[Congressional Record Volume 144, Number 148 (Friday, October 16, 1998)]
[Extensions of Remarks]
[Pages E2220-E2221]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               AMENDING OUTER CONTINENTAL SHELF LANDS ACT

                                 ______
                                 

                               speech of

                         HON. MICHAEL N. CASTLE

                              of delaware

                    in the house of representatives

                       Thursday, October 15, 1998

  Mr. CASTLE. Mr. Speaker, I rise today to express my strong support 
for H.R. 3972, a bill to amend the Outer Continental Shelf Lands Act to 
prohibit the Interior Secretary from charging state and local 
government agencies for certain uses of the sand, gravel, and shell 
resources of the outer continental shelf.
  For too long, Congress has treated outer continental sand resources 
differently than other minerals under federal control. While land-based 
oil and gas royalties are shared with states and off-shore oil and gas 
royalties are shared with state critical habitat land acquisition 
programs, royalties from off-shore sand resources are not shared with 
the states. In fact, coastal states are taxed for using these 
resources, which adds to the already expensive task of beach 
restoration. This bill is a compromise. It does not ask the federal 
government to share royalties from the sale of sand and gravel. 
Instead, it treats state and local governments the same as the federal

[[Page E2221]]

government treats itself by exempting them from burden of the sand tax.
  In addition to the fairness this restores to the coastal states 
dependent on sand resources to replenish their beaches, this bill 
enhances environmental protections in our coastal waters. Under the 
current system, states are not charged for sand mined within three 
miles of their shores. This creates an incentive to find sand resources 
within the three mile zone. However, years of industrialization has 
made some sand unfit for beach restoration use. Furthermore, fragile 
aquatic ecosystems can be disrupted if sand is removed from these 
critical areas. Although state environmental agencies are careful to 
study the environmental impact of their shore protection operations, 
financial interests and the need for environmental protection are sure 
to clash in the long run. This bill will give state environmental 
protection agencies a broader tax-free area to find suitable sand 
deposits for much needed shore protection projects, while maintaining 
the health of fragile ecosystems.
  Last year, Virginia Beach had to pay over $200,000 in taxes for 1.1 
million cubic yards of sand from the outer continental shelf. In fact, 
because they could not afford the increased cost, they had to scale 
back the shore protection project. This project will now have a shorter 
useful life and will require the local government to replace the 
project earlier than planned at a much higher cost. In the past, before 
the sand tax was imposed in 1997, environmental officials in my state 
of Delaware authorized mining of sand beyond the three mile zone. It is 
only a matter of time before environmental concerns will force them 
back to the outer continental shelf. Without this bill, Rehoboth Beach, 
Dewey Beach, Bethany Beach, Lewes Beach, and Broadkill Beach shore 
protection projects will all have to be scaled back to accommodate the 
federal government's sand tax.
  The federal government does not charge its own agencies for using 
outer continental sand and royalties for other mineral resources are 
shared with the states. At the very least, we should agree not to 
charge state and local governments a tax for using outer continental 
sand and gravel. Vote for this bill. It is a vote for fairness to the 
states and sound environmental policy.

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