Duchesne County, Utah

Duke University – Energy Initiative Shale Public Finance II Workshop

August 31, 2015

Location

Duchesne County

Who has been to Utah? Who has been to Duchesne County?

The County starts at the west gate of the Uintah Basin and extends to it's heart.

Location

Moon Lake Reservoir, Duchesne, Utah

Kings Peak, Duchesne, Utah State’s highest mountain – 13,528 ft

Uinta Mountains

Cirque Lake, Duchesne, Utah

Rock Creek, Duchesne, Utah

Wrinkles Road Overlook – Nine Mile Canyon

Nine Mile Canyon Petroglyphs

The majority of the federally-owned ground is under the jurisdiction of the U.S. Forest Service (USFS) and the Bureau of Land Management (BLM). The state owned ground is primarily wildlife preserves with a portion under the jurisdiction of the Utah School and Institutional Trust Land Administration (SITLA). The private ground is primarily farm ground and grazing areas

Land Ownership

27.86%

0.40% 20.28%

0.18%

19.73%

0.20%

13.82%

0.43%

10.06% 4.46%

2.59%

PrivateUtah Mitigation & ConservationUS ForestState Park & RecUte TribeBureau of ReclamationWildernessWaterBLMDivision of WildlifeSitla

Name Acres Sq. Miles Percent

State Parks & Rec 3,751.32 5.9 0.18% Bureau of Reclamation 4,171.84 6.5 0.20%

Utah Mitigation & Conservation 8,420.60 7.2 0.40% Water 9,004.76 14.1 0.43% SITLA 54,180.10 85.3 2.59%

Division of Wildlife 93,349.81 146.3 4.46% Wilderness 289,311.47 452 13.82% Ute Tribe 412,970.50 645 19.73% US Forest 424,486.08 663.7 20.28%

Private 583,334.00 911.5 27.86%

TOTAL 2,093,615.34 3,263.8 100%

Land Ownership

Duchesne Utah USA

Year Population % Population % Population %

2005 15,135 2.08% 2,458,000 2.33% 295,500,000 0.92%

2006 15,436 1.99% 2,526,000 2.77% 298,400,000 0.98%

2007 16,191 4.89% 2,598,000 2.85% 301,200,000 0.94%

2008 16,926 4.54% 2,663,000 2.50% 304,100,000 0.96%

2009 17,948 6.04% 2,723,000 2.25% 306,800,000 0.89%

2010 18,620 3.74% 2,776,000 1.95% 309,300,000 0.81%

2011 18,838 1.17% 2,815,000 1.40% 311,700,000 0.78%

2012 19,245 2.16% 2,855,000 1.42% 314,100,000 0.77%

2013 20,308 5.52% 2,903,000 1.68% 316,500,000 0.76%

2014 20,380 0.35% 2,943,000 1.38% 318,900,000 0.76%

• The Uintah Basin oil boom has made Duchesne County the nation’s second fastest-growing county (for counties with at least 10,000 people);

• Duchesne County saw 5½ percent population growth in 2013 — eight times faster than the 0.7 percent national average, and 3½ times faster than Utah’s average of 1.6 percent.

In 2013: Source: U.S. Census Bureau

Population

Source: U.S. Census Bureau

Utah Population Growth Rates by County: 2012 to 2013

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Duchesne CountyUtahU.S.A.

Population

Total Population by Race

Single Race

Geographic Area

Total Population Total White

Black/ African

American

American Indian and

Alaska Native

Asian

Native Hawaiian and Other

Pacific Islander

Total Two or More Races

Hispanic Origin (of any race)

White Non-

Hispanic

Total Minority

State 2,900,872 2,834,154 2,658,182 38,149 43,170 66,404 28,249 66,718 387,569 2,312,601 588,271 Percent of Population 100.0% 97.7% 91.6% 1.3% 1.5% 2.3% 1.0% 2.3% 13.4% 79.7% 20.8%

Beaver 6,459 6,363 6,116 23 115 81 28 96 674 5,557 902 Box Elder 50,794 49,887 48,469 246 609 460 103 907 4,547 44,462 6,332

Cache 116,909 114,870 109,522 972 1,076 2,715 585 2,039 11,953 99,085 17,824 Carbon 20,988 20,621 19,956 137 304 183 41 367 2,708 17,502 3,486 Daggett 1,127 1,109 1,082 4 16 6 1 18 48 1,048 79

Davis 322,094 314,245 299,066 4,579 2,100 6,286 2,214 7,849 28,380 274,097 47,997 Duchesne 20,308 19,814 18,596 118 935 86 79 494 1,561 17,372 2,936

