year Institution

Total Approp

($1,000)

OGAS Amount

($1,000)

FY 2012 New Mexico State University Main Campus $142,949 $47,316

FY 2012 New Mexico State University, Doña Ana Branch $18,292 $6,055

FY 2012 County Total $161,241 $53,371



FY 2013 County Total $171,542 $53,864



FY 2014 County Total $294,371 $97,437






– 119 –





Doña Ana County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 307 $48,539 3,448 $721,609

General Fund 264 $34,881 2,887 $488,382

STBs 12 $13,658 156 $211,999

Other 0 $0 7 $19,178




Summary 154 $25,123 1,777 $341,187

STBs 25 $17,537 340 $215,491

General Fund 129 $7,586 1,434 $122,996



Vetoes 23 $898 187 $7,033


Summary

STBs 6 $8,361 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0







– 120 –



Vetoes 3 $398 45 $12,902


Summary 8 2500 49 42150

STB funding 1 $2,500 23 $41,800






General Fund 155 $8,532 2,026 $123,111

STB 32 $2,263 490 $54,346

Vetoes 10 $893 74 $44,783


STB 2 $383 29 $5,679








Summary 34 $11,564 484 $137,318

STBs 18 $8,916 280 $107,514




Vetoes 16 $2,648 194 $22,906


Summary 49 $13,630 785 $269,340

STBs 49 $13,630 769 $218,132

Other Funds 0 $0 16 $51,208


– 121 –



Vetoes 4 $345 72 $4,402


Summary 53 $18,903 852 $228,711

STBs 53 $18,903 823 $182,237



Colonias Projects 16 $6,184 37 $16,640


Vetoes 2 $68 62 $2,584


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 122 –

The Impacts of Oil and Natural Gas Production in New Mexico on Eddy County A Summary of Important Economic and Revenue Issues

Eddy County Summary Eddy County is an oil and natural gas producing area in the Permian Basin. Oil and natural gas production is important to the County both directly

and indirectly. This summary details some of these important issues.

In FY 2010, county producers shipped 25,307 thousand barrels of oil worth $1,824.8 million and 219.1 million mcf of natural gas worth $1,126 mil-

lion. In FY 2014, county producers shipped 55,658 thousand barrels of oil worth $5,410.1 million and 296.3 million mcf of natural gas worth $1,521

million.

The advent of horizontal drilling and fracking (hydraulic and chemical treatment of new wells to enhance early production) has resulted in a

119.9% increase in county oil volume from FY 2010 to FY 2014 while county natural gas has experienced a 35.2% increase in volume during the

same period. Overall produced product value has grown sharply from about $3.0 billion to $6.9 billion. Lea and Roosevelt Counties have experi-

enced a similar pattern.




1. What products and land types generate the OGAS production in Eddy County?

Eddy County

Fiscal Year Product Volume (Mil-

lion mcf)

Value

($ million)

Price (per

mcf or bbl) Dedns %



FY 2010 GAS 219.1 $1,126 $5.14 16.7% 62% 0% 13% 26%

FY 2011 GAS 217.8 $1,230 $5.65 16.3% 59% 0% 11% 30%

FY 2012 GAS 227.4 $1,208 $5.31 16.2% 58% 0% 10% 31%

FY 2013 GAS 254.6 $1,154 $4.53 16.8% 57% 0% 10% 33%

FY 2014 GAS 296.3 $1,521 $5.14 17.4% 57% 0% 9% 34%

FY 2010 OIL 25.3 $1,825 $72.11 12.1% 69% 0% 5% 26%

FY 2011 OIL 31.1 $2,647 $85.16 12.2% 67% 0% 4% 29%

FY 2012 OIL 39.9 $3,583 $89.69 11.9% 63% 0% 5% 32%

FY 2013 OIL 52.2 $4,383 $83.93 11.6% 59% 0% 6% 35%

FY 2014 OIL 55.7 $5,410 $97.20 11.6% 64% 0% 9% 28%


– 123 –

Note : % Fede al desig ates the po tio of total p odu tio fo the pa ti ula p odu t o fede al su su fa e la d, si ila ly % I dia , %P i ate a d % “tate desig ate p odu tio o T i al o Natio la ds, p i ate la ds a d state la ds.



Product Sale Period Volume Value

($1.000) Price

Ratio to

Spot Price

Total Dedns

($1.000)

Dedns

%

Net Value

($1.000)

OIL (BBLS) FY11 29,578,263 $2,518,868 $85.16 95.40% $305,642 12.10% $305,836

OIL (BBLS) FY12 38,232,124 $3,429,347 $89.70 94.40% $405,965 11.80% $406,124

OIL (BBLS) FY13 50,116,260 $4,198,051 $83.77 90.90% $485,536 11.60% $485,942

CONDENSATE (BBLS) FY11 1,485,008 $125,602 $84.58 94.80% $15,902 12.70% $15,915



PROCESSED GAS (MCF) FY11 46,470,380 $197,736 $4.26 102.40% $20,389 10.30% $36,938



UNPROCESSED GAS (MCF) FY11 148,623,102 $820,438 $5.52 132.90% $93,798 11.40% $112,683



GAS PLANT PRODUCTS (MCF) FY11 22,731,362 $211,457 $9.30 223.90% $23,426 11.10% $51,375



PIT, SKIM, OTHER (BBLS) FY11 15,711 $2,187 $139.19 156.00% $0 0.00% $2

PIT, SKIM, OTHER (BBLS) FY12 11,360 $957 $84.21 88.60% $0 0.10% $2

PIT, SKIM, OTHER (BBLS) FY13 15,028 $1,232 $81.95 88.90% $2 0.20% $2

GAS LOST FY11 15,567 $169 $10.84 260.80% $19 11.00% $19

OIL LOST (BBLS) FY12 18,010 $18 $1.01 1.10% $0 0.00% $0

OIL LOST (BBLS) FY13 1,315 $107 $81.71 88.70% $0 0.00% $0

Note the highlighted prices and ratio to Henry Hub Spot Price for Gas Plant Products. Over a three-year period, processed gas price conforms closely to the Henry

Hub spot price. Unprocessed gas, with a component of ethane, butane and propane commands a premium to the spot price.

3. What does this mean for state and local direct revenues from production in Eddy County?


– 124 –

Eddy County

Product Sale

Period

School Tax

($1,000)

Severance

Tax ($1,000)

Conservation

Tax ($1,000)

AV Production

($1,000)

Total Eff. Tax

Rate

AV Prod Equip

Tax ($1,000)1

Natural Gas FY10 $37,983 $35,610 $1,804 $9,158 9.15%

Natural Gas FY11 $41,390 $38,803 $1,965 $10,332 9.19% $1,553

Natural Gas FY12 $40,534 $38,001 $1,925 $9,858 9.16% $1,755

Natural Gas FY13 $38,375 $35,977 $1,822 $9,075 9.12% $1,834

Natural Gas FY14 $50,677 $47,510 $2,406 $11,952 9.12% $1,692

Oil FY10 $50,649 $60,296 $3,116 $15,721 8.07%

Oil FY11 $73,010 $86,917 $5,552 $23,612 8.16% $2,629

Oil FY12 $99,079 $117,951 $7,543 $30,964 8.12% $3,932

Oil FY13 $121,359 $144,475 $9,244 $36,804 8.10% $5,693

Oil FY14 $152,245 $181,244 $11,599 $45,797 8.09% $6,797 1. The Ad Valorem Production Equipment Tax is collected by County Treasurers in the various producing counties. The obligations are roughly

20% of the previous year's ad valorem production tax amounts. These data are for the 2010 through 2013 taxable year. Payments were largely

made in FY10 throughFY14. Data are from Property Tax Rate Sheets (DFA/LGD) and are ratioed to the product by total taxable value.

Note: all of the School Tax and the bulk of the Conservation Tax are transferred to the State General Fund. The Severance Tax is

transferred to the Severance Tax Bonding Fund (STBF), where is used to pay off severance tax bonds (STBs). In some years, the

residual in the STBF is subsequently transferred to the Severance Tax Permanent Fund (STPF).






Eddy County Fiscal Year Acres Bid Amount Price/Acre

2005 27,897 $10,936,445 $392

2006 38,910 $17,567,809 $452

2007 22,892 $15,128,786 $661

2008 9,651 $5,057,434 $524

2009 13,150 $8,052,848 $612

2010 17,733 $18,186,704 $1,026


– 125 –

Eddy County Fiscal Year Acres Bid Amount Price/Acre

2011 20,985 $7,941,401 $378

2012 7,679 $9,573,507 $1,247

2013 9,464 $6,524,098 $689

2014 14,449 $17,272,802 $1,195

Grand Total 182,809 $11,491,220 $63



Eddy County

Fiscal Year Bid Amount Acres Price/Acre

FY04 Total $5,198,342 28,216 $184

FY05 Total $26,892,705 55,166 $487

FY06 Total $45,574,065 67,631 $674

FY07 Total $16,088,848 19,413 $829

FY08 Total $24,262,905 17,883 $1,357

FY09 Total $19,752,200 12,768 $1,547

FY10 Total $4,373,714 4,172 $1,048

FY11 Total $6,117,590 4,703 $1,301

FY12 Total $3,587,900 2,979 $1,204

FY13 Total $15,504,760 6,656 $2,329

FY14 Total $24,189,745 8,680 $2,787

Grand Total $191,542,774 228,267 $0





amount was improved somewhat, but those improvements are not reflected in the following table. Note that in the course of 2013, 30 counties

had reported activity in at least one of the three NAICS codes. Only DeBaca, Los Alamos and Mora Counties reported no gross receipts activity.

For FY 2014, only Los Alamos County reported no GRT activity. Although the methodology has been improved this year, most of the differences

between 2013 and 2014 for this county are real. Extraction activity was significantly less in FY 2014 than in FY 2013. Drilling activity was approxi-

mately flat. However, well services, completion, fracking and other recurring and non-recurring services significantly expanded.


– 126 –

Eddy County Gross Receipts Tax Activity


($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)

FY 2013 Oil & Gas Extraction 210 $41,149 $38,990 $2,312 7.10% $1,948 $364

FY 2013 Drilling Oil and Gas Wells 245 $219,482 $219,187 $12,593 6.76% $11,240 $1,353

FY 2013 OGAS Support Activities 2,197 $890,770 $526,153 $34,487 6.93% $23,892 $10,595

FY 2013 Total OGAS-related 2,652 $1,151,400 $784,331 $49,392 6.93% $37,080 $12,312


FY 2014 Drilling Oil and Gas Wells 233 $222,055 $221,411 $12,734 5.75% $11,345 $1,389


FY 2014 Extraction Services 21 $1,990 $1,899 $140 7.35% $75 $64

FY 2014 Total OGAS-related 2,671 $1,173,863 $841,778 $52,924 6.29% $39,973 $12,950

6. Put into context, the FY 2013 amount of $49.4 million of total GRT paid by OGAS interests in Eddy County in the three NAICS codes represents

a major portion of the $176 million total GRT impact. (28.04%). Similarly, the FY 2014 amount of $52.9 million of total GRT paid by OGAS inter-

ests in Eddy County Summary in the four NAICS codes represents a major portion of the $207 million total GRT impact.(25.56%).

FY 2014 OGAS Gross Receipts Tax Analysis


($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)

FY 2013 Drilling Oil and Gas Wells 829 $380,096 $373,871 $21,231 $19,083 $2,141 $7



FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 $127,548 $47,584 $1,026

FY 2014 Drilling Oil and Gas Wells 1,342 $576,347 $537,875 $31,104 $27,214 $3,766 $123

FY 2014 OGAS Extraction Services 114 $11,145 $9,761 $589 $454 $135 -



FY 2014 Grand Total 12,240 $5,490,776 $3,342,086 $207,036 $151,479 $54,292 $1,266





– 127 –




Total Gen

Fund

OGAS Portion Eddy County Contribution Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $39.3 26.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $4.6 26.0% $50.9 $16.7 32.8%




$0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%






Eddy County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


$50,300 95


– 128 –


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters

Eddy County Charters $1,725 100% $1,725 $552 1

School Districts

Artesia $24,679 60% $14,808 $4,738

Carlsbad $44,762 100% $44,762 $14,324

Loving $5,198 100% $5,198 $1,663

Eddy County Total $76,365

$66,493 $21,277


$675,260

Eddy County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


$58,034 97

State Charter Schools $95,212

$33,419 57

District Charter Schools $70,126

$24,614 40

Eddy County Charters $1,737 100% $1,737.09 $610 1


1

Jefferson Montessori Academy (Carlsbad) $1,737 100% $1,737.09 $610

School Districts

Artesia $24,302 60% $14,581 $5,118

Carlsbad $46,772 100% $46,772 $16,417

Loving $4,927 100% $4,927 $1,729

Eddy County Total $77,738

$68,017 $23,874


$768,814

Eddy County Higher Education Institutions


($1,000)

OGAS Amount

($1,000)

FY 2012 New Mexico State University, Carlsbad $4,288 $1,419




– 129 –









Eddy County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 89 $10,234 3,448 $721,609

General Fund 71 $8,105 2,887 $488,382

STBs 5 $2,130 156 $211,999

Other 0 $0 7 $19,178




Summary 36 $3,976 1,777 $341,187

STBs 7 $1,495 340 $215,491

General Fund 29 $2,481 1,434 $122,996



Vetoes 7 $275 187 $7,033


Summary

STBs 143 $139,960

General Fund

Other Funds


Vetoes 0 $0


– 130 –








Vetoes 3 $403 45 $12,902

2010 2ND SS CAPITAL OUTLAY PROJECTS AND REAUTHORIZA- Projects Amount Projects Amount

Summary 1 0 49 42150

STB funding 0 $0 23 $41,800






General Fund 39 $2,456 2,026 $123,111

STB 2 $20 490 $54,346

Vetoes 1 $200 74 $44,783


STB 0 $0 29 $5,679








Summary 15 $2,102 484 $137,318

STBs 10 $1,617 280 $107,514




Vetoes 5 $485 194 $22,906


– 131 –



Summary 25 $2,902 785 $269,340

STBs 25 $2,902 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 21 $3,065 852 $228,711

STBs 21 $3,065 823 $182,237





Vetoes 0 $0 62 $2,584


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 132 –

The Impacts of Oil and Natural Gas Production in New Mexico on Grant County A Summary of Important Economic and Revenue Issues

Grant County Summary

Grant County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This





1. What products and land types generate the OGAS production in Grant County? Grant County is not an oil and natural gas producing area.


tails by product category. However, Grant County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Grant County? Grant County is not an oil and natural

gas producing area.




deducting the expenses of the SLO. No state leases were sold in the FY 2005 period and only one federal lease was sold.


Grant County Fiscal Yr Bid Amount Acres Price/Acre

FY07 Total $9,820 981 $10

Grand Total $9,820 981 $0








– 133 –




Grant County Gross Receipts Tax Activity


($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)

FY2013 OGAS Support Activities 4 $10 $10 $0.6 6.26% $0.5 $0.1

FY2013 Total OGAS-related 4 $10 $10 $0.6 6.00% $0.5 $0.1



FY 2014 All OGAS Total * * * * * *


6. Put into context, the FY 2013 amount of $0.6 thousand of total GRT paid by OGAS interests in Grant County in the three NAICS codes repre-

sents a very small portion of the $176 million total GRT impact. (0.00%). Similarly, the redacted amount of total GRT paid by OGAS interests in

Grant County in the four NAICS codes represents an insignificant portion of the $207 million total GRT impact.



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax Amt

($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266




– 134 –





Total Gen

Fund

OGAS Portion Grant County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.1 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.0 0.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% $65.8 $21.8 33.1%


0.0%






– 135 –

Grant County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000) % In county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


Grant County Charters $1,176 100% $1,176 $376 1

School Districts

Cobre Consolidated $11,526 100% $11,526 $3,688

Silver City Consolidated $22,157 100% $22,157 $7,090

Grant County Total $34,859 $34,859 $11,154


Grant County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000) % In county

County Total

($1,000)

OGAS Supported

($1,000) # Charters




Grant County Charters $1,828 $1,828 $642 1

State Charter Schools

Aldo Leopold Charter School (Silver) $1,828 100% $1,828 $642

School Districts

Cobre $11,420 100% $11,420 $4,009

Sliver $23,136 100% $23,136 $8,121

Grant County Total $36,384 $36,384 $12,772


Grant County -- Higher Education


FY 2012 Western New Mexico University (WNMU) $16,532 $5,472




– 136 –









Grant County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 52 $7,282 3,448 $721,609

General Fund 48 $7,274 2,887 $488,382

STBs 1 $9 156 $211,999

Other 0 $0 7 $19,178




Summary 25 $2,372 1,777 $341,187

STBs 4 $692 340 $215,491

General Fund 21 $1,680 1,434 $122,996



Vetoes 1 $50 187 $7,033


Summary

STBs 5 $5,378 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0


– 137 –








Vetoes 2 $287 45 $12,902


Summary 49 42150



Reauthorizations 25




General Fund 36 $2,698 2,026 $123,111

STB 3 $262 490 $54,346

Vetoes 0 $0 74 $44,783


STB 0 $0 29 $5,679






No new STBs were authorized


Summary 5 $1,147 484 $137,318

STBs 5 $1,147 280 $107,514




Vetoes 0 $0 194 $22,906


– 138 –



Summary 9 $8,127 785 $269,340

STBs 9 $8,127 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 10 $1,438 852 $228,711

STBs 10 $1,438 823 $182,237





Vetoes 0 $0 62 $2,584


– 139 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 140 –

The Impacts of Oil and Natural Gas Production in New Mexico on Guadalupe County A Summary of Important Economic and Revenue Issues

Guadalupe County Summary

Guadalupe County is a natural gas producing area in the Santa Rosa Basin. Oil and natural gas production is important to the County both directly

and indirectly. This summary details some of these important issues. In FY 2011, county producers shipped 67.2 thousand mcf of natural gas worth

$212.7 thousand.

In FY 2014, county producers shipped no natural gas. Although the advent of horizontal drilling and fracking (hydraulic and chemical treatment of

new wells to enhance early production) has resulted in a an general increase in oil volumes generally from FY 2010 to FY 2014, natural gas produc-

tion in the county is no longer viable.



lion and 1,169 million mcf of natural gas worth $6,115 million and 64.3 million mcf of CO2 worth $ . . illio . Note: f is ,000 cubic feet of

gas at standard temperature and pressure.).

1. What products and land types generate the OGAS production in Guadalupe County?

Guadalupe County

Fiscal Year Product Volume (Thou-

sand mcf)

Value

($ thousand) Price Dedns %



FY 2010 GAS

FY 2011 GAS 67.2 $213 $3.16 40.5% 0% 0% 100% 0%

FY 2012 GAS 1.0 $12 $11.58 51.6% 0% 0% 100% 0%

FY 2013 GAS

FY 2014 GAS


2. Is there more detail on specific product? Yes, the ONGRD system has for several years published details by product category. However, all of

the production in Guadalupe County is considered 'Unprocessed Gas.'

3. What does this mean for state and local direct revenues from production in Guadalupe County?


– 141 –






Guadalupe County Fiscal Year Acres Bid Amount Price/Acre

2005 1,720 $12,200 $7

2006 12,385 $107,475 $9

2007 45,438 $286,980 $6

2013 2,240 $60,100 $27

Grand Total 61,783 $466,755 $8

Guadalupe County

Product Sale Peri-

od

School Tax

($1,000)

Severance Tax

($1,000)

Conservation Tax

($1,000)

AV Production

($1,000)

Total Eff. Tax

Rate

AV Prod Equip

Tax ($1,000)1

Natural Gas FY10 $0.0 $0.0 $0.0 $0.0 3.75%

Natural Gas FY11 $5.1 $4.7 $0.2 $0.1 8.04%

Natural Gas FY12 $0.3 $0.2 $0.0 $0.0 8.04% $0.0

Natural Gas FY13 $0.0 $0.0 $0.0 $0.0 3.75% $0.0

Natural Gas FY14 $0.0 $0.0 $0.0 $0.0 3.75%

Oil FY10 $0.0 $0.0 $0.0 $0.0

Oil FY11 $3.3 $3.1 $0.2 $0.1 8.02%

Oil FY12 $2.0 $1.9 $0.1 $0.0 8.02% $0.0

Oil FY13 $0.0 $0.0 $0.0 $0.0 $0.2

Oil FY14 $0.0 $0.0 $0.0 $0.0

1. The Ad Valorem Production Equipment Tax is collected by County Treasurers in the various producing counties. The obligations are roughly 20% of the

previous year's ad valorem production tax amounts. These data are for the 2010 through 2013 taxable year. Payments were largely made in FY10

throughFY14. Data are from Property Tax Rate Sheets (DFA/LGD) and are ratioed to the product by total taxable value.

