The federal Interior Department notified Louisiana officials that oil royalties due Louisiana for offshore drilling in the Gulf of Mexico in accordance with the "Gulf of Mexico Energy Security Act" or (GOMESA) would be only about half of the $140 million expected late this year or early next year. The money is slated to be used for coastal restoration and protection and counted on in Louisiana's 50 year, $50 billion coastal restoration program.
It should be noted that President Trump in his budget called for rescinding GOMESA and putting its revenue else where in the budget. Louisiana's U.S. Senator Bill Cassidy said he asked his staff to review the Trump administrations accounting of the money and how the interior department calculated the payout. One would think Louisiana's representatives in congress would already know the answers if they were looking out for Louisiana's best interest. Mary Landrieu, the state misses your representation in congress and needs it more than ever before.
The real shame in all of this is Louisiana's failure to hold the oil and gas industry accountable for the damage their operations caused to Louisiana's environment over a long period of time. Louisiana should not have to depend on royalty payments to reclaim that damage. The industry is no friend to Louisiana and its people just because they employ people and pay taxes. Every business does that but every business does not destroy the state's environment by their operations.
More and more it is clear Governor David Treen had the answer with "CWEL", Coastal Wetlands Environmental Levy" which he proposed and explained over 20 years ago. If "CWEL" had been adopted and passed, the state would be 20 plus years ahead of where we are today with the problem. And PolitiDose was in the fore front with commentary on "CWEL." The state's news media gave very little publicity to Treen's plan at the time and are now devoting more time to the environment problem but are 20 years too late and never mention "CWEL." What a shame.
And now we have a President and GOP controlled congress who are proposing to reduce the corporate income tax rate by 15%. The oil companies are always some of the most profitable companies, still receive billions in tax breaks and will soon have a huge tax reduction if passed by congress. Their CEO's are no longer laughing all the way to the bank, they are now doing flips.
Cassidy and all of Louisiana's elected officials in the state and federal level should join Governor John Bel Edwards in supporting legal action against the oil and gas industry for their flagrant disregard of the state's environment and the damage their operations have caused.
This commentary written by Joe Lorio
