Jindal Hails Senate Leadership Comments that Energy Royalty Compromise Can Be Reached

Jindal Hails Senate Leadership Comments that Energy Royalty Compromise Can Be Reached
Members believe final bill will be acted on by end of September

Congressman Bobby Jindal (LA-01) hailed statements today by Senate Leadership that legislation concerning offshore energy is a priority and a compromise between Jindal's offshore royalty bill and a similar but less comprehensive Senate version should be able to be reached by the end of September.

"Comments by the Senate Leadership today are a great sign that both sides have listened to our calls for a compromise so we can send a final bill to the President, and ensure that Louisiana begins to receive a fair portion of offshore energy royalties," Congressman Jindal said. "Important differences for Louisiana remain between the two bills and I will continue to push for the best deal for Louisiana, while ensuring that a compromise can be reached and passed soon. We cannot sacrifice the good, while trying to achieve the perfect. Too much is at stake for this to happen."

Senate Energy and Natural Resources Committee Chair Pete Domenici (R-NM), who made his comments in a Capitol Hill publication, said that despite unresolved differences between the two bills, Congress will "get it done" before lawmakers leave to return to their districts at the beginning of October.

In the same article, Senate Majority Leader Frist (R-TN) said that the offshore energy issue is high on the Senate's agenda this month because the legislation could lead to lower gas prices, an area where "the typical American is feeling squeezed in terms of cost of living."

Congressman Jindal has continued to work with the House Leadership on stressing the importance of this legislation to rebuilding Louisiana's coastline, and has been reassured again this week that reaching a compromise with the Senate and final passage is a priority for House Speaker Dennis Hastert (R-IL).

One of the big differences that remains to be worked out is the issue of states receiving royalties off existing energy leases. One example of the importance of this issue to Louisiana is Chevron's announcement earlier this week that deep-water well tests 175 miles off of Louisiana's coastline might hold anywhere from 3 to 15 billion barrels of oil, a total that has the potential to boost the nation's oil reserves by 50 percent. Jindal's bill would provide offshore royalties on this find since it is an existing lease, where the Senate passed version only provides Louisiana with royalties from new leases.

Earlier this week Congressman Jindal said, "This announcement would result in a considerable amount of offshore royalties for Louisiana if this language that is currently in my bill is agreed to in conference committee. While compromises must be reached, I encourage the Leadership to consider this important provision."

The overall Jindal bill would provide Louisiana with $9 billion over the first 10 years and nearly $2 billion a year once fully implemented. The Senate bill would provide significantly less money to Louisiana because it primarily deals with only future leases while the Jindal bill would apply to existing and future leases.

A Congressional conference committee is expected to begin working out the differences between the House and Senate versions this month. Jindal has encouraged both the House and Senate leadership to come to the table willing to compromise to get a final bill passed.

Just last week President George W. Bush came out in support of Congress sending him legislation giving Louisiana a bigger share of royalties from oil and gas drilling off of Louisiana's coastline so that Louisiana can repair its coast.

The Congressional Budget Office has stated that Jindal's bill would increase revenue receipts to the federal government by $2 billion over the first five years, while still putting into place revenue sharing with states.

http://jindal.house.gov/News/DocumentSingle.aspx?DocumentID=49762