Louisiana will receive $101.33 million through the Gulf of Mexico Energy Security Act, or GOMESA, which directs a percentage of Gulf energy revenues and disbursements back to Louisiana.
In making the announcement last week, U.S. Sen. John Kennedy said that as energy revenues increase, “it’s vital that Louisiana receives a greater revenue share to invest back into coastal restoration.”
Kennedy and U.S. Sen. Bill Cassidy are co-sponsoring COASTAL Act of 2019 that will increase energy revenue sharing for Gulf states by eliminating the GOMESA revenue sharing cap. Under the current cap, revenue shares for Louisiana, Alabama, Mississippi and Texas are capped at $500 million. This legislation also would give Louisiana a bigger cut of the revenues by increasing revenue shares for Gulf Coast states from 37.5% to 50%.
The announcement came as representatives from four states traveled to Washington, D.C., last week to urge lawmakers to increase their share of offshore oil and gas revenue.
HoumaToday.com reports that south Louisiana levee and parish officials traveled with the multistate coalition known as the GOMESA Revenue Sharing Coalition to speak with members of the Louisiana delegation as well as lawmakers from other states such as Texas and Hawaii.
Terrebonne Parish Gordon Dove, who was part of the delegation, told HoumaToday.com he felt the trip helped to educate members of Congress on GOMESA itself and what the money is used for in Louisiana.
Louisiana received about $82 million in its first payout from GOMESA in 2018.
Led by the Louisiana Coastal Protection and Restoration Agency, the coalition was split into eight groups that attended about 48 meetings in Washington, D.C. They advocated for lawmakers to consider increasing the states’ share to 50% to match what states receive for onshore drilling. They also want Congress to eliminate the $500 million cap on money that the Gulf states can receive under GOMESA.
The push is in response to a popular, bipartisan bill that would divert 50% of the revenue from offshore production to address a maintenance backlog for the National Park Service for five years.
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