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Domenici: Feds Pay New Mexico $552.9 Million in FY2007 Oil & Gas Royalties

from the Office of Senator Pete V. Domenici

Wednesday, December 5, 2007

-- 2007 is Second Year That Payments to N.M. Exceed Half Billion Dollars --

WASHINGTON – U.S. Senator Pete Domenici, ranking member of the Senate Energy and Natural Resources Committee, today reported that for the second year in a row New Mexico has received more than a half billion from the federal government for oil and gas production.

For FY2007, New Mexico earned $552.9 million in federal royalties from the Mineral Management Service (MMS) for minerals—oil, natural gas, and coal—produced within its borders. Last year, royalty payments to New Mexico totaled $573.4 billion, the first payment that exceeded more than $500 million.

“The hue and cry today is focused on renewable energy sources, but it is still important to realize that oil and gas remain a vital part of our national energy makeup. As such, it is also an important source of income for states like New Mexico, which dedicates these federal royalty payments to public education and other needs,” Domenici said.

“I am continuing to push for federal energy legislation that will give our nation a more well-rounded approach to meeting our energy needs. That means more renewable energy, more conservation and, yes, the production of American-owned oil and gas where it makes sense,” he said.

Only one other state, Wyoming, received more than New Mexico in FY2007 royalty payments—$925.2 million of the $1.97 billion paid by the MMS to 34 states that produce oil, natural gas and coal on federal lands. The MMS is the federal agency responsible for collecting, auditing and disbursing revenues associated with mineral leases on federal and tribal lands. Disbursements are made to states on a monthly basis as royalties, rents, bonuses and other revenues are collected by MMS.

In November, Domenici announced his opposition to a pending proposal within the FY2008 Interior Appropriations bill that would reduce states’ share of royalties earned on mineral and energy production. The “net receipt sharing” provision would cut royalty receipts by 2 percent, which would cost New Mexico an estimated $11.5 million annually, and $42.5 million a year for all states.

Domenici serves on the Senate Interior Appropriations Subcommittee that funds the Interior Department and MMS. The Senate’s FY2008 Interior Appropriations Bill includes $150.9 million for the MMS Royalty and Offshore Minerals Management.

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