OCS Study 

MMS 98-0046 

Social and Economic Consequences 

of Onshore OCS-Related Activities 

in Coastal Alabama: 

Final Baseline Report 

Economic Baseline of the Alabama Coastal Region 

. . . 

, :, . . . 

:~ . 

01'1 

m 20 

:. 

Gulf of Mexico 

1 0Om 

U.S. Department of the Interior 

Minerals Management Service 

Gulf of Mexico OCS Region 
OCS Study 

MMS 98-0046 

Social and Economic Consequences 

of Onshore OCS-Related Activities 

i n Coastal Alabama: 

Final Baseline Report 

Economic Baseline of the Alabama Coastal Region 

Authors 

Jacqueline Q . Kelley 

William W. Wade 

Prepared under MMS Contract 

1435-01-97-CT-30829 

by 

Foster Associates, Inc. 

120 Montgomery Street, Suite 1776 

San Francisco, California 94104 

Published by 

U .S. Department of the Interior 

Minerals Management Service New Orleans 

Gulf of Mexico OCS Region April 1999 
Disclaimer 

This report was prepared under contract between the Minerals Management Service (MMS) and 

Foster Associates, Inc. This report has been technically reviewed by the MMS and approved for 

publication. Approval does not signify that the contents necessarily reflect the views and policies 

of the MMS, nor does mention of trade names or commercial products constitute endorsement 

or recommendation for use . It is, however, exempt from review and compliance with MMS 

editorial standards. 

Report Availability 

Extra copies of the report may be obtained from the Public Information Office (Mail Stop 5034) 

at the following address: 

U.S . Department of the Interior 

Minerals Management Service 

Gulf of Mexico OCS Regional Office 

Public Information Office (MS 5034) 

1201 Elmwood Park Boulevard 

New Orleans, Louisiana 70123-2394 

Telephone Number: (504) 736-2519 or 

1-800-200-GULF 

Citation 

Suggested citation: 

Kelley, J.Q. and W.W. Wade. 1999. Social and Economic Consequences of Onshore OCSRelated Activities in Coastal Alabama: Final Baseline Report, Economic Baseline of the 

Alabama Coastal Region. OCS Study MMS 98-0046 . U.S. Dept. of the Interior, 

Minerals Management Service, Gulf of Mexico OCS Region, New Orleans, La. 102 pp. 

iii 
Abstract 

The coastal region of Alabama supports several natural resource-based industries, each of which 

thrives given the existence of other, competing industries . This report documents existing 

economic conditions in the coastal Alabama region and highlights industry sectors important to 

the region's economy. This report discusses the interplay among different users of the region's 

natural resources, notably the tourism, fishing and offshore natural gas industries . Data are 

presented that show how the tourism and natural gas industries contribute to the economic growth 

of coastal Alabama and the State of Alabama. The recent conflict between the offshore gas and 

tourism industries over the use of coastal Alabama resources is discussed. Coexistence and 

conflict issues between the offshore gas industry and the recreational and commercial fishing 

industries are presented. Several case studies highlight local area experience relative to economic 

growth, industry coexistence and the importance of the coastal region's natural resources to the 

local and state economies. 

