Domenici: N.M. Earned Almost $615 Million in FY2008 Federal Oil and Gas Royalties
-- Third Year That Payments to N.M. Exceed Half Billion Dollars --
U.S. Senator Pete Domenici, ranking member of the Senate Energy and Natural Resources Committee, today reported that for the third year in a row New Mexico has received more than a half billion from the federal government for oil and gas production in 2008.
New Mexico earned almost $615 million in federal royalties from the Mineral Management Service (MMS) for mineralsoil, natural gas, and coalproduced within its borders. Royalty payments to New Mexico totaled $553 million in 2007 and $573 million in 2006. In 2003, New Mexico earned $298 million in federal energy production royalties.
"The state has been able to rely on these federal royalty payments to maintain its budget and public education. The 2008 payment to New Mexico reflects the added production activity we've had on federal lands in New Mexico," Domenici said. "While we continue to push for more clean energy sources, we cannot discount the continued economic importance the oil and gas sector still maintains for our state."
Only one other state, Wyoming, received more than New Mexico in FY2007 royalty payments$1.27 billion of the $2.5 billion paid by the MMS to 35 states that produce oil, natural gas and coal on federal lands. Another $534 million was disbursed to 34 American Indian tribes and 30,000 individual American Indian mineral owners.
The MMS is the federal agency within the U.S. Department of the Interior that is responsible for collecting, auditing and disbursing revenues associated with mineral leases on federal and tribal lands. Disbursements are made to states on a monthly basis as royalties, rents, bonuses and other revenues are collected by MMS.
Domenici is a long-time member of the Senate Interior Appropriations Subcommittee that funds the Interior Department and MMS. Last year, he was part of a successful effort to block a "revenue sharing" plan that would have reduced states' share of royalties earned on mineral and energy production.