Louisiana still may get an equitable share of royalty revenue from offshore oil and gas production. Things do not look as bright as they did a short time ago, however, when President Bush said, "I strongly urge the United States Congress to pass energy legislation that will give the state of Louisiana more revenues from offshore leases so they can restore the wetlands."

It now appears that the primary focus is on boosting domestic offshore drilling, rather than giving Louisiana and other coastal states a bigger share of royalties for coastal restoration and hurricane protection.

Louisiana still may get an equitable share of royalty revenue from offshore oil and gas production. Things do not look as bright as they did a short time ago, however, when President Bush said, "I strongly urge the United States Congress to pass energy legislation that will give the state of Louisiana more revenues from offshore leases so they can restore the wetlands."

It now appears that the primary focus is on boosting domestic offshore drilling, rather than giving Louisiana and other coastal states a bigger share of royalties for coastal restoration and hurricane protection.

U.S. Sen. Mary Landrieu, D-New Orleans, remains optimistic, but cautiously so. Her message is that the situation is not great, but at least the revenue-sharing provision is not dead.

"There is still a lot of activity and behind-the-scenes negotiations," Landrieu said. "Usually when something is dead, no one is talking about it."
What it amounts to is that both houses want credit for a plan to reduce dependency on foreign energy sources by increasing domestic production. When the focus was more on revenue sharing, a compromise seemed close at hand. Neither side appears to be willing to give an inch, however, on the broader issue of energy independence. Both want full credit.

U.S. Rep. Bobby Jindal, R-Kenner, is the driving force behind the House bill. His bill would allow any state along the East or West Coasts that has participated in a drilling moratorium to opt out and get offshore activity going again. Those who chose to do so would get 50 percent royalties on existing leases, as well as on new ones. Jindal tells The Daily Advertiser that several states are interested in drilling activity - particularly activity far offshore. Jindal said his bill could mean $9 billion for Louisiana by 2017 and $2 billion a year thereafter.

The Senate's bill is narrower, but more popular with Bush. It would allow first-time offshore oil and gas activity in the eastern Gulf of Mexico. Coastal states would get 37.5 percent of the oil and gas royalties from the 8.3 million acres designated in the bill. That would mean about $200 million for Louisiana in the first 10 years, and more as the revenu-sharing provision expands to new wells in the Gulf.

It appeared just a short time ago that the two bills would end up in conference committee with a good chance of Jindal's wording being accepted by participants from the Senate side. Now, with the new focus, there is little interest in a conference.

One bright spot remains, however. Bush is calling for a quick compromise as election time approaches, so the public will see progress on lessening foreign energy dependency. The committee chairmen responsible for energy policy, Rep. Richard Pombo, R-Calif., and Sen. Pete Domenici, R-N.M., share the president's eagerness for quick action. The issue has, without question, become too political. Maybe this time, however, politics will work in our favor.

U.S. Sen. Mary Landrieu, D-New Orleans, remains optimistic, but cautiously so. Her message is that the situation is not great, but at least the revenue-sharing provision is not dead.

"There is still a lot of activity and behind-the-scenes negotiations," Landrieu said. "Usually when something is dead, no one is talking about it."
What it amounts to is that both houses want credit for a plan to reduce dependency on foreign energy sources by increasing domestic production. When the focus was more on revenue sharing, a compromise seemed close at hand. Neither side appears to be willing to give an inch, however, on the broader issue of energy independence. Both want full credit.

U.S. Rep. Bobby Jindal, R-Kenner, is the driving force behind the House bill. His bill would allow any state along the East or West Coasts that has participated in a drilling moratorium to opt out and get offshore activity going again. Those who chose to do so would get 50 percent royalties on existing leases, as well as on new ones. Jindal tells The Daily Advertiser that several states are interested in drilling activity - particularly activity far offshore. Jindal said his bill could mean $9 billion for Louisiana by 2017 and $2 billion a year thereafter.

The Senate's bill is narrower, but more popular with Bush. It would allow first-time offshore oil and gas activity in the eastern Gulf of Mexico. Coastal states would get 37.5 percent of the oil and gas royalties from the 8.3 million acres designated in the bill. That would mean about $200 million for Louisiana in the first 10 years, and more as the revenu-sharing provision expands to new wells in the Gulf.

It appeared just a short time ago that the two bills would end up in conference committee with a good chance of Jindal's wording being accepted by participants from the Senate side. Now, with the new focus, there is little interest in a conference.

One bright spot remains, however. Bush is calling for a quick compromise as election time approaches, so the public will see progress on lessening foreign energy dependency. The committee chairmen responsible for energy policy, Rep. Richard Pombo, R-Calif., and Sen. Pete Domenici, R-N.M., share the president's eagerness for quick action. The issue has, without question, become too political. Maybe this time, however, politics will work in our favor.


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