v 
Table of Contents 

List of Figures ix 

List of Tables xi 

List of Acronyms and Abbreviations xiii 

1.0 Introduction 

2.0 Description of the Coastal Region 

2 .1 Economic and Demographic Characteristics of Alabama Coastal Region 2 

2 .1 .1 Mobile County 

2.1 .2 Baldwin County 

3.0 Resource Industries of the Coastal Region 10 

3.1 Tourism 10 

3 .2 Marine Recreation 12 

3 .3 Commercial Fishing 12 

3 .4 Offshore Natural Gas 13 

4.0 Tourism 13 

4.1 Mobile County Cultural, Historic and Recreation Resources 13 

4.1 .1 City of Mobile 14 

4.1 .2 Dauphin Island 16 

4.2 Baldwin County Cultural, Historic and Recreation Resources 18 

4.2 .1 Eastern Shore 18 

4.2 .2 Gulf Shores and Fort Morgan Peninsula 18 

4.2 .3 Orange Beach 19 

4.2 .4 Other County Resources 19 

4.3 Economic Contribution to Coastal Alabama from Tourism Industry 19 

4.3 .1 Lodging (SIC 70) Establishments and Employment 20 

4 .3 .2 Food Service (SIC 58) Establishments and Employment 20 

4 .3 .3 Tourism/Recreation-Related Taxable Sales Trends 24 

4 .3 .4 Tourism/Recreation-Related Tax Revenues, State and Coastal Region 28 

5.0 Marine Recreation 41 

5.1 Pleasure Boat Registration and Boat Launching Areas 41 

5.2 Party Boat and Charter Boat Operations (Orange Beach) 43 

5.3 Fishing Permits 43 

5.4 Recreational Fish Landings Trends 44 

vii 
Table of Contents 

6.0 Commercial Fishing 50 

6.1 Commercial Fishing Vessels and Boats 50 

6 .2 Commercial Fish Landing Trends, Alabama and Gulf of Mexico 50 

6 .3 Alabama Commercial Seafood Processing 59 

7.0 Onshore Natural Gas Support Industry and 

Government Revenues 71 

7.1 Coastal Facilities 71 

7.1 .1 Port of Mobile 71 

7.1 .2 Mobile Middle Bay Port 73 

7.2 Support Bases for Offshore Natural Gas Production and Development 73 

7.2 .1 Theodore Ship Channel 75 

7.2 .2 Bayou LaBatre 75 

7.2 .3 Dauphin Island 76 

7.3 Services to Offshore Gas Industry 77 

7.3 .1 Transportation Services 77 

7.3 .2 Supply Services 77 

7.3 .3 Other Services 78 

7 .4 Ship Building 78 

7 .4 .1 Atlantic Marine 79 

7 .4 .2 Bender Shipbuilding 79 

7 .4 .3 Steiner Shipyard gp 

7.5 Revenue Contribution from Offshore Taxes and Royalties to 

State and Coastal Region gp 

7.5 .1 Natural Gas Severance Tax Revenues gp 

7.5 .2 Royalty Payments to Alabama from Offshore Gas Production 84 

7.5 .3 Mobile County Revenue Sources gs 

7.5 .4 Baldwin County Revenue Sources gg 

8.0 References and Literature Cited 96 

Case Studies 

Gulf Coast and Dauphin Island Tourism Economy - Coexistence with Natural Gas 36 

Recreational Angler User Coexistence with Natural Gas Development 49 

Relationship of Commercial Fishing Industry with Natural Gas Development 70 

Effects of Natural Gas Development on the Town of Dauphin Island 90 

Comparison of Tourism and Natural Gas Tax Revenues to Local 

Governments and State of Alabama 92 

viii 
List of Figures 

1 .1 Alabama and Mobile MSA Employment Index 3 

1 .2 Mobile MSA Employment for Selected Industry Sectors 4 

3 .1 The Alabama Coastal Region 11 

4.1 Baldwin County Table Retail Sales, FY 1986-1995 27 

5.1 Coastal Alabama Pleasure Boat Registrations 42 

5.2 Recreational Fishing Catch in Alabama, 1987-1995 45 

6.1 Commercial Fish Landings in Coastal Alabama, 1986-1995 54 

6.2 Value of Commercial Fish Landings in Coastal Alabama, 1986-1995 55 

6.3 Alabama Seafood Processing Volume and Value (2 

6.4 Total Volume of Processed Seafood for Gulf States 63 

6.5 Alabama Shrimp Processing Volume and Value 66 

6.6 Total Volume of Processed Shrimp 67 

6.7 Total Value of Processed Shrimp 68 

ix 
List of Tables 

1 .1 Population of Alabama Coastal Counties, 1979-1995 6 

1 .2 Alabama Coastal Counties' Labor Force 7 

1 .3 Alabama Coastal Counties' Personal Income g 

1 .4 Alabama Coastal Counties' Per Capita Personal Income 9 

4.1 Annual Attendance at Mobile County Tourist Attractions (1982-1995) 15 

4 .2 Mobile County Lodging Establishments and Employment 21 

4 .3 Baldwin County Lodging Establishments and Employment 22 

4 .4 Mobile County Food Service Establishments and Employment 23 

4 .5 Baldwin County Food Service Establishments and Employment 25 

4 .6 Taxable Retail Sales for Alabama Coastal Counties, 1986-1995 26 

4 .7 Taxable Retail and Lodging Sales for Alabama 

Gulf Coast Communities 29 

4 .8 Summary of Selected State Tax Collections for 

Alabama Coastal Counties 30 

4 .9 Retail Sales Tax Receipts for Alabama Coastal Communities 32 

4 .10 Lodging Tax Receipts to Baldwin County Special Lodging District 33 

4 .11 Summary of State of Alabama and Baldwin County Lodging 

Tax Receipts, FY 1990-1995 34 

5.1 Recent Pleasure Boat Registrations for Coastal Alabama 41 

5 .2 Estimated Total Number of Fish Caught by Marine Recreational 

Anglers in Alabama and the Gulf of Mexico by Year, 1990-1995 46 

5 .3 Recreational Catch in Alabama by Species, 1990-1995 48 

6 .1 Number of Commercial Fishing Vessels and Fishing Boats in the 

Gulf of Mexico Region, 1990-1994 51 

6.2 Total Commercial Fish Landings for Alabama and the Gulf Coast 53 

6.3 Total Alabama Commercial Fish Landings and Dockside Value 

by Species, 1990-1995 56 

6.4 Top Ranked Commercial Fish Landings in Alabama by Weight 

and Dockside Value 58 

6.5 Alabama Seafood Processing Volume for Selected Species 60 

6.6 Alabama Seafood Processing Value for Selected Species 61 

6.7 Alabama Shrimp Processing Production and Employment 64 

6.8 Gulf of Mexico Shrimp Processing Production and Employment 65 

xi 
List of Tables (continued) 

7.1 Port of Mobile Tonnage, 1991-1995 72 

7.2 Waterborne Freight Traffic at Mobile Harbor, AL 74 

7.3 Severance Tax Payments to Alabama and Coastal Counties 

from Offshore Gas Production in State Waters 82 

7.4 Severance Tax Payments to the Town of Dauphin Island 83 

7.5 Royalty Payments to Alabama from Offshore Gas Production in 

Federal and State Waters 85 

7.6 Mobile County Revenues g( 

7.7 Town of Dauphin Island Revenues 87 

7.8 Baldwin County Revenues 89 

xii 
List of Acronyms and Abbreviations 

The following acronyms may be used throughout this Baseline Report: 

