Department Of Interior
|Office of the Secretary||
Hugh Vickery 202-208-6416
|For Immediate Release: Feb. 17, 2004||
Curtis Carey, MMS 202-208-3985
States Receive More Than $1 Billion From Share of Federal Mineral Revenues
(WASHINGTON) -- Secretary
of the Interior Gale Norton announced today that 36 states received
more than $1 billion during 2003 as part of their share of federal revenues
collected by the department'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.
development on public lands and offshore areas contribute greatly to
states and local governments," Norton said. "The money enables
local governments to fund important projects for the betterment of communities
and the lives of Americans."
The nearly $1.1 billion distributed
through December of last year represents 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.
"In many cases states
share their revenues with counties, which apply the money to meet needs
like infrastructure improvements and school funding," MMS Director
Johnnie Burton said.
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.
MMS is the federal agency
in the U.S. Department of the Interior that manages the nation's oil,
natural gas and other mineral resources on the outer continental shelf
in federal offshore waters. The agency also collects, accounts for and
disburses mineral revenues from federal and American Indian lands. Between
1982 and 2003, MMS distributed more than $135 billion in revenues from
onshore and offshore lands, an average of more than $6 billion per year,
to the nation, states and American Indians. Nearly $1 billion from those
revenues go into the Land and Water Conservation Fund annually for the
development of state and federal park and recreation lands.
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