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MMS proposes plan to distribute first OCS revenue shares {offshore oil $$ to states}
Oil & Gas Journal ^ | May 27, 2008 | Nick Snow

Posted on 05/29/2008 2:10:24 PM PDT by thackney

The US Minerals Management Service is proposing regulations to distribute qualified federal Outer Continental Shelf oil and gas revenues to four Gulf Coast states and their eligible coastal governmental subdivisions.

The distributions will take place under the 2006 Gulf of Mexico Energy Security Act, which established federal OCS revenue sharing for affected coastal states and communities, MMS said on May 27.

The law authorized that 37.5% of all federal OCS revenue from new leases in the gulf, including bonus bids, rentals, and production royalties, would be shared with Alabama, Mississippi, Louisiana, and Texas and their coastal communities and counties (or, in Louisiana's case, parishes).

The first sale with immediate revenue-sharing leases, OCS Lease Sale 224, was held Mar. 19, according to MMS. Based on the actual location of tracts bid in the sale, it said it calculates bonuses and first-year rentals for fiscal 2008 would be 30% for Alabama, 27% for Mississippi, 32% for Louisiana, and 11% for Texas.

Qualified OCS revenues are allocated among the gulf producing states based on a formula which incorporates a state's proximity to certain tracts in the gulf's Eastern Planning Area and a small section in the Central Planning Area, MMS said.


TOPICS: News/Current Events; US: Louisiana; US: Mississippi; US: Texas
KEYWORDS: energy; naturalgas; oil

1 posted on 05/29/2008 2:10:24 PM PDT by thackney
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To: thackney

Cold hard cash being a cure for NIMBY-itis among the states?


2 posted on 05/29/2008 2:12:52 PM PDT by sinanju
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To: thackney

Paying attention California??


3 posted on 05/29/2008 2:15:39 PM PDT by norton
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To: norton

and Florida?


4 posted on 05/29/2008 2:16:24 PM PDT by thackney (life is fragile, handle with prayer)
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To: sinanju

i predict an enviro-whacko lawsuit (no surprise) BUT it will be based upon the fact this discriminates against land locked states such as iowa and oregon. oops forget oregon. i had an osamabama moment.


5 posted on 05/29/2008 2:20:26 PM PDT by bravo whiskey (everybody's shot. drive the truck)
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To: thackney
and Florida?

Yes, Florida certainly ought to welcome almost any revenues considering its current cash flow problems:

   Cash crunch could force state to dig deep into reserves

   Florida's April tax collections $91.7-million below target

6 posted on 05/29/2008 2:59:31 PM PDT by snowsislander
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