Office of the Secretary

DNR Secretary Spends Time on the Hill to push for OCS vote

State Department of Natural Resources Secretary Scott Angelle traveled to Washington D.C. this week in an effort to meet with congressional lawmakers as they consider legislation for increasing oil and gas royalties to coastal states.

With Congress expected to adjourn on Friday, DNR Secretary Angelle met with the Louisiana congressional delegation on Tuesday on impending legislation that would allow Louisiana to get a larger share of mineral royalties to be directed to coastal restoration, hurricane protection and flood control.

Angelle said, "I wanted to bring support to our delegation as they have been working with members of Congress on this important legislation not only for Louisiana but for all of America. We have an opportunity to allow for more energy security to the nation, help the economy, and dedicate a funding stream to coastal restoration and hurricane protection, and now is the time to make this happen."

The proposed legislation is the Domenici-Landrieu bill, aimed at allowing coastal states to collect 37.5 percent of the oil and gas royalties generated on new leasing in the U.S. offshore territory. Louisiana would be in position for approximately $210 million for a 10-year period, and then increase to about $650 million annually according to the measures' formula.

Secretary Angelle has testified before Congress before, in September 2005, he was asked to provide information and statistics on the impacts of Hurricane Katrina to the members of the Energy and Commerce committee. In his testimony then, he noted that Louisiana is the host to 80 percent of America's offshore oil and gas production and delivery.

Louisiana including its federal offshore activity is currently ranked as the top oil producing state and is second-ranked in gas production among all of the producing states. Yet, Louisiana does not receive the 50 percent of royalty revenues that interior-producing states get for its energy operations.

The Blanco administration was successful this year in getting voter approval to dedicate new monies for coastal protection and restoration and in halting future mineral lease sales in the Gulf of Mexico region until environmental impact studies are performed. Supporters and government officials of coastal restoration in the state believe the costs to sustain the fragile coastal region will surpass $14 billion.

According to a recent U.S. Department of Interior, Mineral Management Service (MMS) report, the agency collected $6.3 billion in outer continental shelf (OCS) oil and gas operations in 2005 and the state of Louisiana provided 74.2 percent of that amount.

Today, the bill has a chance at passing with a majority vote. U.S. Sen. Mary Landrieu, who helped author the bill and who has for many years been fighting for a fair-share of federal offshore funding, said, "It is an injustice that needs to be solved."

Editors: Contact DNR Public Information Office for more information at 225.342.8955