Bid to boost offshore royalty sharing could gain traction next year

When it comes to oil and gas royalties, inland states generally claim 50% of the revenue from oil and gas production on federal lands within their borders. And every state is also entitled to take home 100% of the royalties from oil and gas extracted from its waters, which typically extend three miles from high-tide lines. However, as The Houston Chronicle reports, there’s a major debate about what happens with revenues from energy produced in federal waters outside states’ control. Under federal law, just four coastal states—Louisiana, Alabama, Mississippi and Texas—lay claim to some of that money. Those states will be able to collect 37.5% of oil and gas royalty revenue on some leases beginning in 2017. Last year, Louisiana Sen. Mary Landrieu and Alaska Sen. Lisa Murkowski teamed up to advance a plan for expanding that program and allowing Alaska and all other coastal states to also collect the 37.5% royalty. Half of the collected revenue would still go to the federal government. A change in the leadership of the Senate Energy and Natural Resources Committee now could give coastal states their best chance in years of winning a greater share of royalties in 2013. Get the specifics in the full story here.