A record $656 million in mineral revenues was released to individual states last week by the U.S. Minerals Management Service (MMS) as their share of revenues collected from oil, gas and other mineral development in federal lands outside their boundaries or in federal waters adjacent to their shores. If price and production trends continue on their current pace, Interior Secretary Gale Norton said “this will be an all-time record year.”

For the six-month period, Wyoming received the most revenue, with a check for $262.7 million. The rest of the top 10 list included New Mexico, $227.8 million; Colorado, $37.7 million; Utah, $29.2 million; Louisiana, $20.9 million; California, $18.8 million; Montana, $18.7 million; Alabama, $12.1 million; Texas, $10.4 million; and Alaska, $3.2 million. Wyoming’s revenue is up 67% from a year ago, while the rest also rose the following amounts: New Mexico, 98%; Colorado, 58%; Utah, 74%; Louisiana, 157%; California, 98%; Montana, 68%; Alabama, 83%; Texas, 125%; and Alaska, 15%.

The money is sent directly to state treasuries, which then control how the funds are used, Norton said. The amount this year represents a cumulative share for January through June 2001. This year’s six-month amount surpasses the same period in 2000 by $294 million, when six-month distributions totaled $362.8 million. Total distributions for 2000, which also set a record, were $800 million.

States and the federal government share the mineral revenues from federal lands, with 50% going to the states, 40% going to the Reclamation Fund for water projects and 10% directed to the U.S. Treasury. Only Alaska is given a 90% share, as prescribed under its Alaska Statehood Act. Almost all of the revenues are derived from oil, natural gas and coal production. Certain coastal states with federal offshore tracts adjacent to their seaward boundaries receive 27% of those mineral royalties as well, and remaining offshore revenues are deposited in special accounts of the U.S. Treasury.

©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.