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Federalism and offshore oil leasing resources for the future

Journal Article · · Natural Resources Journal; (United States)
OSTI ID:7169817
 [1]
  1. Resources for the Future, Washington, DC (United States)

This paper explores the relationship between federalism and the oil and gas resources of the Outer Continental Shelf (OCS). Under the current system, the federal government has jurisdiction and control over leasing and the coastal states share in almost none of the lease revenues. State involvement in the OCS process takes place primarily through the consistency provisions of the Coastal Zone Management Act (CZMA). These provisions state that all activities that affect a state's coastal zone management plan must be consistent with the state's coastal zone management plan. The paper argues that the current system leads to an inefficient amount of OCS development and that efficiency would be enhanced if coastal states had control over the OCS. The paper finds that the two arguments for retaining federal control-(1) national energy security benefits from OCS development, or (2) national environmental benefits from OCS preservation-are flawed. The paper also considers three other proposals: (1) retaining federal control with revenues shared with coastal states, (2) giving coastal states control with revenues shared with inland states, and (3) modifying the leasing system such that states and others could bid in competition with oil companies for the right to delay leasing. Each of these alternatives, with the possible exception of (2), is found to be inferior to state control.

OSTI ID:
7169817
Journal Information:
Natural Resources Journal; (United States), Journal Name: Natural Resources Journal; (United States) Vol. 33:3; ISSN 0028-0739; ISSN NRJOAB
Country of Publication:
United States
Language:
English