Seaweed rebellion: the battle over section 8(g) revenues
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), Vol. 8:2
- Country of Publication:
- United States
- Language:
- English
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