Note: all of the School Tax and the bulk of the Conservation Tax are transferred to the State General Fund. The Severance Tax is transferred

to the Severance Tax Bonding Fund (STBF), where is used to pay off severance tax bonds (STBs). In some years, the residual in the STBF is

subsequently transferred to the Severance Tax Permanent Fund (STPF).


– 142 –


Guadalupe County

Fiscal Yr

Bid


FY06 Total $1,720 12,200 $7

FY07 Total $12,385 107,475 $9

FY08 Total $45,438 286,980 $6

FY14 Total $2,240 60100 $27

Grand Total $61,783 466,755 $8









Guadalupe County Gross Receipts Tax Activity


($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)

FY 2013 Oil & Gas Extraction * * * * * * *

FY 2013 Drilling Oil and Gas Wells * * * * * * *






FY 2014 All OGAS Total * * * * * * *



– 143 –

6. Put into context, the FY 2013 amount of total GRT paid by OGAS interests in Guadalupe County in the three NAICS codes represents an insignif-

icant portion of the $176 million total GRT impact. Similarly, the FY 2014 amount paid by OGAS interests in Guadalupe County in the four NA-

ICS codes represents an insignificant portion of the $207 million total GRT impact.







Total Gen

Fund

OGAS Portion Guadalupe County Contribution Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.0 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.0 0.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%




($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266


– 144 –


Total Gen

Fund

OGAS Portion Guadalupe County Contribution Total Gen

Fund

OGAS Portion









Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%






Guadalupe County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


Guadalupe County Charters $0 100% $0 $0 0

School Districts

Santa Rosa $5,612 100% $5,612 $1,796

Vaughn $1,379 100% $1,379 $441

Guadalupe County Total $6,991 $6,991 $2,237



– 145 –

Guadalupe County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters




Guadalupe County Charters

School Districts

Santa Rosa $5,890 95% $5,596 $1,964

Vaughn $1,593 50% $797 $280

Guadalupe County Total $7,484 $6,392 $2,244


Guadalupe County Higher Education Institutions


($1,000)

OGAS Amount

($1,000)



FY 2014 LUNA CC Springer NSA NSA Note: "NSA" means "not separately appropriated". Typically, a non-appropriated

branch institution is appropriated and budgeted with the parent institution.








– 146 –



Guadalupe County(Amts in $1,000) Grand Total (Amts in $1,000)


Summary 30 $3,431 3,448 $721,609

General Fund 28 $2,916 2,887 $488,382

STBs 2 $515 156 $211,999

Other 0 $0 7 $19,178




Summary 11 $1,228 1,777 $341,187

STBs 3 $740 340 $215,491

General Fund 8 $488 1,434 $122,996



Vetoes 0 $0 187 $7,033


Summary

STBs 143 $139,960

General Fund

Other Funds


Vetoes 0 $0







Vetoes 0 $0 45 $12,902


– 147 –



Summary 49 42150



Reauthorizations 25




General Fund 12 $501 2,026 $123,111

STB 1 $200 490 $54,346

Vetoes 0 $0 74 $44,783


STB 0 $0 29 $5,679








Summary 6 $535 484 $137,318

STBs 4 $515 280 $107,514




Vetoes 2 $20 194 $22,906


Summary 9 $461 785 $269,340

STBs 9 $461 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 2 $47 72 $4,402


– 148 –



Summary 14 $1,555 852 $228,711

STBs 13 $1,305 823 $182,237





Vetoes 0 $0 62 $2,584


– 149 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 150 –

The Impacts of Oil and Natural Gas Production in New Mexico on Harding County A Summary of Important Economic and Revenue Issues

Harding County Summary Harding County is a carbon dioxide (CO2) producing area in the CO2 Basin. Natural gas, oil and the associated CO2 production is important to the

county both directly and indirectly. This summary details some of these important issues.

In FY 2011, Harding County CO2 producers shipped 61.1 million mcf of carbon dioxide worth $75.9 million. In FY 2014, Harding County CO2 pro-

ducers shipped 55.7 million mcf of carbon dioxide worth $82.5 million.

The advent of horizontal drilling and fracking (hydraulic and chemical treatment of new wells to enhance early production) has resulted in a de-

creased demand for CO2 for use in enhanced oil recovery projects. CO2 volumes in Harding County from FY 2011 to FY 2014have experienced a

08.8% decline in volume. Overall produced product value has also decreased from about $75.9 million to $82.5 million. Quay and Union Counties

have experienced a similar overall decline.




1. What products and land types generate the OGAS production in Harding County?

Harding County


(Million mcf)

Value

($ million)

Price

($/mcf) Dedns %



FY 2010 CO2 61.87 $63.0 $1.02 25.6% 8% 0% 49% 43%

FY 2011 CO2 61.07 $75.9 $1.24 21.5% 8% 0% 51% 41%

FY 2012 CO2 57.20 $75.9 $1.33 22.5% 8% 0% 52% 40%

FY 2013 CO2 59.82 $79.5 $1.33 25.1% 7% 0% 54% 39%

FY 2014 CO2 55.69 $82.5 $1.48 22.9% 6% 0% 54% 40%


2. Is there more detail on specific product? Yes, the ONGRD system has for several years published details by product category. However, all pro-

duction in Harding County is carbon dioxide gas and the detail table is the same as above.


– 151 –

3. What does this mean for state and local direct revenues from production in Harding County?

Harding County Revenue Detail

Product Sale

Period

School Tax

($1,000)

Severance

Tax($1,000)

Conservation

Tax ($1,000)

AV Produc-

tion ($1,000)

Total Eff.

Tax Rate

AV Prod Equip

Tax ($1,000)1

CO2 FY10 $1,476 $1,757 $89 $388 8.12%

CO2 FY11 $2,694 $3,207 $162 $883 8.38% $72.5

CO2 FY12 $1,853 $2,206 $112 $539 8.23% $88.1

CO2 FY13 $1,877 $2,234 $113 $548 8.24% $105.5

CO2 FY14 $2,030 $2,416 $122 $646 8.34% $113.8 1. The Ad Valorem Production Equipment Tax is collected by County Treasurers in the various producing counties. The obligations are roughly











Harding County FY Acres Bid Amounts Price/Acre

2006 Total 25,561 $124,750 $5

2007 Total 1,434 $33,859 $24

2011 Total 120 $2,701 $23

2013 Total 640 $33,280 $52

2014 Total 8,428 $441,500 $52

Grand Total 36,182 $636,090 $18


– 152 –


Harding County

Fiscal Yr Bid Amount Acres Price/Acre

FY08 Total $23,000 1,319 $17

Grand Total $23,000 $1,319 $17









Harding County Gross Receipts Tax Activity


($1,000)

Txbl Gross

Rcpts ($1,000)

Gross

Tax($1,000)

GRT Rate

(%)

Approx

State($1,000)

Approx Cnty/

Muni ($1,000)

FY 2013 Drilling Oil and Gas Wells * * * * * *




FY 2014 Extraction services * * * * * * *

FY 2014 All OGAS Total * * * * * * *


6. Put into context, the FY 2013 amount of total GRT paid by OGAS interests in Harding County in the three NAICS codes represents an insignifi-

cant portion of the $176 million total GRT impact. Similarly, the FY 2014 amount of total GRT paid by OGAS interests in Harding County Sum-

mary in the four NAICS codes represents an insignificant portion of the $207 million total GRT impact.


– 153 –



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266







Total Gen

Fund

OGAS Portion Harding County Contribution Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.3 0.2% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.0 0.2% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% 0.0% $0.0 $0.0 0.0%







– 154 –


Total Gen

Fund

OGAS Portion Harding County Contribution Total Gen

Fund

OGAS Portion





Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%






Harding County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%

DISTRICT

2012-2013 Program

Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000)

#

Charters


$50,300 95

Harding County Charters

School Districts

Logan $2,939 30% $882 $282

Mosquero $604 100% $604 $193

Roy $495 100% $495 $158

Harding County Total $4,037

$1,980 $633


$675,260


– 155 –

Harding County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%

District Operating Budgets

($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters

All Charter Schools $165,338.00 $58,034.00 97

State Charter Schools $95,212.01 $33,419.42 57

District Charter Schools $70,126.09 $24,614.26 40

Harding County Charters $0.00 100% $0.00 $0.00 0

School Districts

Logan $2,835 30% $851 $299

Mosquero $1,122 100% $1,122 $394

Roy $1,207 100% $1,207 $424

Harding County Total $5,164 $3,179 $1,116


Harding County Higher Education Institutions

Fiscal

Year Institution

Total Approp

($1,000)

OGAS Amount

($1,000)











– 156 –



Harding County(Amts $1,000) Grand Total (Amts in $1,000)


Summary 12 $815 3,448 $721,609

General Fund 10 $503 2,887 $488,382

STBs 2 $312 156 $211,999

Other 0 $0 7 $19,178




Summary 5 $520 1,777 $341,187

STBs 3 $445 340 $215,491

General Fund 2 $75 1,434 $122,996



Vetoes 1 $25 187 $7,033


Summary

STBs 143 $139,960

General Fund

Other Funds


Vetoes 0 $0







Vetoes 45 $12,902


– 157 –



Summary 49 42150



Reauthorizations 25




General Fund 1 $3 2,026 $123,111

STB 1 $10 490 $54,346

Vetoes 0 $0 74 $44,783


STB 0 $0 29 $5,679








Summary 2 $110 484 $137,318

STBs 2 $110 280 $107,514




Vetoes 0 $0 194 $22,906


Summary 1 $256 785 $269,340

STBs 1 $256 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


– 158 –



Summary 2 $70 852 $228,711

STBs 2 $70 823 $182,237





Vetoes 0 $0 62 $2,584


– 159 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 160 –

The Impacts of Oil and Natural Gas Production in New Mexico on Hidalgo County A Summary of Important Economic and Revenue Issues

Hidalgo County Summary

Hidalgo County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This





1. What products and land types generate the OGAS production in Hidalgo County? Hidalgo County is not an oil and natural gas producing area.


tails by product category. However, Hidalgo County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Hidalgo County? Hidalgo County is not an oil and natu-







Hidalgo County Fiscal Year Acres Bid Amount Price/Acre

2006 2,560 $12,100 $4.73

2007 15,372 $162,200 $10.55

2011 1,679 $1,825 $1.09

Grand Total 19,612 $176,125 $9.00


– 161 –


Hidalgo County Fiscal Yr Bid Amount Acres Price/Acre

FY06 Total $15,564 2,594 $6.00

FY07 Total $27,528 13,762 $2.00

FY13 Total $19,638 9817.52 $2.00

Grand Total $62,730 26,173 $2.40

5. How about Gross Receipts Tax revenue to county and municipal governments for the NAICS codes 211110 - Oil & Gas Extraction; 213111 Drilling

oil and gas wells; 213112 - Support activities for oil and gas operations; and 213118 - Services to oil and gas extraction? Refer to the main docu-

ment for an explanation of the economic burden concept for Gross Receipts Tax. This year, the methodology for calculating the State tax amount

was improved somewhat, but those improvements are not reflected in the following table. Note that in the course of 2013, 30 counties had re-

ported activity in at least one of the three NAICS codes. Only DeBaca, Los Alamos and Mora Counties reported no gross receipts activity. For FY

2014, only Los Alamos County reported no GRT activity. Although the methodology has been improved this year, most of the differences between

2013 and 2014 for this county are real. Extraction activity was significantly less in FY 2014 than in FY 2013. Drilling activity was approximately flat.

However, well services, completion, fracking and other recurring and non-recurring services significantly expanded.

Hidalgo County Gross Receipts Tax Activity


($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx

State($1,000)

Approx Cnty/

Muni ($1,000)




FY 2014 All OGAS Total * * * * * * *


6. Put into context, the FY 2013 redacted amount of total GRT paid by OGAS interests in Hidalgo County in the three NAICS codes represents an

insignificant portion of the $176 million total GRT impact. Similarly, the FY 2014 redacted amount of total GRT paid by OGAS interests in Hidal-

go County in the four NAICS codes represents an insignificant portion of the $207 million total GRT impact.


– 162 –



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266







Total Gen

Fund

OGAS Portion Hidalgo County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.02 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.00 0.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%







– 163 –


Total Gen

Fund

OGAS Portion Hidalgo County Contrib. Total Gen

Fund

OGAS Portion





Misc. Receipts $45.0 $1.2 2.7% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% $65.8 $21.8 33.1%


0.0%





Hidalgo County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000)

#

Charters


Hidalgo County Charters 0

School Districts

Animas $2,419 100% $2,419 $774

Lordsburg $4,899 100% $4,899 $1,568

Hidalgo County Total $7,319 $7,319 $2,342



– 164 –

Hidalgo County -- FY 2014 Public School Support



($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000)

#

Charters




Hidalgo County Charters $0 $0 $0 0

School Districts

Animas $2,106 100% $2,106 $739

Lordsburg $5,106 100% $5,106 $1,792

Hidalgo County Total $7,211 $7,211 $2,531


Hidalgo County Higher Education Institutions

Fiscal

Year Institution

Total Approp

($1,000)

OGAS Amount

($1,000)











– 165 –



Hidalgo County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 16 $4,528 3,448 $721,609

General Fund 9 $1,902 2,887 $488,382

STBs 3 $2,626 156 $211,999

Other 0 $0 7 $19,178




Summary 8 $9,241 1,777 $341,187

STBs 5 $8,791 340 $215,491

General Fund 3 $450 1,434 $122,996



Vetoes 0 $0 187 $7,033


Summary

STBs 2 $1,550 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0







Vetoes 0 $0 45 $12,902


– 166 –



Summary 49 42150



Reauthorizations 25




General Fund 2 $187 2,026 $123,111

STB 1 $2 490 $54,346

Vetoes 0 $0 74 $44,783


STB 0 $0 29 $5,679








Summary 2 $377 484 $137,318

STBs 1 $250 280 $107,514




Vetoes 1 $127 194 $22,906


Summary 3 $466 785 $269,340

STBs 3 $466 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


– 167 –



Summary 3 $599 852 $228,711

STBs 3 $599 823 $182,237





Vetoes 0 $0 62 $2,584


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 168 –

The Impacts of Oil and Natural Gas Production in New Mexico on Lea County A Summary of Important Economic and Revenue Issues

Lea County Summary Lea County is an oil and natural gas producing area in the Permian Basin. Oil and natural gas production is important to the County both directly

and indirectly. This summary details some of these important issues.

In FY 2010, county producers shipped 33,177 thousand barrels of oil worth $2,381.5 million and 195.9 million mcf of natural gas worth $1,095 mil-

lion. In FY 2014, county producers shipped 48,413 thousand barrels of oil worth $4,924.9 million and 185.7 million mcf of natural gas worth $1,037

million.

The advent of horizontal drilling and fracking (hydraulic and chemical treatment of new wells to enhance early production) has resulted in a 45.9%

increase in county oil volume from FY 2010 to FY 2014 while county natural gas has experienced a 5.2% decrease in volume during the same peri-

od. Overall produced product value has grown sharply from about $3.5 billion to $6.0 billion. Eddy and Roosevelt Counties have experienced a

similar pattern.




1. What products and land types generate the OGAS production in Lea County?

Lea County

Fiscal Year

Product Volume (Million

bbls or mcf) Value

($ million) Price

(per bbl or mcf) Dedns %



FY 2010 GAS 195.9 $1,095 $5.59 15.5% 30% 0% 29% 42%

FY 2011 GAS 164.9 $981 $5.95 12.3% 31% 0% 31% 38%

FY 2012 GAS 175.2 $1,037 $5.92 15.8% 29% 0% 31% 40%

FY 2013 GAS 173.5 $827 $4.77 17.0% 32% 0% 29% 39%

FY 2014 GAS 185.7 $1,037 $5.59 19.2% 34% 0% 26% 40%

FY 2010 OIL 33.2 $2,381 $71.78 9.4% 30% 0% 27% 43%

FY 2011 OIL 33.3 $2,825 $84.93 9.2% 32% 0% 24% 44%

FY 2012 OIL 36.1 $3,272 $90.57 9.2% 35% 0% 21% 43%

FY 2013 OIL 43.6 $3,427 $78.60 10.2% 39% 0% 17% 45%

FY 2014 OIL 48.4 $4,925 $101.73 11.6% 37% 0% 16% 47%


– 169 –




Product Sale

Period Volume

Value

($1.000) Price

Ratio to Spot

Price

Total Dedns

($1.000) Dedns %

Net Value

($1.000)

Oil (Bbls) FY11 32,543,544 $2,766,058 $85.00 95.30% $254,469 9.20% $2,511,588

Oil (Bbls) FY12 35,062,277 $3,175,347 $90.56 95.30% $289,221 9.10% $2,886,127

Oil (Bbls) FY13 41,354,455 $3,230,752 $78.12 84.80% $325,998 10.10% $2,904,755

Condensate (Bbls) FY11 674,131 $56,634 $84.01 94.20% $6,622 11.70% $50,012


Condensate (Bbls) FY13 1,315,494 $114,083 $86.72 94.10% $15,303 13.40% $98,780

Processed Gas (Mcf) FY11 39,960,468 $157,448 $3.94 94.80% $22,784 14.50% $134,664



Unprocessed Gas (Mcf) FY11 82,664,393 $506,939 $6.13 147.60% $55,954 11.00% $450,985



Gas Plant Products (Mcf) FY11 42,322,097 $316,655 $7.48 180.10% $41,509 13.10% $275,146



Pit, Skim, Other (Bbls) FY11 47,880 $2,623 $54.79 61.40% $6 0.20% $2,617



Oil Lost (Bbls) FY12 7,957 $759 $95.44 100.50% $112 14.70% $648

Oil Lost (Bbls) FY13 3,517 $301 $85.53 92.80% $45 15.10% $256

3. What does this mean for state and local direct revenues from production in Lea County?

Lea County

Product Sale

Period

School Tax

($1,000)

Severance

Tax($1,000)

Conservation

Tax ($1,000)

AV Production

($1,000)

Total Eff.

Tax Rate

AV Prod Equip

Tax ($1,000)1

Natural Gas FY10 $37,160 $34,838 $1,765 $11,504 9.49%


– 170 –

Lea County

Product Sale

Period

School Tax

($1,000)

Severance

Tax($1,000)

Conservation

Tax ($1,000)

AV Production

($1,000)

Total Eff.

Tax Rate

AV Prod Equip

Tax ($1,000)1

Natural Gas FY11 $34,585 $32,423 $1,642 $11,919 9.66% $2,089

Natural Gas FY12 $35,039 $32,850 $1,664 $12,083 9.66% $2,188

Natural Gas FY13 $27,370 $25,660 $1,299 $9,198 9.62% $2,288

Natural Gas FY14 $33,834 $31,719 $1,606 $11,423 9.63% $1,815

Oil FY10 $68,423 $81,456 $4,206 $28,294 8.40%

Oil FY11 $80,761 $96,144 $6,149 $35,328 8.52% $4,884

Oil FY12 $93,569 $111,392 $7,131 $40,327 8.50% $6,487

Oil FY13 $94,939 $113,023 $7,233 $39,699 8.46% $7,758

Oil FY14 $139,139 $165,642 $10,601 $57,894 8.45% $7,993 1. The Ad Valorem Production Equipment Tax is collected by County Treasurers in the various producing counties. The obligations are roughly











Lea County Fiscal Year Acres Bid Amount Price/Acre

2005 30,658 $10,968,920 $358

2006 79,836 $31,232,297 $391

2007 63,084 $19,909,158 $316

2008 75,650 $21,298,665 $282

2009 79,008 $18,812,114 $238

2010 102,862 $45,830,834 $446

2011 75,930 $43,575,976 $574


– 171 –

Fiscal Year Acres Bid Amount Price/Acre

2012 71,205 $71,506,499 $1,004

2013 65,447 $34,388,460 $525

2014 49,512 $25,633,887 $518

Grand Total 17,769 $15,185,438 $855



Lea County Fiscal Yr Bid Amount Acres Price/Acre

FY04 Total $1,726,705 4,321 $400

FY05 Total $7,567,705 16,707 $453

FY06 Total $15,861,395 26,414 $601

FY07 Total $2,567,270 9,697 $265

FY08 Total $6,726,070 12,211 $551

FY09 Total $14,934,945 19,460 $767

FY10 Total $9,426,360 7,351 $1,282

FY11 Total $13,039,000 6,075 $2,146

FY12 Total $58,491,900 13,560 $4,314

FY13 Total $48,955,300 5,516 $8,875

FY14 Total $31,500,200 6,348 $4,962

Grand Total $210,796,850 127,660 $1,651











– 172 –

Lea County Gross Receipts Tax Activity


($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)


FY 2013 Drilling Oil and Gas Wells 253 $135,477 $135,094 $7,477 5.53% $6,880 $597

FY 2013 OGAS Support Activities 3,420 $3,595,131 $1,093,858 $72,370 6.62% $44,666 $27,703

FY 2013 Total OGAS-related 3,912 $3,807,659 $1,300,081 $84,003 6.46% $54,964 $29,038

FY 2014 Oil & Gas Extraction 245 $76,609 $69,274 $4,168 6.02% $3,158 $1,009

FY 2014 Drilling Oil and Gas Wells 260 $210,027 $208,335 $11,488 5.51% $10,650 $838

FY 2014 OGAS Support Activities 3,541 $1,978,305 $1,275,765 $83,737 6.56% $52,823 $30,914

FY 2014 Extraction Services 69 $7,075 $5,785 $333 5.75% $281 $52

FY 2014 Total OGAS-related 4,115 $2,272,015 $1,559,159 $99,726 6.40% $66,912 $32,813

6. Put into context, the FY 2013 amount of $84.0 million of total GRT paid by OGAS interests in Lea County in the three NAICS codes represents a

major portion of the $176 million total GRT impact. (47.69%). Similarly, the FY 2014 amount of $99.7 million of total GRT paid by OGAS inter-

ests in Lea County Summary in the four NAICS codes represents a major portion of the $207 million total GRT impact. (48.17%).



