Positioning Nrpa On Offshore Drilling and a 'Conservation Royalty'

Summary

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Proponents of the conservation royalty thought that the precedent was established when royalties were required from drilling in the western Gulf tit Mexico in the early 1960s, but Congress opted not to place these revenues off-budget, making the allocation of these revenues subject to the politics of the annual appropriations process, More recently, Congress did approve dedicating such revenues troni new leases in an expanded area in the Gulf of Mexico known as Area 181 South, to LWCF stateside purposes with the passage of the Knergy Security Act of 2006. [...] we believe that it is important to try and moderate the "noise" that goes with this discussion and to focus on the truly important issues, as well as ensuring that NRPA is at the table when discussions are taking place.

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Positioning Nrpa On Offshore Drilling and a 'Conservation Royalty'

Last year, when gas was $4 per gallon and Congress was ratcheting up pressure to expand domestic energy production, the 2009 Appropriations Bill was approved for the first time in 25 years without a morato- rium on off-shore drilling. The lifting of this moratorium means that without an about-face by Congress, which is considered highly unlikely, there may be new off-shore drilling within littoral areas from ...

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