By Ben Geman The Hill
Sen. Mary Landrieu (D-La.) on Monday returned political fire at a trio of senior Democrats who dont want coastal states to receive a guaranteed share of the revenues from oil-and-gas production in federal waters off their shores. If theres no drilling the interior states get no money" she told reporters in the Capitol. And there is not going to be any drilling unless there is revenue sharing."
But Landrieu said that unless coastal states can share the money from expanded development to address the impacts drilling in new areas wont happen anyway.Opponents of linking expanded offshore drilling to state revenue sharing fear depriving federal coffers of billions of dollars in lease bids and royalties. They interior states can have 100 percent of zero or they can have 65 to 75 percent of something huge. Now let them go figure it out" she added.Landrieus comments came in response to a dear colleague letter circulated by Sens. Jeff Bingaman (D-N.M.) Byron Dorgan (D-N.D.) and Jay Rockefeller (D-W.Va.) that calls on senators to oppose revenue sharing.
A 2006 law that expanded Gulf of Mexico drilling handed a 37.5 percent share of revenues from certain leases to Louisiana and three other gulf states.
But Bingaman Dorgan and Rockefeller dont want that deal expanded through climate and energy legislation that may come to the floor this year theyre warning that the federal government could eventually lose hundreds of billions of dollars.
The fiscal consequences of such a loss would be devastating particularly given the enormous demands on the federal Treasury and our need to reduce the deficit. There is no justification for using these significant national resources to provide benefits only for a few coastal states and their citizens. Rather they must be available for the important public 
needs of all Americans" they wrote to colleagues Monday.
Landrieu for her part argues that the current system is unfair because onshore states get half the revenues from oil-and-gas leasing on federal lands within their boundaries.
This aids mostly Western interior states that have large portions of federal land" within their borders while most states do not receive a penny from the federal government when energy production takes place off its shores" she said in a prepared statement Monday.
Sen. Lindsey Graham (R-S.C.) who is a co-author of upcoming Senate climate and energy legislation is strongly pushing for revenue sharing for coastal states including states along the Atlantic coast where new development could occur following the expiration of leasing bans there in 2008.
The Obama administration in late March proposed eventual leasing off the coast of mid-Atlantic and southeastern states as well as wider development in the eastern Gulf of Mexico if Congress lifts restrictions that remain there. The plan also envisions expanded leasing in Artic waters off Alaskas northern coast although it cancels several planned lease sales to allow further study.
Dorgan said there is widespread opposition to expanded revenue sharing. I dont think it is a wise thing for them to do and I think there are many people from non-coastal states 
who would agree with my assessment of that" he told The Hill Monday.
The bill Graham is drafting with Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) has been expected to include revenue sharing. Kerry declined to confirm this Monday but more broadly said that lawmakers will need to compromise.
Not everybody is going to support everything. There are going to have to be some things you work on on the Senate floor. I cant tell you whether it is in or out" he said Monday when asked about the revenue issue.
Kerry Graham and Lieberman met again in the Capitol Monday evening to discuss their bill. Lieberman said they remain on track to unveil the measure Monday April 26.
Meanwhile negotiations on a Senate climate and energy package continue in multiple venues.
U.S. Chamber of Commerce CEO Tom Donohue and Bruce Josten the groups top lobbyist are expected to meet Tuesday with White House senior adviser Valerie Jarrett and White House climate and energy adviser Carol Browner.