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266





– 173 –




Total Gen

Fund

OGAS Portion Lea County Contribution Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $66.8 44.1% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $7.9 44.1% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%







– 174 –

Lea County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Support-

ed ($1,000)

#

Charters


Lea County Charters $1,725 100% $1,725 $552 1

School Districts

Eunice $4,581 100% $4,581 $1,466

Hobbs $56,026 100% $56,026 $17,928

Jal $3,350 100% $3,350 $1,072

Lovington $26,097 100% $26,097 $8,351

Tatum $3,150 100% $3,150 $1,008

Lea County Total $94,930 $94,930 $30,377


Lea County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters




Lea County Charters 0

School Districts

Eunice $4,713 100% $4,713 $1,654

Hobbs $57,847 100% $57,847 $20,304

Jal $3,379 100% $3,379 $1,186

Lovington $26,756 100% $26,756 $9,391

Tatum $3,378 100% $3,378 $1,186

Lea County Total $96,073 $96,073 $33,721



– 175 –

Lea County Higher Education Institutions

Fiscal

Year Institution

Total Approp

($1,000)

OGAS Amount

($1,000)

FY 2012 Eastern New Mexico University -- Hobbs $26,656 $8,823

FY 2012 New Mexico Institute of Ming & Technology -- Lea Co. NSA NSA

FY 2012 New Mexico Junior College $5,829 $1,930

FY 2012 County total $32,486 $10,753




FY 2013 County total $34,736 $10,907




FY 2014 County total $36,355 $12,761

Note: "NSA" means "not separately appropriated". Typically, a non-appropriated branch institution is appropri-

ated and budgeted with the parent institution.









Lea County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 54 $10,458 3,448 $721,609

General Fund 49 $10,271 2,887 $488,382


– 176 –


STBs 1 $187 156 $211,999

Other 0 $0 7 $19,178




Summary 31 $6,293 1,777 $341,187

STBs 6 $3,380 340 $215,491

General Fund 25 $2,913 1,434 $122,996



Vetoes 1 $25 187 $7,033


Summary

STBs 1 $400 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0







Vetoes 1 $140 45 $12,902

2010 2ND SS CAPITAL OUTLAY PROJECTS AND REAUTHORI-

ZATIONS Projects Amount Projects Amount

Summary 1 3000 49 42150

STB funding 1 $3,000 23 $41,800





– 177 –




General Fund 15 $401 2,026 $123,111

STB 2 $38 490 $54,346

Vetoes 0 $0 74 $44,783


STB 0 $0 29 $5,679








Summary 6 $2,066 484 $137,318

STBs 6 $2,066 280 $107,514




Vetoes 0 $0 194 $22,906


Summary 11 $3,475 785 $269,340

STBs 11 $3,475 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 15 $2,926 852 $228,711

STBs 15 $2,926 823 $182,237





– 178 –



Vetoes 0 $0 62 $2,584


– 179 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 180 –

The Impacts of Oil and Natural Gas Production in New Mexico on Lincoln County A Summary of Important Economic and Revenue Issues

Lincoln County Summary

Lincoln County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This





1. What products and land types generate the OGAS production in Lincoln County? Lincoln County is not an oil and natural gas producing area.


tails by product category. However, Lincoln County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Lincoln County? Lincoln County is not an oil and natural

gas producing area.




deducting the expenses of the SLO. No leases have been sold in Lincoln County for the FY 2004 through FY 2015 period.










– 181 –

Lincoln County Gross Receipts Tax Activity


($1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)





FY 2014 Oil and gas extraction * * * * * * *


FY 2014 OGAS operations support 35 $535 $274 $18.6 6.78% $12 $6

FY 2014 Extraction services

FY 2014 All OGAS Total 35 $535 $274 $18.6 6.78% $12 $6


6. Put into context, the redacted amount of total GRT paid by OGAS interests in Lincoln County in the three NAICS codes represents an insignifi-

cant portion of the $176 million total GRT impact. Similarly, the FY 2014 amount of $18.6 thousand of total GRT paid by OGAS interests in the

four NAICS codes represents a very small portion of the $207 million total GRT impact. (0.0090%).



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266




– 182 –





Total Gen

Fund

OGAS Portion Lincoln County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.25 0.2% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.03 0.2% $50.9 $16.7 32.8%

Personal Income Tax $1,254.9 $143.2 11.4% $0.24 0.2% $1,240.9 $124 10.0%



$0.0 $0.0 0.0%






Sev Tax Perm. Fund Income $170.5 $147.6 86.6% 0.0% $176.2 $152.0 86.3%



Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%


0.0%

$564.0

0.0%

GRAND TOTAL REVENUES $6,040.5 $2,118.8 35.1% $0.60 0.0% $5,708.6 1,828.4 32.0%





– 183 –

Lincoln County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


$50,300 95

Lincoln County Charters $0 100% $0 $0 0

School Districts

Capitan $3,878 100% $3,878 $1,241

Carrizozo $1,610 100% $1,610 $515

Corona $884 60% $530 $170

Hondo $1,662 100% $1,662 $532

Mountainair $3,121 20% $624 $200

Ruidoso $14,015 100% $14,015 $4,485

Lincoln County Total $25,170

$22,320 $7,143


$675,260

Lincoln County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


$58,034 97


$33,419 57


$24,614 40

Lincoln County Charters $0

$0 $0 0

School Districts

Capitan $4,090 100% $4,090 $1,436

Carrizozo $1,934 100% $1,934 $679

Corona $1,531 60% $918 $322

Hondo Valley $1,939 100% $1,939 $681

Mountainair $3,148 20% $630 $221

Ruidoso $14,196 100% $14,196 $4,983

Lincoln County Total $26,838

$23,707 $8,322


$768,814


– 184 –

Lincoln County Higher Education


($1,000)

OGAS Amount

($1,000)

FY 2012 Eastern New Mexico University -- Ruidoso $1,935 $679











Lincoln County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 43 $10,442 3,448 $721,609

General Fund 29 $6,913 2,887 $488,382

STBs 5 $3,529 156 $211,999

Other 0 $0 7 $19,178




Summary 29 $5,543 1,777 $341,187

STBs 9 $4,226 340 $215,491

General Fund 20 $1,317 1,434 $122,996



Vetoes 1 $65 187 $7,033


– 185 –



Summary

STBs 143 $139,960

General Fund

Other Funds


Vetoes 0 $0







Vetoes 45 $12,902

2010 2ND SS CAPITAL OUTLAY PROJECTS AND REAU-

THORIZATIONS Projects Amount Projects Amount

Summary 49 42150



Reauthorizations 25




General Fund 15 $952 2,026 $123,111

STB 10 $108 490 $54,346

Vetoes 0 $0 74 $44,783


STB 0 $0 29 $5,679





– 186 –






Summary 9 $1,399 484 $137,318

STBs 7 $1,224 280 $107,514




Vetoes 2 $175 194 $22,906


Summary 19 $1,463 785 $269,340

STBs 19 $1,463 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 21 $1,734 852 $228,711

STBs 21 $1,734 823 $182,237





Vetoes 0 $0 62 $2,584


– 187 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 188 –

The Impacts of Oil and Natural Gas Production in New Mexico on Los Alamos County A Summary of Important Economic and Revenue Issues

Los Alamos County Summary Los Alamos County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This





1. What products and land types generate the OGAS production in Los Alamos County? Los Alamos County is not an oil and natural gas producing

area.


tails by product category. However, Los Alamos County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Los Alamos County? Los Alamos County is not an oil





deducting the expenses of the SLO. No leases have been sold in Los Alamos County for the FY 2004 through FY 2015 period.









6. GRT paid by OGAS interests in the three NAICS in FY 2013 totaled $176 million." Similarly, GRT paid by OGAS interests in FY 2014 in the four

NAICS codes totaled $207 million.


– 189 –



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266







Total Gen

Fund

OGAS Portion Los Alamos County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.0 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.0 0.0% $50.9 $16.7 32.8%




$0.0 $0.0 0.0%


0.0% $379.9 $379.9 100.0%


0.0% $20.8 $20.7 99.5%


0.0% $24.2 $24.2 100.0%


0.0% $440.9 $425.8 96.6%


0.0% $14.7 $4.7 31.8%


– 190 –


Total Gen

Fund

OGAS Portion Los Alamos County Contrib. Total Gen

Fund

OGAS Portion



0.0% $176.2 $152 86.3%


0.0% $459.6 $446.4 97.1%


0.0% $44.6 $30.2 67.6%


0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0%

0.0% $65.8 $21.8 33.1%


0.0%

$564.0

0.0%





Los Alamos County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


Los Alamos County Charters 100% 0

School Districts

Los Alamos $25,084 100% $25,084 $8,027

Los Alamos County Total $25,084 $25,084 $8,027


Los Alamos County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters





– 191 –


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters

Los Alamos County Charters $0 $0 $0 0

School Districts

Los Alamos $25,095 100% $25,095 $8,808

Los Alamos County Total $25,095

$25,095 $8,808


$768,814

Los Alamos County Higher Education


($1,000)

OGAS Amount

($1,000)

FY 2012 University of New Mexico -- Los Alamos $1,666 $551











Los Alamos County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 4 $2,900 3,448 $721,609

General Fund 4 $2,900 2,887 $488,382

STBs 0 $0 156 $211,999

Other 0 $0 7 $19,178




– 192 –



Summary 4 $941 1,777 $341,187

STBs 3 $900 340 $215,491

General Fund 1 $41 1,434 $122,996



Vetoes 1 $25 187 $7,033


Summary

STBs 143 $139,960

General Fund

Other Funds


Vetoes 0 $0







Vetoes 45 $12,902


Summary 49 42150



Reauthorizations 25




General Fund 2 $31 2,026 $123,111

STB 1 $300 490 $54,346

Vetoes 0 $0 74 $44,783


– 193 –



STB 0 $0 29 $5,679








Summary 484 $137,318

STBs 280 $107,514




Vetoes 194 $22,906


Summary 4 $280 785 $269,340

STBs 4 $280 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 1 $50 72 $4,402


Summary 1 $375 852 $228,711

STBs 1 $375 823 $182,237





Vetoes 0 $0 62 $2,584


Laird Graeser –([email protected]) or Richard L. Anklam ([email protected])




– 194 –

The Impacts of Oil and Natural Gas Production in New Mexico on Luna County A Summary of Important Economic and Revenue Issues

Luna County Summary

Luna County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This sum-

mary details some of these important issues.




1. What products and land types generate the OGAS production in Luna County? Luna County is not an oil and natural gas producing area.


tails by product category. However, Luna County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Luna County? Luna County is not an oil and natural gas

producing area.




deducting the expenses of the SLO. No leases have been sold in Luna County for the FY 2004 through FY 2015 period.










– 195 –

Luna County Gross Receipts Tax Activity


($1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)






FY 2014 All OGAS Total * * * * * * *


6. Put into context, the redacted amount of total GRT paid by OGAS interests in Luna County in the three NAICS codes represents an insignificant

portion of the $176 million total GRT impact. Similarly, the redacted amount of total GRT paid by OGAS interests in Luna County in the four

NAICS codes represents an insignificant portion of the $207 million total GRT impact.



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266







– 196 –


Total Gen

Fund

OGAS Portion Luna County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.13 0.1% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.01 0.1% $50.9 $16.7 32.8%




0.0% $0.0 $0.0 0.0%


0.0% $379.9 $379.9 100.0%


0.0% $20.8 $20.7 99.5%


0.0% $24.2 $24.2 100.0%


0.0% $440.9 $425.8 96.6%


0.0% 14.7 4.7 31.8%


0.0% $176.2 $152 86.3%


0.0% $459.6 $446.4 97.1%


0.0% $44.6 $30.2 67.6%


0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0%

0.0% $65.8 $21.8 33.1%


0.0%

$564.0

0.0%






– 197 –

Luna County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


$50,300 95

Luna County Charters $1,420 100% $1,420 $454 1

School Districts

Deming $34,208 100% $34,208 $10,947

Luna County Total $35,628

$35,628 $11,401


$675,260

Luna County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


$58,034 97


$33,419 57


$24,614 40

Luna County Charters $1,405

$1,405 $493 1


Cesar Chavez Charter High School (Deming) $1,405 100% $1,405 $493

School Districts

Deming $34,907 100% $34,907 $12,252

Luna County Total $36,312

$36,312 $12,745


$768,814

Luna County Higher Education Institutions Fiscal

Year Institution

Total Approp

($1,000)

OGAS Amount

($1,000)





– 198 –









Luna County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 15 $4,781 3,448 $721,609

General Fund 12 $3,181 2,887 $488,382

STBs 2 $1,600 156 $211,999

Other 0 $0 7 $19,178




Summary 9 $2,137 1,777 $341,187

STBs 5 $1,673 340 $215,491

General Fund 4 $464 1,434 $122,996



Vetoes 1 $500 187 $7,033


Summary

STBs 143 $139,960

General Fund

Other Funds


Vetoes 0 $0


– 199 –








Vetoes 45 $12,902


Summary 49 42150



Reauthorizations 25




General Fund 3 $45 2,026 $123,111

STB 3 $856 490 $54,346

Vetoes 1 $205 74 $44,783


STB 0 $0 29 $5,679








Summary 5 $757 484 $137,318

STBs 4 $707 280 $107,514




Vetoes 1 $50 194 $22,906


– 200 –



Summary 3 $1,025 785 $269,340

STBs 3 $1,025 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 3 $963 852 $228,711

STBs 3 $963 823 $182,237





Vetoes 0 $0 62 $2,584


– 201 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 202 –

The Impacts of Oil and Natural Gas Production in New Mexico on McKinley County A Summary of Important Economic and Revenue Issues

McKinley County Summary

McKinley County is an oil and natural gas producing area in the San Juan Basin. Oil and natural gas production is important to the County both di-

rectly and indirectly. This summary details some of these important issues.

In FY 2010, county producers shipped 66,013 thousand barrels of oil worth $2,488 million and no natural gas. In FY 2014, county producers

shipped 0,067 thousand barrels of oil worth $5.8 million and 110.3 million mcf of natural gas worth $446 million.

The advent of horizontal drilling and fracking (hydraulic and chemical treatment of new wells to enhance early production) has resulted in a

605.1% increase in county natural gas volume from FY 2011 to FY 2014. County oil volumes, however, have experienced a100% decline in volume

during the same period. Overall produced product value peaked in FY 2013 at about $2.5 million.




1. What products and land types generate the OGAS production in McKinley County?

McKinley County

Fiscal Year Product Volume (Thousand

bbls or mcf)

Value

($ thousand)

Price (per

mcf or bbl) Dedns %



FY 2010 GAS 0 $0.00 0.0% 0% 0% 0% 0%

FY 2011 GAS 15.6 $63.13 $4.04 16.4% 100% 0% 0% 0%

FY 2012 GAS 64.5 $134.58 $2.09 20.4% 100% 0% 0% 0%

FY 2013 GAS 28.5 $93.34 $3.27 16.8% 100% 0% 0% 0%

FY 2014 GAS 110.3 $445.56 $4.04 15.7% 100% 0% 0% 0%

FY 2010 OIL 66.0 $2,487.87 $37.69 7.8% 0% 0% 0% 0%

FY 2011 OIL 205.1 $2,277.79 $11.11 7.6% 32% 1% 57% 11%

FY 2012 OIL -138.3 $3,000.50 ($21.70) 8.4% 24% -2% 66% 12%

FY 2013 OIL 45.6 $3,589.07 $78.75 8.7% 57% 6% 32% 6%

FY 2014 OIL 0.1 $5.84 $86.75 10.5% 70% 7% 18% 4%


– 203 –

Note : % Fede al desig ates the po tio of total p odu tio fo the pa ti ula p odu t o fede al su su fa e la d, si ila l % I dia , %P i ate a d % “tate designate production on Tribal or Nation lands, private lands and state lands.

2. Is there more detail on specific product? Yes, the ONGRD system has for several years published details by product category. However, these

data are not particularly interesting for McKinley County since the boom appears to be over.

3. What does this mean for state and local direct revenues from production in McKinley County?

McKinley County

Product Sale

Period

School Tax

($1,000)

Severance Tax

($1,000)

Conservation Tax

($1,000)

AV Production

($1,000)

Total Eff.

Tax Rate

AV Prod Equip

Tax ($1,000)1

Natural Gas FY10 $10.5 $9.9 $0.5 $4.1 9.90%

Natural Gas FY11 $21.2 $19.9 $1.0 $8.4 9.92% $0.5

Natural Gas FY12 $21.4 $20.1 $1.0 $8.5 9.92% $1.7

Natural Gas FY13 $18.1 $16.9 $0.9 $7.3 9.96% $1.5

Natural Gas FY14 $21.0 $19.7 $1.0 $8.7 10.02% $1.3

Oil FY10 $72.2 $86.0 $4.4 $36.0 8.66%

Oil FY11 $66.7 $79.4 $5.1 $33.5 8.72% $4.7

Oil FY12 $85.8 $102.2 $6.5 $43.0 8.72% $6.9

Oil FY13 $104.4 $124.2 $8.0 $53.4 8.75% $7.8

Oil FY14 $158.9 $189.2 $12.1 $83.7 8.80% $9.8

1. The Ad Valorem Production Equipment Tax is collected by County Treasurers in the various producing counties. The obligations are roughly

20% of the previous year's ad valorem production tax amounts. These data are for the 2010 through 2013 taxable year. Payments were large-

ly made in FY10 throughFY14. Data are from Property Tax Rate Sheets (DFA/LGD) and are ratioed to the product by total taxable value.









– 204 –


McKinley County Fiscal Year Acres Bid Amount Price/Acre

2005 1,560 $53,377 $34.22

2006 1,866 $36,033 $19.31

2007 4,321 $93,414 $21.62

2008 1,238 $19,660 $15.88

2010 640 $45,840 $71.63

Grand Total 9,625 $248,324 $25.80


McKinley County Fiscal Yr Bid Amount Acres Price/Acre

FY05 Total $183,623 7,568 $24.26

FY06 Total $33,600 1,120 $30.00

FY07 Total $63,575 11,718 $5.43

FY08 Total $251,818 8,617 $29.22

FY09 Total $109,462 2,374 $46.12

FY10 Total $8,920 445.44 $20.03

FY11 Total $795,543 12204.49 $65.18

FY13 Total $44,660 637.4 $70.07

Grand Total $1,491,201 44,684 $33.37










– 205 –

McKinley County Gross Receipts Tax Activity


($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)


FY 2013 OGAS Support Activities 31 $6,831 $6,831 $461 6.75% $350 $111

FY 2013 Total OGAS-related 31 $6,831 $6,831 $461 6.75% $350 $111





6. Put into context, the FY 2013 amount of $461.0 thousand of total GRT paid by OGAS interests in McKinley County in the three NAICS codes

represents a very small portion of the $176 million total GRT impact. (0.26%). Similarly, the FY 2014 amount of $158.5 thousand of total GRT

paid by OGAS interests in McKinley County Summary in the four NAICS codes represents a very small portion of the $207 million total GRT im-

pact. (0.08%).