ASD Alabama State Docks 

ADDSCO Alabama Dry Dock and Shipbuilding Corporation 

DIPBB Dauphin Island Park and Beach Board 

MRFSS Marine Recreational Fishing Statistical Survey 

MSA Metropolitan Statistical Area 

MOEPSI Mobil Offshore Exploration and Producing Southeast 

MCVC Mobile Convention and Visitors Corporation 

NAPA National Association of Port Authorities 

NNIFS National Marine Fisheries Service 

O&M Operations and Maintenance 

USACE US Army Corps of Engineers 

xiii 
Economic Baseline of the Alabama Coastal Region 

1 .0 Introduction 

In 1979, two defining events occurred in Mobile Bay : 

l . Hurricane Frederic leveled Gulf Shores in September and destroyed the bridge to 

Dauphin Island along with the lone vacation resort on the island . 

2. Mobil Offshore Exploration and Producing Southeast, Inc . discovered natural gas in 

November about a mile northeast of Dauphin Island at a depth of 21,100 feet in the 

Norphlet Formation. 

The bridge to Dauphin Island took three years to rebuild. During that tune, Gulf Shores 

initiated the building program that has converted the desolate Gulf Shores beach to 10,000 

high-rise hotel rooms and condo units that today comprise Gulf Shores and Orange Beach . 

Coinciding with the development of Baldwin County's Gulf Coast in the wake of Hurricane 

Frederic, the State of Alabama conducted the first of two major lease sales that brought in 

nearly $500 million in bonus payments and started the coastal Alabama natural gas play. In 

1982, the Federal government conducted a lease sale of offshore Alabama tracts that netted 

$220 million in bonus payments. Today a very large natural gas industry, producing over 

one BCFD, adjoins Mobile and Baldwin counties . Dauphin Island remains a sparsely 

populated island whose residents live with moderate growth, small-scale tourism and near the 

natural gas producing platforms. 

The coastal region of Alabama supports several natural resource-based industries, each of 

which thrives given the existence of other, competing industries . The objective of this report 

is to document existing economic conditions in coastal Alabama and highlight industries 

important to the region's economy. This report discusses the interplay among industries that 

use the region's natural resources . Questions addressed include : 

" How have the tourism and natural gas industries contributed to the economic growth 

of coastal Alabama and the State of Alabama? 

How will continued expansion of the coastal Alabama tourism and natural gas 

industries share the coastal resources and add to the continued health of the region 

and State of Alabama economies? 

How does changing economic power between tourism and natural gas development 

explain the recent conflict over use of coastal Baldwin County resources? 
To illuminate these themes in context, several case studies highlight regional experiences 

relative to economic growth, industry coexistence and the importance of the coastal region's 

natural resources to the local and state economies . Selected case studies include : 

" Gulf Coast and Dauphin Island Tourism Economy - Coexistence with Natural Gas 

" Recreational Angler User Coexistence with Natural Gas Development 

" Relationship of Commercial Fishing Industry with Natural Gas Development 

" Effects of Natural Gas Development on the Town of Dauphin Island 

" Comparison of Tourism and Natural Gas Tax Revenues to Local Governments and 

State of Alabama 

2.0 Description of the Coastal Region 

The coastal region of Alabama incorporates two counties: Mobile and Baldwin. These two 

counties make up the Mobile Metropolitan Statistical Area (MSA) . The City of Mobile is the 

largest population center within the Mobile MSA, situated on Mobile Bay, 50 km (31 mi) 

north of the Gulf of Mexico, in Mobile County . 

2 .1 Economic and Demographic Characteristics of Alabama Coastal Region 

The following subsections summarize general demographic and economic characteristics of 

Mobile and Baldwin counties, including population, labor force, income and industry 

presence . Figure 1 .1 compares employment growth in the Mobile MSA to total state 

growth. The employment data reflect Mobile and Baldwin counties' growth in tourism since 

Hurricane Frederic and overall health in all sectors . Employment in the two counties has 

grown nearly 50 percent since 1979, with a six percent increase in 1996 . During this same 

period, State of Alabama employment grew about 25 percent. Figure 1 .2 shows the growth 

in employment of selected industry sectors for the Mobile MSA. The data show that the 

major industry sectors in coastal Alabama are doing well . Increased growth in employment 

for the retail trade and services sectors reflects the significance of the region's tourism 

industry . The gas industry has been a small employer of local people because of the 

specialized skills required . This is changing as operating personnel relocate to the region . 

2.1.1 Mobile County 

The Mobile Bay region has a strong and diverse economic base that includes the 

manufacturing, distribution and transportation, professional services, government and 

military, and retail and wholesale trade sectors. Mobile County is a leading industrial center 

with one of the strongest industrial bases in the Southeast. Major industries include paper 

2 
160 

°0 140 

120 00 

°, 100 

80 

-- 

1979 1981 1983 1985 1987 1989 1991 1993 1995 

1980 1982 1984 1986 1988 1990 1992 1994 1996' 

Mobile MSA + Alabama 

Figure 1.1 . Alabama and Mobile MSA Employment Index. 

' 1996 data are preliminary. 

