Updating its activities over the first six months of the year, the Department of the Interior’s Minerals Management Service (MMS) said that despite a four-month, court-ordered computer network shutdown, the government agency has distributed more than $318 million to 32 states during the first six months of 2002.

Leading the pack for MMS distributions received so far this year was Wyoming with $164,691,586.20, New Mexico $88,514,504.84, Colorado $16,386,328.45 and Utah with $11,122,364.65.

“This is truly money for America,” said Interior Secretary Gale Norton. “Portions of this money are invested back into communities for historic preservation projects, purchase of parks and recreation lands, and acquisition of land and water resources for recreational use, habitat protection, scenic beauty, and biological diversity.”

The MMS said the money represents the states’ cumulative share of revenues collected for mineral production on federal lands located within their borders and from federal offshore oil and gas tracts adjacent to their shores. Rounding out the largest distributions, Montana received $ 8,374,559.45, California $5,970,074.12, Louisiana $5,619,603.45, Alaska $4,578,795.55 and Texas recorded $3,783,367.19.

“The fact that MMS continued to make estimated payments to the states in spite of the computer shutdown demonstrates this department’s outstanding commitment to America,” said Norton. The shutdown was implemented department-wide in response to a federal court order issued Dec. 7, 2001, and was lifted at MMS in late March 2002. The agency said it is now working to reconcile these estimates with a several-month backlog of payment and production records.

“This year’s halfway total is less than last year’s record $656 million, but is close to the 2000 figure of $362 million,” said Norton. “The numbers largely reflect a recent decline in prices of crude oil and natural gas.”

The MMS is responsible for collecting, accounting for, auditing and disbursing revenues associated with mineral leases on federal and Indian lands. Made to the states on a monthly basis, the disbursements are given to the states as bonuses, rents, royalties and other revenues are collected. MMS said for the majority of federal lands, states and the federal government share the revenues: 50% to the state, 40% to the Reclamation Fund for water projects, and 10% to the U.S. Treasury. As an exception under the Alaska Statehood Act, Alaska gets a 90% share from operations within the state. Certain coastal states with federal offshore tracts adjacent to their seaward boundaries receive 27% of those mineral royalties as well. Remaining offshore revenues are deposited in special accounts of the U.S. Treasury, including the General Fund, the Historic Preservation Fund and the Land and Water Conservation Fund.

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