DENVER (AP) – The state Senate has passed a bill to pay $115 million in tax refunds — not to people, but to oil and gas companies.

The bill passed Tuesday calls for the refunds to energy companies that were denied certain tax deductions in recent years.

Colorado’s Supreme Court ruled last month the state improperly calculated the severance tax deductions that are paid by energy companies.

The ruling likely will reduce severance tax payments to local governments affected by drilling.

A House bill that would have restricted future severance tax deductions by energy firms has died.

LINK: Senate Bill 16-218

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