(a) Assume that the geographic center of the project area lies 12 miles from the closest coastline point of State A and 4 miles from the closest coastline point of State B. BOEM will round dollar shares to the nearest whole dollar. The proportional share due each State would be calculated as follows:
(1) State A's share = [(1⁄12) ÷ (1⁄12 + 1⁄4)] = 1⁄4.
(2) State B's share = [(1⁄4) ÷ (1⁄12 + 1⁄4)] = 3⁄4.
(b) Therefore, State B would receive a share of revenues that is three times as large as that awarded to State A, based on the finding that State B's nearest coastline is one-third the distance to the geographic center of the qualified project area as compared to State A's nearest coastline. Eligible States share the 27 percent of the total revenues from the qualified project as mandated under the OCS Lands Act. Hence, if the qualified project generates $1,000,000 of Federal revenues in a given year, the Federal Government would distribute the States' 27-percent share as follows:
(1) State A's share = $270,000 × 1⁄4 = $67,500.
(2) State B's share = $270,000 × 3⁄4 = $202,500.