At the request of U.S. Representative Jerry Carl and the House Natural Resources Committee, Environmental Protection Commissioner Chris Blankenship traveled to Washington, D.C., last week to help Alabama benefit from oil and gas leases through the Gulf of Mexico Energy Security Act. (Gomesa) testified about the important funds being held. Commissioner Blankenship highlighted how GOMESA funding is positively impacting the resiliency and quality of life of the Alabama Gulf Coast.

Congressman Karl (R-Mobile) said Secretary Blankenship's extensive knowledge of Alabama's coastal resources and conservation efforts will provide the U.S. House Natural Resources Committee with valuable insight into the impact of funding from oil and gas leases. He said he would provide.

“It's always a pleasure to have Alabamians here in Washington,” said Congressman Kahl. “We are fortunate to have Commissioner Chris Blankenship join us today. He has extensive experience working with the (Alabama) Department of Conservation and Natural Resources (ADCNR) since 1994, and is an expert in natural resources and He's our go-to source for all things conservation. He explains the nitty-gritty of GOMESA funding and how it matters to coastal Alabama projects, especially in underserved communities. We will explain in detail how this will affect you.

“Let's think about water quality, public boat launches, and park shoreline improvements that will make a real difference. It will highlight issues such as the minimum lease sales proposed over the next five years.”

The U.S. Department of the Interior's National Outer Continental Shelf (OCS) Oil and Gas Lease Proposal Final Program from 2024 to 2029 lists only three offshore oil and gas leases with potential sales within the Gulf of Mexico planning area. Sales are severely restricted and there are no new lease sales in Alaska. .

For the first time, there will be a two-year gap in the lease plan. Also, for the first time since 1958, there will be no gas and oil lease sales during the current calendar year. These revenues play a critical role in various state conservation efforts and fund outdoor recreation access, hurricane protection, and coastal infrastructure improvements, while also contributing to the Great American Outdoors Act. .

Commissioner Blankenship, who was appointed to the position by Alabama Governor Kay Ivey in 2017, said the commission gave him the opportunity to explain the positive impact the Gulf of Mexico Energy Security Act of 2006 has had on our beautiful state. I was grateful. He explained that ADCNR is a state agency tasked with leasing the state's water bottom for the exploration, development and production of oil, gas and other minerals and coordinating with federal agencies on OCS activities.

“I grew up on Dauphin Island,” Secretary Blankenship said. “My whole life I have been producing natural gas from natural gas wells just off the coast of the island. Many of the friends I grew up with work in the oil and gas industry. Jobs are the economic engine of coastal cities. The view of platforms and work boats during the day and the amber glow of rig lights at night is a familiar sight in my hometown.”

Commissioner Blankenship testified that GOMESA's revenue amount is based on several factors and varies from year to year.

“In years when lease sales occur, distributions to the state of Alabama through GOMESA revenue sharing are generally 50% higher than in years without lease sales,” he said. “Since the Phase 2 revenue sharing formula was introduced in 2017, Alabama has received approximately $227 million. Just last year, we received approximately $50 million for a job well done. .

“The GOMESA projects we funded in Alabama will improve public access to the waterfront, increase boating access to waterways, create special areas for outdoor recreation, improve coastal water quality, and meet needed “This has had a significant impact on providing critical scientific information to better protect and conserve Mobile Bay, the Gulf of Mexico, and its tributaries.”

Commissioner Blankenship said outdoor recreation, especially waterfront recreation, is a huge part of coastal Alabama's quality of life, and GOMESA-funded projects include public access and access to coastal waterfronts. It includes 15 park improvement projects, which he said will enhance the enjoyment of residents and residents. Guests can experience the waterfront or the great outdoors with or without a boat.

“I am most proud of our efforts to leverage GOMESA and other funding to provide boating access,” he said. “GOMESA has funded 18 boat access projects in communities of varying economic status and will continue to serve all citizens, regardless of zip code.”

Commissioner Blankenship noted that the availability of undeveloped waterfront real estate is rapidly shrinking along the coast, making the acquisition of parks and public access even more important.

“Governor Ivey has approved seven land acquisition projects that will create public water and recreational access in two coastal counties: Mobile and Baldwin,” he said. “One of the projects I would like to highlight is the Mobile Bay Western Shore Acquisition, which has 400 feet of bayfront. This is some of the last remaining undeveloped land that provides public access along Mobile Bay. This project leverages the Saltaire Conservation Project, funded by the National Fish and Wildlife Foundation, to create a special large-scale park space in Mobile County. This is just one example of how we can combine it with sources to create a special and long-term commitment.”

Commissioner Blankenship said coastal Alabama's population growth is putting stress on sewer and stormwater systems, and many coastal Alabama utilities are using GOMESA funds to begin making sewer improvements and improving water quality. He said that in order to improve the situation, the septic tank system could be converted to sewage treatment.

He also said GOMESA funding will strengthen the University of South Alabama's new Department of Marine and Environmental Sciences and increase research capacity for the Healthy Oceans Initiative.

