How Revenue Works

Where natural resources revenue comes from and where it goes; who owns the resources, how they're produced, what companies pay, and how that money is shared.

Ownership and law

Who owns natural resources, and the laws that govern extracting them

Who owns natural resources in the U.S.?

Land and the oil, gas, coal, and other minerals below the surface can be owned by private individuals, corporations, and federal, state, local, and Native American governments. 

What laws and regulations govern natural resource extraction in the U.S.?

The legislative branch has passed many laws governing natural resource extraction on federal lands. The government reforms laws through new legislation and proposed rules. 

Federal laws and regulations

Federal reforms

How are natural resources on Native American land governed?

Native American land ownership involves a complex patchwork of titles, restrictions, obligations, statutes, and regulations. Natural resources are a key source of income for many Tribes, with the Department of the Interior collection revenue from production.

Ownership and governance

Production

Revenue

Production

How companies extract energy and minerals from federal and Native American lands and waters. 

Oil & gas production

Oil and gas are fossil fuels that form underground on land and under the ocean. The U.S. is among the world's top producers of oil and gas.

Onshore production

Offshore production

Coal production

Miners extract coal through surface and subsurface mining. Most of the coal produced on federal land in the U.S. is mined in the Powder River Basin of Wyoming.

Nonenergy minerals

Gold, copper, and iron are the main sources of nonenergy mineral revenues. The Mining Law of 1872 is the major federal law governing locatable minerals.

Revenue

What companies pay to produce those resources, and how ONRR collects it. 

Types of revenue

Companies pay the federal government to extract natural resources on federal lands and waters. The Office of Natural Resources Revenue collects this revenue. Most revenue are bonuses, rent, and royalties.

Abandoned Mine Land (AML) Reclamation Program

This program uses fees from present-day coal mining companies to reclaim coal mines abandoned before 1977.

Coal Excise Tax

Coal producers pay a federal excise tax, which originated in 1977 with the Black Lung Revenue Act, when they mine coal in the U.S.

Disbursements

Where the money goes once it's collected. 

How disbursements work

The Office of Natural Resources Revenue collects revenue from extraction on federal lands and waters. It then distributes that revenue according to federal law. This process is called "disbursement."

Land and Water Conservation Fund

The Land and Water Conservation Fund receives disbursements from offshore oil and gas revenue. This fund supports conservation, outdoor recreation, and the needs of local communities.

Historic Preservation Fund

When authorized, the Historic Preservation Fund receives disbursements from offshore oil and gas revenue. This funds the conservation of cultural and historic sites.

Reclamation Fund

The Reclamation Fund receives revenue from onshore natural resources extraction. The fund supports the construction, operation, and maintenance of irrigation and hydropower projects.

Gulf of America Outer Continental Shelf (OCS) Disbursements

The Gulf of America Outer Continental Shelf (OCS) Disbursements is a revenue-sharing model for Gulf of America states. Four states receive a portion of the revenue from oil and gas production in the Gulf of America.

How does the U.S. ensure accuracy and accountability in natural resource revenue?

Audits and assurances

Data about revenue from the extractive industries is subject to a number of controls, standards, and regulations.

See the numbers

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