Louisiana Fights to Keep Royalties

by Elizabeth Alford on July 31, 2017

Louisiana pushes back against a Trump initiative to take away more of the state’s oil and gas royalties.

Royalty Payments: Who’s Getting Rich?

In his 2018 federal budget, President Trump is proposing to eliminate the Gulf of Mexico Energy Security Act, which provides critical funding for Louisiana’s coastal restoration. These funds come from the state’s energy revenues including over $47 billion per year from oil and gas production.

Hundreds of business, government leaders sent a letter to the President last week asking him to reconsider killing the bill.

“The Gulf of Mexico Energy Security Act will soon provide the only consistent source of federal funds dedicated to combat Louisiana’s land loss crisis. This predictable source of revenue — constitutionally committed to implementation of the State’s 2017 Coastal Master Plan for a Sustainable Coast — is critical for the communities and businesses that rely on a stable Louisiana coastline to survive and grow. The GOMESA funds, drawn from energy revenues generated here in the waters off our coast, have been a cornerstone for coastal planning since passage of the Act in 2006.”

Louisiana has been in a long fight to gain the oil and gas royalties it deserves. Before 2006, the federal government kept approximately $160 billion in royalties from offshore drilling, before U.S. Sen. Mary Landrieu persuaded Congress to share. Since then, the royalties have trickled in but the government still took a big chunk for environmental projects. If the act is appealed, an estimated $100 million will be lost annually

Read more at gonoinc.org

Previous post:

Next post: