gregcoit Wrote:
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>
> I assume that the state is on the hook for paying
> off the bonds and not the RR, yes?
I don't think the railroad has to pay for that bond funding.
Here's what the NM legislative budget office said in a 2014 explainer about the source of funding for severance bonds:
"Severance tax bonds generally are repaid with revenue from taxes on oil, gas, coal and other natural resources “severed” from the land. The amount available through severance tax bonds is largely dependent on the health of the oil and gas industry." source: [
www.nmlegis.gov] ... outlay.pdf
The oil and gas industry is healthy again, at least as far as New Mexico is concerned, so there should be revenue from severance taxes to pay off the bonds.
Paul