Emery 10,749 10,651 10,437 48 104 52 10 98 681 9,820 929 Garfield 5,083 5,018 4,822 25 118 41 12 65 272 4,600 483 Grand 9,360 9,170 8,599 68 404 94 5 190 917 7,814 1,546 Iron 46,780 45,872 43,777 279 1,140 492 184 908 3,800 40,499 6,281 Juab 10,348 10,196 9,983 50 102 39 22 152 466 9,601 747 Kane 7,260 7,161 6,964 28 131 33 5 99 304 6,681 579

Millard 12,662 12,496 12,044 91 238 99 24 166 1,674 10,628 2,034 Morgan 10,173 10,081 9,952 27 39 53 10 92 294 9,695 478

Piute 1,510 1,495 1,468 3 14 8 2 15 122 1,360 150 Rich 2,288 2,269 2,246 0 14 8 1 19 101 2,151 137

Salt Lake 1,079,721 1,052,318 959,797 20,921 14,019 40,165 17,416 27,403 189,707 789,935 289,786 San Juan 14,973 14,637 7,518 57 6,984 66 12 336 737 7,026 7,947 Sanpete 28,237 27,791 26,671 271 451 229 169 446 2,697 24,359 3,878 Sevier 20,852 20,592 20,113 55 308 77 39 260 1,006 19,251 1,601

Summit 38,486 37,911 36,788 256 213 594 60 575 4,363 32,778 5,708 Tooele 60,762 59,478 57,378 497 789 522 292 1,284 7,238 50,852 9,910 Uintah 35,555 34,796 31,507 189 2,760 197 143 759 2,816 29,202 6,353

Utah 551,891 538,868 516,876 4,038 4,469 8,810 4,675 13,023 60,833 461,539 90,352 Wasatch 26,437 26,060 25,387 115 229 280 49 377 3,418 22,315 4,122

Washington 147,800 144,947 138,709 1,227 2,529 1,203 1,279 2,853 14,591 126,269 21,531 Wayne 2,747 2,707 2,646 4 28 22 7 40 147 2,525 222 Weber 238,519 232,731 221,693 3,821 2,932 3,503 782 5,788 41,514 184,578 53,941

Source: U.S. Census Bureau

County Population by Race in Utah: 2013 Population

People moved here in the 1970s Many stayed

Children of the “Pioneers” of the Oil Boom of the 70s

Stayed Now leaders in industry Helped in Stabilization

Of Boom Bust Cycle

Duchesne County Population 1970 = 7,422

Population

September 7, 1971

November 1971

1971 – Oil Well Fires

Our last Drilling Rig E.P. Oil Location – Production Equipment

Justice Center Construction with Drilling Rig in Background

August 2015

Application for Permit to Drill – by County As of August 21, 2015

County 2015 2014 2013 2012 2011

Beaver 0 0 1 0 0 Box Elder 0 0 0 0 7

Cache 0 0 0 0 0 Carbon 4 34 7 93 138 Daggett 0 0 0 0 0

Davis 0 0 0 0 0 Duchesne 55 511 794 745 539

Emery 0 0 6 1 2 Garfield 0 0 0 0 0 Grand 9 29 12 17 11 Iron 0 0 0 0 1 Juab 1 1 1 1 0 Kane 0 0 0 0 0

Millard 1 2 2 0 0 Morgan 0 0 0 0 0

Piute 0 0 0 0 0 Rich 0 2 0 0 2

Salt Lake 0 0 0 0 0 San Juan 1 7 50 34 12 Sanpete 1 2 0 0 0 Sevier 1 2 1 1 2

Summit 0 0 0 0 0 Tooele 0 0 0 0 0 Uintah 376 798 737 1213 802

Utah 0 0 0 0 0 Wasatch 0 0 0 0 0

Washington 0 0 0 0 0 Wayne 0 0 0 0 0 Weber 0 0 0 0 0

Totals 449 1,388 1,611 2,105 1,516

Drilling Commenced (Wells Spudded) – by County As of August 21, 2015

County 2015 2014 2013 2012 2011

Beaver 0 0 1 0 0 Box Elder 0 0 0 3 0

Cache 0 0 0 0 0 Carbon 8 26 2 18 94 Daggett 0 0 1 0 0

Davis 0 0 0 0 0 Duchesne 27 433 441 420 348

Emery 0 1 3 1 1 Garfield 0 0 0 0 0 Grand 0 14 7 13 2 Iron 0 0 0 0 0 Juab 0 2 0 1 1 Kane 0 0 0 0 0

