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States Get $1.7B of Revenues from Production on Federal Lands; Treasury Gets $5.4B

An estimated $1.7 billion, or 17% of $9.9 billion in total royalty revenues collected, was distributed to 35 states in fiscal year 2005 as their share of the federal revenues derived from oil and natural gas production, the Interior Department's Minerals Management Service (MMS) said.

The distributions to the states for the fiscal year ended Sept. 30, 2005 were up from the $1.24 billion distributed in the previous year, the agency said. The $1.7 billion was the states' cumulative share of revenues collected from production on federal lands located within their borders, and from federal offshore oil and gas tracts adjacent to their state waters.

The federal government, on the other hand, received $5.4 billion during fiscal year 2005, or 55% of the $9.9 billion in total royalty revenues collected. Remaining revenues of approximately $2.7 billion were doled out to special-use funds, Native Americans tribes and other individual Indian mineral owners, an MMS spokesman said.

The state of Wyoming again led all states by receiving more than $878 million of the revenues collected from mineral production on federal lands within its borders, including oil, gas and coal production. It was followed by New Mexico ($444 million) and Colorado ($106 million.).

The royalty revenues are split 50-50 between the states and federal government for onshore production on federal lands. Alaska is the exception, receiving 90% of the revenue receipts. But the split is less for states involved in offshore production. Coastal states with producing federal offshore tracts adjacent to their state waters receive only 27% of the mineral royalties, with the rest going to the federal government.

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