MMS disperses the money as part of the states' cumulative share of revenues collected for mineral production on federal lands within the state's boundary, and from offshore federal oil and gas tracts adjacent to their shores.
Amounts vary from year to year, according to production and market prices.
The MMS is responsible for collecting, accounting for, auditing and disbursing revenues associated with mineral leases on federal and Indian lands. Disbursements are made to states on a monthly basis, as bonuses, rents, royalties and other revenues are collected. A state is entitled to a share of the mineral revenues collected from federal lands located within that state's boundaries. Alaska, the only exception, gets a 90-percent share, as prescribed by the Alaska Statehood Act. Certain coastal states with federal offshore tracts adjacent to their seaward boundaries receive 27 percent of those mineral royalties as well.