The money represents the states' cumulative share of revenues collected for mineral production on federal lands located onshore within their borders and from federal offshore oil and natural gas tracts adjacent to their shores.
Amounts vary from year to year, according to production and market prices.
A state is entitled to a share of the mineral revenues collected from federal lands located onshore within that state's boundaries. One exception, Alaska, gets a 90-percent share, as prescribed by the Alaska Statehood Act. The MMS is responsible for collecting, accounting for, auditing and disbursing the revenues. Certain coastal states with federal tracts adjacent to their seaward boundaries receive 27 percent of those mineral royalties as well. Remaining offshore revenues are deposited in special accounts of the U.S. Treasury, including the General Fund, the Land and Water Conservation Fund and the Historic Preservation Fund.