It Is Time For The Louisiana Legislature To Act On CWEL

The on going oil spill in the Gulf of Mexico by British Petroleum should open the eyes of any sane person, especially our elected officials. Coupled with the dire situation of Louisiana's budget woes and the states cost to mobilize to protect our shore line and coastal area's now is the time for the legislature to introduce CWEL, Coastal Wetlands Environmental Levy.

The late former Governor Dave Treen was in favor of CWEL and wrote an article concerning it in the Times Picayune dated 3/9/09. CWEL contains a levy on the transport of oil and gas across Louisiana's coastal zone, which is an area federally recognized as needing protection from coastal erosion. According to the former Governor, the impact on Louisiana would be negligible since 85% of the consumers are out of state. The passage of CWEL would raise substantial revenue for the state. Mr. Treen's full article will be shown below in Note l.

Governor Treen was a conservative republican but did not wear his conservatism on his sleeve as the present conservatives do. He did not govern by ideology and was not afraid to meet challenges with action and realities that work. The present governor Jindal and the state legislature would do well to take up the issue of CWEL. It has been established beyond a doubt that oil and gas pipe lines and the canals that are dug for oil and gas exploration and production are the primary cause of coastal erosion and the loss of wet lands. And as of the present, the oil and gas industry does not pay its fair share to clean up their mess and reverse the erosion. The enactment of CWEL would change that. It would also help the state on any future oil spills where the state has to mobilize to protect the states interest.

The Times Picayune also carried an article about a pipeline volume levy dated 9/19/09 by J. Ronald Eldridge to a Senate committee September 18, 2009. Mr. Eldridge pointed out how much revenue might be produced. Some have described the levy as a pure tax, an excise tax or a fee and that is supposed to back everyone away. Politicians like to declare no new taxes and then get into the average citizens pocket in 100 different ways by other actions and all the while oil companies are given tax breaks and special treatment while the coastal area's are eroding and wet lands are disappearing because of their operations. It is up to the governor of Louisiana to step up to his responsibility and have the oil and gas industry pay their fare share.

As former governor Treen said in his article, It is time to get well with CWEL.

Note l:

Tax Transport Of Oil and Gas

With all the anguish about budget cuts the state will have to make, including massive cuts to education and health care, it is time to get well with CWEL.

CWEL, the Coastal Wetlands Environmental Levy, could be enacted by the Legislature at the coming session. The levy is on the transport of oil and gas across Louisiana's Coastal Zone, which is an area federally recognized as needing protection from coastal erosion.

The levy is not on the oil and gas. It is a levy on the movement of oil and gas across the coastal zone. This levy would also apply to oil and gas produced in Louisiana, which is transported across the coastal zone.

If the levy is passed on to the consumers of oil and gas, the impact on Louisiana will be negligible, since 85 percent of the consumers are out of state.

With gas at approximately $4 per MCF and oil at $50 or more per barrel, a few pennies on each would produce substantial revenue with the impact on Louisiana hardly noticeable.

End to letters to the editor by former Governor David Treen

Note 2: By Governor Treen's letter to the editors, he showed just how far out front he was on the subject matter long ago. Where have all our leaders gone?