Source : Alabama Dept. of Industrial Relations, 1996. 

w 
-01 

80 

60 

40 

0 

H 

20 

0 

1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 

Construction * Retail Trade f Services H Government 

Figure 1.2. Mobile MSA Employment for Selected Industry Sectors. 

Source : US DOC, BEA, REIS, 1996 . 
products, ship building, aviation, chemicals, lumber products, textiles, seafood processing, 

and oil and gas production (Mobile Area Chamber of Commerce, 1996b) . 

Table 1 .1 presents historical population data for Mobile and Baldwin Counties since 1979. 

Between 1979 and 1995, population increased in Mobile County by almost ten percent (to a 

total of 397,400 residents) . The largest percentage increase occurred between 1985 and 

1986, when population in the county grew by 2.6 percent. Overall, Mobile County 

population growth since 1979 kept pace with the state's population growth. 

In 1995, Mobile County's total labor force included over 194,900 people, an increase of 

about 24 percent over 1980 levels . Data from the Alabama Department of Industrial 

Relations show that the annual unemployment rate in Mobile County consistently increased in 

the early part of the 1980s, rising to almost 16 percent in 1983 . Table 1 .2 shows that the 

proportion of the labor force that was unemployed began to decrease after 1983 . Variable 

rates of decline were experienced in subsequent years, and a slight increase in unemployment 

was seen during 1986. Preliminary figures for 1996 show unemployment at 5 .1 percent. 

Table 1 .3 shows data on total personal income for Mobile County from 1979 to 1994 . In 

1979, residents of Mobile County earned almost $2 .6 billion. Total personal income grew at 

an average annual rate of about seven percent over the 15-year period and totalled about $6.6 

billion in 1994. Shown in real dollars, personal income grew by 1 .5 percent annually. 

As shown on Table 1 .4, annual per capita income for residents of Mobile County has grown 

steadily over the past decade to $16,750 in 1994 . Mobile County personal income has grown 

at a slower rate than Baldwin County and the United States as a whole . In recent years, 

Mobile County residents have earned slightly less than those living in Baldwin County, with 

the largest income gap reported in 1991 . Baldwin County's real per capita income over the 

period grew at nearly twice the Mobile County annual rate . 

2.1.2 Baldwin County 

New industry has located to Baldwin County in recent years and existing businesses have 

expanded . Baldwin County capitalizes on its Gulf Coast location with a strong and growing 

tourist economy. The growth in supporting industries such as retail trade and real estate has 

boomed in the last decade . Other industries that make up Baldwin County's economic base 

include textile and apparel products manufacturing, lumber and wood products, and forestry 

and fishery products . Emerging professional service sectors include finance and insurance 

(South Alabama Regional Planning Commission, 1993) . 

Baldwin County's population has grown considerably in recent years . Table 1 .1 shows that 

population in Baldwin County between 1979 and 1995 increased by almost 57 percent (to a 

total of 120,200 residents) . The most significant population growth occurred from 1993 to 

1994, when population increased by more than four percent. The significant change in 

Baldwin County's population since 1979 is due largely to the attractiveness of the coastal 

region . Notably, the cities of Gulf Shores and Orange Beach in southern Baldwin County 

have, in recent years, become popular recreation areas and tourist destinations due to the 

5 
Table 1.1 

Population of Alabama Coastal Counties, 1979 -1995 

Mobile County Baldwin County Alabama Total 

Population % Change Population % Change Population % Change 

1979 361,700 -- 76,600 -- 3,869,400 -- 

1980 365,300 1 .00 79,000 3.13 3,902,500 0.86 

1981 364,100 -0.33 80,300 1 .65 3,918,400 0.41 

1982 368,800 1 .29 83,300 3.74 3,925,300 0.18 

1983 368,100 -0.19 83,900 0.72 3,934,300 0.23 

1984 366,600 -0.41 86,500 3.10 3,952,200 0.45 

1985 366,400 -0.05 89,200 3.12 3,973,000 0.53 

1986 375,900 2.59 91,700 2.80 3,992,100 0.48 

1987 377,200 035 93,600 2.07 4,015,800 0.59 

1988 375,600 -0.42 95,200 1 .71 4,024,400 0.21 

1989 377,000 0.37 96,900 1 .79 4,030,200 0.14 

1990 379,100 0.56 98,900 2.06 4,048,300 0.45 

1991 383,100 1 .06 102,200 334 4,086,900 0.95 

1992 388,200 1 .33 106,200 3 .91 4,131,200 1 .08 

1993 394,100 1 .52 110,800 4.33 4,180,700 1 .20 

1994 396,500 0.61 115,700 4.42 4,218,700 0.91 

1995 397,400 0.23 120,200 3 .89 4,253,000 0.81 

1979-1995 9.87 56.92 9.91 

Source : USDOC, BEA/REIS, 1996 ; South Alabama Regional Planning Commission, 1996 . 
Table 1.2 

