TOPEKA – The Kansas Corporation Commission (KCC) has been awarded a $25 million initial federal grant to help plug abandoned wells in the state. The initial grant is part of $1.15 billion earmarked under the Federal Infrastructure Investment and Jobs Act to help states remediate abandoned oil and gas wells. A total of $4.7 billion has been allocated over the next eight years to plug abandoned wells in the U.S. The KCC is eligible to receive another $33.6 million in future formula grant funding.

“These federal grants provide Kansas with a one-time opportunity to help address the issue of abandoned wells in Kansas while helping the economy by providing good paying jobs for several years,” said Ryan A. Hoffman, KCC Conservation Division Director.

The KCC plans to use the initial $25 million grant to pay for eight projects involving the plugging of more than 2300 abandoned wells over the next two to three years.  Four projects are located in Eastern Kansas. The other four are located in Central and Western Kansas. A map showing the locations of the projects and number of wells in each can be viewed here.

A well is considered “abandoned” when it has been permanently taken out of production, is not properly plugged to prevent possible air or groundwater pollution, and the rightful legal owner cannot be determined or located to take responsibility.

While the federal grants will help reduce the total number of abandoned wells in Kansas, they are insufficient to address the entire problem.  The KCC will still rely on industry generated funds to plug the thousands of wells remaining after the federal program expires.

More than 11,000 abandoned wells have been plugged since the establishment of the state well plugging fund in 1995. Oil and gas drilling in Kansas began in the 1860’s. Record keeping by early operators was not as precise as it is today. It is not uncommon for older abandoned wells to be discovered by landowners who were unaware they existed.

“These federal grant funds will provide important assistance in plugging abandoned wells in Kansas. However, to adequately protect Kansas fresh water resources, it will also be necessary to continue funding the plugging of abandoned wells with state well plugging fund resources provided by oil and gas industry fee assessments,” said Dwight D. Keen, Chair of the KCC.

###

Commerce Department Launches Rural by Choice Champions Program

TOPEKA – Lieutenant Governor and Commerce Secretary David Toland today announced a unique opportunity for rural communities throughout the state – the Rural by Choice Champions Program (Rural Champions). This one-year pilot program will create a network of grassroots individuals who will tackle critical community projects and identified needs integral for rural prosperity. Rural Champions, which was made possible through a collaboration with the Patterson Family Foundation, will help drive success when there is a lack of capital or other resources to complete the project.

“We are continually looking at ways to keep and attract individuals that want to live and work in our rural communities throughout the state,” said Lt. Governor and Commerce Secretary David Toland. “Through this program and other initiatives, such as our Grassroots Economic Development Program and Rural Opportunity Zones, we are focusing on removing barriers to success in rural Kansas.”

In 2021, Commerce’s Office of Rural Prosperity (ORP), in partnership with the Kansas Sampler Foundation, outlined the recommendation for Rural Champions in its Power Up and Go report, an effort begun by former Lieutenant Governor Lynn Rogers prior to his appointment as State Treasurer. The need for the Rural Champions program was identified through surveys and interviews of more than 600 rural Kansans under the age of 40 as something that would “move the needle” toward success.

In order to apply, communities describe current activities, challenges that are stifling progress and how a Rural Champion would benefit advancement. Twelve communities will be selected for the pilot program and will receive a stipend for wages for the Rural Champion. Projects could include anything that the community designates as critically needed, including, but not limited to:

• a new childcare facility or rehabilitating a building to support a childcare center;
• health and wellness projects such as a trail system or shared bike program;
• rehabilitation or construction of new housing units; or
• entrepreneurship development.

Eligible applicants, which must be located in counties with less than 40,000 population, include:

• Cities or Counties;
• Economic/Community Development Organizations;
• Community Foundations;
• Local Chambers of Commerce or Tourism groups;
• Nonprofit organizations including 501(c)3 or 501(c)6;
• Main Street organizations or affiliates; or
• Federally recognized tribal communities.

“The program was designed to help revitalize rural communities,” said Trisha Purdon, Director Office of Rural Prosperity. “The Rural Champions will play an integral part in identifying projects – and then making them happen. Every community is unique, and this program provides the flexibility to develop a project that fits their goals.”

Rural Champions will receive direct guidance and technical assistance from the Office of Rural Prosperity to ensure project success. The Office of Rural Prosperity will assist with the development of a rural community playbook to share with other communities for future projects.

Applications will be accepted until 5:00 p.m. Friday, September 16. An informational webinar will be held at 10:00 a.m. Thursday, August 18. For more information and to register for the webinar, visit our website at https://www.kansascommerce.gov/orp/ruralchampions/. Rural Champions will be announced in late September and will have one year to complete their projects.

Questions can be directed to Kerri Falletti at [email protected] or 785-207-5206.

