New legislation signed into law Thursday may increase the coffers of Mesa County’s budget by an estimated $3 million next year.

The city of Grand Junction may get around $1.75 million extra next year, thanks to House Bill 1139, known as the severance tax bill.

Before a group of supporters, local government officials, Environmentalists, Democrats and others, Colorado Gov. Bill Ritter signed the bill on the steps of the Garfield County Courthouse in Glenwood Springs Thursday.

The bill doubles the amount of tax money that flows from energy and drilling companies to communities directly impacted by energy development.

The state measures the impacts based on the number of energy industry employees living in a jurisdiction.

If the number of employees living in the city and county remain the same proportionately, and if the level of energy development continues at its current pace, the local governments may receive about double what they received last year. This bill goes into effect July 1.

Before then, 15 percent of the severance tax money collected from energy companies goes directly to the communities impacted by oil, gas, coal and other energy development.

This bill increases that percentage to 30 percent, or double.

Money from severance taxes has increased dramatically in recent years.

Mesa County collected $267,480 in 2004, $1.1 million in 2005 and $2.95 million last year in severance taxes.

The city of Grand Junction collected $1.9 million in 2004, $1.45 million in 2005 and $1.76 million last year.

The city’s numbers took a dip in 2005 because of the way the state counted the employees, said Jessica Peterson, the county’s director of public relations.

To compare, Fruita received $148,600 in 2004 in severance taxes, $148,740 in 2005, and $569,660 last year.

The town of Palisade received $26,748 in 2004, $34,706 the next year and $113,643 last year.

DeBeque received $62,412 in 2004, nothing the following year and $154,968 last year.

The increased tax money for the city of Grand Junction will go to help reduce the debt on the $100 million Riverside Parkway, said Mayor Jim Doody.

Ritter signed 12 bills on his swing through the heart of Colorado. Among them were:
• HB 1139, severance tax. Doubles the percentage of severance tax revenues, from 15 percent to 30 percent, that flows directly to energy-impacted communities based on their energy-industry employee populations.

• HB 1252, surface rights. Requires oil-and-gas drillers to minimize surface intrusion and damage by using the latest drilling technologies.

• HB 1180, reporting at wellheads. Requires the Colorado Oil and Gas Conservation Commission to establish new rules by Jan. 1 to ensure the accuracy of oil and gas measurements at wellheads.

• HB 1341, Oil and Gas Commission reorganization. This bill expands the number of Colorado Oil and Gas Conservation Commission members from seven to nine; brings a better balance of interests to the membership; and adds public health, environment and wildlife impacts to the commission’s mission, said his press secretary Evan Dreyer.