1/27/99

MURKOWSKI SEEKS SUPPORT FOR BILL TO SHARE OCS REVENUES WITH COASTAL STATES; ALASKA TO BENEFIT

WASHINGTON -- Alaska Sen. Frank Murkowski today opened hearings on his bill (S.25) that would require the federal government to share revenues from Outer Continental Shelf (OCS) oil and gas development with states. If the bill is adopted, there will be significant benefits for many communities in Alaska.

³For years the U.S. Treasury has enjoyed royalties generated from the federal OCS leasing program, while the states that host the development have been underwriting the impacts. That is not fair and has got to change,² said Murkowski, Chairman of the Senate Energy and Natural Resources Committee.

Murkowski's bill would split the roughly $4.1 billion in OCS oil and gas revenues evenly between the federal treasury and state and local governments. Twenty seven percent of oil and gas revenues would go to states for OCS impact assistance and 16 percent would fund the stateside portion of the Land and Water Conservation Fund (LWCF) that provides money for state and local park improvements and land acquisitions. In addition, 7 percent would fund state Wildlife Conservation Programs to improve wildlife and recreation programs nationwide.

Alaska would net approximately $110 million under the bill and that the funds could be used for such things as sanitation assistance in rural communities, breakwaters and coastal erosion facilities, and infrastructure for the Port of Anchorage.

The state would receive about $5 million a year from the setaside to fund the LWCF. In the past program has funded park improvements to Alaskaland in Fairbanks, construction of the coastal trail in Anchorage, Harbor View Park in Ketchikan and Marine Park in Juneau.

The state also would gain about $16 million a year for wildlife conservation programs -- money that would go for non-game conservation programs.

Murkowski along with Sen. Mary Landrieu, D-La., is leading the11 senators proposing the revenue-sharing bill. Murkowski said he is open to changing parts of the bill, but believes it is a fair starting point to finally get needed aid to coastal states.

Noting that some private property groups have expressed concern about the money the bill will provide for federal land acquisitions, Murkowski empasized the funding restrictions contained in the bill.

* Federal land purchases can only be made within an existing federal land management unit created by Congress. * No funds can be used to condemn property. Only property offered by willing sellers can be purchased. * Two-thirds of the funds must be spent on land acquisition in the eastern part of the country (east of the 100th meridian a line roughly through the Great Plains and the middle of Texas.). * Federal land acquisitions with a value greater than $5 million must be approved by the House and Senate authorizing and appropriation committees.

The bill does allow funds for federal land acquisition. ³However, this money is not earmarked for a federal land grab. I believe the federal government already owns too much land. However, 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 those landowners must suffer restrictions on access to and use of their lands while they wait endlessly for the funds to compensate them for their lands. That needs to be changed,² said Murkowski.

Murkowski said he intends to devote substantial time in coming months to examine all aspects of the bill.