Alabama Coastal Counties' Labor Force 

Mobile County Baldwin Coun ty 

County Unemployment County Unemployment 

Labor Force Employment Rate % Labor Force Employment Rate 

1979 ' 153,540 140,980 8.2 31,710 29,560 6.8 

1980 156,760 145,160 7.4 32,530 30,290 6.9 

1981 159,710 144,450 9.6 32,720 30,150 7.9 

1982 160,820 138,500 13 .9 33,560 29,540 12 .0 

1983 164,950 138,870 15 .8 34,310 30,130 12 .2 

1984 166,450 145,530 12 .6 36,260 32,380 10 .7 

1985 166,280 150,540 9.5 37,070 34,140 7.9 

1986 171,950 152,640 11 .2 39,580 36,160 8.6 

1987 172,860 156,050 9.7 39,970 36,940 7.6 

1988 169,410 153,890 9.2 40,170 36,970 8.0 

1989 172,100 156,880 8.8 40,400 37,690 6.7 

1990 169,360 157,500 7.0 46,360 43,910 5.3 

1991 175,080 162,880 7.0 49,100 46,420 5.5 

1992 182,060 167,380 8.1 52,140 48,930 6.2 

1993 187,340 171,190 8.6 54,880 51,440 6.3 

1994 190,420 176,890 7.1 57,880 55,150 4.7 

1995 194,950 180,620 7.4 59,390 56,310 5.2 

' Not comparable to other years due to changes in methodology. 

Source : AL Department of Industrial Relations, 1996. 

v 
00 i 

Table 1.3 

Alabama Coastal Counties' 

(Millions) 

Personal Income 

Mobile County Baldwin County 

Current $ 1979$1 Current $ 1979$' 

1979 $2,591 $2,591 $537 $537 

1980 $2,927 $2,579 $606 $534 

1981 $3,262 $2,605 $710 $567 

1982 $3,398 $2,556 $746 $561 

1983 $3,508 $2,557 $824 $601 

1984 $3,747 $2,618 $915 $639 

1985 $3,979 $2,685 $1,011 $682 

1986 $4,219 $2,795 $1,093 $724 

1987 $4,380 $2,799 $1,164 $744 

1988 $4,601 $2,823 $1,251 $768 

1989 $4,915 $2,877 $1,373 $804 

1990 $5,260 $2,922 $1,498 $832 

1991 $5,642 $3,007 $1,650 $880 

1992 $6,044 $3,127 $1,801 $932 

1993 $6,338 $3,184 $1,974 $992 

1994 $6,641 $3,253 $2,142 $1,049 

Growth Rate 1979-1994 6 .48% 1 .53% 9.66% 4.57% 

' Based on Consumer Price Index for all items. 

Source: USDOC, BEA/REIS, 1996; US DOC, Bureau of Census, 1996b. 
Table 1.4 

Alabama Coastal Counties' Per Capita Personal Income 

Mobile County Baldwin County United States 

Current $ 1979$1 Current $ 1979$1 Current $ 1979$1 

1979 $7,162 $7,162 $7,010 $7,010 $9,105 $9,105 

1980 $8,012 $7,059 $7,669 $6,757 $10,307 $9,081 

1981 $8,960 $7,156 $8,844 $7,064 $11,132 $8,891 

1982 $9,214 $6,932 $8,953 $6,736 $11,707 $8,808 

1983 $9,531 $6,947 $9,817 $7,156 $12,340 $8,995 

1984 $10,221 $7,142 $10,582 $7,394 $13,560 $9,475 

1985 $10,859 $7,327 $11,335 $7,648 $14,421 $9,730 

1986 $11,224 $7,435 $11,920 $7,896 $15,155 $10,039 

1987 $11,611 $7,420 $12,429 $7,943 $15,966 $10,204 

1988 $12,250 $7,518 $13,139 $8,063 $17,028 $10,450 

1989 $13,036 $7,632 $14,175 $8,299 $18,147 $10,625 

1990 $13,873 $7,706 $15,144 $8,412 $19,170 $10,648 

1991 $14,726 $7,850 $16,150 $8,609 $19,663 $10,481 

1992 $15,569 $8,056 $16,954 $8,773 $20,609 $10,664 

1993 $16,084 $8,081 $17,811 $8,949 $21,224 $10,663 

1994 $16,751 $8,206 $18,517 $9,071 $22,059 $10,806 

Growth Rate 1979-1994 5 .83% 0.91% 6 .69% 1 .73% 6 .08% 1 .15% 

' Based on Consumer Price Index for all items. 

Source: USDOC, BEA/REIS, 1996; USDOC, Bureau of Census, 1996b. 
availability of beach-front property, fine sand beaches and abundant recreational 

opportunities . Baldwin County has 32 miles of Gulf beaches for swimming, fishing and 

boating . Growth in the tourist trade during this time contributed significantly to the county's 

population boom. 

Baldwin County's labor force grew by over 80 percent from 1980 to 1995, as shown in 

Table 1 .2 . This growth reflects significant tourism-driven expansion of the service and trade 

sectors in the county during this period . Similar to Mobile County, the proportion of the 

labor force that was unemployed increased steadily from 1979 to 1983, reaching a high of 

12.2 percent. Unemployment levels in Baldwin County never reached the levels experienced 

in Mobile County . In subsequent years, the number of unemployed persons decreased 

overall, although the rate increased in 1986 and 1988 . In 1996, unemployment in Baldwin 

County was 4.3 percent (preliminary data), lower than Mobile County. 

Table 1 .3 shows data on total personal income for Baldwin County from 1979 to 1994 . 

Baldwin County's average annual rate of growth in personal income was more than 50 

percent higher than for Mobile County . Personal income in current dollars increased by 

more than 16 percent annually, and totalled over $2.1 billion in 1994. Shown in real dollars 

annual growth was 4.6 percent, three times the Mobile County growth rate . 

