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RESOLUTION NUMBER: ~
A RESOLUTION OF THE CITY OF ASPEN IN SUPPORT OF A COMPREHENSIVE
STATEWIDE ENERGY PLAN AND MITIGATION OF THE IMPACTS OF OIL AND GAS
DEVLOPMENT:
Whereas, Western Colorado and Garfield County hold significant oil, coal, and natural gas
reserves that currently are at the center of extensive exploration, research, drilling, and pipeline
construction; and,
Whereas, these natural resources represent a valuable economic opportunity to the oil and gas
companies, associated businesses, and communities of the region; and,
Whereas, the supply of natural gas is limited and the technology for oil shale is still developing;
and,
Whereas, there is tremendous pressure from national policy and fuel markets to develop these
resources quickly; and,
Whereas, although the oil and gas industry is a welcome addition to our regional economy and
community, the development of finite oil and gas resources have had and will continue to have
profound fiscal, social, and environmental impacts on the health and welfare of the
communities in our region; and.
Whereas, our region already has first-hand experience with the negative impacts of a "boom
and bust" related to energy development in the early 1980s.
NOW, THEREFORE, LET IS BE RESOLVED THAT:
The City of Aspen supports policies at the local, state, and federal levels to fully capture the
benefits, and mitigate the impacts from the extraction and development of oil, natural gas, and
coal resources.
Let it be further resolved, that The City of Aspen supports the following actions and policy
changes:
1. Developing a long-term, comprehensive State Energy Plan that considers the costs and
benefits of non-renewable fossil fuel energy production to the benefit of citizens beyond a
short-term production boom. Furthermore, a comprehensive state energy plan should
place equal importance and investment in the development of renewable energy (solar,
wind, hydro, bio-fuels) production and energy efficiency programs.
2. Increasing local input and mitigation power in the oil and gas review process since the
land use implications of oil and gas development can have significant impact on
neighboring properties, county roads, demand for services, and the health and safety of
county residents. '
3. Improving the balance of representatives on the Colorado Oil and Gas Conservation
Commission (COGCC) to include non-industry perspectives such as human services,
environmental health, and local governments.
4. Balancing the interests of surface and mineral owners by increasing bonding
requirements of oil and gas developers to better protect surface owners from and mitigate
for surface disturbances from drilling and accessing drilling sites. The State should also
create a process for resolving surface and mineral owner disputes.
5. Establishing a County auditing program to ensure that industry accurately reports
production and pays the appropriate taxes (in contrast to real estate taxation, where the
County Assessor informs a home owner what their home is worth and how much tax they
must pay, the Oil & Gas industry informs the County Assessor what their product is
worth and how much tax they will be paying the County.)
6. Updating the Energy Impact Fund formula so that a greater percentage of these funds go
directly to impacted counties and communities.
7. Increasing the limit of the Environmental Response Fund above its current level so more
funding is available to investigate, prevent, monitor, and mitigate conditions that cause, or
threaten to cause, significant adverse environmental impacts related to oil and gas
operations rather than excess funding going into the State's General Fund.
8. Adjusting the severance tax (on oil, natural gas, and coal) and/or eliminating the property
tax deduction for severance tax payments to better reflect that value of the severed
resource, the impact to public infrastructure (roads, schools, water, air, public health)
within the State of Colorado and local communities, and to prepare for the time when
these non-renewable resources are exhausted. (The severance tax in Colorado ranges from
2 percent on gross income from mineral extraction of less than $25,000 to a flat fee of
$10,750 plus 5 percent of gross income above $300,000. Under current law, companies may
deduct their property taxes from severance tax payments. As a result, the effective
severance tax rate is 1.8 percent - the lowest among surrounding states. The severance tax
rate in Wyoming and New Mexico is 6%.
9. Creating a Permanent Trust Fund at the local and lor state, level to address the long term
impacts of the oil and gas development. (For example, Wyoming, which has fewer
students than Denver alone, has about $1 billion in its trust fund for schools, while
Colorado has $300 million.)
Dated: 1/,;),9 Joy-
I I
I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is
a true and accurate copy of that resolution adopted by the City Council of the City of Aspen,
Colorado, at a meeting held on Jan ary 29, 2007