Wednesday, February 01, 2006
Blanco Wants More Offshore Oil Revenues
Gov. Kathleen Blanco is demanding that the federal government give Louisiana more of the billions in royalties from oil and natural gas extracted off its coastlines, saying she'll block future leases without an increase in the state's share.Why stop at international waters? Hecky doodles, the Brits keep pumping oil out of the North Sea without paying LA a dime! 1960, United States vs Louisiania:
The state wants half the royalties from oil and gas produced beyond its three-mile boundary -- a sum that could amount to more than $2 billion a year.
The state currently gets 27 percent of royalties produced between three miles and six miles offshore. For oil and gas production in the Gulf of Mexico from six miles offshore to international waters, Louisiana received just $32 million of the $5.7 billion the federal government brought in.
9. As to the States of Louisiana, Mississippi and Alabama, a decree will be entered (1) declaring that the United States is entitled, as against these States, to all the lands, minerals and other natural resources underlying the Gulf of Mexico more than three geographical miles from the coast of each such State, that is, from the line of ordinary low-water mark and outer limit of inland waters, and extending seaward to the edge of the Continental Shelf; (2) declaring that none of these States is entitled to any interest in such lands, minerals and resources; (3) enjoining these States from interfering with the rights of the United States therein; (4) directing each such State appropriately to account to the United States for all sums of money derived therefrom subsequent to June 5, 1950; and (5) dismissing Alabama's cross bill.
Tommy, I think you nailed it.
Dingo, most of the erosion problems on the LA coastline are related to damming ole Miss. She built the delta and it can't live without her. If there were no drilling at all, the pace of erosion would be only slightly slower. I think people are largely unwilling to discuss that because of the implications.
But that's an aside. What struck me was that the more money LA gets as the result of oil, the more likely they will be to keep approving projects such as that channel. What Blanco is asking for is an increase of negative incentives. It wasn't the federal government that approved that channel - it was LA.