Office of Conservation

LOUISIANA TO RECOVER ADDITIONAL MINERAL ROYALTY INCOME

Federal legislation repealing the "net receipts sharing" practice of the Minerals Leasing Act will mean more money for states to spend on education. Louisiana anticipates getting back over $40,000 per year to be used for schools and education.

Louisiana Commissioner of Conservation Philip Asprodites said that the U.S. House sponsored legislation (H.R. 2389) was supported by the Interstate Oil and Gas Compact Commission (IOGCC), the National Governor's Association, and a bipartisan coalition of House and Senate members. Asprodites is Governor Foster's representative on the IOGCC.

The measure passed Congress last week and now awaits President Clinton's signature. Asprodites said the bill was backed by the Foster administration, co-sponsored by U.S. Congressman Chris John of Crowley, and is being hailed as an important victory for states' rights.

Since 1991, under the Minerals Leasing Program, the federal government was required to deduct from Louisiana and other states their share of mineral royalties to be used for federal administrative expense. With net receipts sharing, Louisiana did not receive its full 50% share of federal royalties contrary to the intent of the Minerals Leasing Act of 1920.

Editors: For more on this topic, please contact DNR Public Information Officer Phyllis Darensbourg at 225-342-8955.