($1,000) Txbl Gross

Rcpts ($1,000) Gross Tax ($1,000)

Rate State Tax

Amt ($1,000) County/Muni Amt ($1,000)

Nation Amt ($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266





– 206 –




Total Gen

Fund

OGAS Portion McKinley County Contribution Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.49 0.3% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.06 0.3% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%






Sev Tax Perm. Fund Income $170.5 $147.6 86.6% $0.05 0.0% $176.2 $152 86.3%



Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%


0.0%





San Juan County -- FY 2013 Public School Support



Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


$50,300 95

McKinley County Charters $1,512 100% $1,512 $484 2


– 207 –

School Districts

Gallup $55,068 100% $55,068 $17,622

Zuni $5,102 100% $5,102 $1,633

McKinley County Total $61,682

$61,682 $19,738


$675,260

San Juan County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Support-

ed ($1,000) # Charters


$58,034 97


$33,419 57


$24,614 40

McKinley County Charters $2,035

$2,035 $714 2


Uplift Community School (Gallup-McKinley) $1,272 100% $1,272 $446


Middle College High School (Gallup) $763 100% $763 $268

School Districts

Gallup-McKinley $64,479 100% $64,479 $22,632

Zuni $5,951 100% $5,951 $2,089

McKinley County Total $72,465

$72,465 $25,435


$768,814

McKinley County Higher Education


($1,000)

OGAS Amount

($1,000)

FY 2012 University of New Mexico -- Gallup $8,203 $2,715







– 208 –






McKinley County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 160 $15,059 3,448 $721,609

General Fund 115 $12,867 2,887 $488,382

STBs 8 $2,192 156 $211,999

Other 0 $0 7 $19,178




Summary 80 $6,936 1,777 $341,187

STBs 12 $3,809 340 $215,491

General Fund 68 $3,127 1,434 $122,996



Vetoes 9 $160 187 $7,033


Summary

STBs 1 $120 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0






– 209 –




Vetoes 7 $1,061 45 $12,902


Summary 49 42150



Reauthorizations 25




General Fund 92 $4,865 2,026 $123,111

STB 38 $2,193 490 $54,346

Vetoes 10 $1,016 74 $44,783


STB 2 $355 29 $5,679








Summary 32 $3,322 484 $137,318

STBs 10 $1,664 280 $107,514




Vetoes 22 $1,658 194 $22,906


Summary 34 $3,592 785 $269,340

STBs 34 $3,592 769 $218,132


– 210 –


Other Funds 0 $0 16 $51,208


Vetoes 5 $290 72 $4,402


Summary 30 $3,598 852 $228,711

STBs 30 $3,598 823 $182,237





Vetoes 7 $208 62 $2,584


– 211 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 212 –

The Impacts of Oil and Natural Gas Production in New Mexico on Mora County A Summary of Important Economic and Revenue Issues

Mora County Summary

Mora County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This sum-





1. What products and land types generate the OGAS production in Mora County? Mora County is not an oil and natural gas producing area.


tails by product category. However, Mora County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Mora County? Mora County is not an oil and natural

gas producing area.




deducting the expenses of the SLO. No Federal leases were sold in Mora County during the FY 2004 through FY 2014 period.

Mora County

Fiscal Year Acres Bid Amount Price/Acre

2009 12,940 $392,700 $30.35

2010 9,275 $39,875 $4.30

2011 24,416 $105,150 $4.31

Grand Total 46,631 $537,725 $11.50




amount was improved somewhat, but those improvements are not reflected in the following table. Note that in the course of 2013, 30 counties


– 213 –

had reported activity in at least one of the three NAICS codes. Only DeBaca, Los Alamos and Mora Counties reported no gross receipts activity.

For FY 2014, only Los Alamos County reported no GRT activity. Although the methodology has been improved this year, most of the differences

between 2013 and 2014 for this county are real. Extraction activity was significantly less in FY 2014 than in FY 2013. Drilling activity was approxi-

mately flat. However, well services, completion, fracking and other recurring and non-recurring services significantly expanded.

Mora County Gross Receipts Tax Activity

Fiscal


Gross Receipts

($1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)


FY 2014 All OGAS Total * * * * * * *


6. GRT paid by OGAS interests in the three NAICS in FY 2013 totaled $176 million. The redacted amount of total GRT paid in FY 2014 by OGAS in-

terests in Mora County in the four NAICS codes represents an insignificant portion of the $207 million total GRT impact.



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266







– 214 –


Total Gen

Fund

OGAS Portion Mora County Contrib. Total Gen Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.012 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.002 0.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%


0.0%





Mora County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


Mora County Charters 100%

School Districts


– 215 –


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters

Mora $4,521 100% $4,521 $1,447

Wagon Mound $895 100% $895 $286

Mora County Total $5,416 $5,416 $1,733


Mora County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters




Mora County Charters $0 $0 $0 0

School Districts

Mora $4,522 100% $4,522 $1,587

Wagon Mound $1,691 100% $1,691 $594

Mora County Total $6,214 $6,214 $2,181


Mora County Higher Education Fiscal Year Institution Total Approp ($1,000) OGAS Amount ($1,000)

FY 2012 LUNA CC Mora NSA NSA



Note: "NSA" means "not separately appropriated". Typically, a non-appropriated branch institution is

appropriated and budgeted with the parent institution.






– 216 –





Mora County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 50 $3,956 3,448 $721,609

General Fund 38 $3,701 2,887 $488,382

STBs 2 $255 156 $211,999

Other 0 $0 7 $19,178




Summary 23 $1,580 1,777 $341,187

STBs 3 $875 340 $215,491

General Fund 20 $705 1,434 $122,996



Vetoes 4 $40 187 $7,033


Summary

STBs 143 $139,960

General Fund

Other Funds


Vetoes 0 $0







Vetoes 0 $0 45 $12,902


– 217 –



Summary 49 42150



Reauthorizations 25




General Fund 36 $703 2,026 $123,111

STB 4 $421 490 $54,346

Vetoes 4 $502 74 $44,783


STB 2 $20 29 $5,679








Summary 5 $2,018 484 $137,318

STBs 2 $243 280 $107,514




Vetoes 3 $1,775 194 $22,906


Summary 4 $2,145 785 $269,340

STBs 4 $2,145 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 7 $1,200 852 $228,711


– 218 –


STBs 7 $1,200 823 $182,237





Vetoes 0 $0 62 $2,584


– 219 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 220 –

The Impacts of Oil and Natural Gas Production in New Mexico on Otero County A Summary of Important Economic and Revenue Issues

Otero County Summary

Otero County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This




and 1,169 million mcf of natural gas worth $6,115 million and 64.3 million mcf of CO2 worth $95.3.millio . Note: f is , u i feet of gas at standard temperature and pressure.)

1. What products and land types generate the OGAS production in Otero County? Otero County is not an oil and natural gas producing area.


tails by product category. However, Otero County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Otero County? Otero County is not an oil and natural

gas producing area.






Otero County Fiscal Year Acres Bid Amount Price/Acre

2007 280 $9,000 $32.14

2008 8,280 $25,700 $3.10

2009 38,294 $57,450 $1.50

2012 8,250 $75,324 $9.13

Grand Total 55,104 $167,474 $3.00



– 221 –


Otero County

Fiscal Yr

Bid


FY06 Total $3,200 1,600 $2.00

FY14 Total $3,002 1166 $2.57

Grand Total $6,202 2,766 $2.20









Otero County Gross Receipts Tax Activity


($1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)








FY 2014 All OGAS Total * * * * * * *


6. Put into context, the redacted amount of total GRT paid by OGAS interests in Otero County in the three NAICS codes represents an insignifi-

cant portion of the $176 million total GRT impact. Similarly, the redacted amount of total GRT paid by OGAS interests in Otero County in the



– 222 –



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266







Total Gen

Fund

OGAS Portion Otero County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.0 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.0 0.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%







– 223 –


Total Gen

Fund

OGAS Portion Otero County Contrib. Total Gen

Fund

OGAS Portion





Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%


0.0%





Otero County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


$50,300 95

Otero County Charters

School Districts

Alamogordo $39,375 100% $39,375 $12,600

Cloudcroft $3,509 100% $3,509 $1,123

Gadsden $95,192 10% $9,519 $3,046

Tularosa $6,925 100% $6,925 $2,216

Otero County Total $145,001 $59,328 $18,985



– 224 –

Otero County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters




Otero County Charters $0 $0 $0 0

School Districts

Alamogordo $39,728 100% $39,728 $13,945

Cloudcroft $3,425 100% $3,425 $1,202

Gadsden $96,591 10% $9,659 $3,390

Tularosa $7,225 100% $7,225 $2,536

Otero County Total $146,969 $60,037 $21,073


Otero County Higher Education


($1,000)

OGAS Amount

($1,000)

FY 2012 New Mexico State University -- Alamogordo $6,555 $2,170

FY 2012 NM School for the Blind and Visually Impaired $675 $223

FY 2012 County Total $7,230 $2,393


FY 2013 NM School for the Blind and Visually Impaired $975 $306

FY 2013 County Total $8,019 $2,518


FY 2014 NM School for the Blind and Visually Impaired $1,126 $395

FY 2014 County Total $8,712 $3,058

Note: NMSBVI is a constitutional institution and receives a distribution of income from designated lands.





– 225 –





OGAS % of General Fund 30% 30% Otero County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 76 $10,341 3,448 $721,609

General Fund 65 $9,056 2,887 $488,382

STBs 5 $1,285 156 $211,999

Other 0 $0 7 $19,178




Summary 43 $5,853 1,777 $341,187

STBs 11 $3,874 340 $215,491

General Fund 32 $1,979 1,434 $122,996



Vetoes 3 $215 187 $7,033


Summary

STBs 3 $2,406 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0






– 226 –

Otero County (Amts in $1,000) Grand Total (Amts in $1,000)


Amount Attrib. to OGAS -$75 $81,671

Vetoes 2 $648 45 $12,902


Summary 1 0 49 42150

STB funding 0 $0 23 $41,800






General Fund 52 $3,397 2,026 $123,111

STB 11 $1,506 490 $54,346

Vetoes 0 $0 74 $44,783


STB 0 $0 29 $5,679








Summary 7 $2,336 484 $137,318

STBs 5 $2,180 280 $107,514




Vetoes 2 $156 194 $22,906


Summary 17 $11,881 785 $269,340

STBs 14 $2,643 769 $218,132


– 227 –

Otero County (Amts in $1,000) Grand Total (Amts in $1,000)

Other Funds 3 $9,238 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 19 $14,655 852 $228,711

STBs 16 $6,400 823 $182,237





Vetoes 0 $0 62 $2,584


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 228 –

The Impacts of Oil and Natural Gas Production in New Mexico on Quay County A Summary of Important Economic and Revenue Issues

Quay County Summary

Quay County is a carbon dioxide (CO2) producing area in the CO2 Basin. Natural gas, oil and the associated CO2 production is important to the


In FY 2011, Quay County CO2 producers shipped 7.5 million mcf of carbon dioxide worth $9.6 million. In FY 2014, Quay County CO2 producers

shipped 6.5 million mcf of carbon dioxide worth $9.5 million.


creased demand for CO2 for use in enhanced oil recovery projects. CO2 volumes in Quay County from FY 2011 to FY 2014 have experienced a

13.8% decline. Overall produced product value has also decreased from about $9.6 million to $9.5 million. Harding and Union Counties have expe-

rienced a similar overall decline.




1. What products and land types generate the OGAS production in Quay County?

Quay County


(Million mcf)

Value

($ million)

Price

($/mcf) Dedns %



FY 2010 CO2 7.74 $8.2 $1.06 30.1% 3% 0% 74% 23%

FY 2011 CO2 7.51 $9.6 $1.28 25.6% 3% 0% 74% 23%

FY 2012 CO2 7.04 $9.3 $1.32 27.9% 3% 0% 74% 23%

FY 2013 CO2 7.04 $9.4 $1.33 33.3% 0% 0% 77% 23%

FY 2014 CO2 6.47 $9.5 $1.47 30.6% 2% 0% 75% 23%

Note : % Fede al desig ates the po tio of total p odu tio fo the pa ti ula p odu t o fede al su su fa e la d, si ila l % I di-

a , %P i ate a d % “tate desig ate p odu tio o T i al o Natio la ds, p i ate la ds a d state la ds.

2. Is there more detail on specific product? Yes, the ONGRD system has for several years published details by product category. However, the de-

tail repeats the previous table since the only product is carbon dioxide.


– 229 –

3. What does this mean for state and local direct revenues from production in Quay County?

Quay County Revenue Detail

Product Sale

Period

School Tax

($1,000)

Severance Tax

($1,000)

Conservation Tax

($1,000)

AV Production

($1,000)

Total Eff. Tax

Rate

AV Prod Equip Tax

($1,000)1

CO2 FY10 $181 $215 $11 $59 8.39%

CO2 FY11 $319 $380 $19 $102 8.35% $8.5

CO2 FY12 $211 $252 $13 $66 8.32% $11.5

CO2 FY13 $198 $235 $12 $60 8.29% $12.1

CO2 FY14 $213 $253 $13 $65 8.30% $11.6 1. The Ad Valorem Production Equipment Tax is collected by County Treasurers in the various producing counties. The obligations are roughly 20% of the previ-

ous year's ad valorem production tax amounts. These data are for the 2010 through 2013 taxable year. Payments were largely made in FY10 throughFY14. Data

are from Property Tax Rate Sheets (DFA/LGD) and are ratioed to the product by total taxable value.









Quay County FY Acres Bid Amounts Price/Acre

2005 Total 1,240 $7,611 $6

2007 Total 1,680 $12,700 $8

2008 Total 960 $1,500 $2

2011 Total 20,236 $414,250 20

2012 Total 1,240 $5,100 4

2013 Total 40 $1,500 38

Grand Total 25,396 $442,661 17


– 230 –


Quay County Fiscal Yr Bid Amount Acres Price/Acre

FY06 Total $2,250 75 $30

FY08 Total $38,400 1,959 $20

FY09 Total $67,200 1,680 $40

FY10 Total $4,589 201 $23

FY11 Total $549,333 25,708 $21

Grand Total $661,772 $29,624 $22









Quay County Gross Receipts Tax Activity Fiscal


Gross Receipts

($1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)

FY 2013 OGAS Support Activities * * * * * *



FY 2014 All OGAS Total * * * * * * *


6. Put into context, the FY 2013 amount of total GRT paid by OGAS interests in Quay County in the three NAICS codes represents an insignificant

portion of the $176 million total GRT impact. Similarly, the FY 2014 amount of total GRT paid by OGAS interests in Quay County Summary in

the four NAICS codes represents an insignificant portion of the $207 million total GRT impact.


– 231 –


($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266







Total Gen

Fund

OGAS Portion Quay County Contribution Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.0 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.0 0.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 0.0% $0.0 $0.0 0.0%








– 232 –


Total Gen

Fund

OGAS Portion Quay County Contribution Total Gen

Fund

OGAS Portion




Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%






Quay County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


Quay County Charters 0

School Districts

House $1,165 90% $1,049 $368

Logan $2,939 70% $2,057 $722

Melrose $2,067 40% $827 $290

San Jon $1,397 100% $1,397 $490

Tucumcari $7,866 100% $7,866 $2,761

Quay County Total $15,435 $13,196 $1,380



– 233 –

Quay County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%

All Charter Schools Operating Budgets

($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters

All Charter Schools $165,338.00

$58,034.00 97

State Charter Schools $95,212.01

$33,419.42 57

District Charter Schools $70,126.09

$24,614.26 40

Quay County Charters $0.00 100% $0.00 $0.00 0

School Districts

House

Logan $2,835 70% $1,985 $697

Melrose $2,391 40% $956 $336

San Jon $1,673 100% $1,673 $587

Tucumcari $8,301 100% $8,301 $2,914

Quay County Total $16,760

$14,319 $5,026


$768,814.00

Quay County Higher Education Institutions

Fiscal

Year Institution Total Approp ($1,000) OGAS Amount ($1,000)

FY 2012 Mesalands CC $4,179 $1,383

FY 2013 Mesalands CC 4290.1 $1,347

FY 2014 Mesalands CC 4296.7 $1,508








– 234 –



Quay County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 17 $3,721 3,448 $721,609

General Fund 13 $1,627 2,887 $488,382

STBs 3 $2,095 156 $211,999

Other 0 $0 7 $19,178




Summary 13 $1,605 1,777 $341,187

STBs 5 $1,310 340 $215,491

General Fund 8 $295 1,434 $122,996



Vetoes 0 $0 187 $7,033


Summary

STBs 143 $139,960

General Fund

Other Funds


Vetoes 0 $0







Vetoes 45 $12,902


– 235 –



Summary 49 42150



Reauthorizations 25




General Fund 2 $25 2,026 $123,111

STB 4 $240 490 $54,346

Vetoes 0 $0 74 $44,783


STB 0 $0 29 $5,679








Summary 2 $335 484 $137,318

STBs 2 $335 280 $107,514




Vetoes 0 $0 194 $22,906


Summary 8 $627 785 $269,340

STBs 8 $627 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


– 236 –


2014 CAPITAL OUTLAY PROJECTS # Projects Amount ($1,000) Projects Amount

Summary 7 $916 852 $228,711

STBs 7 $916 823 $182,237





– 237 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 238 –

The Impacts of Oil and Natural Gas Production in New Mexico on Rio Arriba County A Summary of Important Economic and Revenue Issues

Rio Arriba County Summary

Rio Arriba County is an oil and natural gas producing area in the San Juan Basin. Oil and natural gas production is important to the County both di-


In FY 2010, county producers shipped 1,105 thousand barrels of oil worth $70.6 million and 341.3 million mcf of natural gas worth $1,806 million.



increase in county oil volume from FY 2010 to FY 2014 while county natural gas has experienced a 17.5% decrease in volume during the same pe-

riod. Overall produced product value has declined from about $1.9 billion to $1.6 billion. San Juan and Sandoval Counties have experienced a simi-

lar pattern.




1. What products and land types generate the OGAS production in Rio Arriba County?

Rio Arriba County

Fiscal

Year Product

Volume (Million

bbls or mcf )

Value

($ million)

Price ($ per bbl

or mcf) Dedns %



FY 2010 GAS 341.3 $1,806 $5.29 29.7% 78% 9% 5% 8%

FY 2011 GAS 338.1 $1,885 $5.58 30.0% 78% 9% 4% 9%

FY 2012 GAS 327.7 $1,649 $5.03 30.9% 78% 10% 4% 7%

FY 2013 GAS 303.6 $1,330 $4.38 30.9% 78% 10% 5% 7%

FY 2014 GAS 281.4 $1,485 $5.28 28.1% 77% 11% 5% 7%

FY 2010 OIL 1.1 $71 $63.90 11.7% 67% 23% 6% 4%

FY 2011 OIL 1.1 $85 $76.66 11.8% 65% 25% 6% 4%

FY 2012 OIL 1.2 $96 $82.58 12.0% 66% 25% 5% 5%

FY 2013 OIL 1.1 $83 $79.35 12.1% 66% 24% 5% 5%

FY 2014 OIL 1.4 $119 $86.90 12.1% 70% 20% 4% 6%

Note : % Fede al desig ates the po tio of total p odu tio fo the pa ti ula p odu t o fede al su su fa e la d, si ila l % I dia , %P i-

ate a d % “tate desig ate p odu tio o T i al o Natio la ds, p i ate la ds a d state la ds.


– 239 –



Product Sale

Period Volume

Value

($1,000) Price

Ratio to

Spot

Total Dedns

($1,000) Dedns %

Net Value

($1,000)

Oil (Bbls) FY11 596,414 $45,324 $75.99 85.2% $5,478 12.1% $39,845

Oil (Bbls) FY12 633,471 $52,042 $82.15 86.5% $6,367 12.2% $45,675




Processed Gas (Mcf) FY13 468,183 $37,454 $80.00 86.8% $4,386 11.7% $33,068









Pit, Skim, Other (Bbls) FY13 36,229,109 $428,604 $11.83 $130,164 30.4% $298,440

Pit, Skim, Other (Bbls) FY11 1,439 $131 $91.04 102.0% $14 10.7% $117

Pit, Skim, Other (Bbls) FY12 916 $64 $69.41 73.1% $6 10.1% $57

Oil Lost (Bbls) FY13 345 $20 $56.99 61.8% $2 11.3% $17

Oil Lost (Bbls) FY11 2,364 $182 $77.16 86.5% $23 12.5% $160

Oil Lost (bbls) FY13 251 $20 $80.58 87.50% $1 6.3% $19

3. What does this mean for state and local direct revenues from production in Rio Arriba County?

Rio Arriba County

Product Sale

Period

School Tax

($1,000)

Severance Tax

($1,000)

Conservation Tax

($1,000)

AV Production

($1,000)

Total Eff. Tax

Rate

AV Prod Equip Tax

($1,000)1

Natural Gas FY10 $48,859 $46,688 $2,365 $16,177 9.49%

Natural Gas FY11 $51,166 $48,863 $2,475 $21,804 9.96% $3,743

Natural Gas FY12 $44,385 $42,456 $2,150 $15,882 9.61% $3,509

Natural Gas FY13 $35,328 $33,760 $1,710 $11,132 9.41% $3,373


– 240 –

Rio Arriba County

Product Sale

Period

School Tax

($1,000)

Severance Tax

($1,000)

Conservation Tax

($1,000)

AV Production

($1,000)

Total Eff. Tax

Rate

AV Prod Equip Tax

($1,000)1

Natural Gas FY14 $40,932 $39,191 $1,985 $13,692 9.49% $2,346

Oil FY10 $1,854 $2,304 $120 $727 8.15%

Oil FY11 $2,228 $2,779 $178 $1,020 8.37% $185

Oil FY12 $2,532 $3,159 $202 $1,050 8.24% $200

Oil FY13 $2,187 $2,730 $175 $834 8.14% $251

Oil FY14 $3,111 $3,855 $247 $1,180 8.16% $190

1. The Ad Valorem Production Equipment Tax is collected by County Treasurers in the various producing counties. The obligations are roughly 20% of the pre-

vious year's ad valorem production tax amounts. These data are for the 2010 through 2013 taxable year. Payments were largely made in FY10 throughFY14.