Table 1 .4 shows that annual per capita income for residents of Baldwin County has steadily 

increased over the past decade, from $7,000 to $18,500 (current dollars). Baldwin County 

per capita income is less than the U.S. average but in recent years, residents of Baldwin 

County have earned slightly more than those living in Mobile County, with the largest 

income gap reported in 1991 . In that year, people living in Baldwin County earned about 

five percent more in annual income. 

3.0 Resource Industries of the Coastal Region 

This report focusses on four primary industries which contribute to the economic vitality of 

the Alabama coastal region . The coastline, from east to west, includes Orange Beach, Gulf 

Shores, Dauphin Island and Bayou LaBatre, and is shown on Figure 3 .1 . These industries 

include tourism, marine recreation, commercial fishing and offshore natural gas . Each 

industry depends on the coastal resources for continued economic growth. In the following 

subsections each industry sector is briefly discussed in relation to the Alabama coastal region. 

Sections 4 through 8 discuss each industry in greater detail and present data which reflect the 

importance of these industries to the coastal region's economy . 

3.1 Tourism 

The tourism industry has experienced significant growth in coastal Alabama during the past 

decade. Coastal Alabama contains beautiful sand beaches, abundant wildlife, and a multitude 

of marine and freshwater recreation opportunities. Alabama's location on the Gulf of 

Mexico also provides access to nearby recreation areas such as those in Florida and 

Mississippi. Tourists and residents alike travel to the coastal areas of Mobile and Baldwin 

10 
~-I l.\ 

Net 

m 

V 

,(, 

rl 

t 

" Ear 8-a! : 41 \" 

gIN ISLAND -- 18 ~. e.w 

National WVWA& 

M.eo. n 

_- 

s s.raY ~W.,.a 

Figure 3.1 . The Alabama Coastal Region . 

Source: Alabama Dept . of Conservation, 1996d. 
Counties to enjoy the natural surroundings, to explore historic sites such as those on Dauphin 

Island and the Fort Morgan peninsula, and to take advantage of vacation spots on Baldwin 

County's eastern shore, notably Point Clear, and in the Gulf Coast communities of Gulf 

Shores and Orange Beach. 

A growing number of tourists and residents are attracted to Baldwin County's coastline, 

characterized by "sugar-fine, snow-white sand" and the availability of sportfishing and other 

marine recreation opportunities . The popularity of Alabama's beaches and Gulf Coast 

environment has spawned an increased number of vacation-lodging establishments, 

condominium complexes, and associated tourist trade. 

The City of Mobile boasts fine recreational opportunities as well, although they are not 

geared entirely toward Gulf Coast resources . Mobile is home to several historic landmarks, 

such as the world class Bellingrath Gardens, and maintains a reputation for hospitality as 

well for being the "birthplace of Mardi Gras ." In recent years the City of Mobile has 

invested in a number of redevelopment projects, such as a new downtown convention center, 

designed to lure business, industry and tourists to the region . 

The coastal Alabama tourism industry is further discussed in Section 4.0. 

3.2 Marine Recreation 

Mobile Bay and the Alabama Gulf Coast provide abundant opportunities for various forms of 

marine recreation, notably boating and fishing. The waters offshore Alabama are home to 

several popular sportfishing species and a growing charter fishing fleet. Access to the water 

resources is available all around the Mobile Bay region via numerous public and private boat 

launching areas and fishing piers . Popularity of game fishing in the Gulf of Mexico has 

increased in recent years as well as the stock of native game fish in the local waters. 

Saltwater sport fishermen in the region are increasingly active in support of marine 

conservation measures ensuring designated game fish habitat . Due to the presence of 

commercial fishing in the region, these conservation measures protect important game fish 

from commercial harvest. Other conservation and enhancement measures supported in the 

region include the establishment of artificial reefs, fish restocking programs and marine 

habitat restoration. 

The coastal Alabama marine recreation industry is further discussed in Section 5 .0. 

3 .3 Commercial Fishing 

The Alabama Gulf Coast has for years supported a significant commercial fishing industry . 

Alabama is perhaps best known for its bountiful shrimp harvests, which by far represent the 

greatest percentage of commercial fish landings in Alabama. The magnitude of Alabama's 

commercial fishing fleet has fluctuated over tune, largely due to cyclical conditions and 

industry corrections, but its presence in Alabama significantly contributes to the economic 

vitality of the coastal region. The capital of Alabama's commercial fishing industry is Bayou 

LaBatre, located in south Mobile County. Bayou LaBatre, offering a channel into the Gulf 

12 
of Mexico, houses the majority of the industry's fishing fleet, as well as numerous seafood 

processing facilities . 

The coastal Alabama commercial fishing industry is further discussed in Section 6 .0. 

3.4 Offshore Natural Gas 

The discovery of large quantities of natural gas in Alabama's offshore waters in 1979 led to 

enthusiastic development of the resource which initiated need for an offshore support industry 

based out of Mobile County. To date, the natural gas industry has completed over 50 

producing wells in state and federal Alabama waters . These wells produce over 1 BCFD and 

are located in Mobile Bay, just south of Mobile Bay in federal (OCS) waters and in the 

Mississippi Sound northwest of Dauphin Island . The State of Alabama and coastal counties 

Mobile and Baldwin have benefitted from increasing offshore natural gas development. 

