# Understanding the Offshore Parity Act of 2024

This bill gives Louisiana, Mississippi, and Alabama control over oil, gas, and fishing in a larger area of the Gulf of Mexico than they currently manage. Right now, these states control ocean resources out to 3 miles from their coastlines. This bill would let them expand that control to 3 marine leagues (about 9 miles) if they meet certain requirements within five years. Essentially, the bill is trying to give these three Gulf states the same level of authority over offshore resources that some other coastal states already have.

The practical effect is significant for energy development and fishing. If a state meets the Secretary of Interior's requirements—showing it has enough resources to manage the expanded area and will follow federal rules—it can take over managing oil and gas leases in that new zone. This means the state would collect the money from those leases instead of the federal government, and it wouldn't have to follow some federal requirements like preparing five-year leasing plans. The states would also gain authority to manage fishing in these expanded waters, though the federal government keeps control over certain types of fish like endangered species and fish that migrate internationally.

There are important protections built in for existing oil and gas companies operating in these areas. The bill makes sure that companies with current leases won't face disruption when management switches from federal to state control. However, states must promise to protect companies from any losses caused by the transition, and the federal government can deduct any court judgments against a state from money it owes that state. The bill also requires states to take over the financial bonds that guarantee companies will properly clean up their facilities when they're done operating.