Posted on April 1, 2024
The Department of the Interior today announced the distribution of more than $353.6 million in fiscal year 2023 energy revenues to the four offshore Gulf of Mexico oil and gas producing states – Alabama, Louisiana, Mississippi and Texas, and their coastal political subdivisions (CPS), such as counties and parishes.
The Gulf of Mexico Energy Security Act (GOMESA) of 2006 created a revenue-sharing model for oil- and gas-producing Gulf states to receive a portion of the revenue generated from offshore oil and gas leasing in the Gulf of Mexico. The Act also directs a percentage of revenue to the Land and Water Conservation Fund (LWCF).
The funds, disbursed annually based on offshore oil and gas production revenue, support coastal conservation and restoration projects, hurricane protection programs, onshore infrastructure projects, and activities to implement marine and coastal resilience management plans.
With this year’s disbursement, the Department has now distributed more than $2 billion to the states and their CPS since GOMESA funds were first shared in 2009. Today’s disbursement is the second consecutive year the maximum allowable amount under GOMESA has been shared, reflecting in part returns from record high oil and gas production under the Biden-Harris administration.
The following amounts were disbursed to states and their subdivisions:
State of Alabama and CPS
State of Louisiana and CPS
State of Mississippi and CPS
State of Texas and CPS
GOMESA TOTAL $353,625,000.00
GOMESA funds are disbursed in accordance with the revenue-sharing provisions of GOMESA. During FY 2023, Interior’s Office of Natural Resources Revenue (ONRR) disbursed $125 million to the LWCF and nearly $870 million to the U.S. Treasury from bonuses, rentals and royalties paid from GOMESA leases. Disbursements to the LWCF and Treasury are made in the same year of receipt; disbursements to the states and CPS are made the year following the year of receipt.
GOMESA disbursements for the four Gulf-producing states and their CPS are subject to a revenue-sharing cap of $375 million annually and the sequestration requirements in 2 U.S.C. 901a(6)(B), and OMB Circular A-11, Section 100.4.
Revenue-sharing allocations and disbursement details for the fiscal year 2023 receipts are available on the Department’s website.