Hundreds of millions of dollars have been collected by the State of Alabama in bonus 

payments, royalties and severance taxes related to offshore natural gas leasing, development 

and production. The coastal counties receive a percentage of the tax collections which 

benefit county and local governments . 

The coastal Alabama offshore natural gas industry is further discussed in Section 7.0 . 

4.0 Tourism 

The coastal Alabama region has developed into a leading vacation destination spot. The 

region has capitalized on the growing popularity of Alabama's beaches and marine recreation 

opportunities and has directly benefitted from this development in terms of jobs created and 

tax revenues collected. In 1995, tourists across Alabama spent $4.6 billion, an estimated 7.4 

percent increase over the previous year and a 60 percent increase since 1989. Tourism 

expenditures in Alabama's Gulf Coast region amounted to about 28 percent of this, totalling 

$1 .3 billion (Davidson-Peterson Associates, 1995a) . 

This section describes the tourism and recreation resources located in Mobile and Baldwin 

counties, emphasizing the region's dependence on its natural resources. The coastal 

communities that largely support the tourism industry are highlighted . Tourism in the region 

has significantly contributed to the region's economic base, funneling millions of dollars in 

tax revenues to the state, coastal counties and local municipalities . Data are presented to 

reflect this economic stimulus and the impact these revenues have had on the coastal 

communities . At the end of the section a case study is presented which discusses the 

coexistence between the tourism industry located along the coast and the presence of the 

offshore gas industry . 

4.1 Mobile County Cultural, Historic and Recreation Resources 

Many attractions draw visitors to Mobile County in contrast to the resort beaches which are 

the economic mainstay of neighboring Baldwin County to the east . A combination of 

13 
history, architecture, weather, established events, natural features and its waters brings 

travelers to Mobile County. 

4.1.1 City of Mobile 

Mobile is situated at the head of 30-mile long Mobile Bay, first named the Bay of the Holy 

Spirit by explorer Alonso Alverez de Pineda, a companion voyager of Columbus. The area 

was settled after 1699 when the LeMoyne brothers, Iberville, and Bienville, landed on 

Dauphin Island . Mobile, a colonial city established in 1711 during the reign of Louis XIV, 

became the capital of the French empire along the Gulf of Mexico . Mobile is called the 

"City of Six Flags" because in the past it was ruled by several colonial powers, including 

England, France and Spain. 

Today only Fort Conde, reconstructed during America's Bicentennial year by the City of 

Mobile, gives tourists a view of colonial era structures . In 1996 more than 68,000 people 

visited the Fort Conte Visitor Information Center which serves as Mobile's downtown 

welcome center (Fort Conde, 1996 .) The city's collection of other historic Gulf Coast 

architecture, ante-bellum homes and museums draws about 100,000 visitors each spring for 

pilgrimages, according to sponsor Historic Mobile Home tours . 

The Convention and Visitor Department of the Mobile Area Chamber of Commerce began in 

the mid-1980s to strategically plan to attract conventions to Mobile . Meeting planners from 

around the country are invited to visit the city during special events such as Mardi Gras, the 

Azalea Festival and the Senior Bowl . Azaleas are Mobile's symbol of hospitality, and the 

Azalea Festival kicks off the early spring touring season in March when visitors can follow a 

37-mile pink line in the streets bordered by blooms . The three-month-long festival began in 

1929. The Senior Bowl began in 1951 and is the major post-season football game featuring 

outstanding college seniors from across the nation . 

By publicizing events, the chamber's tourism department tried to promote Mobile as a 

destination rather than a stopping point for visitors traveling through to other points . 

The Mobile Convention and Visitors Corporation (MCVC), which now oversees tourism, 

focuses on the convention business also. MCVC reports that the economic impact of 

convention delegates to the city from October 1995 and September 1996 was over $180 

million. This figure is based on visits by 250,000 conventioneers during that period . 

Primary destination spots in Mobile County include historic Bellingrath Gardens and Home, 

the USS Alabama/Battleship Park and Greyhound Park. Local industry analysts target these 

three destinations as the main indicators of tourist activity in the county (University of South 

Alabama, 1996a) . Table 4 .1 shows historic attendance at these attractions since 1982 . 

Bellingrath Gardens and Home, located a few miles southwest of the Theodore Industrial 

Complex in southern Mobile County, is a beautifully landscaped estate that has been placed 

on the National Register of Historic Places . Known as the "Charm Spot of the Deep South," 

the gardens bloom throughout the year and have been open to the public since 1932. 

Attendance at Bellingrath Gardens in 1982 was 163,271, down to 158,285 in 1995 with a 

14 
Table 4.1 

Annual Attendance at Mobile County Tourist Attractions 

(1982-1995) 

Bellingrath USS Mobile 

Gardens Alabama Greyhound Park 

1982 163,271 276,766 645,525 

1983 155,708 272,262 728,305 

1984 184,836 294,197 749,704 

1985 166,072 284,803 802,657 

1986 189,890 304,350 838,046 

1987 195,810 315,792 863,764 

1988 186,713 322,999 745,863 

1989 178,589 330,955 692,330 

1990 185,016 328,323 648,031 

1991 169,453 323,601 637,729 

1992 201,990 314,948 591,926 

1993 148,186 298,568 466,826 

1994 172,173 270,042 409,296 

1995 158,285 265,886 360,818 

Source: University of South Alabama 1996a. 
record 201,990 visitors in 1992. The fluctuation in attendance at this attraction, in part, can 

be explained by the recent opening of gambling attractions in neighboring Mississippi. 

