[Congressional Record Volume 154, Number 19 (Wednesday, February 6, 2008)]
[Extensions of Remarks]
[Page E128]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




INTRODUCTION OF EQUITABLE MINERAL LEASE REVENUE SHARING RESTORATION ACT

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                            HON. MARK UDALL

                              of colorado

                    in the house of representatives

                      Wednesday, February 6, 2008

  Mr. UDALL of Colorado. Madam Speaker, with my Colorado colleague, 
Representative John Salazar. I am today introducing a bill to restore 
the equitable sharing between the Federal Government and the States of 
revenues from federal onshore mineral leases.
  Leasing of federally-owned onshore minerals is governed by the 
Mineral Leasing Act. which provides that the royalties paid by the 
producers are split equally between the Federal Government and the 
government of the State where a lease is located.
  This is very important for Colorado, which in recent years has 
received between $30 million and $60 million from this source. And many 
other States--especially in the West--have benefited as well. In fact, 
the most recent report by the Interior Department indicates that 34 
States received a total of $1.9 billion pursuant to this part of the 
Mineral Leasing Act in 2007.
  Regrettably, the just-enacted appropriations bill for the Interior 
Department includes a provision that in effect amends this part of the 
Mineral Leasing Act by reducing the share of royalty funds going to 
affected States by 2 percent--so that Colorado and other States will 
get only 48 percent (instead of half) of the royalties from Federal 
leases within state boundaries.
  My understanding is that this change was prompted--at least in part--
as a way to offset some of the costs to the Interior Department of 
administering the leasing program and the distribution of royalty 
revenues.
  But I do not think Such a drastic change in the law should he 
accomplished by inclusion of such a provision in an appropriations 
bill, especially when it will have such a serious adverse effect on 
Colorado and our communities--especially those on the Western Slope--
that are experiencing the impacts of intensive development of 
Federally-owned natural gas and other energy resources.
  Accordingly, our bill would reverse this recently-enacted change and 
so restore the equitable division of royalty revenues provided by the 
Mineral Leasing Act.

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