Millard 1 2 2 0 0 Morgan 0 0 0 0 0

Piute 0 0 0 0 0 Rich 1 0 0 0 1

Salt Lake 0 0 0 0 0 San Juan 0 4 19 14 11 Sanpete 0 1 0 0 0 Sevier 1 1 0 1 3

Summit 0 0 0 0 0 Tooele 0 0 0 0 0 Uintah 88 408 527 632 525

Utah 0 0 0 0 0 Wasatch 0 0 0 0 0

Washington 0 0 0 0 0 Wayne 0 0 0 0 0 Weber 0 0 0 0 0

Totals 126 892 1,003 1,103 986

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Oil

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Gas

Oil and Gas

County 2015 2014 2013 2012 2011 Cumulative

Lifetime Production

Beaver 0 0 0 0 0 0 Box Elder 0 0 0 0 0 0

Cache 0 0 0 0 0 0 Carbon 23,509,968 60,548,037 71,646,864 90,976,211 90,295,281 1,508,132,772 Daggett 538,318 1,538,737 361,393 548,399 905,841 185,856,235

Davis 0 0 0 0 0 0 Duchesne 17,351,224 53,050,579 44,126,366 41,573,622 40,279,564 912,062,592

Emery 2,908,507 9,445,358 10,256,042 10,904,775 12,415,638 272,093,800 Garfield 3,000 8,350 7,625 9,150 9,125 140,773 Grand 1,478,771 4,469,215 4,341,425 4,148,601 4,127,064 400,375,019 Iron 0 0 0 0 0 0 Juab 0 0 0 0 0 0 Kane 0 0 0 0 0 0

Millard 0 0 0 0 0 0 Morgan 0 0 0 0 0 0

Piute 0 0 0 0 0 0 Rich 0 0 0 0 0 5,497,846

Salt Lake 0 0 0 0 0 0 San Juan 4,911,703 10,650,457 9,781,813 9,491,182 9,467,078 1,444,844,471 Sanpete 204,724 0 0 0 136,786 3,904,954 Sevier 0 0 0 0 0 0

Summit 1,243,806 3,607,411 3,857,153 4,921,147 6,360,941 3,321,019,888 Tooele 0 0 0 0 0 0 Uintah 99,325,009 309,996,072 325,893,312 328,087,389 298,576,727 4,633,169,684

Utah 0 0 0 0 0 0 Wasatch 0 0 0 0 0 0

Washington 0 0 0 0 0 65,553 Wayne 0 0 0 0 0 0 Weber 0 0 0 0 0 0

Totals 151,475,030 453,214,226 470,271,993 490,660,476 462,574,045 12,597,163,586

Source: Utah Oil and Gas

As of August 21, 2015

Utah Natural Gas Production

Source: Utah Oil and Gas

Utah Oil and Gas Production

How do we get oil to the refineries

in Salt Lake City or, for that fact,

anywhere else?

As of August 21, 2015

County 2015 2014 2013 2012 2011 Cumulative

Lifetime Production

Beaver 0 0 1 0 0 0 Box Elder 0 0 0 0 0 2,665

Cache 0 0 0 0 0 0 Carbon 28,612 61,399 38,139 80,859 73,360 690,958 Daggett 249 867 444 348 638 368,001

Davis 0 0 0 0 0 0 Duchesne 6,139,457 19,477,855 16,539,107 14,415,391 11,940,230 409,348,488

Emery 184 1,255 1,569 2,440 3,295 726,719 Garfield 49,651 153,002 152,558 154,566 166,534 28,713,915 Grand 331,142 1,341,440 1,094,061 363,559 82,710 11,910,245 Iron 0 0 0 0 0 0 Juab 0 0 0 0 0 0 Kane 0 0 0 0 0 0

Millard 0 0 0 0 0 0 Morgan 0 0 0 0 0 0

Piute 0 0 0 0 0 0 Rich 0 0 0 0 0 0

Salt Lake 0 0 0 0 0 0 San Juan 1,471,781 4,575,257 4,572,150 4,403,628 4,228,743 582,556,468 Sanpete 26,847 0 0 0 12,164 109,837 Sevier 491,987 1,609,592 1,885,987 2,210,376 2,521,790 21,568,767

Summit 62,474 218,190 209,828 196,085 233,559 181,985,614 Tooele 0 0 0 0 0 0 Uintah 4,598,095 13,457,975 10,492,511 8,346,991 7,021,695 311,299,824

