Oil revenue drops in county
Published 9:53 am Friday, March 6, 2015
Lincoln County is currently facing a drop in revenue from oil services that could affect next year’s budget.
County Administrator David Fields informed the Lincoln County Board of Supervisors on Monday that for this fiscal year, revenues from oil drilling in the county are down 46.8 percent from the same time last year. The numbers span from Oct. 1, 2014 through Feb. 28.
Revenues from the past five months came in at around $371,000. Last year at the same time revenue was around $472,000.
“All that money goes to roads and bridges,” Fields said.
He said oil is taken out of the ground in the county and the drilling company pays the state severance taxes. A severance tax is imposed on the removal of nonrenewable resources, such as oil. The money is then sent back to the county.
For the 2011 fiscal year, Fields said revenues the county received totaled $1.3 million, $1.75 million in 2012, $1.2 million in 2013 and $1.68 million in 2014.
“That’s extra money we could use for asphalt, roads and bridges,” District 3 Supervisor Nolan Williamson said. “We’re going to miss those funds.”
“It (oil revenue) fluctuates so much that we don’t overestimate for the budget,” Fields said. “We usually lean to the low side when budgeting.”
Fields said the drop in revenue will not affect the budget this year, but if it continues the board will have to take it into account for next year’s budget.