Sen. Mary Landrieu (D-LA) introduced legislation Thursday that would automatically reserve a “significant portion” of Outer Continental Shelf (OCS) revenues for distribution to the five energy-producing coastal states that aren’t restricted by moratoria off their shores.

The measure, the “Stewardship for Our Coasts and Opportunities for Reliable Energy Act,” would require the federal government to share revenues from OCS oil and natural gas production 50-50 with Alaska, Texas, Louisiana, Mississippi and Alabama, a Landrieu spokesman said. Currently, the federal government shares half of the revenues from onshore production with states, but it shares none of the revenues from OCS production, he noted.

Under Landrieu’s measure (S. 1026), OCS revenues would be authorized by Congress as part of the appropriations process from fiscal year 2006 through 2010. Beginning in fiscal year 2011, the offshore revenues would be automatically distributed each year and not subject to the traditional appropriations process.

The legislation also calls for the secretary of the Department of Interior to establish seaward lateral boundaries for all coastal states to explore the possibility of offshore energy development, and would allow states with moratoria in place off their coasts to petition the secretary for a resource assessment of energy sources within their boundaries. With the assessments in hand, state legislatures could then request that any or all of the area within their boundaries be made available for energy leasing.

Sen. Pete Domenici (R-NM), chairman of the Senate Energy and Natural Resources Committee, supported Landrieu’s efforts. “I look forward to an extensive discussion of her bill in committee and hope we can incorporate some of her ideas in the energy bill.” Landrieu is a member of the Senate energy panel.

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