Senators Introduce Coastal Revenue Sharing Bill

Senators Lisa Murkowski and Mary Landrieu reintroduced legislation to the U.S. Senate Wednesday that would allow energy-producing states to receive a portion of revenues from offshore drilling.

Senators Lisa Murkowski (R-Alaska) and Mary Landrieu introduced the Fixing America’s Inequities with Revenues (FAIR) Act in March. The bill would authorize energy producing states to receive up to 37.5 percent of revenues for all types of energy produced on the Outer Continental Shelf, including oil, gas, or renewable energy such as wind or wave energy.

States that produce renewable onshore energy on federal lands would be able to keep 50 percent of revenues from that production to match the 50 percent that states already receive from onshore oil, gas and coal production.

The senators will try and move the legislation through the Energy and Natural Resources Committee, which will hold a hearing on the bill July 23, The Hill reported Thursday. Former Sen. Jeff Bingaman (D-N.M.), who served as chairman of the Energy and Natural Resources Committee in the last session, blocked the bill from moving forward then.

The FAIR Act would also gradually lift the cap mandated by the Gulf of Mexico Energy Security Act and accelerate face two of GOMESA this year.

“For decades, coastal energy producing states have faced a glaring inequity in federal energy policy that allows onshore producing states to keep 50 percent of revenues, while offshore producing states like Louisiana and Alaska keep virtually nothing,” said Landrieu in a March 20 statement.

“Revenue sharing is important for the coastal communities that will have increased demands on their infrastructure and public services from offshore development,” said Murkowski in a statement. “It’s only fair that these communities share in the revenues from the resources produced off their shores – regardless of whether it’s oil and gas or wind and tidal energy.”

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com

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