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Offshore and other Submerged Lands
Offshore and Other Submerged Lands
The Division also manages approximately 600,000 acres of submerged lands which includes statewide navigable water bottoms, coastal bays and offshore state waters for a distance of three miles. The State owns oil and gas interests on small upland tracts, submerged river bottoms and in the area of offshore Alabama. Most significant are natural gas reserves lying within the three (3) mile offshore area of Alabama.
Revenues from offshore natural gas production accounts for a substantial portion of the funds generated by the Division. Offshore natural gas royalties are deposited into the Alabama Trust Fund. Since 2000, 35% of those royalties now go to various state programs. The State only spends the interest generated from the Alabama Trust Fund, with ten percent (10%) of the interest earned going to the Forever Wild Land Trust Program to purchase public recreational land.
In Fiscal Year 2002-2003, royalties from offshore natural gas production amounted to $273,619,570. During the same period, the Forever Wild Land Trust received $11,651,995.