Breitling Oil and Gas Texas and California Morning Podcast #295

Potential legislation introduced this week would ensure states that normally receive half of federal onshore oil and gas royalties under the Mineral Leasing Act actually receive the money.

MLA mandates that the federal government pay states where the federal government controls most of the land 50% of any revenue it collects from mineral leases there to offset taxes which otherwise would have gone to the state and county.

The federal government diverted nearly $110 million of revenue their states should have received to offset sequestration impacts. The state of Wyoming saw $53 million in royalty funds disappear right before their eyes already this year.

The new State Mineral Revenue Protection Act would amend the MLA to grant states the option to collect their share of the mineral royalties, and grant those states full property interest in their share.

Comments are closed.