The State of Alabama is receiving $50.29 million from the federal government as a disbursement for energy that was produced in a federally owned area of the state.
Alabama’s funds come as part of a $1.81 billion payout to 34 states announced by U.S. Secretary of the Interior David L. Bernhardt on Friday.
The revenue sent to states Friday “was collected from oil, gas and mineral production on federal lands within the states’ borders and from offshore oil and gas tracts in federal waters adjacent to their shores,” according to a release from the department.
Virtually all of Alabama’s portion of the money was generated by offshore drilling, per the data available on an Interior Department web portal.
Alabama’s payment was ninth highest in the nation. New Mexico took the top spot with $706.96 million followed by Wyoming, Louisiana, Texas, North Dakota, Colorado, Utah and Mississippi.
American Indian Tribes received $1 billion as part of the process; 100% of the revenue from the energy generated on their lands.
“[T]hese disbursements also go right back to the states and Tribes where the energy was produced, providing critical funding for schools, public services, conservation improvements and infrastructure projects that create good-paying American jobs,” said Bernhardt on Friday.
The over $50 million announced as on its way to Alabama on Friday is the state’s total for fiscal year 2020 that ended September 30. It is the largest amount the state has received under the disbursement policy in the last decade.
Henry Thornton is a staff writer for Yellowhammer News. You can contact him by email: [email protected] or on Twitter @HenryThornton95.
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