Environmental Policy News

Gov Edwards: Trump Budget Would Stop Gulf Energy Revenue Sharing

According to Louisiana Governor John Bel Edwards, the Trump Administration’s proposed budget would hurt the Gulf of Mexico in a variety of ways, including elimination of payments to Gulf states via the Gulf of Mexico Security Act (GOMESA). Revenue shared under GOMESA is used for coastal conservation, restoration and hurricane protection.

Currently, GOMESA shares revenue from oil and natural gas leasing and production on the Gulf of Mexico Federal Outer Continental Shelf (OCS) with the states of Alabama, Mississippi, Louisiana and Texas (Gulf Producing States, or GPS). Louisiana is in line to receive between $145 and $176 million annually in revenue sharing payments that have already been dedicated to the protection and restoration of its coast. As a result, GOMESA funding in Louisiana is already appropriated in the Fiscal Year 2018 budget toward critical projects that address coastal restoration and hurricane protection but are not eligible for funding under the settlement agreement from the Deepwater Horizon oil spill.

A statement released by Governor Edwards on 23 May 2017 called on Louisiana’s congressional delegation to oppose President Donald Trump’s budget proposal for the fiscal year that begins on October 1, 2017.

“The president’s first budget, unfortunately, turns a blind eye to the needs of the state of Louisiana,” said Gov. Edwards. ““Notably, this budget robs Louisiana of financial resources promised to us for coastal restoration. In recent years, Louisiana and waters just off its shore have been the second largest producer of crude oil and natural gas in the nation. Republican and Democratic leaders from Louisiana have fought to secure dedicated funding to offset the effects of oil and gas leasing and production along our coast. Permanent sharing of federal revenues is critical to ensure Louisiana’s coast remains fully operational, protects vital national infrastructure and provides the necessary barriers to protect our working coast and citizens.

"This proposal would set us back decades. The resources which must travel through the infrastructure networks in Louisiana require an ongoing federal funding commitment. Ignoring the significance of Louisiana’s coast, its assets and its impact to this country is short sighted. The nation depends on the energy resources found off the coast of our state, but this budget doesn’t reflect that. I will continue to advocate for Louisiana’s priorities to President Trump, and I am asking the Louisiana congressional delegation and our neighboring Gulf Producing States to adopt a responsible budget that doesn’t unnecessarily harm the state of Louisiana.”

According to the Governor’s office, “The concept of revenue sharing between the federal government and the energy producing or impacted states is well established yet inconsistently and unfairly applied. Revenues generated from energy production on public lands in Alaska largely remain in Alaska with only 10 percent flowing to the federal treasury. Wyoming typically retains 44 percent of the revenues generated from energy production on its lands and New Mexico retains 47 percent - this amounted to nearly $1 billion for the state of Wyoming and $488 million for the State of New Mexico. Energy production that occurs off the Outer Continental Shelf of the Gulf of Mexico is no less dependent upon the resources, people and environment of the nearby Gulf States and yet revenue sharing prior to Phase II of GOMESA has largely been nonexistent. Over the past five years, OCS Gulf revenues have averaged $6 billion for the federal treasury and only $1.2 million for the four Gulf producing states which is 0.0002 percent. In fiscal year 2016, Louisiana received a paltry $102,700.”

More information about GOMESA is available here.

Source

Our Partners

Frontiers in Marine Science
UNESCO
Image

ECO Magazine is a marine science trade publication committed to bringing scientists and professionals the latest ground-breaking research, industry news, and job opportunities from around the world.

Corporate

8502 SW Kansas Ave
Stuart, FL 34997

info@tscpublishing.com

Newsletter Signup

The ECO Newsletter is a weekly email featuring the Top 10 stories of the past seven days, providing readers with a convenient way to stay abreast on the latest ocean science and industry news.