U.S. Department of the Interior
Minerals Management Service
Office of Public Affairs

NEWS RELEASE

States gain $1 billion + in FY ’03 mineral revenues

DENVER -- More than $1 billion was distributed to 35 states during Fiscal Year 2003 as part of their share of federal revenues collected by the Department of the Interior’s Minerals Management Service (MMS).

The $1,019,980,770 distributed to states during the fiscal year that ended Sept. 30 compares with Fiscal Year 2002 payments to states that totaled $716.3 million.

 “These revenues are particularly important to many states today,” said Johnnie Burton, Director of the Minerals Management Service.  In many cases, Burton said, states share their revenues with individual counties which apply that money to a variety of local needs ranging from school funding to infrastructure improvements.

 The more than $1 billion distributed through September of this 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.

 During Fiscal Year 2003, the state of Wyoming led all states by receiving more than $467 million as its share of revenues collected from mineral production on federal lands within its borders, including oil, gas and coal production.  New Mexico’s share was more than $297 million, while $53.9 million was received by the state of Colorado.  Other states sharing revenues included Utah with more than $50.6 million; Louisiana with $30.7 million; Montana at $25.5 million; California with more than $25.4 million; and Texas, which received more than $17 million in Fiscal Year 2003.

 The Minerals Management Service (MMS) is the federal agency responsible for collecting, auditing and disbursing revenues associated with mineral leases on federal and American Indian lands.  Disbursements are made to states on a monthly basis as royalties, rents, bonuses and other revenues are collected by MMS.

 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 Reclamation Fund for water projects.  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.

 Since its creation in 1982, the Minerals Management Service has collected and distributed nearly $128 billion to federal, state and American Indian accounts.  MMS is one of the largest contributors to the U.S. Treasury on an annual basis. 

 States receiving revenues through Fiscal Year 2003 include:

-MMS-

MMS Internet website address: http://www.mms.gov