Mineral lease funds trickle down from state to county level

By Sun Advocate

Several Carbon County entities received financial funding from the Utah Permanent Community Impact Board for local improvement projects.
The county building authority was given a $443,000 grant as well as a $443,000 loan for the construction of a 10,000 square foot addition to the exhibition building at the county fairgrounds.
The building authority also received a $25,000 grant to update the county’s master development plan.
Helper city’s municipal building authority was awarded a $241,055 grant for improvements to the railroad and mining museum. The project includes expanding the building, adding handicapped-accessible restrooms and installing an elevator to give persons with disabilities access to the museum’s three floors.
Wellington city received a $150,000 grant to install water system improvements, including new water lines, connections, valves, meters and six fire hydrants.
Wellington was also was given a $36,000 grant and $100,000 loan to construct a concession and restroom building at the city park.
In nearby Emery County, the Castle Valley Special Service District received a $500,000 grant and $1.2 million loan for capital improvements.
The project includes street, curb and gutter, storm drain and sewer improvements in Castle Dale, Clawson, Cleveland, Elmo, Emery, Ferron, Huntington and Orangeville.
The CIB is a Utah Division of Community Development program designed to assist state and local agencies impacted by mineral resource development on nearby federal lands and the exclusion of the lands from the local tax base.
However, the CIB is not the only way mineral lease funds trickle down to the residents of Carbon County.
When mineral lease royalties are paid, 50 percent of the money is retained by the federal government, according to Carbon County Commissioner Mike Milovich.
The remaining 50 percent of the money is appropriated by the Utah Legislature, giving priority to subdivisions of the state that are socially or economically impacted by development of minerals leased under the Mineral Lands Leasing Act.
Out of the 50 percent received by the state, the CIB fund is granted 32.5 percent.
Forty percent is then distributed by the Utah Department of Transportation to special service districts throughout the state.
Pursuant to the Utah Code, special service districts are established by counties that are impacted by mineral lands leasing.
The money is to be distributed in amounts appropriate to the amount of federal mineral lease money generated by the county in which a special service district is located, indicates section 59 chapter 21 of the Utah Code.
In Carbon County, the special service district is established to further transportation and recreation needs in the community.
The remainder of the monies are then distributed on a percentage basis to various state organizations such as the state board of education, the Utah Geological Survey, the Water Research Laboratory and others.
The 2005 Mineral lease fund distribution for the fiscal period of July 7, 2003 through September 30, 2003 are as follows:
Carbon, 1,802,482.47; Emery, 731,739.17; Beaver, 17,282.38; Daggett, 41,293.90; Duchesne, 372,446.49; Garfield, 63,613.50; Grand Co. Hospital Service District, 54,547.97; Grand Co. Recreation SSD, 54,564.34; Grand Co. Solid Waste Management SSD #1, 54,547.97; Juab, 994.91; San Juan, 230,028.89; Sevier, 418,694.70; Summit, 23,014.00; Uintah, 3,406,953.81.