[StBernard] Governor Blanco sends message to Washington about need for OCS revenues

[Westley Annis]

Governor Blanco sends message on future drilling off coast, 
asks oil and gas industry to help state get offshore revenues 

Governor Kathleen Babineaux Blanco sent a message to Washington today about
the prospects of future oil and gas leases off Louisiana's coast. She has
also enlisted the help of the oil and gas industry to help Louisiana secure
offshore oil and gas revenues for the state to help pay for impacts.

The Governor's message came in a letter sent today to the Minerals
Management Service (MMS) of the U.S. Department of Interior.

"I am getting pressure from our coastal parishes to consider using the
option to object to future oil and gas lease sales off our coast," Governor
Blanco added. "This is not my preference, but the pressure is mounting to
take a stronger stand.

"I am proud to be called the oil and gas governor and am proud of our
state's history of providing the nation with 80% of its offshore energy
supply," she said. "The oil and gas industry has a loud voice that is
listened to by many in Congress. That voice can help us send a message that
we need revenue sharing to help us pay for comprehensive coastal protection
so we can continue to serve our nation's energy needs as its 'working
coast.'" 

In her letter, an official comment on the central Gulf lease sale now being
considered by MMS, Governor Blanco put the agency on notice that "there is
growing tension between uncompensated support for OCS activities and the
state's coastal zone management program" and that the state is "currently
unable to determine the consistency of Lease Sale 198."

The Governor wrote that "given the dramatic impacts of Hurricanes Katrina
and Rita to the Louisiana coastal zone, the state has been required to
reexamine its coastal zone management policies", stating "it is abundantly
clear that allowing development to occur where inadequate provisions are
made for the protection of that development is irresponsible" and that "the
federal government has not devoted adequate resources to this end."

Governor Blanco's letter stated that "the amount of oil and gas activity off
our coast means little if we have no coastal communities to take advantage
of this activity" and that "we continue to urge Congressional authorization
of recurring OCS revenue sharing so we can sufficiently address OCS-related
impacts to our coastal habitats, communities and infrastructure."

The Governor said that "federal policy on OCS leasing must include
provisions for the protection of the very resources necessary for the
exploration and production of these leases. Future OCS lease sales that are
not accompanied by meaningful provisions for the protection of Louisiana's
human and natural resources will likely be inconsistent with Louisiana's
coastal zone management program."

The next comment letter will be called for in August of this year when the
Western Gulf lease sale is being considered.

Last week, Governor Blanco held a meeting in Baton Rouge with
representatives of oil and gas companies operating in the Gulf and invited
them to join Louisiana's team to fight for a share of offshore OCS revenues,
so critical to the state's ability to achieve the sustained effort necessary
to provide comprehensive coastal protection to the communities, critical
energy infrastructure and vanishing protective wetlands in south Louisiana.

Governor Blanco said that she is optimistic that the oil and gas industry
will assist the state with securing its share of these federal revenues that
now go straight into the Federal treasury.


###


Attached is Gov. Blanco's letter to the Minerals Management Service (MMS) of
the U.S. Department of Interior. 


January 30, 2006

Ms. Renee Orr
Chief, Leasing Division
Minerals Management Service
Gulf of Mexico OCS Region
1201 Elmwood Park Boulevard
New Orleans, Louisiana 70123-2394

Re: C20050635, Coastal Zone Consistency 
Minerals Management Service
Direct Federal Action
Proposed Central Gulf of Mexico Lease Sale 198, 
Central Gulf of Mexico Planning Area, for March 2006

Dear Ms. Orr:

I have received the above-referenced Lease Sale document sent by MMS
Director R. M. "Johnnie" Burton via letter dated November 16, 2005. As noted
in the Environmental Assessment for Lease Sale 198, the assessment of the
2005 hurricane season's profound impacts on Louisiana's coastal resources
and infrastructure is not yet complete. As such, we are currently unable to
determine whether the assumptions made in the MMS consistency determination
are still valid and therefore unable at this time to determine the
consistency of Lease Sale 198 with our coastal zone management program. I do
wish, however, to point out the growing tension between uncompensated
support for OCS activities and the state's coastal zone management program.
The Louisiana Coastal Zone Management Program declares it to be the public
policy of Louisiana ". . . to protect, develop, and where feasible restore
or enhance the resources of the state's coastal zone" (La. R.S. 49:214.22).
As the state ha! s mentioned in earlier OCS lease sale comment letters, it
is apparent that OCS development has a significant impact on the Louisiana
coastal zone and the fragile wetlands in this area. Numerous onshore support
bases and extensive oil and gas infrastructure are located in Louisiana's
Coastal Zone, through which OCS waterborne traffic and petroleum pipelines
must pass. Consequently, Louisiana suffers disproportionate impacts
resulting from development of oil and gas resources in the Gulf area. 

