Thursday, June 10, 2010

2010 Offshore Drilling Legislation in Other States

The National Conference of State Legislatures (NCSL) has compiled a list of offshore drilling legislation passed or being considered by various states in the 2010 session, as well as a listing of offshore drilling laws already on the books. Most favor offshore drilling, especially as a means of revenue. Here's a link. Here's a summary:

2010 Legislation

South Carolina

*Pending bill requires anyone permitted to drill offshore in state waters to provide a portion of the lease or royalty payments to help fund the state's transportation infrastructure, and a portion to the preservation of the state's natural resources.

*Considering bill to allow offshore drilling to anyone who provides "economic viability".

*Considering bill to allow offshore exploration, drilling and production in the part of the Atlantic Ocean that is within the state's jurisdiction.


*HB756 enacted. Requires percentage of offshore drilling revenues and royalties to go to the state's Transportation Trust Fund, the State Coastal Energy Resource Consortium, and to localities for improvements to infrastructure and transportation.


*Considering legislation to create a board to approve oil or gas extraction from lands in the State Coastal Sanctuary.


*Reviewing bill that urges Congress to end the outer continental shelf moratorium on oil and natural gas exploration and production.

New Jersey

*Pending legislation prohibits the state Department of Environmental Protection from issuing permits or approving activities with offshore drilling for oil and natural gas.

Offshore Drilling Laws


*Prohibits drilling within one mile of the seaward boundary of any state, local, or federal park, or aquatic or wildlife preserve.

*Imposes a coastal protection tax on each barrel of pollutants produced in Florida or imported into the state. If a discharge occurs, the tax may be increased for a period of time.


*Prohibits drilling in the waters of the Chesapeake Bay or any of its tributaries. However, those who want to drill in prohibited areas can apply for a permit by completing an environmental assessment.


*Collects a tax from any party that is drilling. Tax is 8% of the gross value of the oil at the point of production.


*The responsible party is liable for any discharge into marine waters from sources such as oil rigs or platforms. The responsible party is not liable if the discharge is due to an "act of God" or authorized by state or federal permit.

North Carolina

*A responsible party is liable for all clean up and removal costs that arise from the discharge of oil into offshore waters.


*Responsible party liable for all response costs of any threatened or actual discharge of oil from any offshore drilling or production facility.

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