Data are from Property Tax Rate Sheets (DFA/LGD) and are ratioed to the product by total taxable value.









Rio Arriba County Fiscal Year Acres Bid Amount Price/Acre

2007 40 $133,080 $3,327

2008 160 $12,000 $75

2009 2,743 $47,100 $17

2011 160 $114,000 $713

Grand Total 3,103 306,180 $99



– 241 –


Rio Arriba County Fiscal Yr Bid Amount Acres Price/Acre

FY04 Total $156 77 $2

FY06 Total $644,170 3,467 $186

FY07 Total $580,384 20,040 $29

FY09 Total $294,400 960 $307

FY10 Total $229,080 1,120 $205

FY11 Total $46,600 120 $388

FY12 Total $5,276,800 3,505 $1,506

FY13 Total $6,052,697 6,415 $944

FY14 Total $3,413,350 1,320 $2,586

Grand Total $16,537,637 37,024 $447










Rio Arriba County Gross Receipts Tax Activity


$1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)

Approx Nation/

Tribe ($1,000)

FY 2013 Oil & Gas Extraction 5 $58 $46 $3 6.52% $2 $1

FY 2013 Drilling Oil and Gas Wells 17 $343 $343 $23 6.71% $17 $7

FY 2013 OGAS Support Activities 460 $46,002 $36,750 $2,424 6.60% $1,858 $565

FY 2013 Total OGAS-related 482 $46,403 $37,139 $2,450 6.60% $1,877 $573

FY 2014 Oil & Gas Extraction 12 $284 $145 $9 6.50% $6 $2 $2

FY 2014 Drilling Oil and Gas Wells 20 $1,019 $1,019 $66 6.50% $49 $13 $5


– 242 –

Rio Arriba County Gross Receipts Tax Activity


$1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)

Approx Nation/

Tribe ($1,000)

FY 2014 OGAS Support Activities 328 $25,019 $21,220 $1,379 6.50% $925 $257 $730

FY 2014 Total OGAS-related 348 $26,038 $22,239 $1,446 6.50% $974 $269 $734

6. Put into context, the FY 2013 amount of $2.5 million of total GRT paid by OGAS interests in Rio Arriba County in the three NAICS codes repre-

sents a small portion of the $176 million total GRT impact. (1.39%). Similarly, the FY 2014 amount of $1.4 million of total GRT paid by OGAS in-

terests in Rio Arriba County Summary in the four NAICS codes represents a very small portion of the $207 million total GRT impact. (0.70%).



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266







– 243 –


Total Gen

Fund

OGAS Portion Rio Arriba County Contribution Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.9 0.6% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.1 0.6% $50.9 $16.7 32.8%




$0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%






Rio Arriba County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000) % In

county County Total

($1,000) OGAS Supported

($1,000) # Charters


Rio Arriba County Charters $5,726 100% $5,726 $1,832 4

School Districts


– 244 –


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters

Chama Valley $3,931 100% $3,931 $1,258

Dulce $3,510 100% $3,510 $1,123

Española $28,450 100% $28,450 $9,104

Jemez Mt. $2,752 100% $2,752 $881

Mesa Vista $3,858 100% $3,858 $1,235

Rio Arriba County Total $48,227

$48,227 $15,433


$675,260

Rio Arriba County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000) % In

county County Total


($1,000) # Charters


$58,034 97


$33,419 57


$24,614 40

Rio Arriba County Charters $6,100

$6,100 $2,141 4

State Charter Schools $0 100% $0 $0 2

La Tierra Montessori School of the Arts & Sciences (Espanola) $719 100% $719 $252

McCurdy Charter School (Espanola) $3,238 100% $3,238 $1,137


2

Carinos De Los Niños (Espanola) $1,890 100% $1,890 $663

Lindrith Area Heritage Charter School (Jemez Mountain) $252.60 100% $253 $89

School Districts

Chama Valley $4,661 100% $4,661 $1,636

Dulce $3,623 100% $3,623 $1,272

Española $28,949 100% $28,949 $10,161

Jemez Mt. $2,496 100% $2,496 $876

Mesa Vista $3,835 60% $2,301 $808

Rio Arriba County Total $49,664 $48,130 $16,894



– 245 –

Rio Arriba County Higher Education Institutions Fiscal

Year Institution

Total Approp

($1,000)

OGAS Amount

($1,000)

FY 2012 Northern New Mexico College -- El Rito $2,000 $662

FY 2012 Northern New Mexico College -- Espanola $8,091 $2,678

FY 2012 County total $10,307 $3,340



FY 2013 County total $10,742 $3,305



FY 2014 County total $11,370 $3,915

Note: the El Rito and Espanola campuses are appropriated together. Since both campuses are in Rio Arri-

ba County, the separate budgets have been approximated.








OGAS % of General Fund 30% 30% Rio Arriba County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 125 $17,161 3,448 $721,609

General Fund 101 $15,501 2,887 $488,382

STBs 4 $1,660 156 $211,999

Other 0 $0 7 $19,178




Summary 61 $7,666 1,777 $341,187


– 246 –

Rio Arriba County (Amts in $1,000) Grand Total (Amts in $1,000)

STBs 10 $4,950 340 $215,491

General Fund 51 $2,716 1,434 $122,996



Vetoes 7 $141 187 $7,033


Summary

STBs 5 $1,295 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0







Vetoes 0 $0 45 $12,902


Summary 1 400 49 42150

STB funding 1 $400 23 $41,800






General Fund 70 $2,205 2,026 $123,111

STB 18 $756 490 $54,346

Vetoes 2 $89 74 $44,783


STB 2 $35 29 $5,679




– 247 –

Rio Arriba County (Amts in $1,000) Grand Total (Amts in $1,000)






Summary 18 $2,192 484 $137,318

STBs 10 $1,473 280 $107,514




Vetoes 8 $719 194 $22,906


Summary 33 $7,566 785 $269,340

STBs 33 $7,566 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 3 $375 72 $4,402


Summary 33 $10,689 852 $228,711

STBs 30 $9,189 823 $182,237





Vetoes 5 $420 62 $2,584


Laird Graeser Richard L. Anklam, President & Executive Director, New Mexico Tax Research Institute

[email protected] or [email protected]

505 424-9023 505-269-6791




– 248 –

The Impacts of Oil and Natural Gas Production in New Mexico on Roosevelt County A Summary of Important Economic and Revenue Issues

Roosevelt County Summary Roosevelt County is an oil and natural gas producing area in the San Juan Basin. Oil and natural gas production is important to the County both di-


In FY 2010, county producers shipped 229 thousand barrels of oil worth $16.2 million and 2.2 million mcf of natural gas worth $11.2 million. In FY

2014, county producers shipped 227 thousand barrels of oil worth $21.4 million and 2.2 million mcf of natural gas worth $11.0 million.


decrease in county oil volume from FY 2010 to FY 2014 while county natural gas has experienced a 0.6% decrease in volume during the same peri-od. Overall produced product value has grown from $27.4 million in FY 2010 to $32.4 million in FY 2014. Lea and Eddy Counties have experienced

far greater increases in volumes and value.




1. What products and land types generate the OGAS production in Roosevelt County?

Roosevelt County

Fiscal

Year Product

Volume (Million

bbls or mcf)

Value

($ million)

Price ($ per

bbl or mcf) Dedns %



FY 2010 GAS 2.167 $11.2 $5.17 11.5% 67% 0% 31% 3%

FY 2011 GAS 2.690 $14.5 $5.40 13.6% 46% 0% 30% 24%

FY 2012 GAS 2.074 $11.1 $5.36 14.3% 44% 0% 29% 27%

FY 2013 GAS 2.093 $8.6 $4.13 12.1% 34% 0% 53% 13%

FY 2014 GAS 2.155 $11.0 $5.10 15.4% 33% 0% 62% 5%

FY 2010 OIL 0.229 $16.2 $70.67 7.9% 48% 0% 39% 13%

FY 2011 OIL 0.229 $19.4 $84.48 8.3% 43% 0% 39% 18%

FY 2012 OIL 0.266 $23.4 $88.13 7.0% 30% 0% 51% 18%

FY 2013 OIL 0.244 $20.6 $84.39 6.3% 34% 0% 53% 13%

FY 2014 OIL 0.227 $21.4 $94.26 5.8% 35% 0% 56% 9%

Note : % Fede al desig ates the po tio of total p odu tio fo the pa ti ula p odu t o fede al su su fa e la d, si ila l % I dia , %P i-

ate a d % “tate desig ate p odu tio o T i al o Natio la ds, p i ate la ds a d state lands.


– 249 –



Product Sale

Period

Volume Value

($1.000)

Price Ratio to Spot

Price

Total Dedns

($1.000)

Dedns % Net Value

($1.000) Oil (Bbls) FY11 226,316 $19,116 $84.46 94.70% $1,580 8.30% $17,536

Oil (Bbls) FY12 263,424 $23,218 $88.14 92.80% $1,611 6.90% $21,606

Oil (Bbls) FY13 242,097 $20,432 $84.40 91.60% $1,285 6.30% $19,148

Condensate (Bbls) FY11 2,987 $255 $85.34 95.60% $28 10.90% $227



Processed Gas (Mcf) FY11 101,323 $518 $5.12 123.20% $34 6.50% $485

Processed Gas (Mcf) FY12 196,344 $652 $3.32 109.20% $19 3.00% $633

Processed Gas (Mcf) FY13 341,661 $1,094 $3.20 92.80% $59 5.40% $1,035



Unprocessed Gas (Mcf) FY13 1,424,809 $6,997 $4.91 142.40% $947 13.50% $6,050

Gas Plant Products (Mcf) FY11 109,662 $660 $6.02 145.00% $66 10.00% $595

Gas Plant Products (Mcf) FY12 150,130 $575 $3.83 125.80% $47 8.20% $528

Gas Plant Products (Mcf) FY13 326,291 $548 $1.68 $0.49 $42 7.60% $507

Oil Lost (Bbls) FY12 627 $54 $85.86 90.40% $7 12.50% $47

Oil Lost (Bbls) FY13 -110 ($14) $125.59 136.30% ($3) 24.10% ($10)

Note: liquids in the Unprocessed Gas category bolster Roosevelt County natural gas price. Unprocessed gas (82% of

volume) averaged 151% premium to Henry Hub.

3. What does this mean for state and local direct revenues from production in Roosevelt County?

Roosevelt County Product Sale

Period School Tax

($1,000) Severance Tax

($1,000) Conservation Tax($1,000)

AV Production ($1,000)

Total Eff. Tax Rate

AV Prod Equip Tax ($1,000)1 Natural Gas FY10 $398 $374 $19 $85 9.01%

Natural Gas FY11 $502 $471 $24 $116 9.09% $15

Natural Gas FY12 $382 $358 $18 $88 9.10% $20

Natural Gas FY13 $304 $285 $14 $67 9.05% $17

Natural Gas FY14 $373 $349 $18 $77 8.98% $14

Oil FY10 $466 $554 $29 $129 7.96%

Oil FY11 $565 $672 $43 $171 8.10% $22

Oil FY12 $686 $817 $52 $204 8.07% $29


– 250 –

Roosevelt County Product Sale

Period School Tax

($1,000) Severance Tax

($1,000) Conservation Tax($1,000)

AV Production ($1,000)

Total Eff. Tax Rate

AV Prod Equip Tax ($1,000)1 Oil FY13 $607 $722 $46 $175 8.05% $39

Oil FY14 $640 $762 $49 $169 7.97% $35 1. The Ad Valorem Production Equipment Tax is collected by County Treasurers in the various producing counties. The obligations are roughly











Roosevelt County Fiscal Year Acres Bid Amount Price/Acre

2005 475 $11,000 $23

2006 5,113 $260,106 $51

2007 8,315 $493,724 $59

2008 4,684 $405,615 $87

2009 5,246 $612,283 $117

2010 3,329 $216,172 $65

2011 5,400 $569,653 $105

2012 840 $323,000 $385

2013 1,120 $76,789 $69

2014 3,497 $301,751 $86

Grand Total 38,019 $3,270,092 $86


– 251 –


Roosevelt County Fiscal Yr Bid Amount Acres Price/Acre

FY05 Total $256,872 6,120 $42

FY06 Total $523,030 16,313 $32

FY07 Total $230,199 10,399 $22

FY08 Total $241,232 10,752 $22

FY09 Total $53,146 6,172 $9

FY10 Total $2,044,450 8,773 $233

FY13 Total $981,075 3,790 $259

Grand Total $4,330,004 62,318 $69









Roosevelt County Gross Receipts Tax Activity Fiscal


Gross Receipts

($1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx

State($1,000)

Approx Cnty/

Muni ($1,000)





FY 2014 OGAS Support Activities 67 $540 $538 $34 6.23% $28 $6

FY 2014 Extraction Services * * * * * * *

FY 2014 Total OGAS-related 67 $540 $538 $34 $0 $28 $6



– 252 –

6. Put into context, the FY 2013 amount of $88.0 thousand of total GRT paid by OGAS interests in Roosevelt County in the three NAICS codes rep-

resents a very small portion of the $176 million total GRT impact. (0.05%). Similarly, the FY 2014 amount of $34.0 thousand of total GRT paid

by OGAS interests in Roosevelt County Summary in the four NAICS codes represents a very small portion of the $207 million total GRT impact.

(0.02%).



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266







Total Gen

Fund

OGAS Portion Roosevelt County Contribution Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.1 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.0 0.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%



– 253 –


Total Gen

Fund

OGAS Portion Roosevelt County Contribution Total Gen

Fund

OGAS Portion









Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%






Roosevelt County -- FY 2013 Public School Support



Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


Roosevelt County Charters

0

School Districts

Dora $2,491 100% $2,491 $797

Elida $1,438 60% $863 $276

Floyd $2,365 100% $2,365 $757

House $1,165 10% $117 $37

Melrose $2,067 20% $413 $132

Portales $20,492 100% $20,492 $6,557

Texico $4,839 10% $484 $155

Roosevelt County Total $34,858 $27,225 $8,711



– 254 –

Roosevelt County -- FY 2014 Public School Support



($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters




Roosevelt County Charters

0

School Districts

Dora $2,380 100% $2,380 $836

Elida $1,535 60% $921 $323

Floyd $2,354 100% $2,354 $826

House $1,560 10% $156 $55

Melrose $2,391 20% $478 $168

Portales $20,801 100% $20,801 $7,301

Texico $4,894 10% $489 $172

Roosevelt County Total $35,915 $27,580 $9,681


Roosevelt County Higher Education Institutions

Fiscal

Year Institution

Total Approp

($1,000)

OGAS Amount

($1,000)

FY 2012 No higher educational institutions




ported by severance tax bonds or via general fund appropriations. All counties benefit from this funding. In addition to the somewhat regular capital outlay detailed here, the state has also established a water trust fund that receives an annual tranche of 10% of the amount of sever-





– 255 –



Roosevelt County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 44 $4,339 3,448 $721,609

General Fund 37 $4,089 2,887 $488,382

STBs 1 $250 156 $211,999

Other 0 $0 7 $19,178




Summary 23 $2,154 1,777 $341,187

STBs 6 $1,300 340 $215,491

General Fund 17 $854 1,434 $122,996



Vetoes 1 $75 187 $7,033


Summary

STBs 2 $450 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0







Vetoes 0 $0 45 $12,902


– 256 –



Summary 1 1000 49 42150

STB funding 1 $1,000 23 $41,800






General Fund 21 $737 2,026 $123,111

STB 8 $588 490 $54,346

Vetoes 1 $13 74 $44,783


STB 0 $0 29 $5,679








Summary 6 $651 484 $137,318

STBs 6 $651 280 $107,514




Vetoes 0 $0 194 $22,906


Summary 11 $5,443 785 $269,340

STBs 11 $5,443 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


– 257 –



Summary 11 $1,430 852 $228,711

STBs 11 $1,430 823 $182,237





Vetoes 0 $0 62 $2,584


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 258 –

The Impacts of Oil and Natural Gas Production in New Mexico on San Juan County A Summary of Important Economic and Revenue Issues

San Juan County Summary

San Juan County is an oil and natural gas producing area in the San Juan Basin. Oil and natural gas production is important to the County both di-





in a 76.0% increase in county oil volume from FY 2010 to FY 2014, county natural gas volumes have experienced a 21.2% decline during the same

period. Overall produced product value has fallen from about $2.5 billion to $2.1 billion. Rio Arriba County has experienced a similar pattern.




1. What products and land types generate the OGAS production in San Juan County?

San Juan County

Fiscal

Year Product

Volume (Million

bbls or mcf)

Value

($ million)

Price ($ per bbl

or mcf) Dedns %



FY 2010 GAS 479.9 $2,420.10 $5.04 27.40% 75% 2% 15% 9%

FY 2011 GAS 459.6 $2,428.60 $5.28 26.30% 74% 3% 14% 9%

FY 2012 GAS 462.9 $2,154.80 $4.66 28.70% 70% 5% 16% 9%

FY 2013 GAS 394.1 $1,638.70 $4.16 25.90% 70% 4% 17% 9%

FY 2014 GAS 378.4 $1,940.70 $5.13 25.70% 71% 3% 16% 10%

FY 2010 OIL 1.07 $66.80 $62.52 11.60% 67% 16% 9% 7%

FY 2011 OIL 0.98 $75.10 $76.37 11.50% 68% 16% 8% 8%

FY 2012 OIL 1.01 $82.10 $81.60 11.80% 64% 20% 8% 8%

FY 2013 OIL 1.08 $85.80 $79.33 12.30% 61% 14% 8% 17%

FY 2014 OIL 1.88 $163.90 $87.02 13.00% 65% 10% 5% 20%


– 259 –

Note : % Fede al desig ates the po tio of total p odu tio fo the pa ti ula p odu t o fede al su su fa e la d, si ila l % I dia , %P i ate a d % “tate desig ate production on Tribal or Nation lands, private lands and state lands.

Note 2: San Juan natural gas price is bolstered by liquids in the Gas Plant Products and unprocessed gas categories.

2. Is there more detail on specific product? Yes, the ONGRD system has for several years published details by product category. A three-year his-

tory is included here.

San Juan County Product Detail

Product

Sale

Period Volume Value Price

Index

Price[1] Dedns %

Production %

Federal % Indian % Private % State % CONDENSATE (BBLS) FY 2012 412,390 $34,074,507 $82.63 $95 10.30% 74.40% 3.90% 11.20% 10.40%

GAS PLANT PRODUCTS FY 2012 48,440,547 $852,806,326 $17.61 25.80% 73.30% 2.70% 13.90% 10.10%

OIL (BBLS) FY 2012 592,771 $47,950,179 $80.89 $95 12.80% 56.80% 31.50% 5.70% 5.90%

OIL LOST FY 2012 650 $56,141 $86.37 $95 22.50% 0.00% 100.00% 0.00% 0.00%

PIT, SKIM, OTHER FY 2012 472 $32,492 $68.84 $95 10.60% 47.70% 31.60% 7.60% 13.10%

PROCESSED GAS FY 2012 260,092,461 $829,744,933 $3.19 $4 30.00% 71.60% 2.40% 17.30% 8.70%

UNPROCESSED GAS FY 2012 154,369,386 $472,296,797 $3.06 $4 31.70% 67.40% 9.50% 14.30% 8.80%

CONDENSATE (BBLS) FY 2013 405,782 $32,290,166 $79.58 $100 10.40% 74.40% 3.90% 11.20% 10.40%


OIL (BBLS) FY 2013 671,014 $53,425,113 $79.62 $100 13.50% 55.40% 19.70% 4.10% 20.80%

OIL LOST FY 2013 100 $7,945 $79.45 $100 12.50% 0.00% 100.00% 0.00% 0.00%

PIT, SKIM, OTHER FY 2013 1,025 $65,345 $63.75 $100 8.30% 60.90% 14.40% 15.70% 9.00%

PROCESSED GAS FY 2013 217,187,669 $718,988,297 $3.31 $4 21.90% 69.10% 2.00% 19.90% 9.10%


CONDENSATE (BBLS) FY 2014 462,096 $40,053,588 $86.68 $72 10.60% 74.40% 3.90% 11.20% 10.40%


OIL (BBLS) FY 2014 1,424,078 $123,761,212 $86.91 $72 13.70% 61.70% 13.10% 2.80% 22.40%

PIT, SKIM, OTHER FY 2014 577 $63,649 $110.31 $72 3.80% 35.00% 13.90% 47.10% 4.00%

PROCESSED GAS FY 2014 218,446,599 $926,465,670 $4.24 $4 23.10% 71.50% 1.90% 17.30% 9.30%


[1] The index price for oil and condensates is West Texas Intermediate Spot price at Cushing, Oklahoma. The index price of natural gas is the Henry Hub spot price.

