MONTGOMERY – “The recent events off of Alabama’s Gulf coast clarify for all Alabamians the risks posed by petroleum and gas companies which carelessly operate off our coastline”, stated Jeremy Sherer, Democratic candidate for State Treasurer. “It is past time that reckless corporations operating off of Alabama’s coast pay their fair share to our state.”

Companies drilling for oil and gas off of Alabama’s coastline pay royalties ranging from 20% -25% of the wellhead price. Approximately two-thirds of these royalties are distributed to the Alabama Trust Fund, which is managed by the State Treasurer. Proceeds from the Alabama Trust Fund support the State General Fund, as well as local governments.

“The disastrous oil spill off of the Gulf Coast has damaged the property and personal livelihood of thousands of Alabamians. The costs associated with long-term damage caused to Alabama’s Gulf coast will far exceed the current $75 million federal cap on damages paid by offshore drilling corporations for ecological disasters. Federal and state remedial action must be taken to hold those who have caused this harm to be economically responsible.”

“The negligent operation by British Petroleum in the Gulf is merely the latest injustice committed against Alabamians by ‘Big Oil’.”

“In 2003, the Exxon Mobil Corporation was found liable by an Alabama jury for $3.6 billion in compensatory costs and punitive damages for years of shortfalls in royalty payments to state taxpayers. Big Oil fought that judgment delivered by Alabama jurists, resulting in a miniscule, unjust payment of $121 million”.

“In 2009, Alabama received $176 million in oil and gas royalty compensation. Meanwhile, BP turned a record a quarterly profit of $5.5 billion dollars in the first quarter of 2010. This, coupled with the recent ecological and economic damage caused by the oil spill, illustrates the current imbalance between the risks to citizens and corporate rewards.”

“If elected as Alabama’s next Treasurer, and manager of the Alabama Trust Fund, I will work with legislators in efforts to deliver true, just compensation for our state.”

Please contact Jeremy Faulkner at (205) 446-1342 with any questions.

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