Utah 0 0 0 0 0 0 Wasatch 0 0 0 0 0 0

Washington 0 0 0 0 0 4,774 Wayne 0 0 0 0 0 0 Weber 0 0 0 0 0 0

Totals 13,200,479 40,896,832 34,986,354 30,183,243 26,284,718 1,549,286,275

Source: Utah Oil and Gas

Utah Oil Production

Oil Production

Roosevelt to Salt Lake City – 150 miles

(2 Mountain Ranges)

Chevron Pipeline from Rangely Colorado

“Candlestick Pipeline”

“Black wax” and “Yellow wax”

“Our Railway” Feasibility Study with Utah Department of

Transportation CIB Funded 5 million for the Study

27 routes studied Decided on 1 route

Indian Canyon to Price Cost = 5.7 Billion

“Our Pipeline” 300 bbls oil/truck = 12,600 gal/truck Oil = ± 7 lbs/gal = 129,000 lbs/truck

5,000 cars = 1 Tanker in Road Damage Wear and tear on State and Local Roads

Transportation

Duchesne County 2014

19,477,855 bbls → 64,926 Loads 177 avg. tankers every day to

Salt Lake City refineries and railheads or Price railheads

= 177 + 123 tankers/Day through Duchesne

Uintah County 2014

13,457,975 bbls → 44,860 Loads = 123 tankers/Day

Transportation

Transportation Solutions?

Constant contact with Utah Department of Transportation;

Expansion of Highway 40;

Constant communication with Industry Officials – share in expenses of a road;

Quarterly meetings, called “Uinta Basin Community outreach”, with Utah Petroleum Association,

Industry Local and Corporate Leaders, Elected Officials; Meetings afternoon/evenings, Public

invited, Dinner, Presentations on various subjects.

Transportation

Announcement

Mineral Lease Money

Mineral Lease Money Federal Mineral Lease Money is not tax money. Royalties, lease bonuses and rentals* are paid by operators on oil and gas from federal lands to the US government. The state of origin receives 49% of the royalty and bonus payments. Since the early 1990s, Utah counties have received 49% of the amount received by the state. In other words, Duchesne County receives 25% of the royalty and lease bonus payments made to the federal government from federal leases located within the County.

25% County of Origin

12% Total Mineral Lease Money to the Community Impact Board

12% Total Mineral Lease Money to Various State Agencies

Mineral Lease Money

25% County of Origin

Can’t be used in the County General Fund.

Set up as a Special Service District #2 to fund the

roads in the County. The County received about

9 million in 2014. Expect less than half than that

for 2015.

Build a road = 1 million per mile; repair of existing roads.

Lessons learned: Better communication with oil companies where they generally plan to drill allows

the county to help develop routes that accommodates the public along with putting locations where

the companies want them.

County Total State Revenue Amount % Total CIB Revenue

Amount % Total CIB Allocation Amount %

Beaver 1,389,637 0.2% 771,779 0.2% 5,248,504 0.9% Box Elder 36,586 0.0% 25,591 0.0% 4,115,000 0.7%

Cache 0 0.0% 0 0.0% 16,854,835 3.0% Carbon 110,988,318 14.4% 57,496,243 15.6% 86,254,882 15.5% Daggett 1,351,195 0.2% 801,216 0.2% 2,088,793 0.4%

Davis 14,140 0.0% 6,563 0.0% 0 0.0% Duchesne 100,428,439 13.0% 47,105,284 12.7% 104,018,076 18.7%

Emery 24,926,020 3.2% 11,992,383 3.2% 31,848,652 5.7% Garfield 3,343,922 0.4% 1,234,586 0.3% 8,248,297 1.5% Grand 15,311,041 2.0% 7,579,417 2.1% 3,451,500 0.6% Iron 1,397,741 0.2% 946,561 0.3% 14,372,250 2.6% Juab 1,694,309 0.2% 1,168,609 0.3% 8,109,502 1.5% Kane 0 0.0% -11 0.0% 17,099,370 3.1%

Millard 11,363,050 1.5% 7,935,462 2.1% 3,558,900 0.6% Morgan 3,493 0.0% 1,624 0.0% 1,001,000 0.2%

Piute 100,918 0.0% 65,096 0.0% 2,552,700 0.5% Rich 154,855 0.0% 108,388 0.0% 81,500 0.0%

Salt Lake 16,634 0.0% 9,786 0.0% 0 0.0% San Juan 19,487,687 2.5% 9,926,309 2.7% 27,836,596 5.0% Sanpete 1,054,608 0.1% 672,691 0.2% 16,112,989 2.9% Sevier 87,172,799 11.3% 40,602,452 11.0% 30,373,651 5.5%