These data have been obtained from the Department of Energy, Energy Information Agency for the corresponding production month, averaged over the fiscal year.

Because of the significant change in volumes produced during the year, the index price is only indicative of the market.

San Juan County in the mid-decade was the location of some experimental helium production. While this production was not within the relevant

production period of this report, the following table is included for historical reference. All production was on Navajo Nation land.


– 260 –

Product Land Type Sale Period Volume Value Price Total Dedns Dedns % Net Value

Helium (Mcf) Indian FY06 1,938 $96,937 $50.02 $9,075 9.40% $87,862



3. What does this mean for state and local direct revenues from production in San Juan County?

San Juan County

Product Sale

Period

School Tax

($1,000)

Severance Tax

($1,000)

Conservation Tax

($1,000)

AV Production

($1,000)

Total Eff.

Tax Rate

AV Prod Equip Tax

($1,000)1

Natural Gas FY10 $70,881 $66,452 $3,365 $20,404 9.38%

Natural Gas FY11 $72,141 $67,632 $3,425 $20,664 9.37% $3,497

Natural Gas FY12 $61,452 $57,611 $2,916 $17,755 9.38% $4,202

Natural Gas FY13 $48,502 $45,471 $2,302 $14,486 9.43% $4,404

Natural Gas FY14 $57,638 $54,036 $2,736 $18,523 9.55% $3,006

Oil FY10 $1,825 $2,173 $113 $674 8.26%

Oil FY11 $2,064 $2,457 $157 $763 8.30% $114

Oil FY12 $2,231 $2,656 $169 $839 8.32% $153

Oil FY13 $2,351 $2,799 $179 $898 8.34% $203

Oil FY14 $4,501 $5,358 $343 $1,848 8.43% $185 1. The Ad Valorem Production Equipment Tax is collected by County Treasurers in the various producing counties. The obligations are roughly 20% of

the previous year's ad valorem production tax amounts. These data are for the 2010 through 2013 taxable year. Payments were largely made in FY10


Note: all of the School Tax and the bulk of the Conservation Tax are transferred to the State General Fund. The Severance Tax is trans-

ferred to the Severance Tax Bonding Fund (STBF), where is used to pay off severance tax bonds (STBs). In some years, the residual in the

STBF is subsequently transferred to the Severance Tax Permanent Fund (STPF).






– 261 –


San Juan County Fiscal Year Acres Bid Amount Price/Acre

1995 1,726 $191,200 $111

1996 964 $32,300 $34

1997 599 $57,000 $95

1998 2,120 $124,396 $59

1999 1,201 $114,922 $96

2000 1,115 $49,800 $45

2001 5,282 $382,995 $73

2002 2,358 $319,205 $135

2003 200 $77,595 $388

2004 1,199 $186,015 $155

2005 1,880 $1,491,276 $793

2006 1,281 $162,826 $127

2007 5,204 $446,012 $86

2008 2,798 $2,260,581 $808

2009 520 $27,544 $53

2011 2,516 $996,440 $396

2012 1,804 $4,234,800 $2,347

2013 800 $336,312 $420

2014 - $0 $0

Grand Total 33,569 $11,491,220 $342



San Juan County Fiscal Yr Bid Amount Acres Price/Acre

FY04 Total $27,945,000 1,242 $22,503

FY05 Total $3,687,610 8,373 $440

FY06 Total $12,505,225 11,669 $1,072

FY07 Total $3,038,233 25,380 $120

FY08 Total $7,190,530 16,781 $428

FY09 Total $7,057,954 24,240 $291

FY11 Total $112,000 320 $350

FY12 Total $960 480 $2

FY13 Total $325,600 960 $339

FY14 Total $1,209,600 960 $1,260

Grand Total $63,072,712 90,404 $698











– 262 –

San Juan County Gross Receipts Tax Activity Fiscal


Gross Receipts

($1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)

Approx Nation/

Tribe ($1,000)


FY 2013 Drilling Oil and Gas Wells 76 $2,663 $2,175 $147 6.76% $97 $50


FY 2013 Total OGAS-related 1,550 $259,067 $140,083 $9,714 6.93% $5,866 $3,848

FY 2014 Oil & Gas Extraction 46 $1,085 $491 $34 6.93% $21 $13

FY 2014 Drilling Oil and Gas Wells 106 $2,893 $2,048 $138 6.74% $94 $44


FY 2014 Total OGAS-related 1,678 $301,297 $159,228 $11,179 7.02% $6,704 $4,476


6. Put into context, the FY 2013 amount of $9.7 million of total GRT paid by OGAS interests in San Juan County in the three NAICS codes represents a

significant portion of the $176 million total GRT impact. (5.51%). Similarly, the FY 2014 amount of $11.2 million of total GRT paid by OGAS inter-

ests in San Juan County Summary in the four NAICS codes represents a relatively small portion of the $207 million total GRT impact. (5.40%).



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266





– 263 –




Total Gen

Fund

OGAS Portion San Juan County Contribution Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $6.8 4.5% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.8 4.5% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% $0.0 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% $0.0 0.0% $65.8 $21.8 33.1%







– 264 –



Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


$50,300 95

San Juan County Charters $3,861 100% $3,861 $1,236 2

School Districts

Aztec $20,517 100% $20,517 $6,565

Bloomfield $19,798 100% $19,798 $6,335

Central Consolidated $26,994 100% $26,994 $8,638

Farmington $66,851 100% $66,851 $21,392

San Juan County Total $138,020 $138,020 $42,931




($1,000) % In

county County Total

$1,000) OGAS Support-

ed ($1,000) # Charters

All Charter Schools $165,338.0 0% $0.0 $58,034.0 97

State Charter Schools $95,212.0 0% $0.0 $33,419.4 57

District Charter Schools $70,126.1 0% $0.0 $24,614.3 40

San Juan County Charters $3,897.4 100% $3,897.4 $1,368.0 2

District Charter Schools $3,897.4 0% $3,897.4 $1,368.0 2

Mosaic Academy Charter (Aztec) $1,239.9 100% $1,239.9 $435.2 0

New Mexico Virtual Academy (Farmington) $2,657.6 100% $2,657.6 $932.8 0

School Districts

Aztec $20,579.4 100% $20,579.4 $7,223.4 0

Bloomfield $19,787.9 100% $19,787.9 $6,945.6 0

Central $29,148.8 100% $29,148.8 $10,231.2 0

Farmington $68,763.1 100% $68,763.1 $24,135.8 0

San Juan County Total $142,176.6 0% $142,176.6 $49,904.0 0

Statewide Dist. Total $2,190,353.00 0% $0.00 $768,814.00 0


– 265 –

San Juan County Higher Education Institutions Fiscal Institution Total Approp OGAS Amount

FY 2012 SAN JUAN College -- Farmington $21,801 $7,216 FY 2012 SAN JUAN College -- Aztec NSA NSA

FY 2012 SAN JUAN College --Kirtland NSA NSA

FY 2012 County Total $21,801 $7,216

FY 2013 SAN JUAN Farmington $23,199 $7,284

FY 2013 SAN JUAN Aztec NSA NSA

FY 2013 SAN JUAN Kirtland NSA NSA

FY 2013 County Total $23,199 $7,284

FY 2014 SAN JUAN Farmington $24,173 $8,485

FY 2014 SAN JUAN Aztec NSA NSA

FY 2014 SAN JUAN Kirtland NSA NSA

FY 2014 County Total $24,173 $8,485

Note: "NSA" means "not separately appropriated". Typically, a non-appropriated branch institution is appropriated and budgeted with the parent institution.








OGAS % of General Fund 30% 30% San Juan County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 95 $19,343 3,448 $721,609

General Fund 64 $14,390 2,887 $488,382

STBs 8 $4,953 156 $211,999

Other 0 $0 7 $19,178




– 266 –

San Juan County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 52 $13,179 1,777 $341,187

STBs 18 $10,566 340 $215,491

General Fund 34 $2,613 1,434 $122,996



Vetoes 4 $218 187 $7,033


Summary

STBs 10 $2,624 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0




New Project Added 1 $1,500 1 $1,500



Vetoes 1 $1,500 45 $12,902


Summary 49 42150



Reauthorizations 25




General Fund 50 $6,346 2,026 $123,111

STB 11 $1,247 490 $54,346

Vetoes 6 $253 74 $44,783


– 267 –

San Juan County (Amts in $1,000) Grand Total (Amts in $1,000)


STB 4 $1,147 29 $5,679

Amount Attrib. to OGAS $0 -$83,167

Attrib. to OG Prod. Voids 0 $0 -$88,562






Summary 11 $3,875 484 $137,318

STBs 4 $3,218 280 $107,514




Vetoes 7 $657 194 $22,906


Summary 15 $7,706 785 $269,340

STBs 15 $7,706 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 3 $130 72 $4,402


Summary 16 $6,306 852 $228,711

STBs 16 $6,306 823 $182,237





Vetoes 0 $0 62 $2,584


– 268 –

The Impacts of Oil and Natural Gas Production in New Mexico on San Miguel County A Summary of Important Economic and Revenue Issues

San Miguel County Summary

San Miguel County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This




lion and 1,169 million mcf of natural gas worth $6,115 million and 64.3 million mcf of CO2 worth $ . . illio . Note: f is 1,000 cubic feet of

gas at standard temperature and pressure.)

1. What products and land types generate the OGAS production in San Miguel County? San Miguel County is not an oil and natural gas producing

area.


tails by product category. However, San Miguel County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in San Miguel County? San Miguel County is not an oil





deducting the expenses of the SLO. No state leases were sold during the FY 2005 through FY 2014 period.


San Miguel County Fiscal Yr Bid Amount Acres Price/Acre

FY06 Total $6,446 881 $7.32

Grand Total $6,446 881 $7.30






– 269 –





San Miguel County Gross Receipts Tax Activity


($1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)




FY 2014 All OGAS Total * * * * * * *

* Items designated "*" mean there was some reported activity in that industry classification during the fiscal year. These ha ve been redacted for confidentiality.

6. Put into context, the redacted amount of total GRT paid in FY 2013 by OGAS interests in San Miguel County in the three NAICS codes repre-

sents an insignificant portion of the $176 million total GRT impact. Similarly, the redacted amount of total GRT paid by OGAS interests in San

Miguel County in FY 2014 in the four NAICS codes represents an insignificant portion of the $207 million total GRT impact.



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266





– 270 –




Total Gen

Fund

OGAS Portion San Miguel County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.051 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.006 0.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%


0.0%






– 271 –

San Miguel County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


San Miguel County Charters $871 100% $871 $279 1

School Districts

Las Vegas City $13,420 100% $13,420 $4,294

West Las Vegas $2,939 100% $2,939 $940

Pecos $4,582 100% $4,582 $1,466

Santa Rosa $22,157 5% $1,108 $355

San Miguel County Total $43,969 $22,920 $7,334


San Miguel County -- FY 2014 Public School Support



($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters




San Miguel County Charters $772 $772 $271 1


Rio Gallinas School (West Las Vegas) $772 100% $772 $271

School Districts

Las Vegas City $14,131 100% $14,131 $4,960

West Las Vegas $12,987 100% $12,987 $4,558

Pecos $5,332 100% $5,332 $1,871

Santa Rosa $5,890 100% $5,890 $2,067

San Miguel County Total $39,112 $39,112 $13,727



– 272 –

San Miguel County Higher Education


($1,000)

OGAS Amount

($1,000)

FY 2012 New Mexico Highlands University -- Las Vegas $27,434 $9,081

FY 2012 LUNA CC -- Las Vegas $7,448 $2,465

FY 2012 County Total $34,882 $11,546



FY 2013 County Total $36,922 $11,594



FY 2014 County Total $38,033 $13,349









San Miguel County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 143 $17,828 3,448 $721,609

General Fund 121 $11,914 2,887 $488,382

STBs 5 $5,115 156 $211,999

Other 0 $0 7 $19,178




Summary 68 $8,683 1,777 $341,187


– 273 –


STBs 7 $6,800 340 $215,491

General Fund 61 $1,883 1,434 $122,996



Vetoes 5 $142 187 $7,033


Summary

STBs 4 $2,830 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0







Vetoes 0 $0 45 $12,902


Summary 1 7000 49 42150

STB funding 1 $7,000 23 $41,800






General Fund 68 $1,695 2,026 $123,111

STB 16 $376 490 $54,346

Vetoes 3 $1,280 74 $44,783


STB 4 $133 29 $5,679


– 274 –









Summary 18 $5,747 484 $137,318

STBs 9 $5,038 280 $107,514




Vetoes 9 $709 194 $22,906


Summary 23 $9,054 785 $269,340

STBs 23 $9,054 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 28 $14,200 852 $228,711

STBs 26 $10,050 823 $182,237





Vetoes 5 $130 62 $2,584


– 275 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 276 –

The Impacts of Oil and Natural Gas Production in New Mexico on Sandoval County A Summary of Important Economic and Revenue Issues

Sandoval County Summary

Sandoval County is an oil and natural gas producing area in the San Juan Basin. Oil and natural gas production is important to the County both di-

rectly and indirectly. Sandoval County is the fastest growing area in the state from FY 2010 to FY 2014 for both oil and gas (in percentage growth).

This summary details some of these important issues.

In FY 2010, county producers shipped 68 thousand barrels of oil worth $4.2 million and 1.4 million mcf of natural gas worth $7.8 million. In FY

2014, county producers shipped 1,388 thousand barrels of oil worth $123.0 million and 3.4 million mcf of natural gas worth $18.8 million.

Horizontal drilling and fracking (hydraulic and chemical treatment of new wells to enhance early production) have been aggressively applied in this

county and have resulted in a 1,946% increase in oil volume from FY 2010 to FY 2014 while county natural gas volumes have experienced a 149%

increase during the same period. Overall produced product value has grown from about $12.0 million to $141.8 million.




1. What products and land types generate the OGAS production in Sandoval County?

Sandoval County

Fiscal Year Product Volume (Million

bbls or mcf)

Value

($ million)

Price ($ per

bbl or mcf) Dedns %



FY 2010 GAS 1.4 $7.79 $5.76 20.6% 46% 52% 1% 2%

FY 2011 GAS 1.8 $10.00 $5.64 19.0% 60% 38% 1% 1%

FY 2012 GAS 2.3 $9.60 $4.26 19.7% 62% 31% 0% 7%

FY 2013 GAS 2.1 $8.90 $4.22 22.0% 68% 33% 0% -1%

FY 2014 GAS 3.4 $18.79 $5.58 28.5% 59% 24% 0% 17%

FY 2010 OIL 0.07 $4.25 $62.59 13.4% 61% 34% 1% 3%

FY 2011 OIL 0.16 $5.36 $32.68 13.7% 81% 17% 0% 1%

FY 2012 OIL 0.01 $8.65 $740.41 14.1% -478% 363% 6% 209%

FY 2013 OIL 0.21 $16.89 $80.91 14.5% 57% 27% 0% 16%

FY 2014 OIL 1.39 $122.98 $88.63 14.4% 51% 10% 0% 39%


– 277 –

Note : % Fede al desig ates the po tio of total p odu tio fo the pa ti ula p odu t o fede al su su fa e la d, si ila l % I dia , %P i ate a d % “tate des-

ignate production on Tribal or Nation lands, private lands and state lands.

Note 2: Sandoval County natural gas price is bolstered by liquids in the Gas Plant Products and unprocessed gas categories.

2. Is there more detail on specific product? Yes, the ONGRD system has for several years published details by product category. A three-year his-

tory is included here.

Product Sale

Period Volume

Value

($1,000) Price

Ratio to

Spot

Total Dedns

($1,000) Dedns %

Net Value

($1,000)

Oil (bbls) FY11 71,156 $5,321 $74.78 83.80% $728 13.70% $4,592

Oil (bbls) FY12 103,424 $8,604 $83.20 87.60% $1,213 14.10% $7,391

Oil (bbls) FY13 208,534 $16,873 $80.91 87.80% $2,445 14.50% $14,428


Processed gas (mcf) FY12 357,707 $1,232 $3.44 113.20% $357 29.00% $875


Unprocessed gas (mcf) FY11 1,110,182 $5,484 $4.94 118.90% $868 15.80% $4,615






Oil lost(bbls) FY11 436 $35 $80.47 90.20% $4 12.50% $31

Oil lost(bbls) FY12 567 $47 $83.20 87.60% $6 12.50% $41

Oil lost(bbls) FY13 164 $13 $77.09 83.70% $2 12.50% $11

3. What does this mean for state and local direct revenues from production in Sandoval County?

Sandoval County

Product Sale

Period

School Tax

($1,000)

Severance Tax

($1,000)

Conservation Tax

($1,000)

AV Production

($1,000)

Total Eff.

Tax Rate

AV Prod Equip Tax

($1,000)1

Natural Gas FY10 $224 $230 $12 $88 9.39%

Natural Gas FY11 $301 $304 $15 $120 9.51% $15

Natural Gas FY12 $287 $289 $15 $114 9.53% $21

Natural Gas FY13 $260 $261 $13 $103 9.54% $21

Natural Gas FY14 $488 $480 $24 $190 9.61% $18


– 278 –

Sandoval County

Product Sale

Period

School Tax

($1,000)

Severance Tax

($1,000)

Conservation Tax

($1,000)

AV Production

($1,000)

Total Eff.

Tax Rate

AV Prod Equip Tax

($1,000)1

Oil FY10 $109 $138 $7 $52 8.30%

Oil FY11 $134 $172 $11 $68 8.37% $9

Oil FY12 $215 $279 $18 $110 8.37% $12

Oil FY13 $429 $540 $35 $214 8.45% $20

Oil FY14 $3,081 $3,746 $240 $1,485 8.56% $37 1. The Ad Valorem Production Equipment Tax is collected by County Treasurers in the various producing counties. The obligations are roughly











Sandoval County Fiscal Year Acres Bid Amount Price/Acre

2006 11,981 $350,177 $29

2007 4,803 $263,120 $55

2012 6,919 $14,884,560 $2,151

2013 844 $29,457 $35

Grand Total 24,547 15,527,314 $633



– 279 –


Sandoval County Fiscal Yr Bid Amount Acres Price/Acre

FY05 Total $256,872 6,120 $42

FY06 Total $523,030 16,313 $32

FY07 Total $230,199 10,399 $22

FY08 Total $241,232 10,752 $22

FY09 Total $53,146 6,172 $9

FY10 Total $2,044,450 8772.68 $233

FY13 Total $981,075 3789.5 $259

Grand Total $4,330,004 62,318 $69









Sandoval County Gross Receipts Tax Activity Fiscal


Gross Receipts

($1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT

Rate (%)

Approx

State($1,000)

Approx Cnty/

Muni ($1,000)

Approx Nation/

Tribe ($1,000)




FY 2014 Drilling Oil and Gas Wells * * * * * * * *

FY 2014 OGAS Support Activities 105 $9,570 $8,850 $553.47 6.25% $441 $99 $131



6. Put into context, the FY 2013 amount of $0.3 million of total GRT paid by OGAS interests in Sandoval County in the three NAICS codes repre-

sents a very small portion of the $176 million total GRT impact. (0.15%). Similarly, the FY 2014 amount of $0.6 million of total GRT paid by


– 280 –

OGAS interests in Sandoval County Summary in the four NAICS codes represents a very small portion of the $207 million total GRT impact.

(0.27%).







