CS/SB 249 OIL & GAS FUND ACCOUNTING

Sen Greg Nibert

Actions: [4] SCC/SCONC/SFC-SCC [6]germane-SCONC [7] DNP-CS/DP-SFC

Scheduled: Not Scheduled

 Senate Bill 249 (SB 249) changes a distribution to the Oil and Gas Reclamation Fund to a dollar amount. It requires money from federal sources to be separately accounted for from other money in the fund and to be expended before any other money in the fund. SB 249 provides for a reversion of the balance in the fund.  

 Senate Bill 249 (SB 249) changes a distribution to the Oil and Gas Reclamation Fund (Section 7-1-6.21 NMSA 1978) to a dollar amount of five million dollars ($5,000,000) monthly from the net receipts attributable to the tax imposed under the Oil and Gas Conservation Tax Act.
In Section 70-2-37 NMSA 1978, SB 249 requires money from federal sources to be separately accounted for from other money in the fund and to be expended before any other money in the fund. It mandates reversion of the balance in the fund of money from nonfederal sources at the end of a Fiscal Year (FY) to the General Fund. 

 Currently the Oil and Gas Reclamation Fund receives a percentage of from the net receipts attributable to the tax imposed under the Oil and Gas Conservation Tax Act and contingent on a certain tax rate.
 

 2/6/2024
The Senate Conservation Committee introduced a committee substitute for SB 249 (SCONC CS/SB 249) changes a distribution to the Oil and Gas Reclamation Fund (Section 7-1-6.21 NMSA 1978) from a percentage to a dollar amount of five million dollars ($5,000,000) monthly from the net receipts attributable to the tax imposed under the Oil and Gas Conservation Tax Act.
In Section 70-2-37 NMSA 1978, SCONC CS/SB 249 mandates the reversion of the unexpended or unencumbered balance to the General Fund if the balance exceeds eighty million dollars ($80,000,000) at the end of a Fiscal Year (FY).
SCONC CS/SB 249 would be effective 1 July 2024.