Carpe coast
Thursday, February 23, 2006
Louisiana has fought a lonely and losing battle to boost its share of offshore oil royalties, but the state might gain some new allies if oil and gas drilling expands in response to high energy costs.
Strategically, this is a critical moment for Louisiana, and the state's congressional delegation is wisely seizing it. Last week, Sen. Mary Landrieu, along with Sen. Trent Lott of Mississippi, threatened to withhold support of a bill to open up a new area in the northeastern Gulf of Mexico to drilling unless coastal, energy-producing states get a greater share of the royalties.
Rep. Bobby Jindal has filed a bill that he hopes will broaden support for revenue sharing. His measure lifts a federal moratorium on Outer Continental Shelf drilling by 2012. States would get control over what happens off their shores for the first 125 miles -- a provision that's designed to ease environmental concerns. They'd also get a generous share of offshore royalties: 75 percent for the first 12 nautical miles and 50 percent farther out.
The revenue sharing would be phased in over 15 years. Louisiana would get $600 million per year immediately; $1 billion annually by 2011 and $2.2 billion per year by 2022.
Rep. Jindal's bill would give states on the East and West coasts a stake in the revenue-sharing debate. He's also seeking inland support by giving those states a share of revenue from oil shale and tar sands mined within their boundaries.
Louisiana lawmakers aren't the only ones who are looking at this issue. A bill filed by Sen. John Warner of Virginia and Sen. Mark Pryor of Arkansas that would allow states to opt out of the drilling moratorium also provides a 50 percent share of royalties.
Louisiana has long sought a fair share of the wealth that's produced off our coast, and we have a strong case. Oil and gas exploration is one of the factors in this state's wetland loss, and we need a stable, sufficient stream of money for coastal restoration. This is the logical source.
Oil and gas activity has undeniably cost us, in terms of environmental damage and in terms of what the state has to spend to support that industry. Yet coastal, oil-producing states don't enjoy the same 50 percent share of revenue that inland states get for drilling done on federal lands within their boundaries.
Those arguments haven't convinced Congress to support a fair split. But making it worthwhile for other states might finally be the approach that will work. And now, while gasoline lines and high winter heating bills are fresh on people's minds, might at last be the right time.
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