Seaweed rebellion: the battle over section 8(g) revenues

Journal Article · Fri Jan 01 04:00:00 EST 1988 · J. Energy Law Policy; (United States)

OSTI ID:7229758

Fitzgerald, E A

Outer continental shelf development has generated a great deal of conflict between the federal and state governments. This conflict, known as the Seaweed Rebellion, has arisen both in the courts and in Congress. One of the most controversial battles of the Seaweed Rebellion involved the disposition of $5.8 billion derived from the development of oil and gas pools common to both federal and state off-shore lands. This battle came to fruition in the case of Texas v. Secretary of Interior (Texas v. Interior). Section 1337(g) (commonly referred to as Section 8(g)) of the Outer Continental Shelf Lands Act (OCSLA) established a three-mile zone extending seaward from state coastal boundaries. Hydrocarbon bearing structures, some of which overlap federal and state lands, are present in this area. Section 8(g) provided for the fair and equitable disposition of revenues derived from the common pools in this zone. In Texas v. Interior, the Federal District Court of the Eastern District of Texas interpreted the meaning of fair and equitable in section 8(g). It provided recovery to Texas for the enhancement of federal bonus receipts resulting from state leasing and the possible sharing of federal taxes. This article provides a brief overview of the conflict, analyzes the Section 8(g) controversy, and explains why the court's decision was correct. Congress eventually amended Section 8(g), and this is also reviewed.

• OSTI ID: 7229758
• Journal Information: J. Energy Law Policy; (United States), Journal Name: J. Energy Law Policy; (United States) Vol. 8:2; ISSN JELPE
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020300* -- Petroleum-- Drilling & Production
03 NATURAL GAS
030300 -- Natural Gas-- Drilling
Production
& Processing
29 ENERGY PLANNING, POLICY, AND ECONOMY
294000 -- Energy Planning & Policy-- Fossil Fuels
CONTINENTAL MARGIN
CONTINENTAL SHELF
FEDERAL REGION VI
GEOLOGIC DEPOSITS
INCOME
LAWSUITS
LEGAL ASPECTS
MINERAL RESOURCES
NATIONAL GOVERNMENT
NATURAL GAS DEPOSITS
NORTH AMERICA
PETROLEUM DEPOSITS
RESOURCE DEVELOPMENT
RESOURCES
STATE GOVERNMENT
TEXAS
USA