Udall, Luján, Lujan Grisham Lead Bipartisan Coalition to Protect States' Mineral Royalties

WASHINGTON - U.S. Sen. Tom Udall and U.S. Reps. Ben Ray Luján and Michelle Lujan Grisham introduced bipartisan legislation this week that would allow states to collect their own mineral royalties, protecting money that is rightfully owed to the states. The bill would effectively eliminate a collection fee charged by the federal government, which amounts to around $40 million per year.

The Mineral Leasing Act provides that the continental states be paid 50 percent of the revenues resulting from the leasing of mineral resources on federal public domain lands within their borders. These royalties are used by states to fund such necessary items as public school systems, community colleges, emergency response activities and basic infrastructure projects. But in recent years, the federal government began charging states a 2 percent fee to cover collection and disbursement costs. This legislation would ensure that states can continue to receive their 50 percent share of mineral royalties by giving them the option to administer their own programs.

"The federal government's unnecessary fee on mineral revenues takes money from state budgets - money that many New Mexico communities depend to fund public schools, emergency response and other critical services," Udall said. "New Mexico earned these royalties from our abundant natural resources, and New Mexico communities deserve to keep their share of the revenues without federal interference."

"New Mexico's federal lands are a significant resource that provides important royalties that should be used to strengthen New Mexico," Luján said. "This legislation will ensure that more of the money that is rightfully owed to states will be returned in order to support vital programs and investments that make a difference in our communities. Sending the money directly to the states and not to the federal government first will streamline the process, reduce administrative costs, and allow states to receive more of these critical funds."

"This bipartisan bill will ensure New Mexico can keep its fair share of revenue and help the state invest in important priorities, including schools, infrastructure development, small businesses, and other public welfare and economic development programs," Lujan Grisham said.

U.S. Sens. John Barrasso, R-Wyo., Mike Enzi, R-Wyo. and U.S. Rep. Cynthia Lummis, R-Wyo., joined to introduce the bill.