Development that degrades the state's coastal resources is inconsistent with
the state's public policy mandate to achieve protection of those resources
in coordination with development. These impacts are also inconsistent with
the public policy mandate in R.S. 49:214.22(3) prescribing, ". . . the
minimization of adverse impacts of one resource use upon another." In an
effort to bring OCS development in line with the state's coastal zone
management policy, the state has advocated for significant sharing of
recurring OCS revenues so that these revenues could be dedicated towards
restoration and protection of coastal resources. A constitutional amendment
has been passed by the Louisiana legislature and will put before a vote of
the people this year that would dedicate OCS revenues received by the state
exclusively to coastal restoration and hurricane protection. The state is
thankful for the coastal impact assistance it has received from Congress,
but this assistance has! been sporadic and inadequate. Federal OCS policy
has yet to make suitable provisions for the protection of the natural
resources of coastal Louisiana.

The hurricane season of 2005 has highlighted the vulnerability of other
resources in Louisiana's coastal zone. Many of the people and communities
and much of the infrastructure in Louisiana's coastal zone have been
displaced, damaged or destroyed. The people and infrastructure impacted
include the workforce and energy infrastructure that provide vital support
to federal OCS activities. Given the dramatic impacts of Hurricanes Katrina
and Rita to the Louisiana Coastal Zone, the state has been required to
reexamine its coastal zone management policies. It is abundantly clear that
allowing development to occur where inadequate provisions are made for the
protection of that development is irresponsible. Development that is not
sustainable holds little benefit for the state and its coastal zone. As set
forth in R.S. 49:214.22, a successful coastal zone management policy must
include both development and protection of coastal resources. 

Despite having abundant resources, in the form of OCS revenues, to protect
the development required for supporting OCS activities in general and Lease
Sale 198 activities in particular, the federal government has not devoted
adequate resources to this end. Instead, Louisiana is being asked to
continue its role as the workhorse for OCS development while no provisions
are being made to ensure the sustainability of the onshore support for that
development. Louisiana is expected to continue to be a "working coast," yet
provisions are not being made to protect the workers, communities, and high
concentration of energy infrastructure of our working coast. While the
indirect economic benefits to the state of OCS activity is significant, the
hurricanes have reminded us that any economic benefits pale in comparison to
the need to assure that coastal communities are safe and protected. The
amount of oil and gas activity off our coast means little if we have no
coastal communiti! es to take advantage of this activity. 


We encourage MMS to help support Federal legislative changes so that the
impacted coastal oil and gas producing states receive a significant share of
OCS revenue. The Coastal Impact Assistance Program included in the Energy
Policy Act of 2005 will provide an estimated $540 million to Louisiana and
its coastal parishes over the next four fiscal years. While Louisiana is
appreciative of those additional resources, they represent only a fraction
of the billions of dollars needed to properly restore and protect
Louisiana's coast and its communities. We continue to urge Congressional
authorization of recurring OCS revenue sharing so we can sufficiently
address OCS-related impacts to our coastal habitats, communities and
infrastructure. In light of Louisiana's continuing role in meeting America's
need for oil and gas through our support for OCS operations, we strongly
believe that the Nation should do its part to address those OCS-related
impacts to our coast. 

Federal policy on OCS leasing must include provisions for the protection of
the very resources necessary for the exploration and production of these
leases. Future OCS lease sales that are not accompanied by meaningful
provisions for the protection of Louisiana's human and natural resources
will likely be inconsistent with Louisiana's coastal zone management
program. 

I appreciate the opportunity to comment on Lease Sale 198 and the need for
recurring Federal assistance in addressing OCS-related impacts to coastal
Louisiana's natural resources, communities, and OCS-support capabilities. 


Sincerely,

Kathleen Babineaux Blanco
Governor



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