Senate to vote on new revenue-sharing bill

US Senate leaders indicate they’ll support a vote later this year on legislation supported by industry groups changing how states share revenue from oil and gas produced on federal land.

A revenue-sharing bill was proposed at the end of June by Sens. Bill Cassidy (R-La), Energy and Natural Resources Chairman Lisa Murkowski (R-Alas.), Tim Scott (R-SC), Dan Sullivan (R-Alas.), Thom Tillis (R-NC), and David Vitter (R-La.).

It covers onshore and offshore production of oil and natural gas as well as of renewable energy.

The legislation aims to correct imbalances of a system under which coastal states now receive 0.07% of federal royalties while onshore states receive 50%.

“This legislation protects onshore energy-producing states’ royalties and increases offshore states’ share,” according to a fact sheet.

The bill establishes 37.5% revenue-sharing for Alaska and Middle Atlantic states, beginning in 2027, subject caps that increase with time and disappear after 2067.

It maintains 37.5% revenue-sharing for states on the Gulf Coast but adjusts current limits, removing caps after 2055.

The bill also directs 12.5% of federal OCS revenue to specific uses in coastal states.

For onshore oil and gas production on federal land the bill restores 50% in revenue-sharing.

Cassidy said Senate Majority Leader Mitch McConnell tweeted, “Thanks to the Louisiana delegation, Senate is primed to take up the critical issue of resource production revenue sharing later this year.”

Presidents of eight oil and gas industry groups wrote Cassidy a letter supporting the legislation.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...