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Contact: Erica Carr 405-740-2033 (cell), firstname.lastname@example.org
Oil and Gas Producing States to Fight Federal Revenue Sharing Provision
The Interstate Oil and Gas Compact Commission (IOGCC) announced today that it will fight to restore funding cut by the passage of a Congressional spending package provision that will reduce states’ share of revenues from federal oil and gas production.
The provision reallocates funding from a current 50-50 split of federal oil and gas revenues to a 48-52 percent split.
“This latest Congressional action poses a significant threat to states and state programs,” said Alaska Gov. Sarah Palin, IOGCC chairman. “The IOGCC will continue to do everything in its power to fight this provision.”
Gov. Palin said she is also concerned that this Congressional action could set a precedent in reducing the share of revenue that is distributed to the states.
“The IOGCC has long advocated for a 50-50 split on revenue and was in fact instrumental in achieving that goal several years ago,” said IOGCC Acting Executive Director Gerry Baker. “We believe that the federal government has not made its case for this action. Previous studies have shown that states can administer the revenue distribution at a much lower cost than the federal government.”
Although the new provision will affect many states, it will hit western states with the most public lands the hardest. Such is the case with New Mexico, an IOGCC member state.
“Revenue from oil and gas production on federal land is an important source of income for the state of New Mexico,” said Mark Fesmire, chairman of New Mexico’s Oil Conservation Commission. “This new provision would hit the state hard and would reduce our share of revenue by more than $11 million per year.”
Posted on Fri, December 21, 2007