Thursday, February 09, 2006

See Anything Wrong Here?

How the federal government divides drilling revenues:

For offshore leases, the Minerals Revenue Management distributes the collected money to U.S. Treasury accounts. In recent years, annual deposits have been nearly $900 million to the Land and Water Conservation Fund and $150 million to Historic Preservation Fund. The remainder is sent to the U. S. Treasury's General Fund. Additionally, a portion of royalties from certain offshore federal leases, adjacent to seaward boundaries of coastal states, are shared with those states.

Distribution of revenues associated with onshore federal lands is split 50-40-10, with 50 percent of the money going directly to the state within which the specific lease was located. Forty percent is sent to the Reclamation Fund of the U.S. Treasury. This special account finances the Bureau of Reclamation's water projects in 17 western states. The remaining 10 percent goes to the Treasury's General Fund.

One exception, Alaska, gets a 90-percent share of the revenues. The remainder goes to the U.S. Treasury.
Okay. Half of onshore revenues goes to the state where the oil came from. Then another 40% goes to the states in water projects. So, taken all together, onshore drilling states get 90% of the revenues generated by drilling on their land in some way. Alaska gets 90% outright.

And we get a “portion of royalties from certain offshore federal leases.” The rest goes to the U.S. Treasury.

That ain't right.

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