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County FY 2018 Federal Mineral Royalty Distribution

ATTN: Montana Commissioners, Clerk & Recorders, and Treasurers
Posted Date: 
August 15, 2017

Linked above is an Excel spreadsheet showing the Federal Mineral Royalty Payment amounts for FY-2018 (payment disbursed August 15, 2017).  In accordance with Federal Law, this money is paid to the state treasurer to be distributed to counties that are socially or economically impacted by the development of minerals leased.  This money is to be used for planning, construction and maintenance of public facilities and provisions of public service.

The spreadsheet shows the history of the payment amounts since 2005, with the most-recent years being in the furthest right columns.  It also has a separate tab showing the amounts that were originally sequestered but paid later in the year as well as another tab showing the applicable state and federal laws.

Overall the statewide total is $5,489,060.14.  The total payments to states are based on both lease and royalty payments received by the federal treasury, pursuant to 30 USC 191 tu be used:

by such State and its subdivisions, as the legislature of the State may direct giving priority to those subdivisions of the State socially or economically impacted by development of minerals leased under this chapter, for (i) planning, (ii) construction and maintenance of public facilities, and (iii) provision of public service;

The Legislature has provided for the distribution of 25% of the amount received by the state to counties pursuant to 17-3-240 and 17-3-241 MCA (below).  No further distribution to schools or special districts is required.

17-3-240.  Federal mineral leasing funds. (1) Except as provided in subsection (2), money paid to the state pursuant to 30 U.S.C. 191 must be deposited in the state general fund.

(2)  In fiscal year 2005 and each succeeding fiscal year, 25% of all money received pursuant to subsection (1) must be deposited in the mineral impact account established in 17-3-241 and is dedicated to local governments.

(3)  On August 15 following the close of the fiscal year, the state treasurer shall distribute the revenue dedicated in subsection (2). The distribution to the eligible counties must be based on the proportion that the total amount of revenue generated by mineral extraction in an eligible county bears to the total amount of money received by the state.

17-3-241.  Mineral impact account. There is a mineral impact account. Money must be deposited in the impact account as provided in 17-3-240. The money in the impact account must be distributed to counties from which the minerals were produced that resulted in the deposit of the mineral royalty revenue in the impact account. Beginning July 1, 2003, the impact account is statutorily appropriated, as provided in 17-7-502.

Linked above (and below) is a spreadsheet with the history of the distributions since 2005.

Mineral Impact Fund Distribution by County

Questions Regarding the Determination of the Reimbursement Amounts:  Van Charlton, Montana Department of Revenue, (406) 444-3584

Inquiries Related to the Actual Payment Process:  Lori Carroll, Department of Administration, Office of Finance and Budget, (406) 444-3821.