A bill to amend section 35 of the mineral Lands Leasing Act, as amended, with respect to the payment of moneys received from sales, bonuses, royalties, and rentals of public lands to States.

Amends the Mineral Lands Leasing Act to reduce the portion of the income from Federal mineral lands to be paid into the reclamation fund created by the Reclamation Act from 52 1/2 to 40 percent. Directs that an additional 12 1/2 percent of such revenues by paid by the Secretary of the Treasury to the States from within which such recepits were derived. Requires States, in disposing of such additional funds, to give priority to those subdivisions socially or economically impacted by the development of mineral lands for (1) planning, (2) construction and maintenance of public facilities, and (3) provision of public services. Requires Colorado and Utah to give similar priority in spending funds received from specified oil shale test leases.

Directs theat income received by the United States under the Geothermal Steam Act of 1970 be disposed of in the same manner as income received under the Mineral Lands Leasing Act.