Democrats' offshore drilling plan would give states nothing

Virginian-Pilot ^ | Sep 13, 2008 | Dale Eisman

[HokieMom]

BTTT === time to really be thinking down-ticket races.

[Ben Ficklin]

If the coastal state(s) wants the royalty, they need to allow drilling in state waters, aka state submerged lands, aka the inner continental shelf. Except for Texas and FL's gulf coast, three miles out belongs to the state and beyond that to the feds.

Having said that, in the 2006 GOM Energy Security Act which opened 8.3 million acres on the OCS to drilling, a portion the federal royalties were redirected to TX, LA, MS, AL, and the Land and Water Conservation Fund. But the money can be used only for coastal preservation, restoration, and hurricane protection.

[bitterohiogunclinger]

In light of the run up in gasoline prices caused by the mere prospect of the refineries being interrupted by Ike, we should be screaming about the situation. Why are there no new refineries? Why are they all located where they are vulnerable to interruption from weather?

We have, according to oil company reports yesterday, a 20 day supply of gasoline. An expected 5 to 7 day shut down in refining is already creating panic buying and pricing.

Why are we allowing politicians to continue to hold us hostage to their thirst for power?

I'm sick to death of politicians playing games with our lives and livelihoods. Housecleaning (and Senate-cleaning) is in order. We need to put as much attention on weeding out Congress as is being focused on the Presidential elections. And then on to the State Legislatures. They are all complicit in this farce. They all view our natural resources as their own to tax as they see fit. It's time to start reminding politicians that they own nothing, they produce nothing, and they do nothing except take from those that do produce.

[guitarplayer1953]

The fed has become to intrusive into state rights. They should be able to use the money as seen fit within their states.

[Ben Ficklin]

"has become"

The arrangement of splitting the shelf between the feds and the states was a negotiated compromise that was enshrined in the Submerged Lands Act of 1954.

The use of OCS royalties for coastal mitigation came from CARA back in 2000.

[guitarplayer1953]

Sound like the states got hosed.

[Ben Ficklin]

If they don’t like the deal, they don’t have to drill.

[guitarplayer1953]

That is the point it there is no incentive to drill. And that is what the Dums want. The federal government does not have the right to take what belongs to the states. I can understand the Feds wanting jurisdiction so far off shore but when it comes to natural resources it should belong to the individuals who own the land and own the rights.

[Ben Ficklin]

When oil is drilled on federal lands, the federal govt splits the royalty with the state in which those federal lands are located. Except Alaska, where the state gets 90% of the royalty from the well drilled on federal land.

Additionally, states can levy separation taxes on oil and gas produced in the state that is being shipped out of the state.