36 States Share $1 Billion From Mineral Revenues
More than $1 billion was disatributed to 36 states during 2003 as part of their share of federal revenues collected by the Department of the Interior’s Minerals Management Service.
The $1,096,699,888 distributed to states during the year was nearly 46 percent more than 2002 payments to states that totaled $753 million.
The funds represent the states’ cumulative share of revenues collected from mineral production on federal lands located within their borders and from federal offshore oil and gas tracts adjacent to their shores.
A state is entitled to a share of the mineral revenues collected from federal lands located within that state’s boundaries.
For the majority of onshore federal lands, states receive 50 percent of the revenues while the other 50 percent goes to various funds of the U.S. Treasury, including the DOI Reclamation Fund.
Alaska receives a 90 percent share as prescribed by the Alaska Statehood Act.
States may also receive appropriations from the offshore royalty-funded Land and Water Conservation Fund to help them with park and land acquisitions.
In addition, coastal states with producing federal offshore tracts adjacent to their seaward boundaries receive 27 percent of those mineral royalties.
Remaining offshore revenues collected by the Minerals Management Service are deposited in various accounts of the U.S. Treasury, with the majority of those revenues going to the General Fund.
During calendar year 2003, the state of Wyoming again led all states by receiving more than $503 million as its share of revenues collected from mineral production on federal lands within its borders, including oil, gas and coal production.
New Mexico’s share was more than $318 million and Colorado received $62.7 million. Other states sharing revenues included Utah with more than $54.4 million, Louisiana with $31.5 million, Montana at $26.9 million, and California with more than $25.3 million.
“In many cases states share their revenues with counties, which apply the money to meet needs like infrastructure improvements and school funding,” said Johnnie Burton, director of the U.S. Minerals Management Service.
Provided by the Environmental News Service.