Senate Advances Offshore Oil and Gas Revenue Sharing Bill
Votes to end debate, hold final up-or-down vote later this week.

 

WASHINGTON – The U.S. Senate today voted 72 to 23 to end debate and move forward with the Domenici-Landrieu Gulf of Mexico Energy Security Act, S. 3711, that would increase oil and gas production in the Gulf of Mexico and share ensuing revenue with Gulf Coast states. Today’s vote, which required a minimum of 60 supporters, was the bill’s final procedural hurdle in the Senate.

“The vote today signals the Senate’s strong endorsement of a bill that would offer Louisiana a significant share of revenue from the energy production off its shores,” Sen. Mary L.  Landrieu, D-La., said. “With the revenue this bill would provide, we can put into place a long-term strategy to protect our people and our coastline.”

Revenue sharing has been one of Sen. Landrieu’s leading legislative priorities since she came to the Senate in 1997. In June, the bill gathered momentum as Sen. Landrieu worked closely with Senate Energy Committee Chairman Pete Domenici, R-N.M., to gain support for the revenue sharing provision from Senate Majority Leader Bill Frist, R-Tenn., and Minority Leader Harry Reid, D-Nev. She was instrumental in coordinating essential bipartisan support for the bill. Sen. Landrieu also worked to secure the key backing of the Florida senators, Republican Mel Martinez and Democrat Bill Nelson, who were concerned about drilling too close to Florida’s coast. Both senators voted in support of the Domenici-Landrieu bill today. On July 26, the White House offered its support for the Senate bill.

“Natural gas and oil prices have skyrocketed, and this bill combats the surge in prices by increasing energy production here at home,” Sen. Landrieu said. “This bill is a security bill, it’s an energy bill, it’s a jobs bill. And it establishes a great partnership with coastal states that will benefit the people of America for decades to come. “

The Domenici-Landrieu bill would open 8.3 million acres in the Gulf of Mexico to new oil and gas production, and share 37.5 percent of the resulting royalty revenues with four coastal states: Louisiana, Texas, Mississippi, and Alabama. The new stream of funding would go to coastal restoration and hurricane protection efforts in the region.

The area is expected to produce more than 1.3 billion barrels of oil – more than the proven reserves of Wyoming and Oklahoma combined – and nearly six trillion cubic feet of natural gas, or six times current annual U.S. imports. The state side of the Land and Water Conservation Fund would receive an additional 12.5 percent of the revenue. Beginning in 2017, coastal revenue sharing would extend to all new production in the Gulf, and Louisiana would stand to receive more than $650 million per year.

A vote on final Senate passage, requiring a majority of senators or 50 votes, is expected before the Senate breaks Friday for its August recess. Following that vote, negotiations with the House will begin to resolve differences between the Senate bill and a similar bill passed by the House last month.

Rep. Charlie Melancon, D-La., a cosponsor of the House bill along with Rep. Bobby Jindal, R-La., praised Sen. Landrieu for her work on the bill.

            "I am pleased the Senate has voted to move forward with their offshore drilling and revenue-sharing legislation, and I thank Senator Landrieu for her leadership in building support among her colleagues for this important bill," Rep. Melancon said.  "Getting a significant share of offshore oil and gas royalties is vital to Louisiana's future.  I look forward to working with Senator Landrieu and the rest of the Louisiana delegation, along with our colleagues in the House and Senate, to reach a compromise we can send to the President for his signature.  It's high time Louisiana gets the support we need to restore our coast and protect ourselves from future hurricanes."

- 30 -