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Protecting And Controlling Fees From State's Offshore Energy Sources

David Rainer • January 21, 2024

GOMESA funding generates millions for coastal Alabama

gulf shores financial news

Chris Blankenship, Commissioner of the Alabama Department of Conservation and Natural Resources, was recently invited by Jerry Carl to address the U.S. House Committee on Natural Resources about the State's funding from GOMESA.


Alabama's benefits from the Gulf of Mexico Energy Security Act (GOMESA) funding. This act facilitates Alabama's receipt of funds from oil and gas leases, crucial for the state's coastal resilience and quality of life.


Representative Carl praised Commissioner Blankenship for his extensive knowledge of Alabama’s coastal resources, emphasizing his insights on the impact of oil and gas lease-derived funding. Blankenship, with a background rooted in Alabama's coastal life, underscored the economic and environmental significance of the oil and gas industry in the region.


The U.S. Department of the Interior’s 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Proposed Final Program proposes significant reductions in offshore oil and gas lease sales. This change is expected to adversely affect state conservation efforts, funding for outdoor recreational access, hurricane protection, and coastal infrastructure improvements.

Commissioner Blankenship highlighted the diverse benefits of GOMESA funding in Alabama. These include enhancing public waterfront access, increasing boating access, improving coastal water quality, and supporting scientific research. He specifically mentioned various funded projects, such as 15 shoreside waterfront public access and park improvement projects, and 18 boating access projects across diverse communities.


However, Blankenship expressed concerns over the reduced lease sales' impact on Alabama's short-term revenues and long-term coastal project funding. He advocated for removing the revenue sharing cap under GOMESA and increasing lease sales to better address coastal impacts and support offshore activities.


Legislative efforts are underway to revise the revenue distribution from federal oil leases and increase lease sales in the Gulf of Mexico, as highlighted by Congressman Carl and Louisiana Rep. Garrett Graves.


The article also sheds light on the Rigs to Reefs Program, which transforms decommissioned oil and gas platforms into artificial reefs, benefiting marine ecosystems and fishing opportunities. Blankenship emphasized Alabama's policy of supporting offshore development, conditional on compliance with state laws and regulations.




Below are the Bullet Points from the Outdoor Alabama
article by David Rainer.


  • Testimony by Commissioner Chris Blankenship: Conservation Commissioner Chris Blankenship testified before the House Natural Resources Committee in Washington, D.C., discussing the impact of funds from the Gulf of Mexico Energy Security Act (GOMESA) on Alabama.
  • GOMESA's Role: GOMESA provides crucial funding to Alabama from oil and gas leases, impacting coastal resiliency and quality of life.
  • Congressman Jerry Carl's Remarks: Alabama Representative Jerry Carl highlighted Commissioner Blankenship's expertise in Alabama’s coastal resources and conservation initiatives, emphasizing the importance of GOMESA funding for coastal Alabama projects.
  • Changes in Oil and Gas Leasing: The U.S. Department of the Interior’s 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Proposed Final Program limits offshore oil and gas lease sales, affecting state conservation efforts and funding for outdoor recreational access, hurricane protection, and coastal infrastructure improvements.
  • Commissioner Blankenship's Background and Views: Commissioner Blankenship, with personal and professional ties to Alabama's coast, emphasized the economic and environmental benefits of the oil and gas industry in the region.
  • Impact of GOMESA Funding: GOMESA funding has significantly contributed to improving public access to waterfronts, boating access, outdoor recreation, coastal water quality, and scientific research in Alabama.
  • Projects Funded by GOMESA: Commissioner Blankenship highlighted various projects funded by GOMESA, including public access and park improvement projects, boating access projects, and land acquisition for public water and recreation access.
  • Challenges Due to Reduced Lease Sales: The reduction in offshore lease sales is expected to negatively impact short-term revenues for Alabama and future funding for long-term coastal projects.
    Advocacy for Enhanced Revenue Sharing: Commissioner Blankenship advocated for lifting the revenue sharing cap under GOMESA and returning to more normal leasing opportunities to better support coastal impacts and OCS activities.
  • Legislative Efforts: Congressman Carl and Louisiana Rep. Garrett Graves are working on legislative efforts to revise revenue distribution from federal oil leases and increase lease sales in the Gulf of Mexico.
  • Rigs to Reefs Program: The article highlights the Rigs to Reefs Program, which converts decommissioned oil and gas platforms into artificial reefs, benefiting marine life and fishing opportunities.
  • Alabama's Policy on Offshore Development: Alabama supports offshore development contingent on compliance with state laws and regulations and consistency with its Coastal Zone Management Program.
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