Summit 362,478 0.0% 199,108 0.1% 4,205,000 0.8% Tooele 982,689 0.1% 511,681 0.1% 7,100,000 1.3% Uintah 387,511,867 50.3% 180,128,367 48.7% 122,323,908 22.0% Utah 378,676 0.0% 215,600 0.1% 0 0.0%

Wasatch 66,756 0.0% 46,729 0.0% 8,440,000 1.5% Washington 140,614 0.0% 63,978 0.0% 19,843,799 3.6%

Wayne 15,707 0.0% 10,983 0.0% 4,542,930 0.8% Weber 0 0.0% 0 0.0% 0 0.0%

Unallocated 4,371 0.0% 0 0.0% 0 0.0% Regional 0 0.0% 0 0.0% 6,398,263 1.2%

Totals 769,698,551 100% 369,626,4723 100% 556,080,897 100%

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Total State and CIB Revenue and Allocations by County Fiscal Years 10, 11, 12, 13, 14

CIB Revenue 12% Total Mineral Lease Money to the Community Impact Board

Recipient Year Project Type ML Grant ML Loan Bonus Loan Terms Total CIB Funds

Total Project Cost

Altamont Town 2011 Sewer system improvements 526,200 527,000 0 30Y@0% 1,053,200 1,053,200 Cedarview/Montwell SSD 2010 Water system imp Phase I 333,333 450,000 0 30Y@0% 783,333 3,333,333 Cedarview/Montwell SSD 2012 New water system 2,181,775 0 0 2,181,775 5,496,200

Duchesne City 2010 Buildings-City Hall 741,615 742,000 0 30Y@0% 1,483,615 1,483,615 Duchesne City 2011 Water System Improvements 3,950,000 0 1,000,000 30Y@2.5% 4,950,000 5,000,000

Duchesne City 2013 Water System Improvements tank & line

294,500 293,000 0 30Y@1.5% 587,500 648,500

Duchesne County MBA 2012 Sewer study – Hancock Cove 27,500 0 0 27,500 55,000

Duchesne County MBA 2014 Duchesne County Justice Center

1,000,000 0 5,152,000 30Y@1.5% 6,152,000 7,652,000

Duchesne County MBA 2014 Road Easements – SITLA 30,806 0 0 30,806 30,806 Duchesne Special Service

Dist 2012 Road Imp – Wells Draw Phase 3

6,600,000 0 4,400,000 15Y@2.5% 11,000,000 11,115,000

Duchesne Special Service District #2 2012 Road Imp - Bluebell

Connector Phase 1 2,000,000 0 0 2,000,000 4,000,000

Duchesne Special Service District #2 2013 Road Imp – County Rd 33 4,000,000 0 4,000,000 15Y@1.5% 8,000,000 8,000,000

Duchesne Special Service District #2 2014 Road Imp – 3000 West 2,342,000 0 2,343,000 15Y@1.5% 4,685,000 4,685,000

Duchesne Water Conservancy 2010 New Office Complex 300,000 300,000 0 30Y@0% 600,000 900,000

Duchesne Water Conservancy 2010 Water-Hwy 40 supply

pipeline 3,000,000 3,250,000 0 25Y@0% 6,250,000 22,000,000

Duchesne Water Conservancy 2014 Water-Victory Pipeline

(Hwy 40) 14,950,000 15,950,000 0 30Y@1.5% 29,900,000 34,980,300

East Duchesne CW 2013 Water Study-engineering report

25,000 0 0 25,000 50,000

Fruitland Special Service Dist 2012 Water – New Well 564,700 565,000 0 20Y@0% 1,129,700 1,129,700

Fruitland Special Service Dist 2012 Water tank repainting 46,500 100,000 0 20Y@0% 146,500 146,500

Source: Utah Community Impact Board - Legislative Report Fiscal Year 2014

Fiscal Years 2010 - 2014

Duchesne County CIB Funded Projects

Recipient Year Project Type ML Grant ML Loan Bonus Loan Terms Total CIB Funds

Total Project Cost

Johnson Water Dist 2010 Water tank @ Pleasant Valley

235,100 0 0 235,100 335,100

Johnson Water Dist 2011 Water system imp – lines 460,885 0 0 460,885 562,885

Johnson Water Dist 2012 Water system imp – Mortenson Lane

367,000 368,000 0 30Y@0% 735,000 814,121

Johnson Water Dist 2014 Water system Imp – waterline replace

377,725 378,000 0 25Y@0% 755,725 780,725

Myton City 2012 Water system imp – line replacement 772,150 0 0 772,150 772,150

Myton City 2013 Water system imp – water tank 0 0 539,000 30Y@1.5% 539,000 564,060

