Review of fed’s O&G revenue shortfall

U.S. Sen. Bill Cassidy (R-La.) has asked his staff to review the Trump Administration's accounting of $140 million the state was anticipating to get under the Gulf of Mexico Energy Security Act. The state Coastal Protection and Restoration Authority learned last week that Louisiana would get only $70 million under the act for FY 2018, which began Oct. 1. His staff is examining the 2006 law, revenue from offshore oil leases, and how the U.S. Interior Department calculated the payout. The GoM security act divides 37.5 percent of federal oil and gas revenues from drilling offshore of Alabama, Louisiana, Mississippi, and Texas. Since taking effect in 2007, it has applied to only two small portions of the GoM. The second phase of the law, which takes effect in FY-18, covers more of the Gulf and wells to have come on line since 2007. That led to the coastal authority's estimate of $140 million for this year. "We're trying to do our own individual verification of those numbers," Cassidy said Oct. 27. "I'm not saying they're wrong. I'm not saying they're right." President Trump had called for rescinding the GoM security act and putting revenues elsewhere in the federal budget. State officials and Louisiana’s congressional delegation doubt that will make it through the budget process. (Source: NOLA.com 10/30/17)