maps and graphs showing: Snow pack, statewide average precipitation, forecasts for eight of Utah's rivers, statewide reservoir storage, and hydrographs of Bear Lake and Great Salt Lake.

Mr. Allred presented the committee with an overview of the FY 2005 Division of Water Resources budget (Tabs 13 and 14). He recommended a total operating budget of $4,488,800 with $2,401,900 from the General Fund.

The Water Resources Planning program maintains the State Water Plan (completed in 1990) and eleven detailed basin plans covering the state. In the 2003 General Session the Legislature cut $40,100 in ongoing General Funds from this program as part of the requirement to reduce budgets by an additional two percent. Mr. Allred recommended a budget for $1,699,800 entirely from the General Fund for this program.

Mr. Allred recommended a budget of $150,000 for the cloud seeding program. Statistical analysis of this program since 1976 has shown an average increase in precipitation of eight to twenty percent. He also recommended a total budget of $121,400 for the City Loans Administration Program and $1,611,500 for the Construction Program. He does not recommend an appropriation for the Bear River/ Wasatch Front program as the prior year nonlapsing funds were all expended in FY 2003.

The West Desert Operation program funds the maintenance on the West Desert pumping plant. The pumps are part of a $60M Great Salt Lake flood control project begun in 1986. Mr. Allred recommended a budget of $10,500 for this program.

Mr. Allred recommended maintaining the intent language from H.B. 1, 2003 General Session regarding the Cooperative Water Conservation program.

Mr. Allred presented the Water Resources Capital budget to the sub-committee. He showed that total assets for the three water loan funds total $220 million, of which $192 million, or 87 percent, is in long-term loans receivable.

from General Funds which will increase exposure of the public to unmitigated abandoned mine hazards.

Rep. Noel recognized the mining industry for its contributions to Utah's economy.

Mr. Allred presented the budget for the Division of Oil, Gas and Mining which regulates exploration for and development of Utah's oil, gas, coal and other mineral resources. Utah has primacy from the U.S. Department of the Interior for regulation of coal mining operations, reclamation of abandoned mine sites, and control of underground injection sites. He recommended a total budget of $7,185,800, with $1,250,400 from theGeneral Fund.

The division is partially funded from the General Fund Restricted - Oil and Gas Conservation Account. Revenue to the account comes from a fee of .002 of the value at the well of oil and gas. The account is capped at $750,000 at the end of a fiscal year, with any excess going to the state's General Fund. In FY 2003 the fund returned $291,700 to the states General Fund and another $97,000 unused from its appropriation. Mr. Allred recognized the division's efforts for coming in under budget.

The Legislature transferred $30,000 in ongoing General Funds from the Abandoned Mines line item to the Water Rights line item. This transfer was part of a $120,000 transfer from three line items (OGM, DWR, UGS) to Water Rights to cover operating expenses.

Mr. Allred recommended keeping intent language from H.B. 1, 2003 which will allow the agency to keep excess fee revenue in case a major operator sets up business in Utah.


MOTION: Rep. Gowans moved to adjourn the meeting. The motion failed with Sen. Hatch voting no and with Sen. Allen and Sen. Hellewell absent for the vote. The meeting ended with no further business to conduct.


        





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Rep. David Ure, Co-Chairman Sen. Thomas Hatch, Co-Chairman