State Sen. Elliott: Keep Coastal Alabama oil and gas lease tax funds in Baldwin, Mobile Counties

Thursday, the Alabama House of Representatives gave approval to legislation that would ensure tax funds generated from oil and gas leases in Coastal Alabama remain in the region.

Senate Bill 9, sponsored by State Sen. Chris Elliott (R-Daphne), passed both chambers unanimously and now heads to the desk of Gov. Kay Ivey to be signed into law.

The federally-enacted Gulf of Mexico Energy Security Act (GOMESA), passed in 2006, provides revenue sharing provisions for the oil and gas producing states of Alabama, Louisiana, Mississippi and Texas.

Elliott’s bill ensures that Alabama’s share of GOMESA funds are utilized where they are generated, which is in Baldwin and Mobile Counties.

According to Elliott, protecting the funding is necessary to ensure that Alabama’s coastal counties continue to receive their fair share of GOMESA tax dollars.

“That money is created and raised here in Baldwin and Mobile counties through those oil and gas leases, and it should be easy to understand that those funds should stay in our counties,” Elliott stated in a release. “It’s about making sure we get our fair share here in Coastal Alabama and using that money to improve our communities and way of life.”

Elliott made mention of the Tennessee Valley Authority (TVA) in lieu of tax payments that are reserved for North Alabama counties rather than being available for statewide disbursement.

“This bill ensures this money stays where it belongs here instead of possibly being spent on other projects elsewhere in the state,” added Elliott. “Much like the TVA money is for North Alabama, this should be a source of funding raised in our coastal communities for our coastal communities.”

Elliott concluded, “In years past, this bill has somehow always managed to get caught up in the whirlwind of chaos that can sometimes accompany the later parts of our legislative session in Montgomery. I am thankful for the actions taken by the House this year, especially my friend Rep. Chip Brown from Mobile County, as he and his colleagues in the House recognize and agree that this money needs to be held and protected for the people of Coastal Alabama.”

Gulf United Metro Business Organization (GUMBO) chairman Patrick Bussey commended Elliott for advancing the bill through the legislative process.

“GUMBO applauds Sen. Elliott on his efforts to ensure that GOMESA funds remain in Baldwin and Mobile Counties where offshore drilling occurs,” stated Bussey. “This is an important issue to our stakeholders, and we appreciate Sen. Elliott’s continued work in this regard.”

Dylan Smith is a staff writer for Yellowhammer News. You can follow him on Twitter @DylanSmithAL