1/19/99

WASHINGTON -- Joining forces with members from both sides of the aisle, Alaska Sen. Frank Murkowski today sponsored legislation that would direct revenues from outer continental shelf (OCS) oil and gas production to those coastal states and communities impacted by energy development.

Murkowski and Sens. Mary Landrieu, D-La., Jeff Sessions, R-Ala., Trent Lott, R-Miss., John Breaux, D-La., and Judd Gregg, R-N.H., were the lead sponsors of the Reinvestment and Environmental Restoration Act of 1999 (S. 25), a bill that also would provide a secure funding source for state recreation and wildlife conservation programs.

³This is a significant piece of conservation legislation. We must ensure that not only coastal states have money to address the effects of OCS activities, but that all states have funds necessary to provide outdoor recreation and conservation programs. This is just the start of the process, however. It is a bipartisan bill that reflects many compromises. It is our job to work out members and groups concerns,² said Murkowski.

Essentially, the bill will allot one-half of OCS revenues to the federal treasury and the other half to coastal states, state parks, and recreation and wildlife conservation programs and federal land acquisition. The three parts of the bill would divide the roughly $4 billion in yearly OCS revenues giving half to the federal government, 27 percent for OCS impact assistance, 16 percent for Land and Water Conservation Fund (LWCF) programs and 7 percent to state wildlife programs ­ the so-called Teaming with Wildlife initiative.

Murkowski said the bill acknowledges that all coastal states, including those that border the Great Lakes, have unique needs and directs a portion of OCS revenues to be shared with those states. For the 34 states involved, the distribution formula will be based on production (50%), coastline miles (25%) and population (25%) with teach to receive a minimum of 1/2 percent.

For Alaska, the bill should provide about $131 million during Fiscal Year 2000. Some $110 million would go for impact assistance, the state gaining $44 million for statewide impacts from OCS projects, with another $44 million to be spread among coastal communities within 200 miles of an OCS lease. This would help communities on the North Slope, including Barrow and Kaktovik, deal with development needs.

Other coastal communities, farther than 200 miles from proposed OCS lease areas, such as Valdez, Homer and other Southeast and Southwest communities, would split another $22 million. The state would gain another $21 million a year for state and local park, recreation and wildlife conservation programs.

Under the Land and Water Conservation Fund, the OCS revenues are shared with all states. ³More than 30 years ago, Congress had the foresight to recognize the ever-growing need of the American public for parks and recreation facilities with the creation of the LWCF. Unfortunately, the President has not requested any money for the state-side portion of the fund for the past four years. Our bill would make that program self-sufficient,² he said.

The legislation would provide money for federal land acquisition. Those lands, however, must lie within the boundaries of conservation areas established by an act of Congress. Furthermore, specific language in the bill would prohibit the federal government from using LWCF funds to condemn any property.

³To many westerners, including myself, the federal government already owns too much land. Nonetheless, the demand for federal land acquisition dollars is significant. Many inholders, who want to sell, have been waiting for decades to receive compensation from the federal government for their property. In many instances these landowners must suffer with restrictions on access to and use of their lands while they wait endlessly for the funds to compensate them for their land,² said Murkowski.

The final title dealing with wildlife conservation programs is a no-tax alternative to the Teaming with Wildlife proposal unveiled in 1997. States will be able to use funds provided by the legislation to increase fish and wildlife populations and improve fish and wildlife habitat, Murkowski said. He noted that Barrow, Cordova, Soldotna, Haines, Sitka, Kotzebue and the Kodiak Island Borough have already passed resolutions or written letters in support of the measure -- first proposed late last year.

The Senate Energy and Natural Resources Committee, chaired by Murkowski, has tentatively scheduled a hearing on the bill for Wednesday, Jan. 27.