August 1, 2006
Contact: Robin Winchell (202) 225-4031

WASHINGTON, DC - U.S. Rep. Charlie Melancon today praised Senate leaders, including Sen. Mary Landrieu and Sen. David Vitter, for passing offshore revenue-sharing legislation.   The Gulf of Mexico Energy Security Act of 2006 (S. 3711) would increase oil and gas production in the Gulf of Mexico and share ensuing revenue with Gulf Coast states.

"The Senate's vote today is a huge step forward in finally getting an offshore drilling and revenue-sharing bill to the President's desk," said Melancon.  "As we enter the next phase of the battle to secure Louisiana's coast, I will continue working with other House leaders to build the bipartisan coalition needed to forge a final compromise.  There is still a lot of work to be done, but today Louisiana is closer than we have ever been to getting a significant share of the offshore oil and gas revenues we need, so we can finally begin restoring our disintegrating coastline and building a comprehensive hurricane protection system."

On June 29, the House of Representatives passed H.R. 4761 the Deep Ocean Energy Resources (DOER) Act, which is similar to the Senate bill.  Melancon was instrumental in building support among Democratic members of Congress for the DOER Act, convincing 39 fellow House Democrats to vote with him in favor of the legislation, which would provide $8 billion in new revenue for Louisiana's hurricane protection and coastal restoration system.  Melancon and other leading members of the House Resources Committee had negotiated the comprehensive DOER Act from the more than two dozen Outer-Continental Shelf-related bills introduced this Congress. The DOER Act is a bipartisan bill giving coastal states the authority to allow energy production, if desired, and benefit from increased revenue from shared royalties.

Currently, Louisiana receives only a small percentage of the $6 to $8 billion in royalties the federal treasury accrues every year from drilling in federal waters, despite the fact that Louisiana must shoulder the burden of environmental damage, including an eroding coastline, and the cost of infrastructure (ports, highways, etc) that result from the state's support for this industry. 

A comprehensive hurricane protection and coastal restoration system in Louisiana would serve to protect the infrastructure that supports 30% of the oil and 25% of the natural gas consumed in the US, as well as 30% of the nation's total commercial fish landings.

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