[1010RD]

No, I haven’t studied this issue at all. I was referring to federal lands. Sorry. As for this auction, my first impression is that it should have been auctioned off long ago and the right to drill/explore placed in private hands.

[thackney]

I was referring to federal lands.

The 5 year plan is for the federal offshore areas only.

[thackney]

I was referring to federal lands.... should have been auctioned off long ago and the right to drill/explore placed in private hands.

I agree with this!

[Ben Ficklin]

Since the Outer Continental Shelf Act in the 1950s, the fed must consult with an individual state before it opens federal waters off that state to drilling.

The fed collects all those royalties and the state gets none, so offshore drilling became the exception with just a few states consenting. Because, if there is an accident, the state's coastal economy takes a severe hit.

This changed with Royalty Sharing, in which the feds give part of their royalty to the state. In 2006 Congress passed GOMESA which gave royalty sharing to TX, LA, MS, and AL.

It was only after GOMESA that the Atlantic states became interested in drilling those waters, predicated on receiving the shared royalty.

This has not been totally resolved. Under GOMESA, those Gulf states could use this shared royalty only for hurricane protection and coastal protection/restoration.

I know that Virginia wants to use the shared royalty for building roads. So they will have to get support from the interior states who will oppose, unless they are given some type of financial incentive.