Pacific OCS Revenue Facts

The Mineral Management Service's Minerals Revenue Management is responsible for the collection and disbursement of revenue collected from the leasing and development of the Nation's onshore and offshore mineral resources. From 1953 through fiscal year 1997, total revenues resulting from the Minerals Management Service's offshore oil and gas program total over $120 billion, of which over $6 billion was generated in the Pacific OCS region (offshore oil and gas leasing and development off Washington, Oregon, and California).

Revenue from the offshore oil and gas program -- royalties, rents, and bonuses -- is used to the benefit of the country in many different ways.  On average, approximately two-thirds of the revenue goes to the general fund of the United States Treasury to help pay for government programs and services and to States that receive a portion of the revenue collected from offshore oil and gas activity within a band that is 3 to 6 miles off their shore, as specified in section 8(g) of the OCS Lands Act.  In California, this activity takes place on the OCS adjacent to the counties of Santa Barbara, Ventura, Los Angeles, and Orange. 

The remaining third of the revenue is provided to one of two funds:

• Land and Water Conservation Fund to help Federal, State, and local governments acquire and develop parklands and recreation projects.  Between 70 and 90 percent of the funds provided to the Land and Water Conservation Fund are from OCS mineral revenues.   Secretary of the Interior Bruce Babbitt noted that the basic intent of the Land and Water Conservation Fund "is to devote revenue from one public resource, oil and gas leasing on the Outer Continental Shelf, to the perpetuation of another public resource, outdoor recreation lands at the federal, state, and local levels."
  
• Historic Preservation Fund to help protect and preserve the finest examples of America's cultural heritage.  OCS contributions to the National Historic Preservation Fund have totaled over $700 million.

California received more than $1.7 billion dollars from these special funds through 1997

More than $940 million from the Land and Water Conservation Fund was used to acquire and improve federal lands, such as national parks and national forests, throughout the state including:

• Channel Islands National Park -- $33.6 million
  
• Santa Monica Mountains National Recreation Area -- $105.6 million
  
• Los Padres National Forest -- $3.5 million
  
• Carrizo Plain Natural Area -- $0.6 million

More than $230 million from the Land and Water Conservation Fund was used to match funds raised by California State and local government to acquire or improve parks and recreation areas including projects in the following counties:

More than $15 million from the Historic Preservation Fund has been used to help preserve California's Historic Properties in the State.

From 1986 to 2003, more than $678 million has been disbursed to California from Section 8(g) (OCS Lands Act) Funds and, in some cases, used by the State for coastal improvement projects and other programs.