INTERIM STUDY REPORT

General Government and Transportation Subcommittee

Appropriations and Budget Committee

Representative Guy Liebmann, Chairman

Oklahoma House of Representatives

Interim Study, 11-052, Representative Phil Richardson

(Combined with 011-094, Representative Ann Coody)

October 20, 2011

County Roads and Bridges

Representative Phil Richardson

·  Oklahoma’s mining industry and its impact on county roads

Ray Vaughn

County Commissioner

Oklahoma County

Oklahoma City, OK

·  Association of County Commissioners of Oklahoma Legislative Committee Chair

·  Stressed the dire financial condition of Oklahoma counties

·  Eighty percent of road use, when compared to the state highway system, is on county roads

·  Provided presentation on rock, sand and gravel

o  Production volumes

o  Taxation structures in other states

o  Suggestion to consider a severance tax

Uploaded\11-052 presentation a.pps

Johnston County Commissioners

Tishomingo, OK

·  Stressed the high level of mining in Johnston County

o  One of the largest in rock and sand materials

·  Large amounts of material leaves the county each day and the county receives nothing for the severance of minerals

o  By rail

o  By truck

·  Significant wear on county roads resulting from truck traffic carrying minerals

Uploaded\11-052 presentation c.pdf

Oklahoma Department of Mines

Oklahoma City, OK

Oklahoma Department of Mines - Home

·  Highlighted process related to the Operator’s Fee structure already in place

o  One cent ($0.01) per ton of mined materials

·  Provided statistics on Oklahoma mining volumes of numerous minerals

o  By mineral type

o  By county

·  Illustrated the disposition of Operator’s Fee revenue within the department

·  Offered 2009 and 2010 listings of the largest mining permit holders in the state, by olume of mined materials

Uploaded\11-052 presentation b.pps

Jim Rodriguez, Executive Director

Oklahoma Aggregates Association

Oklahoma City, OK

·  A 2006 transportation survey of mining companies indicated most production is on or quite near state highways

·  Agreements between quarrymen and counties are generally sufficient to allow the mining companies to “pitch in” when road work is needed

o  The agreements are usually non-binding, but companies participate because they must have access to mining operations via roads

o  The amount of contribution by mining companies varies

·  Many time companies will provide aggregate product used to improve roads

·  Local governments deriving funds from the application of sales tax is not a viable solution

o  Most crushed stone constitutes an input to the production of final products

§  Concrete

§  Other finished products

o  As an input, such sales are not subject to sales tax

·  An Interstate Mining Compact Commission survey of taxation

o  Colorado counties have an option to levy severance taxes

Uploaded\11-052 presentation d.pdf

Attached Document:

Meeting Notice

http://webserver1.lsb.state.ok.us/2011-12HB/A&B%20GenGov%2010-20-11%20mtg.doc

MAT