Support of HJR 26 - Offshore Development Revenue Sharing
February 21, 2014
Representatives Dan Saddler
Re: HJR 26, Federal revenue-sharing from offshore oil and gas development
Dear Representative Saddler:
The Resource Development Council (RDC) is writing to support HJR 26, which urges the U.S. Congress to provide a means for consistently and equitably sharing with all oil and gas producing states adjacent to the federal Outer Continental Shelf (OCS) a portion of revenue generated from offshore energy development to ensure that those states develop necessary infrastructure to support such development and preserve environmental integrity.
RDC is an Alaskan business association comprised of individuals and companies from Alaska's oil and gas, mining, forest products, tourism, and fisheries industries. Our membership includes all of the Alaska Native Regional Corporations, local communities, organized labor, and industry support firms. RDC's purpose is to expand the state's economic base through the responsible development of our natural resources.
Under the Gulf of Mexico Energy Security Act of 2006, the federal government recognized the contributions of national security made by the oil-producing states of Alabama, Louisiana, Mississippi, and Texas and agreed to distribute to those states 37.5 percent of revenue from oil and gas development in newly leased federal waters in the Gulf. Alaska also contributes to national energy security through onshore oil and gas development, and has generated billions of dollars to the federal treasury through offshore leasing. These leases could contain tens of billions of barrels of oil, which in turn could generate hundreds of billions of dollars in revenue.
RDC has consistently supported federal revenue sharing to benefit the State of Alaska and local communities. We agree that states sustaining offshore energy development and production deserve a share of the revenue generated because they support offshore operations and experience impacts to local services and infrastructure.
RDC endorses HJR 26 and fully supports Alaska sharing in the revenues generated from offshore oil and gas leasing, development, and production.