A federal review of the U.S. oil and gas leasing program is generating a fierce backlash from the hundreds of companies that operate fracking operations in the vast expanses of the Western U.S. Ahead of the formal launch of that Interior Department process Thursday—an event that will feature opening remarks from newly minted Secretary Deb Haaland followed by hours of testimony from stakeholders—environmental groups are putting their weight behind proposals to raise royalty rates and increase minimum bids. Annually, offshore producers infuse federal coffers with tons of cash, paying for many government programs including the Land and Water Conservation Fund, the holy grail of U.S. conservation initiatives. In recent months, however, federal revenue generated from the offshore industry has dipped below onshore revenue, a marked flip in historical trends.

‍“The Legislature doesn’t often set up a statute because a trial lawyer put it in a settlement agreement,” said Senate Natural Resources Chairman Bob Hensgens. “I can see where people might want to get really detailed about how the money is spent and collected, and I can see people wanting to follow what the plaintiff attorneys ask for, and I can see maybe people trying to look at alternative ways forward. I’m not sure which approach has the votes to pass right now.”

“It is disappointing that some elected officials have sided with plaintiffs’ attorneys in support of job-killing lawsuits and a flawed settlement scheme that could put our coast further at risk. Through these lawsuits, the government seeks to impose sweeping, retroactive liability on the entire oil and gas industry for activities carried out according to federal laws and regulations decades ago. This misguided attempt to rewrite history and penalize energy producers for legally conducted operations that have been endorsed and incentivized by state and local leaders for nearly a century is a distortion of the law dreamed up and marketed by plaintiffs’ attorneys, presumably to serve their own financial gain.

These moratoriums intended to regulate American oil and gas companies out of business backfire by burdening main street and households everywhere. "Now more than ever people cannot afford heightened energy costs,” Mike Moncla, LOGA Interim President said. "A better approach would be to support the recovery with sustainable policies that benefit struggling Americans with affordable, reliable, American energy."

The Louisiana Oil & Gas Association has read your legislative report and recommendation to change the tax rate for natural gas. While we appreciate the work you’ve undertaken to provide data from the LSU Center for Energy Studies, we do not agree with the conclusions the report draws regarding changing the tax rate.