Richard Shelby, Doug Jones join forces, urge fairness for Gulf mineral development program
Alabama U.S. Senators Richard Shelby and Doug Jones reached across the aisle and joined forces on Wednesday asking the Chairman and Ranking Member of the Senate Energy and Natural Resources Committee to ensure coastal states receive their fair share of revenues from any new federal mineral reserves development. “Our states have experienced significant impacts from federal offshore mineral development, including environmental damage to our coasts,” the senators wrote. “We are committed to ensuring that our states are treated fairly and that our states are not forgotten when decisions are made about the disposition of unallocated federal mineral revenues.” Pending legislation would allow unallocated federal mineral revenues to be committed to specific causes, including the maintenance of national parks and increased support for the Land and Water Conservation Fund. The senators note that the majority of this funding would be generated from offshore oil and gas development in the Gulf of Mexico. Under the current Gulf of Mexico Energy Security Act (GOMESA), which governs offshore federal mineral development in the Gulf of Mexico, the states of Alabama, Mississippi, Louisiana, and Texas receive only 37.5 percent of the revenue generated from oil and gas reserves within their borders. Revenue is capped at $500 million and must be divided among the four states. In contrast, other states receive 50 percent of the revenue generated from mineral development within their borders and those revenues are not subject to an arbitrary cap. They were joined by Senators Roger Wicker (R-Miss.), John Cornyn (R-Texas), John Kennedy (R-La.), Ted Cruz (R-Texas), and Cindy Hyde-Smith (R-Miss.) in their request. The full text of the senators’ letter to Senators Lisa Murkowski (R-Alaska), and Maria Cantwell (D-Wash.), can be found below: Dear Chairman Murkowski and Ranking Member Cantwell: We strongly support addressing parity in revenue sharing for coastal states in any package that may be considered by your Committee or the Senate. Legislation is moving forward that would allow unallocated federal mineral revenues to be committed to various programs. The majority of this funding will be generated from offshore oil and gas development in the Gulf of Mexico. If Congress moves to designate federal mineral revenues to specific uses, then it is important this opportunity achieves equitable revenue sharing for the coastal producing states. You are well aware that mineral revenues generated from federal lands located within a state are governed by the Mineral Lands Leasing Act of 1920. Under that Act, 50 percent of the mineral funds generated are shared with the host state to offset the impacts of the federal mineral development. There is no cap on the amount of federal revenues that may be shared with these states. By contrast, under the Gulf of Mexico Energy Security Act, our states that host offshore federal mineral development receive only a 37.5 percent share of the revenue generated off our coasts, with a cap of $500 million annually that we must share among our four states. The current revenue sharing with coastal producing states is not equivalent to the sharing that is occurring with the mineral lands states. Our states have experienced significant impacts from federal offshore mineral development, including environmental damage to our coasts. We are committed to ensuring that our states are treated fairly and that our states are not forgotten when decisions are made about the disposition of unallocated federal mineral revenues. We look forward to working with both of you and your colleagues on the Senate Energy and Natural Resources Committee to ensure that parity in revenue sharing is included in any legislation that allocates federal mineral revenues, which in this case are primarily generated off our coasts. Thank you for your attention to the concerns of our coastal producing states.
Bradley Byrne: Standing up for the Gulf Coast
I am so proud to live on the Gulf Coast. From our delicious food to the abundant natural resources, our part of the country is unlike any other. My family has called this area home since the 1780s. My family has always enjoyed fishing, swimming, boating, and just spending time on the Gulf. It has become a way of life for my family, just like it has for so many others. For some people, the Gulf also provides for economic well-being, whether through the commercial seafood industry or our booming tourism industry. This is why I am always on the lookout for policies or proposals that might make life harder for families living and working on or near the Gulf. Our area faces unique challenges, and I wanted to share two specific areas where I am looking out for the Gulf Coast. First, President Barack Obama proposed in his annual budget to take offshore energy revenue away from the Gulf states and instead spend it all around the country to advance his radical climate agenda. The President’s proposal would take money from the Gulf of Mexico Energy Security Act (GOMESA) of 2006. GOMESA is the federal legislation that creates a revenue-sharing agreement for offshore energy revenue between Alabama, Texas, Louisiana, and Mississippi. Under GOMESA, each state receives 37.5 percent of federal oil revenue from drilling of their coasts. This money is critical to our coastal counties because it is used for important purposes like coastal restoration and hurricane preparedness. I have even suggested using a portion of Alabama’s GOMESA money to help fund the I-10 bridge project, given that I-10 serves as a hurricane evacuation route. GOMESA was structured to benefit Gulf states because we are the ones who provide a significant share of the infrastructure and workforce for the industry. Gulf states also have inherent environmental and economic risks posed by offshore energy production. The president’s proposal simply defies logic and is a slap in the face to all of us on the Gulf. So, I offered an amendment to the annual Department of Interior funding bill that would block any efforts to transfer GOMESA money away from the Gulf states. I’m pleased to report my amendment was adopted and included in the final bill. Secondly, I also stood up against President Obama’s efforts to implement a “National Ocean Policy.” Created through an executive order, the “National Ocean Policy” requires various bureaucracies to work together to “zone the ocean,” which would significantly affect the ways we utilize our ocean resources. The “policy” would restrict ocean activities while also redirecting money away from Congressionally directed priorities. Numerous and varied industries will suffer as a result of this ill-conceived policy, including but not limited to agriculture, energy, fisheries, mining, and marine retail enterprises. Those who are affected most by the policy don’t have a say or any representation in the rule-making process — there is no current system of oversight in place for the regional planning agencies created as an arm of the National Ocean Council. So, again I went to bat for the Gulf Coast and offered an amendment to block any funds from being spent on the “National Ocean Policy.” My amendment passed by a vote of 237 to 189. These are just two examples of my efforts to stand up for the Gulf Coast. I will continue to do everything I can to protect our coastal communities and make life easier for families all around the Gulf Coast. • • • Bradley Byrne is a member of U.S. Congress representing Alabama’s 1st Congressional District.
