The Senate Energy and Natural Resources Committee recently approved legislation by U.S. Senator Bill Cassidy, chairman of the Senate Energy Subcommittee, to increase the royalties that Gulf states like Louisiana receive from offshore energy production.
Cassidy’s COASTAL Act increases the percentage of revenue sharing under the Gulf of Mexico Energy Security Act (GOMESA) from a 37.5 percent share of energy produced in federal waters to 50 percent. That brings the offshore percentage in line with onshore energy production.
Louisiana constitutionally dedicates revenues from offshore energy production to pay for projects to preserve and restore its coastline.