BATON
ROUGE (AP) — Louisiana politicians have been trying for
decades to get
more of the money the federal government makes from offshore oil and
gas drilling. It's a tradition now kept up by both the sitting governor
and a probable candidate to replace her.
But it would not be an issue if not for a monumental
miscalculation made in 1949 by then-Gov. Earl Long.
The state was arguing with the feds over offshore money back
then, too: President Harry Truman thought the oil-rich coastal
territory was a national treasure, not a state treasure. He thought the
federal government should get all the revenue that comes from oil
discovered farther than three miles off the coast.
In fighting that position, Louisiana managed to squeeze a
compromise from the feds: The state could keep 37.5 percent of the
revenue from that oil. "It was a generous offer and would
have given the state
billions of dollars over the next four decades, and Earl Long wanted to
accept," authors Michael Kurtz and Morgan Peoples write in their 1990
biography of Long.
But Long rejected the offer, on the advice of Leander Perez,
the political boss of Plaquemines Parish. Perez was a Long legal
adviser who made millions from the oil-rich tidelands he owned in his
home parish. Perez wanted 100 percent of the oil money to
remain in the state. The feds refused, and Louisiana lost
out.
"In agreeing to Perez's argument, Long made a bad mistake,"
Kurtz and Peoples write, "for the tidelands dispute remained in
litigation for over a dozen years, and the ultimate settlement was
decidedly less favorable to Louisiana than the original 1949 proposal."
So, Gov. Kathleen Babineaux Blanco and Rep. Bobby Jindal
are trying to get more of that money and going about it in different
ways.
Jindal is sponsoring a bill to give Louisiana between 50
percent and 75 percent of the royalties the federal government now gets
from the offshore drilling. A congressional conference committee is
expected to consider the measure alongside a Senate bill later this
summer.
That would eventually equal about $2 billion per year,
according to Jindal's office, to be used in attempts to halt the
erosion of the state's coastline. The White House has said
that's too much. The Bush
administration is more likely to back the more modest Senate bill that
aims to send 37.5 percent of the money — the same amount the
feds
offered in 1949 — to Louisiana and the three other oil and
gas
producing Gulf states.
Blanco took the matter to court — a lawsuit
apparently being
the last resort for a state official who has no power over the federal
agency overseeing the money. Blanco's suit filed last week is
her latest attempt to pressure
the feds to send more money here. The suit does not specifically seek
cash but Blanco has said she's willing to disrupt the selling of leases
in the Gulf of Mexico to bring more of the money home.
The suit seeks to block the federal Mineral Management Service
from holding a scheduled Aug. 16 lease sale of 4,000 blocks in the
western Gulf for oil and gas exploration, accusing the agency of
disregarding the environmental damage caused by the drilling. Blanco
said the agency plans to hold the sale before getting adequate
information about additional damage done to the coast last year by
hurricanes Katrina and Rita.
Blanco claims the legal right to block the sale but she has no
veto power over it. As a player sitting on the bench in the dispute,
Blanco apparently thinks a lawsuit is the only way she can inject her
opinion into the fight over the money. The lawsuit "is her
card to play," said Sidney Coffee, the governor's adviser on coastal
issues. "The governor does not have veto power over this at
all. That's why this is in federal court."
The idea that Louisiana deserves a good chunk of offshore oil
money is one thing that unites just about every politician in the
state, including Sens. Mary Landrieu, D-New Orleans, and David Vitter,
R-Metairie.
And if Louisiana has another Blanco-Jindal election next year,
both the Democratic governor and the Republican congressman would love
to be able to say they corrected Earl Long's mistake — and
brought home
billions of dollars for restoring the coast.•
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