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Gold/Mining/Energy : coastal caribbean (cco@) -- Ignore unavailable to you. Want to Upgrade?

To: Edwin S. Fujinaka who wrote (764)	4/16/1999 8:10:00 PM
From: Edwin S. Fujinaka	Respond to of 4686

From the Oil & Gas Journal 3/29/99. Not directly related to CCO, but some information on offshore production and possible revenues to the States (probably including Florida). Revenue sharing A large number of oil state congressmen is supporting legislation to earmark federal revenues from Outer Continental Shelf oil and gas production. At least half of the funds would be designated for infrastructure development in coastal states and nationwide conservation and wildlife programs. The Senate bill would use 50% of OCS revenues, or $2.296 billion/year. The House bill earmarks 60%, or $2.74 billion/year. Both the Senate and House bills would allocate 27% of federal OCS revenues, about $1.24 billion, to 34 states with shorelines on oceans or the Great Lakes, although only six have oil and gas production. The allocation would be made with a formula based on hydrocarbon production, coastline miles, and population. Sponsors note that the federal government shares 50% of its onshore oil and gas revenues with the states where the production occurs. But offshore, it gives coastal states only 27% of revenues from a 3-mile strip just beyond state waters (the Section 8(g) area) and none of its revenues from production beyond that. Sen. Murkowski said, "This remedies a tremendous inequity in the distribution generated by offshore oil and gas production by directing that a portion of these monies be allocated to coastal states and communities." Despite wide support in Congress-the calculated effect of including so many states in the funds distribution-the legislation faces some major hurdles. Many environmental groups applaud a secure funding source for conservation and wildlife programs but oppose the bill because they fear it is a disguised incentive for coastal communities to accept offshore drilling. Proponents of the House and Senate bills strongly disagree on how the revenues would be divided among programs. And they may have to find offsetting revenues for the multibillion-dollar program unless they can obtain a waiver of budget laws.