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Governor Dennis Daugaard and A. G. Jackley Commend Federal Government on Reversing Decision

The federal government has indicated it will not withhold mineral royalty payments from oil and gas states as part of the federal budget sequester. (KELO AM file photo)
The federal government has indicated it will not withhold mineral royalty payments from oil and gas states as part of the federal budget sequester. (KELO AM file photo)

PIERRE, S.D. (KELO AM) – Governor Dennis Daugaard and Attorney General Marty Jackley announced today that the federal government has indicated it will not withhold mineral royalty payments from oil and gas states as part of the federal budget sequester. Both Daugaard and Jackley, along with many of their counterparts from other states, requested the Federal Government to end the sequestration of funds owed to the states under the federal Mineral Leasing Act (MLA) and other relevant statutes.

"I know that the federal government needs to cut to get spending under control," said Governor Daugaard.  "These funds, however, are mineral royalties that school districts are entitled to under federal law.  I'm glad this decision was made."

“I want to extend my appreciation to the federal authorities for making the right decision to continue sharing the revenue produced by mineral development within our state boundaries,” said Jackley. “South Dakota’s school districts that have mineral deposits will be able to benefit from this decision.”

The MLA entitles states to forty-eight percent of all rentals, royalties, and other receipts collected by the federal government for mineral production on federal land within state boundaries.  This money, along with funds received from the federal government for the state’s share of federal leases under the Taylor Grazing Act, is distributed by the State to school districts in the counties where the mineral production is located.  In FY 2012, school districts received approximately $1,328,000 in payments under these laws.

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