[Ben Ficklin]

The state receives no royalties on oil produced in federal waters and these wells are 5-8 miles offshore in federal water. If the wells were within 3 miles(state waters), they would.

The exception to this is that in 2006, TX, LA, MS, and AL were given "royalty sharing".

[Brad from Tennessee]

[The state receives no royalties on oil produced in federal waters and these wells are 5-8 miles offshore in federal water. . .]

That’s what I get for reading internet news and listening to the TV simultaneously.

[Brad from Tennessee]

This is what I heard or misheard. It was taxes rather than royalties.

[Although local schools derive a portion of their funding from property taxes paid by the facility — $4.2 million in 2014 — and tax payments will be reduced if production stops, Black said that if tax revenue is lost as a result of the broken pipeline, the districts can file a claim with Plains to address the loss.]

http://www.law360.com/articles/666067/santa-barbara-says-exxon-bid-to-truck-oil-not-an-emergency