We're Not 'Robbing the Feds' on Energy Royalties
Tuesday, July 25, 2006; Page A14
As senators representing the Gulf Coast states, we were disappointed by the July 16 editorial "Robbing the Feds." The editorial talks about legislation pending in the Senate that would open new acreage in the Gulf of Mexico for oil and gas production and share a portion of the new royalty revenue with the Gulf Coast states. Unfortunately, your editorial misstated the facts.
The editorial said, for example, that Gulf Coast states "traditionally resist offshore drilling." In fact, the four producing coastal states -- Texas, Louisiana, Mississippi and Alabama -- account for more than 98 percent of offshore drilling in the United States. Indeed, this coast produces nearly a third of our nation's domestic oil and about a quarter of its natural gas.
While The Post correctly noted that the Gulf states currently retain less than 2 percent of the royalties generated by oil and gas production off their coasts, it did not mention that 28 other states retain 50 percent of the revenue generated by energy production on federal lands. That's more than $2.4 billion this year alone that will go to inland states while coastal states get virtually nothing from production off their shores.
The Post neglected to note that when our Gulf coastline erodes, buried oil and gas pipelines are left vulnerable to hurricanes. Refineries and the power plants that convert natural gas into electricity for dozens of states are also compromised. This is a national economic and environmental problem of immense importance.
Sharing a portion of new revenue with the coastal states is not "robbing" the federal treasury. Without the new production this legislation would make possible, there would be no new revenue. Your assertion is unfair to the coastal states that have tremendous costs and environmental challenges arising from storms, habitat loss and erosion. It is far less expensive for the government to work to prevent such destruction than it is to deal with it after it occurs. Only well-engineered, well-planned, integrated coastal conservation and flood control systems, funded by a long-term, reliable revenue stream, can adequately address these needs.
Protecting America's most productive coastline makes fiscal and common sense. That is what our bill does, and your editorial should have said so.
THAD COCHRAN
U.S. Senate (R-Miss.)
RICHARD SHELBY
U.S. Senate (R-Ala.)
TRENT LOTT
U.S. Senate (R-Miss.)
