The Offshore Parity Act of 2024 (H.R. 10183), introduced on November 20, 2024, by Congressmen Garret Graves (R-LA) and Troy A. Carter, Sr. (D-LA), looks to extend Louisiana’s state authority from 3 to 9 nautical miles offshore into the Gulf of Mexico. The bipartisan legislation would amend the Outer Continental Shelf Lands Act (OCSLA) and the Magnuson-Stevens Fishery Conservation and Management Act, giving Louisiana, Mississippi, and Alabama (“State” or “States”)1 the same offshore authority and sovereignty currently enjoyed by Texas and Florida.
The evolution of state jurisdiction over its coastal waters dates back to the “cannon shot rule” in the 1800s, which initially established the 3-mile offshore boundary.2 In the early 20th century, and with the increased development of offshore industries, Congress adopted the Submerged Lands Act (SLA) of 1953. The SLA granted Texas and the Gulf Coast of Florida jurisdiction of 9 nautical miles off their coastlines while establishing Louisiana, Mississippi, and Alabama’s coastline at three nautical miles. Louisiana unsuccessfully challenged this restriction before the United States Supreme Court in 1969 where the Court held that Louisiana could not prove it had jurisdiction over the waters extending 3 marine leagues from its coastline before it entered the Union. As such, its state waters boundary would remain at 3 nautical miles.3
The proposed legislation would generally give Louisiana, Mississippi, and Alabama the authority to manage oil, gas, and other energy activities located on the state’s expanded submerged land.4 Pertinent provisions of H.R. 10183 include:
- Delegation of authority to the States to grant and manage leases wholly located within the State’s expanded submerged land;5
- The delegation of authority shall apply to any lease of the State’s expanded submerged land, which is granted by the Secretary before the date of enactment of the Offshore Parity Act of 2024
- With respect to lease revenue,
- States may collect rentals, royalties, and other sums, as determined by the State, from any lease granted by the State after the enactment date of the proposed legislation6;
- However, the States’ authority shall not affect the disposition of revenue under any other provision of federal law from any lease of the State’s expanded submerged land granted before the enactment date of the proposed legislation;7
Currently, under the Gulf of Mexico Energy Security Act (GOMESA) of 2006, a portion of the revenues from offshore oil and gas production in the Gulf of Mexico is shared with four states: Texas, Louisiana, Mississippi, and Alabama. As seen above, the proposed legislation’s expansion of state waters and related provisions would likely lead to potential modifications or negotiations over how revenue from these areas is distributed, as well as increases in state revenue and new sources of revenue not previously accessible before the proposed expansion.
The bill has been referred to the House Committee on Natural Resources for review and debate. If it passes favorably out of the House Committee, it is then debated by all members of the House. If a majority of the House votes in favor of the bill, it is sent to the Senate where it follows a similar process.8 Once both the House and Senate agree on the final version of the bill, it will be sent to the President who can either sign the bill into law or veto the bill and send it back to Congress. For further questions regarding the proposed Offshore Parity Act of 2024, contact Liskow attorneys Cristian Soler and Jana Grauberger and visit our Federal Offshore Regulatory practice page.
1H.R. 10183, Section 34(a)(4).
2The idea was that a coastal nation’s jurisdiction should be measured by the distance in which it could defend itself. This “self-defense” limit was measured by how far a cannon shot could be fired, which at the time was approximately a marine league, or 3 nautical miles.
3United States vs. Louisiana, 394 U.S. 11 (1969).
4The term “expanded submerged land” means the area of the outer Continental Shelf that is located between 3 geographical miles and 3 marine leagues seaward of the coast line of the State as of the day before the date of the enactment of this section. H.R. 10183 Section 34(a)(2).
5H.R. 10183, Section 34(b) provides in full:
(b) Delegation.—Upon written request of a State before the date that is 5 years after the date of enactment of the Offshore Parity Act of 2024, the Secretary shall, except as provided in subsection (c), delegate to the State the relevant authorities of the Secretary under this Act, except the authority under sections 14 and 20, to grant and manage leases of the expanded submerged land of the State if the Secretary finds that—
(1) it is likely the State will provide adequate resources to carry out such authorities;
(2) the State has demonstrated that it will effectively and faithfully administer the applicable rules and regulations of the Secretary under this Act, including the requirements of subsection (c) of this section; and
(3) such delegation will not create an unreasonable burden on any lessee.
6H.R. 10183, Section 34(c)(4).
7H.R. 10183, Section 34(c)(4)(C)(i).
8There are additional steps in the process if the House and/or Senate propose amendments to the bill or if the House and Senate pass different versions of the bill.
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