The Colorado Oil and Gas Conservation Commission (COGCC) has adopted a mill levy rate increase in order to balance its budget amid revenue shortfalls caused by the Covid-19 pandemic and subsequent downturn in commodity pricing.

Mill levies, the regulator’s main source of revenue, are property taxes whose rates are expressed in mills, which are equal to $1/$1,000 of assessed value.

The increase to 1.5 from 1.1 mills “will help to provide long-term stability for COGCC in a volatile market environment,” the regulator said Tuesday. “Due to market conditions, the new mill levy increase, coupled with reduced spending, allows COGCC to balance its finances and provide long-term sustainability.

“COGCC will monitor production and pricing to accommodate any changes in the...