About the Kansas Department of Commerce:

As the state’s lead economic development agency, the Kansas Department of Commerce strives to empower individuals, businesses and communities to achieve prosperity in Kansas. Commerce accomplishes its mission by developing relationships with corporations, site location consultants and stakeholders in Kansas, the nation and world. Our strong partnerships allow us to help create an environment for existing Kansas businesses to grow and foster an innovative, competitive landscape for new businesses. Through Commerce’s project successes, Kansas was awarded Area Development Magazine’s prestigious Gold Shovel award in 2021 and 2022, and was awarded the 2021 Governor’s Cup by Site Selection Magazine.

About the Patterson Family Foundation:

Where you come from says a lot about you. But what you do says even more. The Patterson Family Foundation is a family-led foundation extending the legacy of Neal and Jeanne Patterson to improve the rural communities we come from through healthcare, education, economic opportunity, and beyond. Learn more about the Patterson Family Foundation and how it can help your community at https://pattersonfamilyfoundation.org/

Governor Laura Kelly Announces Kansas Begins Fiscal Year 2023 with Tax Collections Surpassing Estimate by $127.6M

~~July Marks 24^th Month In a Row that Kansas Tax Collections
Have Surpassed Estimates~~

TOPEKA – Today, Governor Laura Kelly announced Kansas July tax receipts. In total, Kansas saw its total tax receipts for July exceed the estimate by $127.6 million with $586.2 million collected.

“Due to my administration’s record-setting economic development successes over the last three and a half years, July marks the 24^th month in a row that Kansas tax receipts have surpassed expectations,” said Governor Kelly. “That represents more money our state can use to continue fully funding our schools, improving our roads, investing in law enforcement, and expanding health care.”

Individual income tax receipts were $300.5 million, or 15.6%, over the $260.0 million estimate. Corporate income tax collections were $36.6 million, or 66.4%, over the estimate. Higher-than-expected corporate tax receipts reflect continued optimism that corporate profits will remain stable in the new fiscal year.

A comparison of July’s receipts to those of July of 2021 is not meaningful because a statutory change during the 2022 Legislative Session had the effect of deferring the collection of certain sales and use tax receipts from July to August beginning this fiscal year.

Retail sales tax collections were $174.2 million, or 39.4%, over the estimate.  Compensating use tax collections were $21.0 million, or 65.7%, over the estimate with $53.0 million collected.  Actual receipts for the two tax types were less than July 2021 due to a change in the timing for remittances by large retailers resulting from the enactment of 2022 H.B. 2136.

The complete July 2022 Revenue Report can be found here.

High Risk of West Nile Virus Activity in Four Kansas Regions

TOPEKA – The Kansas Department of Health and Environment (KDHE) has issued a high-risk warning for West Nile virus infections (WNV) for north central, south central, northeast and southeast Kansas. Northwest and southwest Kansas are at moderate risk for WNV infections.

West Nile virus is the leading cause of mosquito-borne illness in the continental United States.  It is most often spread to people through mosquito bites, but it is not spread from person to person. About 1 in 5 people who are infected develop a fever and other symptoms. About 1 out of 150 infected people develop swelling of the brain or brain tissue and, in some cases, death. There are no vaccines or medications to treat WNV. People who have had West Nile virus before are considered immune.

“As more Kansans head outdoors this summer, it is important to know your risk and take action to prevent mosquito bites to protect you and your family against West Nile virus”, said Dr. Joan Duwve, State Health Officer. KDHE recommends the following prevention measures:

• Visit the KDHE WNV website weekly to learn about the current WNV risk level; https://www.kdhe.ks.gov/1519/West-Nile-Virus-Risk-Level-Surveillance-
• When you are outdoors, use insect repellent containing an EPA-registered active ingredient on skin and clothing, including DEET, picaridin, oil of lemon eucalyptus, or IR3535. Follow the directions on the package.
• Many mosquitoes are most active at dusk and dawn. Be sure to use insect repellent and wear long sleeves and pants at these times or consider staying indoors during these hours.
• The elderly or those with a weakened immune system should consider limiting their exposure outside during dusk and dawn when the Culex species mosquitoes are most active.
• Make sure you have good screens on your windows and doors to keep mosquitoes out.
• Get rid of mosquito breeding sites by emptying standing water from flower pots, buckets and barrels. Change the water in pet dishes and replace the water in bird baths weekly. Drill holes in tire swings so water drains out. Keep children’s wading pools empty and on their sides when they aren’t being used.
• Horses can also be infected with WNV. Talk with your veterinarian about vaccinating your horses to protect them against WNV.

Most WNV infections occur in the late summer and early fall; so far there have not been any reported cases of WNV in Kansas in 2022.

The Centers for Disease Control and Prevention provides this web page with additional information about West Nile virus and preventing mosquito bites: https://www.cdc.gov/westnile/prevention/index.html.  For questions about West Nile virus or other Arboviral diseases contact the KDHE Epidemiology hotline at 877-427-7317.