Alaska nets $7 million of $548 million MMS pay out to states from OCS revenues

Petroleum News

The state of Alaska received more than $7 million in federal revenues during the first half of 2003, the Minerals Management Service said Aug. 26. The U.S. Department of the Interior agency said more than $548 million has been distributed to 35 states as part of the federal revenues it has collected.

"This money is particularly important to states that may be struggling today with declining revenues from other sources," said MMS Director Johnnie Burton in a prepared statement.

The $548,831,486 distributed through June 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.

Wyoming received the largest share, more than $262 million, as its share of revenues collected from mineral production, primarily coal. New Mexico's share was more than $159 million, while $24.3 million was received by Colorado. Other states sharing revenues included Utah with more than $22 million; California with $13.6 million; Louisiana with $15.2 million; Montana at more than $12.8 million; and Texas, which received $10.8 million in the first half of the year.

States receive monies monthly

MMS collects, audits and distributes 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.

States receive a share of mineral revenues collected from federal lands within their boundaries. States receive 50 percent of revenues from a majority of onshore federal lands. Alaska receives a 90 percent share as prescribed by the Alaska Statehood Act.

In addition, coastal states with producing federal offshore tracts adjacent to their seaward boundaries receive 27 percent of those mineral royalties.