Oil revenue sharing bill signed into law

President George W. Bush signed historic legislation for Louisiana this week as he placed his name on documents that will allow the state to finally receive a significant portion of federal oil and gas royalties derived from mineral production off the state’s coastline.

Bush signed the Domenici Landrieu Gulf of Mexico Energy Security Act, which passed the Congress on its final day in session some two weeks ago.

The legislation opens over 8 million acres of the Gulf of Mexico to oil and gas drilling and brings Louisiana a steady dedicated stream of revenue expected to be used for coastal restoration and flood protection. Projections call for the state to receive upward of $200 million between now and 2016.

Afterward, Louisiana is expected to take in as much as $1 billion annually as the more generous provisions of the legislation take effect.

Calling the day “a truly historic one for the state of Louisiana,” U.S. Sen. Mary Landrieu praised Bush for signing the legislation. “Today we took a big step forward to restoring our wetlands and protecting our coastal communities,” she said.

As he signed the legislation, Bush noted that the coastal erosion issue was one that “united the people of Louisiana.”

Indeed, the voters of the state in September approved an amendment to the state Constitution that calls for any proceeds from revenue sharing legislation to be used specifically for coastal restoration and flood protection, an issue that was championed at the state level by State Sen. Reggie Dupre (D- Bourg).

Gov. Kathleen Blanco also praised the bill saying; “the money shared with Louisiana under this bill will be well invested. These dedicated funds will be used to finance our comprehensive coastal restoration and flood protection efforts.”

Blanco also thanked all of the public advocacy groups and public officials who were instrumental in pushing for passage of the legislation over many years.

According to Landrieu’s office, the state is poised to receive nearly $1 billion annually now when all forms of revenue sources, including hurricane recovery dollars and other federal funding sources are combined. “We can immediately get to the business of rebuilding with the knowledge now that we have the necessary funds to get the job done,” the senator said in a release.

The legislation is also expected to lead to an increase in drilling in the Gulf of Mexico.

The newly opened tracts are expected to produce enough natural gas to sustain 1,000 chemical plants for 40 years and enough oil to keep almost 3 million cars operating and 1.2 million homes heated for more than 15 years, according to information provided by Landrieu’s office.