The US House of Representatives’ Natural Resources Committee approved a bill that would increase shares of new federal offshore oil and gas revenue for Texas, Louisiana, Alabama, and Mississippi under the 2006 Gulf of Mexico Energy Security Act to 50% from 37.5%.
“After working on this for 20 years, I can tell you, what happened today is historic,” said Rep. Garrett Graves (R-La.), HR 6771’s sponsor, following the Sept. 13 vote.
“Louisiana is battling the largest historical, ongoing, and prospective loss of coastal wetlands we’ve ever seen, and it’s a national crisis,” Graves noted. “Our bill ensures that these increased revenues will be committed to projects that restore the coast, protect our coastal communities from hurricanes and other disasters, and ultimately reduce our nation’s outrageous disaster response costs.”
The measure, which Graves introduced on Sept. 12, had eight cosponsors from Louisiana and other Gulf Coast states.
Lori LeBlanc, executive director of the Gulf Economic Survival Team in Thibodaux, La., welcomed the news. “This increase is fair and equitable when you consider that interior states have been receiving 50% of the oil and gas revenues for many years,” she told OGJ in a Sept. 14 e-mail.
“Louisiana has a long history of supporting our nation’s offshore oil and gas industry which many other states refuse to do off their coasts and increasing the revenue sharing will dedicate even more funding toward restoring our coastline, protecting our environment, and ensuring our long-term sustainability,” she said.
Gifford Briggs, president of the Louisiana Oil & Gas Association in Baton Rouge, also applauded the committee’s action. “This legislation will allow Louisiana to retain more revenue generated by the oil and gas industry in the state to protect our coastal communities from hurricanes and other natural disasters,” he said in a Sept. 14 e-mail. “We must realize and celebrate the great benefit the oil and gas industry is in Louisiana.”
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