Oil revenue sharing bill introduced

By Xerxes Wilson
Staff Writer

Sen. Mary Landrieu, D-New Orleans, is introducing another bill to expand sharing of revenues for off-shore oil production.

The bill’s primary thrust is to allow oil-producing Gulf states to begin sharing an increased percentage of federal off-shore royalties earlier than what law allows.

In 2006, Congress passed the Gulf of Mexico Energy Security Act that calls for sharing of 37.5 percent of energy production royalties in the four Gulf states of Louisiana, Texas, Mississippi and Alabama.

That revenue sharing portion of the act doesn’t fully take effect until 2017 and will be capped at $500 million annually.

Landrieu’s bill would allow Gulf states to immediately share in the increased revenue rate. It would also lift the $500 million cap.

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