The Office of Natural Resources Revenue at the U.S. Department of Interior (DOI) sent letters to 35 states last week reporting that monthly federal mineral payments would be reduced over the next five months due to sequestration. According to DOI, a total of $110.8 million in disbursements will be withheld from states to comply with sequestration requirements. The federal government paid a total of $2.1 billion to states in revenue generated from energy and mineral production on public lands and offshore areas in fiscal 2012. Wyoming will bear the largest cut of $53 million, followed by New Mexico with $26 million in cuts. Wyoming’s governor’s office issued a statement on March 26 announcing that the governor is consulting with the state’s attorney general, Congressional delegation and nearby states to determine what recourse is available to respond to this federal action.   

Link(s): Fiscal 2012 Mineral Receipts; Wyoming Governor Statement