Louisiana to get $91 million in fiscal year 2018 federal oil and gas revenue
Oil and gas produced from federal waters in the Gulf of Mexico and on federal land in Louisiana in fiscal year 2018 will add $91 million to the budgets of the state and coastal parishes, the Interior Department announced recently, with much of the money dedicated to state coastal protection and restoration.
The biggest chunk, $82.8 million, will be split between the state and 20 coastal parishes under the terms of the federal Gulf of Mexico Energy Security Act (GOMESA), which regulates how royalties and fees paid by companies operating in the deepwater Gulf are split between the federal government and Gulf Coast states. GOMESA was only directing $1 million or $2 million a year to the state and parishes until the law’s second phase kicked in this year, which requires turning over 37.5 percent of offshore revenue from newly developed oil and gas wells to states, with some limitations.
GOMESA caps the total payment to all states at no more than $500 million a year until 2055, split among the states based on the location of the oil- and gas-producing wells. Louisiana had hoped that would have resulted in as much as $140 million a year going to the state and another $35 million split between the state’s 20 coastal parishes.
Read full article . . .