Neola Community Park Dist 2010 Rec imp – playground, grandstands 260,487 0 0 30Y@0% 260,487 260,487

Neola Community Park Dist 2010 Rec imp – park Improvements 0 111,000 0 10Y@0% 111,000 111,000

Neola WSD 2010 Water system imp (W) 0 110,000 0 15Y@0% 110,000 110,000 Neola WSD 2013 Water system imp 3,210,000 3,211,000 0 30Y@0% 6,421,000 6,421,000

Pinon Forest SSD 2013 Water Study – engineering report 22,500 0 0 22,500 45,000

Pinon Forest SSD 2014 Water System imp – Bulk Water system 336,000 0 336,000 20Y@1.5% 672,694 687,000

Roosevelt City 2010 General Plan update 100,000 0 0 100,000 200,000 Roosevelt City 2010 Street Improvements 2,288,199 0 1,000,000 10Y@1.5% 3,288,199 3,288,199 Roosevelt City 2011 Secondary Water System 500,000 350,000 0 20Y@0% 850,000 4,000,000

Roosevelt City 2011 Water system imp – line replacements 1,200,000 518,000 0 30Y@0% 1,718,000 1,818,000

Roosevelt City 2013 Waterline – Neola/Hayden Wells 4,850,000 500,000 0 30Y@0% 5,350,000 5,600,000

Tabiona Town 2012 Cemetery improvements 128,000 0 0 128,000 129,000 Tabiona Town 2014 Water & Sewer Plan 25,000 0 0 25,000 110,000

Upper Country WID 2011 Altamont fire hydrant project 257,212 0 0 257,212 267,212

Upper Country WID 2012 Water System Imp – Line replacement 220,195 0 0 220,195 220,195

Totals 40 58,525,076 26,723,000 18,770,000 104,018,076 138,891,288

Source: Utah Community Impact Board - Legislative Report Fiscal Year 2014

Fiscal Years 2010 - 2014 Duchesne County CIB Funded Projects

Duchesne County CIB Funded Projects

Centennial Building

Centennial Building Justice Center

Centennial Building Centennial Building

County Total State Revenue Amount % Total CIB

Revenue Amount % Total CIB Allocation Amount %

Beaver 267,079 0.2% 139,326 0.2% 77,700 0.1% Box Elder 0 0.0% 0 0.0% 0 0.0%

Cache 0 0.0% 0 0.0% 11,060,000 8.2% Carbon 14,986,911 8.8% 7,052,104 8.8% 16,850,000 12,4% Daggett 154,353 0.1% 73,039 0.1% 0 0.0%

Davis 8,711 0.0% 4,053 0.0% 0 0.0% Duchesne 25,903,200 15.2% 12,080,012 15.1% 42,221,225 31.1%

Emery 6,648,641 3.9% 3,192,909 4.0% 3,626,300 2.7% Garfield 684,328 0.4% 319,231 0.4% 2,878,797 2.1% Grand 6,914,489 4.1% 3,298,367 4,1% 100,000 0.1% Iron 124,169 0.1% 75,278 0.1% 5,370,000 4.0% Juab 159,468 0.1% 107,786 0.1% 193,690 0.1% Kane 0 0.0% 0 0.0% 1,187,000 0.9%

Millard 142,998 0.1% 94,551 0.1% 1,088,500 0.8% Morgan 3,093 0.0% 1,439 0.0% 0 0.0%

Piute 11,122 0.0% 6,533 0.0% 1,479,000 1.1% Rich 5,941 0.0% 4,159 0.0% 0 0.0%

Salt Lake 2,735 0.0% 1,272 0.0% 0 0.0% San Juan 4,459,405 2.6% 2,115,820 2.6% 8,370,000 6.2% Sanpete 193,393 0.1% 134,548 0.2% 2,290,549 1.7% Sevier 18,949,391 11.1% 8,834,630 11.0% 2,580,965 1.9%

Summit 230,745 0.1% 114,343 0.1% 30,000 0.0% Tooele 197,645 0.1% 98,242 0.1% 0 0.0% Uintah 90,178,827 52.9% 42,335,273 52.8% 25,495,707 18.8% Utah 101,751 0.1% 50,731 0.1% 0 0.0%

Wasatch 4,410 0.0% 3,087 0.0% 7,900,000 5.8% Washington 33,206 0.0% 15,448 0.0% 898,035 0.7%

Wayne 1,383 0.0% 968 0.0% 294,000 0.2% Weber 0 0.0% 0 0.0% 0 0.0%

Unallocated 0 0.0% 0 0.0% 0 0.0% Regional (Assn. of Governments, Higher Education Projects and Regional Projects 0 0.0% 0 0.0% 1,592,000 1.2%

Totals 170,367,392 100.0% 80,153,150 100.0% 135,583,468 100.0%

Total State and CIB Revenue and Allocations by County Fiscal Year 2014

CIB Revenue

CIB Revenue

Some counties have no energy revenue to contribute

but receive;

Some counties very anti oil/gas but want CIB funding.

