Memo from John Gosdin to Jarvis Miller and David Herndon regarding reduction in Texas Outer Coastal Shelf escrow account, July 28, 1982
Memo from John Gosdin to Jarvis Miller and David Herndon regarding reduction in Texas Outer Coastal Shelf escrow account, July 28, 1982. Memo describes the "proportionate splitting" of revenue involved in litigation.
Herndon, DavidMiller, Jarvis E. (Jarvis Ernest), 1929-
Offshore oil industryPetroleum industry and trade--Government policyLitigation
"Texas Governor Term 1, 1979-1982"
Texas A&M University
Cushing Memorial Library and Archives
"Governor William P. Clements, Jr. Official State Papers, 1st Term, 1979-1983"
General Counsel | 1st term
Texas State library and archives commission
Clements Texas Papers
• MEMORANDUM TO: Jarvis Miller/David Herndon FROM: John Gosdin SUBJECT: Reduction in Texas OCS Escrow Account DATE: July 28, 1982 In preparing a response to the U.S. Department of Interior's offer for an agreement to divide revenues from proposed OCS Lease Sale No. 69, some startling information has been obtained from the OCS Policy Office, U.S. Department of Interior. The federal _government has already completed a "proportionate splitting" of revenues from three OCS sales currently involved in litigation, with a total of $134,012,781 being taken out of the Texas escrow account in June. The proceeds from Sale 62 had been invested in U.S. Treasury securities which matured on June 3; proceeds from Sales 58 and 58A were invested in securities maturing on June 10. On these maturity dates, the proportionate splitting was done, thereby reducing the balance in the Texas account to $700,195,000 in mid-June. The federal government has accomplished--or plans to accomplish--the same proportional splitting in escrow accounts of other states. A . description of the situation for other states follows: o Louisiana: Proceeds in the Louisiana escrow account are invested in U.S. Treasury securities that mature on August 12. On that date, the U.S. Department of Interior intends to "split" the revenues and withdraw approximately $550 million. (This date may be rescheduled to September 23 to allow more time for the new federal judge, who was recently appointed to handle the Louisiana case, to familiarize himself with the issues involved.) o California: The California escrow account was split in May and some $183 million was withdrawn. No legal action was filed by the State of California. o Alaska: Only a small amount is involved in the Alaska escrow account (approximately $100,000). The status of proportional splitting by the Interior Department has not been determined; in any event, the amount is inconsequential. o Mississippi: No leases of tracts within the 8(g) area have occurred. o Alabama: No leases of tracts within the 8(g) area have occurred. The Department of Interior has advised Mississippi and Alabama in advance, however, that proportional splitting may occur in the future. Apparently neither state has complained yet about this prospect.