Since both state and federal governments provided the legal and financial framework for the orderly development of oil and gas resources, special laws, such as legislation on production sharing agreements, were not necessary for protecting domestic or foreign investors. In the U.S., the federal government does not own all energy resources. Energy resources are owned by the federal government, state governments, or private entities. Federal government owns many of the resources in the western part of the country where most of the public lands are located. Federal government shares ownership of energy resources in Alaska with the state government and Native American Corporations.
States own offshore resources between the coast line and three miles as well as other areas onshore.
The energy resources not owned by the federal or state governments are owned by private entities. For lands not owned by the federal government, each state has established a legal regime that governs the development of oil and gas resources. Most states have a commission that oversees the laws that usually are known as state conservation laws. There are also extensive laws governing the payment of royalties by resources developers to owners. Most energy resource states have trade associations so that owners and operators can discuss common problems and issues.