FARMINGTON — Farmington City Council on Tuesday amended and unanimously approved a resolution supporting the oil and gas industry, but Mayor Tommy Roberts said a clause included in the document is problematic.
The resolution supports proposed state legislation that would cut oil and gas drilling royalties to cities and counties that pass laws or regulations banning or “severely” restricting the industry.
Those oil and gas royalties are severance tax bond proceeds. New Mexico collects taxes on oil, gas and other natural resources extracted from the earth. These are called “severance taxes,” and they repay severance tax bonds, which are issued for state-wide projects.
A copy of the Resolution is shown Below