On Wednesday, oil companies bid up to $1.2 billion for leases in the Central Gulf of Mexico. If offshore energy producing states had gotten a fair share of these revenues like interior states do, Gulf states would have received approximately $400 million. Instead—in a stark reminder of the grave inequities Louisiana and other Gulf states face—we received nothing.
That same day, I introduced the FAIR"Act to address this injustice and accelerate more revenues to Louisiana for coastal restoration.
an unfair situation
Since 1920, interior states have kept 50 percent of the oil, gas and coal production revenues (royalties, rentals and bonuses) they generated from federal land within their borders—with no amount cap. Coastal states have not benefitted from this same partnership. Since revenues started being collected from coastal states in the early 1950s, we have received virtually nothing from the $211 billion in revenues taken by the federal treasury.
In 2006, I passed the Gulf of Mexico Energy Security Act (GOMESA) that established revenue sharing for the oil and gas producing states in the Gulf. Under GOMESA, Gulf states will receive 37.5 percent of revenues.
The FAIR Act builds on the unprecedented success of GOMESA, gradually removing the arbitrary cap and accelerating full payments to now.
Justice for the Coast - Jobs for America
The revenues kept in Louisiana under the FAIR Act will allow us to rebuild Louisiana's eroding coast, protect our coastal communities, create jobs and preserve a unique and important culture.
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I promise you, I will not quit until we have achieved Justice for the Coast and Jobs for America.