Total Gen

Fund

OGAS Portion Sandoval County Contribution Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.7 0.4% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.1 0.4% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%






($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266


– 281 –


Total Gen

Fund

OGAS Portion Sandoval County Contribution Total Gen

Fund

OGAS Portion







Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%






Sandoval County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


Sandoval County Charters $1,654 100% $1,654 $529 2

School Districts

Bernalillo $20,732 100% $20,732 $6,634

Cuba $4,694 100% $4,694 $1,502

Jemez Valley $2,415 100% $2,415 $773

Rio Rancho $106,313 100% $106,313 $34,020

Sandoval County Total $135,808 $135,808 $43,458



– 282 –

Sandoval County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters




Sandoval County Charters $4,074 100% $4,074 $1,430 3


ASK Academy (The) (Rio Rancho) $2,464 100% $2,464 $865

Walatowa Charter High School (Jemez Valley) $772 100% $772 $271


San Diego Riverside Charter School (Jemez

Valley) $838 100% $838 $294

School Districts

Bernalillo $22,146 100% $22,146 $7,773

Cuba $5,286 100% $5,286 $1,855

Jemez Valley $2,671 100% $2,671 $937

Rio Rancho $109,357 100% $109,357 $38,384

Sandoval County Total $143,534 $143,534 $50,380


Sandoval County Higher Education Institutions


($1,000)

OGAS Amount

($1,000)

FY 2012 New Mexico Highlands University –Rio Rancho NSA NSA

FY 2012 CNMCC -- Rio Rancho NSA NSA FY 2012 County Total NSA NSA






– 283 –

Note: "NSA" means "not separately appropriated". Typically, a non-appropriated branch institution is appropriated and budgeted with the parent institution.









Sandoval County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 154 $26,503 3,448 $721,609

General Fund 134 $18,435 2,887 $488,382

STBs 9 $8,068 156 $211,999

Other 0 $0 7 $19,178




Summary 68 $9,157 1,777 $341,187

STBs 15 $5,012 340 $215,491

General Fund 53 $4,145 1,434 $122,996



Vetoes 4 $377 187 $7,033


Summary

STBs 10 $6,543 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0


– 284 –








Vetoes 2 $300 45 $12,902


Summary 1 6000 49 42150

STB funding 1 $6,000 23 $41,800






General Fund 66 $4,772 2,026 $123,111

STB 16 $1,726 490 $54,346

Vetoes 2 $315 74 $44,783


STB 2 $216 29 $5,679








Summary 18 $4,110 484 $137,318

STBs 10 $2,310 280 $107,514




Vetoes 8 $1,800 194 $22,906


– 285 –



Summary 45 $6,894 785 $269,340

STBs 45 $6,894 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 6 $490 72 $4,402


Summary 42 $8,308 852 $228,711

STBs 41 $8,208 823 $182,237





Vetoes 3 $65 62 $2,584


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 286 –

The Impacts of Oil and Natural Gas Production in New Mexico on Santa Fe County A Summary of Important Economic and Revenue Issues

Santa Fe County Summary

Santa Fe County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This




and 1,169 million mcf of natural gas worth $6,115 million and 64.3 million mcf of CO2 worth $ . . illio . Note: f is ,000 cubic feet of gas

at standard temperature and pressure.)

1. What products and land types generate the OGAS production in Santa Fe County? Santa Fe County is not an oil and natural gas producing area.


tails by product category. However, Santa Fe County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Santa Fe County? Santa Fe County is not an oil and





deducting the expenses of the SLO. No federal leases were sold in the county during the FY 2004 through FY 2014 period.


Santa Fe County Fiscal Year Acres Bid Amount Price/Acre

2007 6,313 $449,200 $71.20

Grand Total 6,313 $449,200 $71.20








– 287 –



Santa Fe County Gross Receipts Tax Activity

Fiscal


Gross Receipts

($1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)


FY2013 Drilling Oil and Gas Wells 40 $224 $140 $9.5 6.78% $7.3 $2.2

FY2013 OGAS Support Activities 4 $314 $27 $2.2 8.17% $1.1 $1.1

FY2013 Total OGAS-related 44 $538 $167 $11.7 7.00% $8.4 $3.3



FY 2014 OGAS operations support 19 $1,584 $510 $37.1 7.26% $24.3 $12.7

FY 2014 All OGAS Total 19 $1,584 $510 $37.1 7.26% $24.3 $12.7


6. Put into context, the FY 2013 amount of $11.7 thousand of total GRT paid by OGAS interests in Santa Fe County in the three NAICS codes rep-

resents an insignificant portion of the $176 million total GRT impact. (0.01%). Similarly, the FY 2014 amount of $37.1 thousand of total GRT

paid by OGAS interests in the four NAICS codes represents an insignificant portion of the $207 million total GRT impact. (0.02%).



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266


– 288 –







Total Gen

Fund

OGAS Portion Santa Fe County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.1 0.1% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.0 0.1% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%


$564.0

0.0%






– 289 –

Santa Fe County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000) % In

county County Total


($1,000) # Charters


$50,300 95 Santa Fe County Charters $14,938 100% $14,938 $4,780 6 School Districts

Moriarty $20,952 40% $8,381 $2,682 Pojoaque Valley $12,125 100% $12,125 $3,880 Santa Fe $81,763 100% $81,763 $26,164

Santa Fe County Total $129,778 $117,207 $37,506 Statewide Dist. Total $2,110,188 $675,260

Santa Fe County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%

DISTRICT Operating Budg-

ets ($1,000) % In

county County Total


($1,000) # Charters




Santa Fe County Charters $16,437 $16,437 $5,769 7


MASTERS Program (The) (Santa Fe) $1,550 100% $1,550 $544

New Mexico Connections Academy (Santa Fe) $2,557 100% $2,557 $898

New Mexico School for the Arts (Santa Fe) $1,711 100% $1,711 $600


Academy for Technology and the Classics (Santa Fe) $2,399 100% $2,399 $842

Monte Del Sol Charter School (Santa Fe) $2,974.65 100% $2,975 $1,044

Tierra Encantada Charter School (Santa Fe) $2,049.43 100% $2,049 $719

Turquoise Trail Elementary (Santa Fe) $3,195.72 100% $3,196 $1,122

School Districts

Moriarty $19,336 40% $7,734 $2,715

Pojoaque Valley $12,127 100% $12,127 $4,257

Santa Fe $86,154 100% $86,154 $30,240

Santa Fe County Total $134,055 $122,453 $42,981



– 290 –

Santa Fe County Higher Education


FY 2012 Santa Fe CC $12,166 $4,027

FY 2012 New Mexico School for the Deaf $3,385 $1,121

FY 2012 County Total $15,551 $5,148

FY 2013 Santa Fe CC $12,501 $3,925


FY 2013 County Total $16,269 $5,108

FY 2014 Santa Fe CC $13,350 $4,686


FY 2014 County Total $17,367 $6,096

Note: NMSD is a constitutional institution and receives a distribution of income from designated lands.








OGAS % of General Fund 30% 30% Santa Fe (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 266 $59,813 3,448 $721,609

General Fund 222 $33,828 2,887 $488,382

STBs 12 $10,144 156 $211,999

Other 4 $15,842 7 $19,178




Summary 123 $26,901 1,777 $341,187


– 291 –

Santa Fe (Amts in $1,000) Grand Total (Amts in $1,000)

STBs 30 $17,425 340 $215,491

General Fund 92 $7,976 1,434 $122,996

Other Funds 1 $1,500 3 $2,700


Vetoes 6 $300 187 $7,033


Summary

STBs 16 $14,709 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0







Vetoes 1 $150 45 $12,902


Summary 2 0 49 42150

STB funding 0 $0 23 $41,800






General Fund 129 $10,736 2,026 $123,111

STB 38 $3,175 490 $54,346

Vetoes 5 $3,134 74 $44,783


STB 1 $25 29 $5,679


– 292 –

Santa Fe (Amts in $1,000) Grand Total (Amts in $1,000)








Summary 50 $14,822 484 $137,318

STBs 27 $11,514 280 $107,514




Vetoes 23 $3,308 194 $22,906


Summary 67 $18,391 785 $269,340

STBs 62 $9,821 769 $218,132

Other Funds 5 $8,570 16 $51,208


Vetoes 13 $730 72 $4,402


Summary 56 $14,794 852 $228,711

STBs 52 $6,446 823 $182,237





Vetoes 4 $170 62 $2,584


– 293 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 294 –

The Impacts of Oil and Natural Gas Production in New Mexico on Sierra County A Summary of Important Economic and Revenue Issues

Sierra County Summary

Sierra County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This





1. What products and land types generate the OGAS production in Sierra County? Sierra County is not an oil and natural gas producing area.


tails by product category. However, Sierra County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Sierra County? Sierra County is not an oil and natural

gas producing area.




deducting the expenses of the SLO. No federal leases were sold in the county during the FY 2004 through FY 2014 period.


Sierra County Fiscal Year Acres Bid Amount Price/Acre

2008 3,034 $15,200 $5

Grand Total 3,034 $15,200 $5







– 295 –




Sierra County Gross Receipts Tax Activity Fiscal


Gross Receipts

($1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)






FY 2014 All OGAS Total * * * * * * *


6. Put into context, the redacted amount of total GRT paid by OGAS interests in Sierra County in the three NAICS codes represents an insignifi-

cant portion of the $176 million total GRT impact. Similarly, the redacted amount of total GRT paid by OGAS interests in Sierra County in the




($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266




– 296 –





Total Gen

Fund

OGAS Portion Sierra County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.048 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.006 0.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%


0.0%






– 297 –

Sierra County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


Sierra County Charters 100%

School Districts

Truth Or Consequences $9,538 100% $9,538 $3,052

Sierra County Total $9,538 $9,538 $3,052


Sierra County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000)

# Char-

ters




Sierra County Charters $0 $0 $0 0

School Districts

Truth or Consequences $10,181 100% $10,181 $3,573

Sierra County Total $10,181 $10,181 $3,573


Sierra County Higher Education Institutions


($1,000)

OGAS Amount

($1,000)








– 298 –





OGAS % of General Fund 30% 30% Sierra County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 9 $4,289 3,448 $721,609

General Fund 7 $2,937 2,887 $488,382

STBs 1 $1,353 156 $211,999

Other 0 $0 7 $19,178




Summary 7 $9,024 1,777 $341,187

STBs 5 $8,874 340 $215,491

General Fund 2 $150 1,434 $122,996



Vetoes 1 $100 187 $7,033


Summary

STBs 3 $205 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0






– 299 –

Sierra County (Amts in $1,000) Grand Total (Amts in $1,000)



Vetoes 0 $0 45 $12,902


Summary 49 42150



Reauthorizations 25




General Fund 3 $243 2,026 $123,111

STB 5 $412 490 $54,346

Vetoes 0 $0 74 $44,783


STB 0 $0 29 $5,679








Summary 1 $400 484 $137,318

STBs 1 $400 280 $107,514




Vetoes 0 $0 194 $22,906


Summary 7 $842 785 $269,340

STBs 7 $842 769 $218,132


– 300 –

Sierra County (Amts in $1,000) Grand Total (Amts in $1,000)

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 4 $634 852 $228,711

STBs 4 $634 823 $182,237





Vetoes 0 $0 62 $2,584


– 301 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 302 –

The Impacts of Oil and Natural Gas Production in New Mexico on Socorro County A Summary of Important Economic and Revenue Issues

Socorro County Summary

Socorro County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This




lion and 1,169 million mcf of natural gas worth $6,115 million and 64.3 million mcf of CO2 worth $ . . illio . Note: f is , cubic feet of

gas at standard temperature and pressure.)

1. What products and land types generate the OGAS production in Socorro County? Socorro County is not an oil and natural gas producing area.


tails by product category. However, Socorro County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Socorro County? Socorro County is not an oil and natu-







Socorro County Fiscal Year Acres Bid Amount Price/Acre

2005 2,440 $8,600 $3.50

Grand Total 2,440 $8,600 $3.50


Socorro County Fiscal Yr Bid Amount Acres Price/Acre

FY04 Total $3,848 1,924 $2

FY08 Total $222,151 17,308 $13

Grand Total $225,999 19,232 $0


– 303 –









Socorro County Gross Receipts Tax Activity Fiscal


Gross Receipts

($1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)





FY 2014 All OGAS Total * * * * * * *

6. Put into context, the redacted amount of total GRT paid by OGAS interests in Socorro County in the three NAICS codes represents an insignifi-

cant portion of the $176 million total GRT impact. Similarly, the redacted amount of total GRT paid by OGAS interests in Socorro County in the




($1,000) Txbl Gross

Rcpts ($1,000) Gross Tax ($1,000)

Rate State Tax


Nation Amt ($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266


– 304 –







Total Gen

Fund

OGAS Portion Socorro County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.023 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.003 0.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%


0.0%






– 305 –

Socorro County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


$50,300 95

Socorro County Charters

School Districts

Belen $29,325 50% $14,663 $4,692

Magdalena $3,457 100% $3,457 $1,106

Mountainair $3,121 20% $624 $200

Socorro $12,060 100% $12,060 $3,859

Socorro County Total $47,963 $30,804 $9,857


Socorro County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters




Socorro County Charters $1,165 $1,165 $409 1


Cottonwood Valley Charter School (Socorro) $1,165 100% $1,165 $409

School Districts

Belen $29,223 50% $14,612 $5,129

Magdalena $3,596 100% $3,596 $1,262

Mountainair $3,148 20% $630 $221

Socorro $12,437 100% $12,437 $4,365

Socorro County Total $49,569 $32,439 $11,386



– 306 –

Socorro County Higher Education


($1,000)

OGAS Amount

($1,000)

FY 2012 New Mexico Institute of Ming and Technology $34,553 $11,437











Socorro County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 40 $7,577 3,448 $721,609

General Fund 36 $5,227 2,887 $488,382

STBs 3 $2,350 156 $211,999

Other 0 $0 7 $19,178




Summary 22 $2,868 1,777 $341,187

STBs 6 $1,600 340 $215,491

General Fund 16 $1,268 1,434 $122,996



Vetoes 2 $32 187 $7,033


– 307 –



Summary

STBs 3 $685 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0







Vetoes 0 $0 45 $12,902


Summary 49 42150



Reauthorizations 25




General Fund 14 $484 2,026 $123,111

STB 6 $181 490 $54,346

Vetoes 0 $0 74 $44,783


STB 0 $0 29 $5,679







– 308 –




Summary 6 $702 484 $137,318

STBs 5 $652 280 $107,514




Vetoes 1 $50 194 $22,906


Summary 9 $7,054 785 $269,340

STBs 9 $7,054 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 10 $2,290 852 $228,711

STBs 10 $2,290 823 $182,237





Vetoes 0 $0 62 $2,584


– 309 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 310 –

The Impacts of Oil and Natural Gas Production in New Mexico on Taos County A Summary of Important Economic and Revenue Issues

Taos County Summary

Taos County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This sum-





1. What products and land types generate the OGAS production in Taos County? Taos County is not an oil and natural gas producing area.


tails by product category. However, Taos County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Taos County? Taos County is not an oil and natural gas

producing area.




deducting the expenses of the SLO. No state or federal leases were sold in the county during the FY 2004 through FY 2014 period.










– 311 –

Taos County Gross Receipts Tax Activity

Fiscal


Gross Receipts

($1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT Rate

(%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)




FY 2014 All OGAS Total * * * * * * *


6. Put into context, the redacted amount of total GRT paid by OGAS interests in FY2013 in Taos County in the three NAICS codes represents an

insignificant portion of the $176 million total GRT impact. Similarly, the redacted amount of total GRT paid by OGAS interests in FY 2014 in

Taos County in the four NAICS codes represents an insignificant portion of the $207 million total GRT impact.



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266







– 312 –


Total Gen

Fund

OGAS Portion Taos County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.022 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.003 0.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% 0.0% $65.8 $21.8 33.1%


0.0%





Taos County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


Taos County Charters $3,340 100% $3,340 $1,069

School Districts


– 313 –


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters

Mesa Vista $3,858 40% $1,543 $494

Peñasco $4,582 100% $4,582 $1,466

Questa $3,865 100% $3,865 $1,237

Taos $17,865 100% $17,865 $5,717

Taos County Total $33,510 $31,195 $9,983


Taos County -- FY 2014 Public School Support



($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters




Taos County Charters $6,655 $4,812 $1,689 8


La Jicarita Community School (Peñasco) $433 100% $433 $152

Red River Valley Charter School (Questa) $573 100% $573 $201

Taos Academy (Taos) $1,721 100% $1,721 $604

Taos Integrated School of the Arts (Taos) $1,044 100% $1,044 $366

Taos International School (Taos) $0 100% $0 $0


Anansi Charter School (Taos) $1,042 100% $1,042 $366

Roots and Wings Community School (Questa) $424.00 $0 $0

Taos Municipal Charter School (Taos) $1,418.80 $0 $0

School Districts

Mesa Vista $3,835 40% $1,534 $538

Penasco $4,688 100% $4,688 $1,646

Questa $3,793 100% $3,793 $1,331

Taos $18,959 100% $18,959 $6,655

Taos County Total $37,930 $33,786 $11,859



– 314 –

Taos County Higher Education


FY 2012 University of New Mexico -- Taos $2,736 $906

FY 2013 University of New Mexico -- Taos $3,037 $953

FY 2014 University of New Mexico -- Taos $3,400 $1,193









Taos County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 110 $10,070 3,448 $721,609

General Fund 85 $8,252 2,887 $488,382

STBs 6 $1,818 156 $211,999

Other 0 $0 7 $19,178




Summary 63 $8,047 1,777 $341,187

STBs 12 $6,377 340 $215,491

General Fund 51 $1,670 1,434 $122,996



Vetoes 6 $90 187 $7,033


– 315 –



Summary

STBs 3 $884 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0







Vetoes 0 $0 45 $12,902


Summary 49 42150



Reauthorizations 25




General Fund 68 $2,864 2,026 $123,111

STB 12 $296 490 $54,346

Vetoes 2 $389 74 $44,783


STB 2 $553 29 $5,679







– 316 –




Summary 22 $1,310 484 $137,318

STBs 14 $995 280 $107,514




Vetoes 8 $315 194 $22,906


Summary 30 $2,664 785 $269,340

STBs 30 $2,664 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 2 $75 72 $4,402


Summary 24 $2,004 852 $228,711

STBs 23 $1,704 823 $182,237





Vetoes 1 $50 62 $2,584


– 317 –


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 318 –

The Impacts of Oil and Natural Gas Production in New Mexico on Torrance County A Summary of Important Economic and Revenue Issues

Torrance County Summary

Torrance County is not an oil and natural gas producing area. However, oil and natural gas production is important to the county indirectly. This




and 1,169 million mcf of natural gas worth $6,115 million and 64.3 million mcf of CO2 worth $ . . illio . Note: f is ,000 cubic feet of gas

at standard temperature and pressure.)

1. What products and land types generate the OGAS production in Torrance County? Torrance County is not an oil and natural gas producing area.


tails by product category. However, Torrance County is not an oil and natural gas producing area.

3. What does this production mean for state and local direct revenues from production in Torrance County? Torrance County is not an oil and







Torrance County Fiscal Year Acres Bid Amount Price/Acre

2009 1,040 $1,200 $1.15

2010 3,359 $3,500 $1.04

Grand Total 4,399 $4,700 $1.10



– 319 –


Torrance County Fiscal Yr Bid Amount Acres Price/Acre

FY05 Total $22,605 3,710 $6.09

Grand Total $22,605 3,710 $6.09









Torrance County Gross Receipts Tax Activity

Fiscal


Gross Receipts

($1,000)

Txbl Gross Rcpts

($1,000)

Gross Tax

($1,000)

GRT

Rate (%)

Approx State

($1,000)

Approx Cnty/

Muni ($1,000)



FY2013 OGAS Support Activities 32 $8,834 $371 $28 7.44% $15 $13

FY2013 Total OGAS-related 32 $8,834 $371 $28 7.44% $15 $13


FY 2014 OGAS operations support 35 $25,356 $1,144 $85 7.44% $46 $39

FY 2014 All OGAS Total 35 $25,356 $1,144 $85 7.44% $46 $39

6. Put into context, the FY 2013 amount of $27.6 thousand of total GRT paid by OGAS interests in Torrance County in the three NAICS codes rep-

resents a very small portion of the $176 million total GRT impact. (0.02%). Similarly, the FY 2014 amount of $85.1 thousand of total GRT paid

by OGAS interests in the four NAICS codes represents a very small portion of the $207 million total GRT impact. (0.04%).


