Scalise: Home-state oil, gas production revenue sharing improves, but remains inadequate

U.S. House Republican Whip Steve Scalise (R-LA) applauded the U.S. Department of the Interior’s announcement that his home state will receive a total of $155.7 million in fiscal year 2019 revenue sharing funding under the Gulf of Mexico Energy Security Act (GOMESA) of 2006, but said it still lags behind other states’ portions.

“This GOMESA funding is great news for Louisiana’s coast,” Rep. Scalise said. “I applaud the Trump administration for their ongoing support for offshore energy exploration and production and revenue sharing with the Gulf states.”

GOMESA of 2006 created a revenue-sharing model for four Gulf states and their coastal political subdivisions, guaranteeing a portion of the revenue generated from oil and gas production offshore in the Gulf of Mexico to Alabama, Louisiana, Mississippi, and Texas.

“In Louisiana, these funds are dedicated to coastal restoration and hurricane protection, and we know our coastline is the first line of defense from powerful Gulf storms, making today’s announcement excellent news for southeast Louisiana families and communities,” said Rep. Scalise. He also commended the Trump administration “for recognizing the urgency and necessary investments needed to protect Louisiana’s coastline, and for their continued support of American energy dominance in the Gulf of Mexico.”

The $155.7 million in total funding Louisiana and its subdivisions will receive for FY 2019, as well as the $353 million allocated to the Gulf Coast states, represents a 64 percent increase compared to FY 2018 funding, according to a March 30 statement from Rep. Scalise’s office.

“While this is welcome news, it’s also a reminder that Gulf states still lag behind the interior states who get 50 percent of revenues from all energy leases, compared to Gulf states [that] receive 37.5 percent of only certain leases,” said Rep. Scalise. “I’ll continue fighting to increase Gulf states’ revenue share to finally provide parity with the interior states.”

According to the congressman’s statement, FY 2019 was the first year that Gulf Coast states hit their cap and were unable to receive the maximum amount of funds allowed by their 37.5 percent share.

Revenue disbursed to interior states from onshore energy development does not share that same restriction, according to the statement.