Lately have been denied because of “chewing the hand

off that feeds you”.

CIB Concerns

Taxes

Severance Tax (Duchesne County, Uintah County, UTE Tribe)

In the mid 1990s, the Utah Legislature passed a bill to provide a portion of the Utah Severance Tax

collected from wells located on tribal lands to the counties and the UTE Tribe

1st 3 Million Severance Tax → 12% = ± $360,000 Each County – Tribe → 25% ($720,000.00)

2nd 3 Million Severance Tax → Duchesne County, Uintah County and the UTE tribe receive 1 million

Revitalization Board oversees the spending for each of the counties and the tribe

Restrictions: No O&M; No Wages

Can buy land, buildings, remodeling, fire trucks, computers etc.

± 1.4 Million Each Year

Entity Project Amount

Duchesne City 25% Match for Sewer Lagoons 125,000.00

Duchesne City Lights at the City Ball fields 65,000.000

Roosevelt City Replace Lights @ Constitution Park 249,145.00

Roosevelt City Maintenance & Storage Facility @ Cemetery 295,000.00

Town of Tabiona Backhoe for Town & Cemetery 57,100.00

Neola Park SSD Cemetery Improvements 40,000.00

Neola Water & Sewer District Study for Improvements to Neola Water System 20,000.00

Myton City Used Loader 100,000.00

Altamont Town Renovate Town Hall & Pavement 25,700.00

Altamont Town Repair Streets 183,000.00

UBAOG Emergency Services 40,000.00

UBAOG 4x4 Truck to deliver meals 22,000.00

UBAOG Heating/Cooling Unit & Trays (Truck) 21,000.00

UBAOG Repair Heating & Cooling System in Building 25,000.00

UBAOG Glycol, Heaters etc 20,000.00

Total Requested 1,287,945.00

Taxes

2012 Revitalization Fund Requests

Severance Tax Concerns

Taxes

% of what counties receive should be more?

Conversation with state Legislators;

Tribal Relationships;

UTERRO.

Taxes

Ad Valorem Tax

The Ad Valorem property tax consists of two

components. The first is a personal property tax

on the assessed value of surface facilities and

equipment on individual well locations,

gathering lines, produced water disposal

facilities, compressor stations, etc.

The second component is a tax on the discounted cash flow value of the production sold from well

within the County. Oil and gas properties and facilities are called “State-Assessed Properties” in Utah.

County General County ($) %

Public Schools ($) %

Cities and Towns ($) %

Special Districts ($) %

Total Taxes Charged ($)

Beaver $1,772,185 17% $7,292,396 69% $320,195 3% $1,214,525 11% $10,599,301 Box Elder 10,185,402 20% 34,346,918 66% 4,980,271 10% 2,386,043 5% 51,898,634

Cache 13,280,283 20% 42,420,462 65% 9,252,752 14% 487,881 1% 65,441,378 Carbon 6,340,747 26% 14,261,785 60% 1,755,633 7% 1,587,435 7% 23,945,600 Daggett 1,254,955 49% 1,192,069 46% 75,504 3% 51,598 2% 2,574,126

Davis 38,440,069 16% 143,645,924 61% 25,525,476 11% 28,162,714 12% 235,774,183 Duchesne 7,667,676 26% 18,084,741 62% 973,146 3% 2,322,589 8% 29,048,152

Emery 9,522,110 36% 11,841,049 45% 525,202 2% 4,322,146 16% 26,210,507 Garfield 923,020 17% 3,911,487 71% 326,296 6% 359,555 7% 5,520,358 Grand 3,947,741 28% 8,729,735 62% 68,614 0% 1,324,636 9% 14,070,726 Iron 6,625,609 16% 22,534,918 55% 7,213,870 18% 4,547,441 11% 40,921,838 Juab 2,481,470 23% 6,748,473 62% 459,894 4% 1,162,131 11% 10,851,968 Kane 4,814,457 41% 5,581,238 47% 699,883 6% 719,365 6% 11,814,943

Millard 7,844,270 35% 12,730,383 57% 526,794 2% 1,315,747 6% 22,417,194 Morgan 2,610,819 26% 6,573,426 67% 318,979 3% 372,551 4% 9,875,775

