By OGJ editors
WASHINGTON, DC, Mar.4 -- The US Department of the Interior's Minerals Management Service said Monday it distributed a total of $753.3 million in federal mineral revenues to states in 2002, down substantially from $1.1 billion paid out in 2001.
MMS said the states received less money to states last year because of lower production and prices for crude oil and natural gas, compared with 2001.
As has typically been the case, Wyoming in 2002 received the most royalty receipts, $387.4 million, but below last year's record $429.6 million. New Mexico was next with $193.6 million. Colorado received $41.2 million, Utah $35.4 million, Montana $21.8 million, and California $16.2 million.
The federal government shares its lease and royalty revenues with the states where oil and gas production occurs. Half of the revenues go to the state, 40% to the Reclamation Fund for water projects, and 10% to the US Department of the Treasury. Alaska is the only exception: Under its statehood act, it gets 90% of the federal receipts. Last year Alaska collected $9.9 million from MMS, the only large oil-producing state to get more money from the federal government than last year. In 2001, Alaska received $6.7 million.
Some state governments, such as Alaska's, rely heavily on oil and gas royalties to fund local budgets for key services such as schools and roads. In some cases, those states are facing significantly less fiscal pressures than other states without oil and gas revenues to count on for income.
Coastal states also share in revenues from federal leases adjacent to their seaward boundaries. Alabama for example, received $8.8 million in 2002, but saw much higher income in 2001: $17.7 million.
Louisiana last year received $13.4 million but in 2001 got a much higher return: $31.2 million.
MMS said the $753.3 million it shared with 33 states last year compares with a record $1.1 billion in 2001, $800 million in 2000, $541 million in 1999, and $559 million in 1998.