Tuesday, October 31, 2006

Blue Mondays - Sen. Mary Landrieu

This week we are joined by U.S. Senator Mary Landrieu. The Senator stops in to breif us on her Offshore Revenue Sharing bill, and makes the case as to why the senate bill needs to be the one passed.

4 comments:

Nick said...

The Senate Bill give no real revenue for Louisiana to fund serious coastal protection projects. I'm hoping that with the settlement of Blanco's lawsuit, that the federal government's study will find that our coast is rapidly being eaten away (something I could tell them, free of charge for the taxpayers) and will give some more clout to a compromise more like the House Bill. Maybe it's all wishful thinking, but we've been getting short-changed for over 50 years now, and that needs to stop now.

Stephen said...

Nick,

Perhaps I am missing something. What do you mean Landrieu's bill gies no real revenue - the conservative estimates I have seen are hundreds of millions if not a BILLION dollars a year. Where am I missing this?

If we are being hoodwinked, I do want to know - but honestly - I don't see that this bill is so inferior to the house bill to Louisiana.

Please do explain... thanks

Nick said...

Stephen:

HR 4761 Allocation:

"Authorizes appropriations for FY2007-FY2017.
Requires annual payments of one-third of Program appropriations to the Secretary, and the availability of the other two-thirds to the states, to secure the necessary trained workforce or contractual services to conduct environmental studies, planning, development, monitoring, and post-development management of wildlife and fish and air, water, and other natural resources that may be related to biobased fuel, gas, mineral, oil, wind, or other energy exploration, development, transportation, transmission, and associated activities on federal onshore and offshore lands."

That's where we've been hearing about Louisiana receiving 50-75% of the royalties from O&G produced off its coast. We would start with 50% for 2007, and by 2017 be receiving 75%, to receive 66% over 10 years. (Won't be a linear increase each year b/c that would give 62.5%)

SB 3711

"(a) In General- Notwithstanding section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) and subject to the other provisions of this section, for each applicable fiscal year, the Secretary of the Treasury shall deposit--
(1) 50 percent of qualified outer Continental Shelf revenues in the general fund of the Treasury; and
(2) 50 percent of qualified outer Continental Shelf revenues in a special account in the Treasury from which the Secretary shall disburse--
(A) 75 percent to Gulf producing States in accordance with subsection (b); and
(B) 25 percent to provide financial assistance to States in accordance with section 6 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8), which shall be considered income to the Land and Water Conservation Fund for purposes of section 2 of that Act (16 U.S.C. 460l-5)."

Subsection (b)

"(b) Allocation Among Gulf Producing States and Coastal Political Subdivisions-

(1) ALLOCATION AMONG GULF PRODUCING STATES FOR FISCAL YEARS 2007 THROUGH 2016-

(A) IN GENERAL- Subject to subparagraph (B), effective for each of fiscal years 2007 through 2016, the amount made available under subsection (a)(2)(A) shall be allocated to each Gulf producing State in amounts (based on a formula established by the Secretary by regulation) that are inversely proportional to the respective distances between the point on the coastline of each Gulf producing State that is closest to the geographic center of the applicable leased tract and the geographic center of the leased tract."


By reading this, even if ALL of the oil & gas produced offshore came from Louisiana, which it won't, we would still be guarranteed only 37.5% of the royalties. A far cry from 62.5% or 66%. Hell, not even close to 50%.

Also, the House bill provides for more access to exploring the OCS, and lets face it, with the instability of the Middle East (whether Bush's fault or not), the United States could use all the domestic production it can get.

Now, I'm obviously not a congressman. Hell, I'm not even familiar with this whole process, only really started trying to become familiar with it b/c of the royalty sharing issue. Maybe this is something you can ask Sen. Landrieu about next time you speak with her, b/c personally, I could care less about Kerry's blunder. I care more about the U.S. and D.C. finally giving Louisiana respect for the resources we help provide for the rest of the country.

Nick said...

More info. in the allocation process for the House bill can be viewed here.

http://thomas.loc.gov/cgi-bin/query/C?c109:./temp/~c109hYP5yD

It's broken down according to certain distances. What I gave you for House allocation was a quote from the Bill Summary, while the quote for 3711 came directly from the Senate bill.

It appears that after 2022, Gulf states will receive 50% of the royalties for production more than 9 miles off their coast. Closer than that 87.5%, which is good b/c currently, LA recieve 100% up to 3 miles, 27% from 3-9, and ZERO after that.