More than $1.24 billion was distributed to 36 states during fiscal year 2004 as part of their share of federal revenues collected by the Interior Department’s Minerals Management Service (MMS).

The distributions to the states for the fiscal year ended Sept. 30 were 23% higher than the estimated $1.02 billion paid out to states in fiscal year 2003, according to the MMS.

The $1.24 billion payout this year represented the states’ cumulative share of revenues collected from mineral production on federal lands located within their borders, and from federal offshore oil and natural gas tracts adjacent to their state waters boundary, the agency said last week.

The state of Wyoming again led all states by receiving more than $564 million in revenues from mineral production on federal lands within its borders, including oil, gas and coal production. New Mexico received the second highest amount at $364 million in revenues, while $80.5 million went to the state of Colorado, the MMS noted.

Other states sharing revenues included Utah with more than $69 million; Louisiana with more than $39 million; Montana at $30.2 million; California with more than $28.9 million; and Texas at $15 million-plus in fiscal year 2004.

Most states receive 50% of the revenue collected from leases on onshore federal land, while the other 50% goes to various funds of the U.S. Treasury. The exception is Alaska, which receives a 90% share of the revenue pursuant to the Alaska Statehood Act. Coastal states with producing federal offshore tracts adjacent to their seaward boundaries receive 27% of those mineral royalties. The remainder of the offshore revenues gathered by the MMS are deposited in various accounts in the U.S. Treasury.

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