Louisiana governor blasts US Congress for royalty deal failure

Louisiana governor blasts US Congress for royalty deal failure

Washington (Platts)--2Oct2006

Louisiana Governor Kathleen Blanco Monday blasted the US Congress for
failing to reach an a deal to give Gulf Coast states a share of federal
offshore royalties, and urged her state's congressional delegation to "pull
together to hold the feet of Congress to the fire."

House and Senate negotiators were unable to reach a compromise on an
Outer Continental Shelf leasing bill last week prior to leaving for a
month-plus-long recess ahead of the November mid-term elections. While the
heart of the bill involves opening additional federal offshore lands to new
leasing, the legislation also contains provisions to give Louisiana, Texas,
Mississippi and Alabama a portion of royalties collected on production from
federal leases.

Blanco, a Democrat, has said the state needs the money to protect its
coastlines, ravaged by hurricanes Katrina and Rita, and has threatened to do
everything in her power to block future federal lease sales if the state is
not given a portion of the royalties.

"Congress says they understand the urgency, and yet they continue to stall
on a bill that will share revenues," Blanco said in a statement. "Louisiana
must have a steady stream of offshore revenues in order to get the massive
coastal restoration and hurricane protection job done."

House leaders have said they will attempt to get an agreement on the bill
when Congress returns for a lame-duck session in mid-November. But those in
the Senate are less sanguine on the prospects of an accord because some
anti-oil and gas development senators have threatened to filibuster -- a
parliamentary move that would kill the bill -- if the Senate agrees to the
more development-friendly provisions of the House bill.

The House-passed bill would allow OCS oil and gas development off most of
the US coastline. The Senate-passed bill would open 8.3 million acres in the
Gulf of Mexico.

--Cathy Landry, cathy_landry@platts.com

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