U.S. Senator Bill Cassidy, M.D. (R-LA), Tuesday, Mar. 30 announced that Louisiana is receiving $109,948,761.59 in revenue from the Department of Interior from energy produced in the Gulf of Mexico during Fiscal Year (FY) 2020. The Gulf of Mexico Energy Security Act (GOMESA), which was signed in to law in 2006, created a revenue sharing program between the federal government and the States of Louisiana, Texas, Mississippi and Alabama for oil and gas exploration and development activities off their coasts to benefit the nation.
“This is a welcome reminder that offshore energy production is vital for efforts to restore and rebuild our coastline. Supporting our energy workers supports our coastline and our economy,” said Dr. Cassidy. “COVID-19 has reduced this year’s revenue and President Biden’s actions threaten future funding.”
During President Biden’s first week in office, he signed a number of executive orders on energy, which placed a moratorium on new oil and gas leases on federal lands.
Cassidy has highlighted the need to reform GOMESA to increase revenues to Gulf states to protect their coastlines and communities. He is currently working on legislation to boost offshore energy revenue sharing to provide additional dollars for coastal restoration.
Last Congress, Cassidy introduced the Conservation of America’s Shoreline Terrain and Aquatic Life (COASTAL) Act, legislation to strengthen the current offshore energy revenue sharing program under GOMESA and to create a new revenue sharing program for future offshore energy production in Alaska.
Louisiana constitutionally dedicates revenues from offshore energy production to pay for conservation, restoration, and environmental projects to preserve and restore its eroding coastline.
The FY20 breakdown for the State of Louisiana is $87,959,009.28 of that Cameron Parish will receive. $1,479,017.16.
For FY19 generated revenues, Louisiana and its parishes received a total of $155,718,469.97 in revenue sharing. The U.S. Department of the Interior disbursed nearly $353 million to the four oil and producing states in the Gulf of Mexico – Alabama, Louisiana, Mississippi, and Texas.