Wednesday, December 10, 2008

Arizona 26th in federal mineral lease payments

Arizona received $266,834 as its share of lease payments made on federal lands in the state for fiscal 2008. That puts Arizona at 26th among the 35 states that got royalties and leases. The leading state was Wyoming with $1.27 billion. Tennessee received the lowest share, $99.

The states receiving big checks have lots of oil and gas production or coal production on federal lands. Arizona;s oil and coal are produced from Indian reservations so the only revenues the state gets currently are from leasing of federal lands.

Hardrock mining does not pay royalties on federal lands, as per the Mining Act of 1872. There is growing movement in Congress to amend the law to include royalites, although there is debate over whether that would be on gross or net production.

[right, surface management map. Federal lands are green, yellows, pink. Credit AZ State Land Dept - US BLM)

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