4 States May Divert (drilling) Convervation Funds - AP

[Eugene]

4 states may divert convervation funds

By BEN EVANS, Associated Press Writer

1 hour, 40 minutes ago

WASHINGTON - Four lucky states were slated to share billions in potential
royalties courtesy of an offshore drilling expansion signed into law last
year, money that could help reverse decades of environmental damage
from coastal industry. But as budget planning gets under way, the states
are beginning to realize that Congress gave them far more freedom in
spending the windfall than the political rhetoric in Washington suggested.

Particularly, one little-noticed sentence in the legislation allows the
states to use their money on "onshore infrastructure projects" to mitigate
outer continental shelf activities. Translation: They can use it to pave
roads, erect bridges, lay water lines or finish just about any other public
works projects they can link to the coast.

"It is very tempting," said Bill Walker, executive director of the Mississippi
Department of Marine Resources. "I would not be surprised as these funds
begin to come in and get larger and larger that there will be people at the
state level saying, 'We need to do this or that or the other thing.' We'll
try to keep them focused on doing environmental and conservation things,
but they make the rules."

Louisiana lawmakers moved last year to bar the state from using the drilling
revenues for anything but wetlands and coastal preservation. Voters passed
a referendum cementing the arrangement.

But the other three states — Alabama, Mississippi and Texas — have no such
restrictions.

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Full article: http://news.yahoo.com/s/ap/20070217/ap_on_re_us/gulf_oil_revenue