U.S. federal oil and gas royalties are payments made by firms to the federal government in exchange for the opportunity to explore for oil and gas on government-owned land or water. Traditionally, most of the funds generated by these royalties have gone directly into the general U.S. Treasury. Some of the funds have been directed to the Historical Preservation Trust Fund and the Land and Water Conservation Fund. During most of the twentieth century, oil and gas companies generally paid between 12.5 and 16.7 percent in royalties for a lease to drill on public land or water. Over time, these royalty payments generated over $100 billion in revenues.
U.S. federal oil and gas royalties - SourceWatch
