President Donald Trump has backed off his proposal to stop sharing oil revenues from offshore drilling with states along the Gulf of Mexico.
In the budget proposal released Monday, the White House preserved the revenue sharing agreement, which was expected to deliver $275 million to Texas, Louisiana, Alabama and Mississippi this year.
“I’m glad the administration heard us loud and clear and decided to support offshore revenue sharing. After years of our concerns falling on deaf ears, it’s refreshing to have an administration that actually listens,” said Sen. Bill Cassidy, R-Louis.
The funds are set aside under the law to protecting the Gulf coastline, with money directed to maintaining levees and other infrastructure, hurricane relief and preventing further erosion of wetlands that are fast disappearing along the Gulf Coast.
“Eliminating Gulf state revenue sharing for offshore energy production would punish coastal states that support and host the development of home-grown energy and jobs,” National Ocean Industries Association President Randall Luthi said in 2017.
This first appeared on the Houston Chronicle – an Energy Voice content partner. For more click here.