Piute 393,094 31% 683,258 55% 127,678 10% 49,416 4% 1,253,446 Rich 1,586,104 25% 4,011,434 63% 236,101 4% 484,557 8% 6,318,196

Salt Lake 231,194,628 20% 508,946,943 44% 213,241,692 18% 206,141,885 18% 1,159,525,148 San Juan 3,630,801 28% 7,410,350 57% 451,254 3% 1,431,763 11% 12,924,168 Sanpete 3,216,329 21% 9,621,390 64% 1,401,453 9% 861,926 6% 15,101,098 Sevier 3,962,077 28% 8,252,583 58% 1,254,856 9% 791,816 6% 14,261,332

Summit 15,642,220 12% 68,695,295 54% 15,463,111 12% 27,923,910 22% 127,724,536 Tooele 7,682,052 15% 36,157,516 70% 4,721,492 9% 3,002,781 6% 51,563,841 Uintah 15,352,664 28% 32,638,982 60% 727,107 1% 5,965,816 11% 54,684,569 Utah 32,922,977 10% 224,618,301 68% 56,586,747 17% 15,980,786 5% 330,108,811

Wasatch 31,636,310 73% 9,522,652 22% 808,106 2% 1,326,493 3% 43,293,561 Washington 21,187,345 16% 80,360,032 61% 18,375,218 14% 11,351,499 9% 131,274,094

Wayne 507,171 33% 1,013,342 65% 23,169 1% 8,109 1% 1,551,791 Weber 43,268,899 24% 87,171,490 49% 22,589,815 13% 25,938,204 14% 178,968,408

Totals $529,893,484 20% $1,418,998,572 53% $389,030,308 14% $351,595,318 13% $2,689,517,682

Source: Utah State Tax Commission – Annual Report 2013-2014 Fiscal Year

Fiscal Year 2013 - 2014

Property Taxes – County Comparison

County Number of Returns Average AGI Average Federal Income Taxes

Average Net Exemptions County Rank

Beaver 2,381 42,210 4,705 2.69 21 Box Elder 19,541 48,058 5,646 2.62 13

Cache 41,212 46,974 6,260 2.59 15 Carbon 7,788 48,498 6,392 2.34 11 Daggett 371 47,737 5,276 2.38 14

Davis 118,656 60,229 8,420 2.63 4 Duchesne 7,595 60,640 9,385 2.69 3

Emery 3,809 48,220 5,826 2.69 12 Garfield 1,946 38,486 4,502 2.46 27 Grand 4,339 45,919 7,168 2.05 18 Iron 15,533 40,176 5,222 2.55 24 Juab 3,636 46,066 5,830 2.81 17 Kane 2,714 40,744 5,065 2.2 23

Millard 4,532 38,830 5,346 2.77 26 Morgan 3,767 69,234 10,376 2.78 2

Piute 483 33,501 3,997 2.52 29 Rich 790 43,790 5,602 2.73 20

Salt Lake 433,182 55,071 8,804 2.38 7 San Juan 3,542 40,118 4,951 2.58 25 Sanpete 8,177 40,789 4,986 2.87 22 Sevier 7,323 44,355 5,528 2.61 19

Summit 17,389 85,277 19,484 2.34 1 Tooele 22,254 51,947 5,979 2.68 9 Uintah 11,703 58,245 8,145 2.6 6 Utah 178,647 53,984 8,120 2.87 8

Wasatch 8,851 58,546 9,257 2.75 5 Washington 50,474 46,510 6,879 2.51 16

Wayne 993 38,066 5,568 2.49 28 Weber 97,128 50,130 6,560 2.39 10

Totals 1,159,589 56,327 9,196 2.54

Source: Utah State Tax Commission – Annual Report 2013-2014 Fiscal Year

Fiscal Year 2013 - 2014

Federal Income Tax – County Comparison

56.5

67.4

67.9

73.4

85

86.7

86.9

98.4

126.9

139.8

0 20 40 60 80 100 120 140 160

Grant County, KS

Duchesne County, UT

Sterling County, TX

Gliner County, WV

Yoakum County, TX

Hutchinson County, TX

Crockett County, TX

Woods County, OK

Upton County, TX

Washington County, OK

U.S. Counties With Highest Concentration of Oil and Gas Extraction Jobs, June 2014

Location Quotients Location quotients measure an industry’s employment concentration in an area. A location quotient greater than 1 means that an industry’s share of employment in an area is greater than the share for the entire United States.

Oil and Gas Jobs

Source: CNBC using U.S. Bureau of Labor Statistics data, June 2014

What questions do you have?

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Duchesne County, Utah