Tuesday, December 4, 2007

Colorado Earns More than $122 Million in Royalty Receipts

DENVER – Colorado earned more than $122 Million during Fiscal Year
2007 as part of their share of federal revenues collected by the
Department of the Interior's Minerals Management Service (MMS).
Colorado was one of thirty-four states that earned a total of more
than $1.9 billion during Fiscal Year 2007.

"These revenues from mineral production on federal lands play a
crucial role in many state budgets," said Randall Luthi, MMS
director. "The funds support everything from education to
infrastructure improvements and capital projects."

MMS is the federal bureau within the Department of the Interior
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 from royalties,
rents, bonuses and other revenues collected by MMS.

The $1,972,322,944 distributed to states during the Fiscal Year that
ended Sept. 30, 2007 compares with Fiscal Year 2006 payments to states
that totaled more than $2.2 billion. A preliminary analysis indicates
the slight decline is the result of several factors, including lower
natural gas prices during the fiscal year and a drop in lease sale
bonuses from the previous year, among others.

Fiscal Year 2007 marked the first full year that MMS distributed funds
from geothermal energy production directly to the individual counties
where that production occurs. Luthi noted that the Energy Policy Act
of 2005 mandated that 25 percent of receipts from geothermal energy
production be disbursed directly to counties where that production
occurs, in an effort to increase use of that alternative energy
resource. As part of that mandate, and included in the $1.9 billion
distributed overall, MMS distributed more than $4.3 million to 32
counties in the states of California, Idaho, New Mexico, Nevada,
Oregon and Utah.

During Fiscal Year 2007, the state of Wyoming led all states by
receiving more than $925 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 nearly $553
million, while the state of Utah received more than $135 million.
Other energy-producing states sharing revenues included Colorado with
more than $122 million; California with more than $61 million; Montana
with $39.1 million; Louisiana at $24 million; Alaska at $21.7 million;
and Texas, which received approximately $21.6 million in Fiscal Year

The disbursements represent 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. 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 matching
appropriations from the offshore oil and gas royalty-funded Land and
Water Conservation Fund, the Reclamation Fund, and other special-use

In addition, Texas, Alabama, Louisiana and Mississippi with producing
federal offshore tracts adjacent to state waters receive 27 percent of
those mineral royalties. Remaining offshore revenues collected by the
MMS are deposited in various accounts of the U.S. Treasury, with the
majority of those revenues going to the General Fund.

States receiving revenues through Fiscal Year 2007 include:
Alabama $14,173,908.88
Alaska $21,796,671.52
Arizona $41,792.37
Arkansas $8,143,230.86
California $61,240,940.54
Colorado $122,894,226.71
Florida $6,649.38
Idaho $4,729,812.55
Illinois $205,558.80
Indiana $8,046.75
Kansas $1,876,305
Kentucky $714,750.97
Louisiana $24,029,594.03
Michigan $616,971.05
Minnesota $13,126.30
Mississippi $2,226,547.50
Missouri $3,598,352.32
Montana $39,158,279.03
Nebraska $24,176.98
Nevada $7,663,678.82
New Mexico $552,934,465.33
North Dakota $13,775,447.53
Ohio $493,091.99
Oklahoma $6,988,592.26
Oregon $558,122.83
Pennsylvania $55,584.87
South Carolina $277.50
South Dakota $1,007,068.91
Texas $21,667,264.63
Utah $135,429,658.25
Virginia $233,474.14
Washington $366,365.07
West Virginia $389,004.34
Wyoming $925,261,906.81

Total $1,972,322,944.82