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Feds to release SD oil, gas royalties

PIERRE (AP) — South Dakota Gov. Dennis Daugaard and Attorney General Marty Jackley say they are pleased federal officials have decided to stop withholding the state's share of royalties from oil and gas production on federal land.

Those payments had been stopped as part of automatic spending cuts. Federal officials say a review of the mineral leasing law determined the money must be paid to dozens of states.

Daugaard says he understands the federal government must control spending, but school districts are legally entitled to the mineral royalties.

Jackley says he appreciates the federal decision because it will help schools.

States get about half of all royalty revenue for mineral production on federal land within their borders. South Dakota passes that money to school districts, which got more than $1.2 million last year.