645 



If the Senator had an oil well heing drilled in Oklahoma, he could 

 tax it, could he not ? Do they not tax oil in the ground ? 



Mr. Bellmon. The State of Oklahoma has a gross production tax 

 on oil produced. What about the States of Texas and Louisiana? They 

 have had offshore development on the OCS down there for many years. 



Mr. Stevens. Yes, and we have watched what has happened there 

 and that is one thing that has bothered us. 



]\Ir. Jackson. Will the Senator yield for a unanimous-consent 

 request ? 



Mr. Stevens. Yes, I yield. 



Mr. Jackson. Mr. President, I ask unanimous consent that Mr. 

 William Van Ness, Mr. Michael Harvey, and Mr. Steven Quarles be 

 granted the privileges of the floor in connection with the pending 

 measure. 



The Presiding Officer. (Mr. Bartlett). Without objection, it is so 

 ordered. 



Mr. Stevens. I hope my friend from Oklahoma will study this 

 amendment and realize that the bill originally had provision for loans 

 and grants. The Coastal Zone Act in effect now has a provision for 

 loans and grants. The problem is, as we address the areas, in the rural 

 areas, where there is little population and where there is an inability 

 to prepare for development of this type, we are trying to find a mecha- 

 nism so their bonds will be salable. We are providing a minimum 

 amount of Federal assistance to repay those bonds and to meet these 

 impacts. 



I do not think this kind of money will entirely repay the bonds. The 

 maximum amount of money that would be payable to any State, under 

 my proposal, in a year, at the time it reaches a million barrels per 

 day production from the OCS, would be $29,200,000. That would be 

 the maximum amount payable to both States and localities. 



The estimate for the production from the Gulf of Alaska — which we 

 think is low — in the environmental impact statement is 550,000 bar- 

 rels per day. In other words, my State can look for a payment of 

 something like $15 million out of this, payable to all the local com- 

 munities and the State, for taking actions to try to ameliorate the 

 development impacts that come about from the offshore development. 



Mr. Pellmon. Will the Senator yield ? 



Mr. Stevens. Yes. 



Mr. Bellmon. Ever since I have been in the Senate, I have heard 

 testimony from communities like Santa Barbara that do not like oil 

 wells cluttering up their landscape. I have heard that from other 

 Atlantic coast States that do not like refineries in their areas. They 

 want the oil coming from Oklahoma, Texas, and other States. Yet they 

 do not want the.se smelly refineries or other things on their land. What 

 this looks like to me is a bribe to get these States to do the things they 

 ought to do, anyway. 



Mr. SttsVfxs. T hope the Senator will join me in tliat bribe 

 later on, because I think that is what it is going to take to get offshore 

 development. 



Mr. Johnston. It is not a bribe at all, if the Senator from Oklahoma 

 would yield. There is a real and measurable impact, and the record 