“This school is a great asset to Coastal Alabama, training students to improve our nation's fisheries and coastal processes for generations to come, and providing critical support needed to better manage our marine resources.” They will provide us with scientific data,” Secretary Blankenship said. “Alabama is also funding the construction of a first-class large research vessel for the Dauphin Island Sea Lab, a consortium of internationally recognized universities focused on marine science. This ship will allow scientists to conduct countless outstanding scientific studies on and off the continental shelf, providing information and data that have not previously been possible to inform management decisions.

“All of these projects will have a positive impact on coastal Alabama and further enhance the already great quality of life on our coast. I look forward to working with Governor Ivey to fund similar projects in the future.” We look forward to working together.”

Commissioner Blankenship said Governor Ivey and the State of Alabama understand that OCS oil and natural gas production is critical to our nation's economy and national security.

“We have long supported balanced and rational leasing programs that lead to the prudent and safe exploration, development, and production of OCS hydrocarbon resources,” Secretary Blankenship said. “The combined lease sales of the three recently announced 2024-2029 five-year programs are the lowest of any offshore five-year lease program to date.

“The lack of lease sales will undoubtedly have a negative impact on the short-term revenue that Alabama receives through GOMESA revenue sharing.With limited lease sales, fewer wells are operating in the Gulf of Mexico. This lack of financial resources will exacerbate this short-term revenue loss, impacting future production, and further negatively impacting future revenue distribution. The ability to finance profitable long-term projects will be hampered. This blow is in addition to the loss of jobs and business infrastructure associated with oil and gas exploration and production in the northern Gulf of Mexico due to fewer active wells. This is occurring.”

Commissioner Blankenship said the success of the Gulf of Mexico OCS development means that responsible offshore oil and gas development will create many good-paying jobs, stimulate activity in many related industries, and generate billions of dollars in revenue. He said it clearly shows what can be done.

“We urge the administration to support existing revenue sharing with the four participating Gulf states and legislative efforts to expand and strengthen such revenue sharing,” he said. . “Furthermore, I believe that the existing revenue sharing caps for Gulf countries under GOMESA should be lifted to ensure a fairer system for sharing the benefits of offshore development with affected countries. The current system of limited revenue sharing utilized in the Gulf of Mexico will expand coastal management and conservation, build new piers, boat launches, parks, and other needed infrastructure, and expand other public services. However, I am adamant that states can better address the coastal impacts of marine production by expanding and strengthening revenue sharing and returning to more normal leasing opportunities. , we believe we will be in a better position to support OCS activities.

“The GOMESA program and OCS exploration and production are of paramount importance to the people of Alabama and our coastal economy.”

Congressman Kahl was instrumental in adding language to H.R. 1 that would revise the formula used to distribute revenue from federal oil and leases in the Gulf of Mexico. Specifically, the share of revenue given to four Gulf states (Alabama, Louisiana, Mississippi, and Texas) will increase. Additionally, this section will remove the cap on GOMESA's revenue sharing. HR 1 passed the House of Representatives and awaits passage in the U.S. Senate.

Louisiana Congressman Garrett Graves proposed the Bridge Production Act (HR 5616), which would require the Department of the Interior to conduct 13 lease sales in the Gulf of Mexico and Alaska's Cook Inlet between 2024 and 2029 in lieu of the current plan. introduced.

In written testimony submitted to the committee, Secretary Blankenship highlighted how the oil and gas industry contributes to thriving offshore aquatic life through the Rig to Reefs program. Alabama has the largest artificial reef program in the United States, helping popular reef fish species like the iconic snapper thrive.

“The largest reefs in the artificial reef program come from decommissioned oil and gas platforms,” ​​Secretary Blankenship said. “During production, the rig is called the ‘Island of Life’ because it acts as an artificial reef structure in the Gulf of Mexico. The habitat these rigs create throughout the water column from the surface to the ocean floor is amazing. Organisms at all trophic levels benefit from the structure and marine growth on the platform's legs and supports. These ecosystems develop and grow over the years that these platforms are underwater. Thousands of platforms in the Gulf region have generated immense benefits.

“In discussions about the pros and cons of OCS production, the positive benefits rigs have for habitat creation, marine populations, and even recreational and commercial fishing opportunities are often lost in the conversation. This is a huge benefit to our marine resources and the people who enjoy them.”

Alabama has placed several decommissioned oil or gas production platforms in place over the past several decades to maintain these “islands of life” in the state's marine resource production.

“I have never visited these reefs, but I have never seen sea turtles, sharks or dolphins reaping the benefits of this protected habitat,” Secretary Blankenship said. “Our support for offshore development is fully compliant with the relevant laws, rules, and regulations of the State of Alabama, and includes all offshore developments in waters adjacent to the coast that are conducted in a manner that is fully compliant and consistent with: It is long-standing Alabama policy to condition OCS activities on our coastal zone management program.”