– 320 –



($1,000)

Txbl Gross

Rcpts ($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt ($1,000)

County/Muni

Amt ($1,000)

Nation Amt

($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266







Total Gen

Fund

OGAS Portion Torrance County Contrib. Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.087 0.1% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.010 0.1% $50.9 $16.7 32.8%




$0.0 $0.0 0.0%


$379.9 $379.9 100.0%


$20.8 $20.7 99.5%


$24.2 $24.2 100.0%


$440.9 $425.8 96.6%


$14.7 $4.7 31.8%


– 321 –


Total Gen

Fund

OGAS Portion Torrance County Contrib. Total Gen

Fund

OGAS Portion



$176.2 $152 86.3%


$459.6 $446.4 97.1%


$44.6 $30.2 67.6%


$41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0%

$65.8 $21.8 33.1%


$564.0

0.0%





Torrance County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters


Torrance County Charters $1,086 100% $1,086 $347 1

School Districts

Corona $884 40% $353 $113

Estancia $7,269 100% $7,269 $2,326

Moriarty $20,952 60% $12,571 $4,023

Mountainair $3,121 60% $1,872 $599

Vaughn $1,379 50% $689 $221

Torrance County Total $34,690 $23,841 $7,629



– 322 –

Torrance County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000)

% In

county

County Total

($1,000)

OGAS Supported

($1,000) # Charters




Torrance County Charters $2,455 $2,455 $862 0


Estancia Valley Classical Academy (Moriarty) $2,455 100% $2,455 $862

School Districts

Corona $1,531 100% $1,531 $537

Estancia $7,206 100% $7,206 $2,529

Moriarty $19,336 100% $19,336 $6,787

Mountainair $3,148 100% $3,148 $1,105

Vaughn $1,593 $0 $0

Torrance County Total $35,270 $33,676 $11,820


Torrance County Higher Education Institutions












– 323 –



Torrance County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 33 $3,574 3,448 $721,609

General Fund 29 $3,571 2,887 $488,382

STBs 1 $4 156 $211,999

Other 0 $0 7 $19,178




Summary 21 $1,909 1,777 $341,187

STBs 4 $950 340 $215,491

General Fund 17 $959 1,434 $122,996



Vetoes 2 $55 187 $7,033


Summary

STBs 1 $32 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0







Vetoes 0 $0 45 $12,902


– 324 –



Summary 1 350 49 42150

STB funding 0 $0 23 $41,800






General Fund 29 $1,265 2,026 $123,111

STB 2 $31 490 $54,346

Vetoes 0 $0 74 $44,783


STB 1 $259 29 $5,679








Summary 5 $554 484 $137,318

STBs 2 $25 280 $107,514




Vetoes 3 $529 194 $22,906


Summary 14 $1,341 785 $269,340

STBs 14 $1,341 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 4 $125 72 $4,402


– 325 –



Summary 11 $1,910 852 $228,711

STBs 11 $1,910 823 $182,237





Vetoes 1 $25 62 $2,584


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 326 –

The Impacts of Oil and Natural Gas Production in New Mexico on Union County A Summary of Important Economic and Revenue Issues

Union County Summary

Union County is a carbon dioxide (CO2) producing area in the CO2 Basin. Natural gas, oil and the associated CO2 production is important to the


In FY 2011, Union County CO2 producers shipped 52.1 million mcf of carbon dioxide worth $64.5 million. In FY 2014, Union County CO2 producers

shipped 45.1 million mcf of carbon dioxide worth $66.2 million.


creased demand for CO2 for use in enhanced oil recovery projects. CO2 volumes in Union County have experienced a 13.4% decline from FY 2011

to FY 2014. Overall produced product value, however, has slightly increased from about $64.5 million to $66.2 million. Harding and Quay Counties

have experienced a similar pattern.




1. What products and land types generate the OGAS production in Union County?

Union County Fiscal

Year Product

Volume

(Million mcf)

Value

($ million)

Price ($ per

mcf) Dedns %



FY 2010 CO2 53.82 $57.5 $1.07 30.1% 5% 0% 77% 17%

FY 2011 CO2 52.14 $64.5 $1.24 26.4% 6% 0% 77% 17%

FY 2012 CO2 48.86 $64.4 $1.32 28.1% 6% 0% 77% 17%

FY 2013 CO2 48.98 $64.9 $1.32 33.8% 4% 0% 79% 17%

FY 2014 CO2 45.15 $66.2 $1.47 30.7% 5% 0% 78% 18%


2. Is there more detail on specific product? Yes, the ONGRD system has for several years published details by product category. However, the de-

tail repeats the previous table since the only product is carbon dioxide.


– 327 –

3. What does this mean for state and local direct revenues from production in Union County?

Union County Revenue Detail

Product Sale

Period

School Tax

($1,000)

Severance Tax

($1,000)

Conservation Tax

($1,000)

AV Production

($1,000)

Total Eff. Tax

Rate

AV Prod Equip Tax

($1,000)1

CO2 FY10 $1,270 $1,512 $77 $345 8.16%

CO2 FY11 $2,178 $2,593 $131 $637 8.24% $52.3

CO2 FY12 $1,459 $1,737 $88 $400 8.17% $69.4

CO2 FY13 $1,354 $1,612 $82 $371 8.17% $75.8

CO2 FY14 $1,474 $1,755 $89 $404 8.17% $70.7 1. The Ad Valorem Production Equipment Tax is collected by County Treasurers in the various producing counties. The obligations are roughly 20% of the

previous year's ad valorem production tax amounts. These data are for the 2010 through 2013 taxable year. Payments were largely made in FY10


Note: all of the School Tax and the bulk of the Conservation Tax are transferred to the State General Fund. The Severance Tax is transferred

to the Severance Tax Bonding Fund (STBF), where is used to pay off severance tax bonds (STBs). In some years, the residual in the STBF is

subsequently transferred to the Severance Tax Permanent Fund (STPF).


ducing counties, but exploratory leases are also executed. Bonus payments for leases on federal land are shared with the State General Fund (49% of payments). Bonus payments for leases on state lands become part of the land maintenance fund, distributed to beneficiaries after de-



Union County FY Acres Bid Amounts Price/Acre

2006 Total 11,105 $143,800 $12.95

2008 Total 9,530 $189,448 $19.88

2013 Total 40 $1,500 $37.50

Grand Total 20,675 $334,748 $16.19


Union County Fiscal Yr Bid Amount Acres Price/Acre

FY06 Total $58,250 $2,922 $19.94

Grand Total $58,250 $2,922 $19.94


– 328 –









Union County Gross Receipts Tax Activity Fiscal Year

NAICS Description Count Gross Receipts

($1,000) Txbl Gross Rcpts

($1,000) Gross Tax ($1,000)

GRT Rate (%)

Approx State ($1,000)

Approx Cnty/ Muni ($1,000)





FY 2014 All OGAS Total * * * * * * *


6. Put into context, the FY 2013 amount of total GRT paid by OGAS interests in Union County in the three NAICS codes represents an insignificant

portion of the $176 million total GRT impact. Similarly, the FY 2014 amount of total GRT paid by OGAS interests in Union County Summary in




($1,000) Txbl Gross

Rcpts ($1,000) Gross Tax ($1,000)

Rate State Tax


Nation Amt ($1,000)




FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232% $127,548 $47,584 $1,026





FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036 6.195% $151,479 $54,292 $1,266


– 329 –







Total Gen

Fund

OGAS Portion Union County Contribution Total Gen

Fund

OGAS Portion


Gross Receipts $1,992.0 $151.5 7.6% $0.05 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.01 0.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.00 0.0% $0.0 $0.0 0.0%









Misc. Receipts $45.0 $1.2 2.7% 0.0% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% $0.00 0.0% $65.8 $21.8 33.1%







– 330 –

Union County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%


Costs ($1,000) % In

county County Total


($1,000) # Charters


Union County Charters

School Districts

Clayton $4,977 100% $4,977 $1,593

Des Moines $930 100% $930 $297

Springer $2,177 10% $218 $70

Union County Total $8,083 $6,124 $1,960


Union County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%


($1,000) % In

county County Total


($1,000) # Charters




Union County Charters $0 100% $0 $0 0

School Districts

Clayton $4,595 100% $4,595 $1,613

Des Moines $1,382 100% $1,382 $485

Springer $2,395 10% $240 $84

Union County Total $8,373 $6,217 $2,182


Union County Higher Education Institutions Fiscal

Year Institution

Total Approp

($1,000)

OGAS Amount

($1,000)





– 331 –








OGAS % of General Fund 30% 30% Union County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 21 $2,449 3,448 $721,609

General Fund 16 $1,944 2,887 $488,382

STBs 2 $505 156 $211,999

Other 0 $0 7 $19,178




Summary 9 $640 1,777 $341,187

STBs 1 $325 340 $215,491

General Fund 8 $315 1,434 $122,996


Amount Attributable to Oil and Gas (Through STBF and GF) 0 $403 0 $241,615

Vetoes 0 $0 187 $7,033


Summary

STBs 1 $42 143 $139,960

General Fund

Other Funds


Vetoes 0 $0 0 $0


– 332 –

Union County (Amts in $1,000) Grand Total (Amts in $1,000)







Vetoes 0 $0 45 $12,902


Summary 49 $42,150



Reauthorizations 25




General Fund 5 $82 2,026 $123,111

STB 5 $324 490 $54,346

Vetoes 0 $0 74 $44,783


STB 0 $0 29 $5,679








Summary 1 $165 484 $137,318

STBs 1 $165 280 $107,514




Vetoes 0 $0 194 $22,906


– 333 –

Union County (Amts in $1,000) Grand Total (Amts in $1,000)


Summary 5 $521 785 $269,340

STBs 5 $521 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 3 $227 852 $228,711

STBs 3 $227 823 $182,237





Vetoes 0 $0 62 $2,584


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791




– 334 –

The Impacts of Oil and Natural Gas Production in New Mexico on Va-

lencia County A Summary of Important Economic and Revenue Issues

Valencia County Summary

Valencia County is not an oil and natural gas producing area. However, oil and natural gas production is im-

portant to the county indirectly. This summary details some of these important issues.

In FY 2010, all New Mexico producers shipped 62.4 million barrels of oil worth $4,469 million, 1,275 million

mcf of natural gas worth $6,615 million and 72.4 million mcf of CO2 worth $74.4 million. In FY 2014, all New

Mexico producers shipped 110.5 million barrels of oil worth $10,905 million and 1,169 million mcf of natural

gas worth $6,115 million and 64.3 million mcf of CO2 worth $95.3 million.

1. What products and land types generate the OGAS production in Valencia County? Valencia County is not

an oil and natural gas producing area.

2. Is there more detail on specific product, such as natural gas liquids or condensate? Yes, the ONGRD sys-

tem has for several years published details by product category. However, Valencia County is not an oil


3. What does this production mean for state and local direct revenues from production in Valencia County?

Valencia County is not an oil and natural gas producing area.

4. The industry also makes bonus payments for the rights to lease federal and state lands for production.

These leases are primarily in the producing counties, but exploratory leases are also executed. Bonus

payments for leases on federal land are shared with the State general fund. Bonus payments for leases on

state lands become part of the land maintenance fund at the State Land Office, distributed to beneficiar-

ies after deducting the expenses of the SLO.

State Land Office Lease Sales Recent

History

Valencia County

Fiscal Year Acres

Bid

Amount Price/Acre

2007 6,925 $31,350 $5

Grand Total 6,925 $31,350 $5

Federal OGAS Lease Sale Recent Histo-

ry

Valencia County

Fiscal Yr

Bid


FY06 Total $58,250 2,922 $20

FY07 Total $47,428 8,486 $6

FY08 Total $3,580 178 $20

Grand Total $109,258 11,586 $0

5. How about Gross Receipts Tax revenue to county and municipal governments for the NAICS codes 211110

- Oil & Gas Extraction; 213111 Drilling oil and gas wells; 213112 - Support activities for oil and gas opera-


– 335 –

tions; and 213118 - Services to oil and gas extraction? Refer to the main document for an explanation of

the economic burden concept for Gross Receipts Tax. This year, the methodology for calculating the State

tax amount was improved somewhat, but those improvements are not reflected in the following table.

Note that in the course of 2013, 30 counties had reported activity in at least one of the three NAICS

codes. Only DeBaca, Los Alamos and Mora Counties reported no gross receipts activity. For FY 2014, only

Los Alamos County reported no GRT activity. Although the methodology has been improved this year,

most of the differences between 2013 and 2014 for this county are real. Extraction activity was signifi-

cantly less in FY 2014 than in FY 2013. Drilling activity was approximately flat. However, well services,

completion, fracking and other recurring and non-recurring services significantly expanded.

Valencia County Gross Receipts Tax Activity

Fiscal

Year

NAICS Descrip-

tion Count

Gross Re-

ceipts

($1,000)

Txbl Gross

Rcpts

($1,000)

Gross Tax

($1,000)

GRT

Rate

(%)

Approx

State

($1,000)

Approx

Cnty/ Mu-

ni ($1,000)

FY2013 Oil & Gas Extrac-

tion * * * * * * *

FY2013 Drilling Oil and Gas

Wells * * * * * * *

FY2013 OGAS Support Ac-

tivities 21 $79.0 $46.0 $3.1 6.85% $2.1 $1.0

FY2013 Total OGAS-

related 21 $79.0 $46.0 $3.1 6.85% $2.1 $1.0

FY 2014 Drilling oil and gas

wells * * * * * * *

FY 2014 OGAS operations

support * * * * * * *

FY 2014 All OGAS Total * * * * * * *

* Items designated "*" mean there was some reported activity in that industry classification during the fiscal year. These

have been redacted for confidentiality.

6. Put into context, the FY 2013 amount of $3.1 thousand of total GRT paid by OGAS interests in Valencia

County in the three NAICS codes represents an insignificant portion of the $176 million total GRT impact.

(0.00%). Similarly, the FY 2014 redacted amount of total GRT paid by OGAS interests in Valencia County in



Fiscal

Year

NAICS Descrip-

tion Count

Gross Re-

ceipts

($1,000)

Txbl Gross

Rcpts

($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt

($1,000)

Coun-

ty/Muni

Amt

($1,000)

Nation

Amt

($1,000)


Wells 829 $380,096 $373,871 $21,231

5.679

% $19,083 $2,141 $7


tion 764 $160,652 $149,735 $8,657

5.782

% $7,294 $1,350 $13


Support 9,984 $6,432,412 $2,303,156 $146,270

6.351

% $101,170 $44,094 $1,006

FY 2013 All OGAS Total 11,577 $6,973,160 $2,826,761 $176,158 6.232 $127,548 $47,584 $1,026


– 336 –


Fiscal

Year

NAICS Descrip-

tion Count

Gross Re-

ceipts

($1,000)

Txbl Gross

Rcpts

($1,000)

Gross Tax

($1,000) Rate

State Tax

Amt

($1,000)

Coun-

ty/Muni

Amt

($1,000)

Nation

Amt

($1,000)

%


Wells 1,342 $576,347 $537,875 $31,104

5.783

% $27,214 $3,766 $123

FY 2014 OGAS Extraction

Services 114 $11,145 $9,761 $589

6.034

% $454 $135 -


Support 10,075 $4,748,518 $2,653,350 $167,144

6.299

% $117,021 $48,993 $1,130


tion 709 $154,767 $141,100 8,200

5.811

% $6,790 $1,398 $13

FY 2014 All OGAS Total 12,240 $5,490,776 $3,342,086 $207,036

6.195

% $151,479 $54,292 $1,266

7. If you include the gross receipts tax indirect economic burden and a substantial portion of the interest ac-

cruing to the general fund from the land grant permanent fund (96+%) and the severance tax permanent

fund (86+%) attributable to oil and gas production in the state, what is the plausible percentage of the to-

tal general fund derived from oil and gas production? Answer – 32.0% for FY 2013 and 35.1.5% for FY

2014 – see the main document for further information. We can allocate the resulting $2,119 billion gen-

eral fund share attributable to oil and gas production to the producing counties.


FY2013 Updated ($ in

Millions)

Total

Gen

Fund

OGAS Portion Valencia County

Contrib. Total

Gen

Fund

OGAS Portion

Amount % Amount % of

OGAS

Amoun

t %

Gross Receipts $1,992.0 $151.5 7.6% $0.066 0.0% $1,917.7 $127.5 6.7%

Compensating $78.4 $17.8 22.7% $0.008 0.0% $50.9 $16.7 32.8%



Estate Taxes $0.0 $0.0 0.0% $0.0 $0.0 0.0%




Land Grant Perm. Fund $449.4 $434.8 96.7% $440.9 $425.8 96.6%

Earnings on State Balanc- $19.0 $6.0 31.5% $14.7 $4.7 31.8%

Sev Tax Perm. Fund In- $170.5 $147.6 86.6% $176.2 $152 86.3%



Misc. Receipts $45.0 $1.2 2.7% $41.3 $0.4 0.9%

Reversions $96.5 $30.9 32.0% $65.8 $21.8 33.1%


0.0%

GRAND TOTAL REVENUES $6,040.5 $2,118.8 35.1% $0.154 0.0% $5,708.6 $1,828. 32.0%


– 337 –


FY2013 Updated ($ in

Millions)

Total

Gen

Fund

OGAS Portion Valencia County

Contrib. Total

Gen

Fund

OGAS Portion

Amount % Amount % of

OGAS

Amoun

t %

4

8. Since the oil and gas producing industry supports 35.1% of the State General Fund, this same percentage

is the level of support by the OGAS industry is attributable to public school and higher education funding

in the county. The table below for FY 2014 contains more detail for charter schools in the county. The

similar chart for FY 2013 is also included below.

Valencia County -- FY 2013 Public School Support General Fund OGAS Allocation Percentage for FY 2013 32.00%

DISTRICT

2012-2013

Program Costs

($1,000)

% In

coun-

ty

County

Total

($1,000)

OGAS Sup-

ported

($1,000)

# Char-

ters


Valencia County Charters $5,533 100% $5,533 $1,771 1

School Districts

Belen $29,325 50% $14,663 $4,692

Los Lunas $54,160 100% $54,160 $17,331

Valencia County Total $89,019 $74,356 $23,794


Valencia County -- FY 2014 Public School Support General Fund OGAS Allocation Percentage for FY 2014 35.1%

DISTRICT

Operating

Budgets

($1,000)

% In

coun-

ty

County

Total

($1,000)

OGAS Sup-

ported

($1,000)

# Char-

ters




Valencia County Charters $2,610 $2,610 $916 0


School of Dreams Academy

(Los Lunas) $2,610 100% $2,610 $916

School Districts

Belen $29,223 50% $14,612 $5,129

Los Lunas $56,559 100% $56,559 $19,852

Valencia County Total $88,393 $73,781 $25,897



– 338 –

Valencia County Higher Education

Fiscal

Year Institution

Total Ap-

prop

($1,000)

OGAS

Amount

($1,000)

FY 2012 University of New Mexico – Valen-

cia Branch $4,673 $1,547


cia Branch $5,032 $1,580


cia Branch $5,317 $1,866

9. The oil and natural gas production industry also supports the lion's share of state-authorized and funded

capital outlay projects whether supported by severance tax bonds or via general fund appropriations. All

counties benefit from this funding. In addition to the somewhat regular capital outlay detailed here, the

state has also established a water trust fund that receives an annual tranche of 10% of the amount of

severance tax bonds. There is also a tribal projects permanent fund and a Colonias project fund that get

an annual tranche of a percentage of severance tax bonds. Details on these special funds are provided on-

ly for FY 2014. For this purpose, oil and natural gas production provide 95% of severance tax bond funding

and 30.0% of general fund appropriations.



Valencia County(Amts in

$1,000)


$1,000)


Summary 78 $19,957 3,448 $721,609

General Fund 69 $14,840 2,887 $488,382

STBs 4 $5,117 156 $211,999

Other 0 $0 7 $19,178




Summary 51 $14,322 1,777 $341,187

STBs 11 $11,935 340 $215,491

General Fund 40 $2,387 1,434 $122,996



Vetoes 1 $75 187 $7,033


Summary

STBs 5 $3,822 143 $139,960

General Fund

Other Funds



– 339 –


$1,000)


$1,000)

Vetoes 0 $0 0 $0







Vetoes 2 $449 45 $12,902

2010 2ND SS CAPITAL OUTLAY PROJECTS AND

REAUTHORIZATIONS Projects Amount Projects Amount

Summary 49 42150



Reauthorizations 25




General Fund 39 $1,588 2,026 $123,111

STB 7 $179 490 $54,346

Vetoes 0 $0 74 $44,783


STB 0 $0 29 $5,679








Summary 15 $6,970 484 $137,318

STBs 8 $6,083 280 $107,514




Vetoes 7 $888 194 $22,906


Summary 18 $4,060 785 $269,340

STBs 18 $4,060 769 $218,132

Other Funds 0 $0 16 $51,208


Vetoes 0 $0 72 $4,402


Summary 17 $5,683 852 $228,711

STBs 17 $5,683 823 $182,237


– 340 –


$1,000)


$1,000)





Vetoes 1 $25 62 $2,584


Laird Graeser

[email protected]

505 424-9023

or


[email protected]

505-269-6791



Documents

The Fiscal I m- pacts of Oil and Gas Production in New …c.ymcdn.com/.../Studies_and_Reports/2014_NMTRI_Oil_and_Gas_Study.pdfImpacts of Oil and Natural Gas Production in New Mexico