Clinton signs royalty bill
The US Minerals Management Service (MMS) said Wednesday that President Bill Clinton has signed a bill ensuring that states receive their full share of royalties from minerals developed on federal lands within their borders.
The US Minerals Management Service (MMS) said Wednesday that President Bill Clinton has signed a bill ensuring that states receive their full share of royalties from minerals developed on federal lands within their borders.
The federal government shares its royalties 50:50 with the states in which the minerals are produced, but previously required the states to help pay administrative costs, a process known as net receipts sharing. Now an estimated $20 million to $22 million/year in additional funds will be distributed to these states.
MMS Director Walt Rosenbusch said, "Rather than having to pay part of the federal administrative costs, these states will receive their full share of the revenues for minerals produced on federal lands."
Thirty-two states have minerals production on federal lands within their boundaries. Wyoming, New Mexico, Colorado, Utah, and Montana will benefit most from the law.
During fiscal 2000, $7.4 million in administrative costs were deducted from Wyoming's share of federal mineral revenues. New Mexico had $5.6 million deducted, and Colorado, Utah, and Montana had $2.3 million, $1.9 million and $1 million respectively.
