CFR > Title 30 - Mineral Resources > CHAPTER II—MINERALS MANAGEMENT SERVICE, DEPARTMENT OF THE INTERIOR > SUBCHAPTER A—MINERALS REVENUE MANAGEMENT (parts 200 to 243) > PART 219—DISTRIBUTION AND DISBURSEMENT OF ROYALTIES, RENTALS, AND BONUSES > SUBPART D—Oil and Gas, Offshore (§219.410 to §219.418) > 219.414—How will MMS determine each Gulf producing State's share of the qualified OCS revenues?

219.414—How will MMS determine each Gulf producing State's share of the qualified OCS revenues?

(a) The MMS will determine the geographic centers of each applicable leased tract and, using the great circle distance method, will determine the closest distance from the geographic centers of each applicable leased tract to each Gulf producing State's coastline.
(b) Based on these distances, we will calculate the qualified OCS revenues to be disbursed to each Gulf producing State using the following procedure:
(1) For each Gulf producing State, we will calculate and total, over all applicable leased tracts, the mathematical inverses of the distances between the points on the State's coastline that are closest to the geographic centers of the applicable leased tracts and the geographic centers of the applicable leased tracts. For applicable leased tracts intersected by the planning area administrative boundary line, the geographic center used for the inverse distance determination will be the geographic center of the entire lease as if it were not intersected.
(2) For each Gulf producing State, we will divide the sum of each State's inverse distances, from all applicable leased tracts, by the sum of the inverse distances from all applicable leased tracts across all four Gulf producing States. We will multiply the result by the amount of qualified OCS revenues to be shared as shown below. In the formulas, IAL, ILA, IMS, and ITX represent the sum of the inverses of the closest distances between Alabama, Louisiana, Mississippi, and Texas and all applicable leased tracts, respectively.

Code of Federal Regulations

Alabama Share = (IAL ÷ (IAL ILA IMS ITX)) × Qualified OCS Revenues

Code of Federal Regulations

Louisiana Share = (ILA ÷ (IAL ILA IMS ITX)) × Qualified OCS Revenues

Code of Federal Regulations

Mississippi Share = (IMS ÷ (IAL ILA IMS ITX)) × Qualified OCS Revenues

Code of Federal Regulations

Texas Share = (ITX ÷ (IAL ILA IMS ITX)) × Qualified OCS Revenues
(3) If in any fiscal year, this calculation results in less than a 10 percent allocation of the qualified OCS revenues to any Gulf producing State, we will recalculate the distribution. We will allocate 10 percent of the qualified OCS revenues to the State and recalculate the other States' shares of the remaining qualified OCS revenues omitting the State receiving the 10 percent minimum share and its 10 percent share from the calculation.