Off-shore energy production in FY 2021 generates revenue for state, three coastal counties
On Monday, U.S. Senators Roger Wicker (R-MS) and Cindy Hyde-Smith (R-MS), and Congressman Steven Palazzo (R-MS) celebrated the distribution of more than $36.7 million to the State of Mississippi and its three coastal counties. The funds will go towards coastal conservation, restoration, and hazard mitigation activities.
Mississippi will receive $29,417,448 in FY2021 funding, with another $3,056,656 for Jackson County, $2,898,939 for Harrison County, and $1,398,765 for Hancock County.
“The steady flow of revenue from oil and gas leases is a significant asset for our Mississippi’s conservation and resiliency efforts,” Senator Wicker said. “The Gulf Coast plays a crucial role in offshore oil and gas production, which can keep our country energy independent. It is important this production continue and not be hampered by President Biden’s overbearing environmental agenda.”
The funding represents Mississippi’s share of revenues generated through the 2006 Gulf of Mexico Energy Security Act (GOMESA), which created a revenue-sharing model for oil and gas producing gulf states.
According to the Mississippi Department of Marine Resources, GOMESA funds can be used in the following ways:
- Projects and activities for the purposes of coastal protection, including conservation, coastal restoration, hurricane protection and infrastructure directly affected by coastal wetland losses
- Mitigation of damage to fish, wildlife or natural resources
- Implementation of a federally-approved marine, coastal or conservation management plan
- Mitigation of the impact of activities through funding of onshore infrastructure projects
- Planning assistance and the administrative costs of complying with this section (not more than 3 percent)
“GOMESA ensures that Mississippi gets a share of royalty revenues from off-shore energy production to undertake conservation and coastal restoration projects,” Senator Hyde-Smith said. “GOMESA is a strong benefit to Mississippi, and we will continue to work to improve it.”
“The conservation of Mississippi’s Gulf coast through hurricane protection, coastal restoration, and flood control projects that are possible because of these GOMESA funds proves year after year the importance of the legislation passed in Congress,” said Congressman Steven Palazzo. “However we should not forget that these revenues should and could be higher. The Biden Administration’s anti-energy policies cancelling oil and gas lease sales indirectly defund our states flood and hurricane protection measures. Increasing domestic oil production will not only supplant our energy independence, it will bolster our National security and coastal resilience.”