Visitation also depends on the number of travelers passing through the area on the way to 

Florida beaches . 

The historic USS Alabama, a 35,000-ton decommissioned battleship, is permanently moored 

in Mobile Bay. This ship saw action in every major naval conflict during World War II and 

now hosts tours and special demonstrations, drawing some 300,000 visitors annually. 

Visitation has remained fairly constant during the past decade, fluctuating from 276,766 in 

1982 to 265,886 in 1995 with a high of 330,955 visitors in 1989. The gradual decrease is 

attributed to the aging of the WWII veterans who used to visit, according to battleship staff 

who reported that most visits now are often on impulse and based on traffic on adjacent 

Interstate 10 (USS Alabama, 1996) . 

Mobile Greyhound Park, located in Theodore, a suburb of Mobile, attracts visitors and 

residents from nearby states to wager their dollars on daily dog races. Visitation to the 

Greyhound Park reached 870,000 people in the mid-1980s but declined to about 600,000 

visitors in 1992. In 1995 the dog track had an attendance of only 360,818 . Local economic 

analysts attribute this decline to competition from riverboat casinos in nearby Mississippi 

which opened in 1992 and from the Florida state lottery (University of South Alabama, 

1993b) . Gambling is illegal in Alabama where several bills to legalize gambling have died in 

the state legislature (MCVC, 1996). 

Mobile's mild climate also promotes outdoor recreation such as fishing and golfing, which 

are promoted as major visitor attractions in coastal Alabama. Just west of Mobile is 

Magnolia Grove Golf Course, built in the early 1990s . One of seven courses along 

Alabama's Robert Trent Jones Golf Trail running across the state, the facility features 54 

holes in addition to two championship 18-hole courses and a 18-hole short course . Other 

public greens include 18-hole courses such as Azalea City Golf Course, Spring Hill College 

Golf Course and the Linksman Club . Bay Oaks Golf Club in Bayou LaBatre south of 

Mobile features an 18-hole course as does the Isle Dauphin Golf Club on the beach at 

Dauphin Island within sight of several gas production platforms. 

4.1.2 Dauphin Island 

Dauphin Island is a barrier island 14 miles long and one mile wide and is located 

approximately three miles from the mainland, 40 miles south of Mobile. Dauphin Island has 

two main roads, one which runs east to west for seven miles, the other connecting the island 

to the mainland bridge . The remaining seven miles of the island are uninhabited. Dauphin 

Island is known for its rustic environment and relaxing beaches. A few thousand residents 

permanently live on Dauphin Island and seasonal residents and vacationers increase this total 

during the warm summer months . The campground on Dauphin Island has become a winter 

destination for "snowbirds" who contribute to the island's tourism business . Dauphin Island 

has limited recreational opportunities, largely centered around its waters . The primary 

16 
attractions include its beaches, historic Fort Gaines, the Dauphin Island Sea Lab and 

Estuarium, the Audubon Bird Sanctuary, and facilities for picnicking, camping and boating. 

Fort Gaines, a Civil War fort on the east end of the island, is owned and operated by the 

Dauphin Island Park and Beach Board (DIPBB). The fort, established in 1821, saw action in 

the famous Battle of Mobile Bay. Fort Gaines is one of the main tourist attractions on the 

island and in 1996 had attendance of almost 47,000 people . This reflects a 20 percent 

increase in visitation from 1993 levels . 

The Dauphin Island Sea Lab is located on 36 acres on the eastern end of Dauphin Island . 

Facilities include a 27-building complex, two research vessels, laboratories and a specialized 

marine science library . In 1971 the Alabama legislature created a non-profit public 

corporation known as the Marine Environmental Sciences Consortium . This consortium 

owns and operates the Dauphin Island Sea Lab, the center for marine research, conservation 

and educational programs in the State of Alabama. The consortium is governed by a Board 

of Directors consisting of the presidents of 21 colleges and universities within the State of 

Alabama. The Sea Lab is the center for marine education and research and offers programs 

ranging from school day-trips to graduate education at the masters and doctorate levels . 

Land on Dauphin Island is owned either by private parties individually, by the Property 

Owners Association, which holds some private land for communal use of property owners 

(such as the golf club), or by the DIPBB, which holds title to lands designated for public 

access, such as beaches, Fort Gaines, the Audubon Bird Sanctuary, selected public picnic 

areas, campground, and boat launches, the fishing pier, and the ferry landing and Bar Pilots 

dock. The areas owned by the DIPBB are located primarily on the eastern end of the island . 

Public access to the island was an important feature behind the financial supporters of the 

original 1953 bridge project. The western end of the island is largely owned by private 

parties and remains undeveloped beyond the end of the main road, which traverses only half 

the island . 

In stark contrast to Gulf Shores, virtually all buildings, except the Dauphin Island Sea Lab, 

are less than two stories, mostly one-story structures on stilts to achieve the building 

restriction of 8-9 feet above mean sea level. Virtually all residential houses are detached 

single family dwellings. Much of this housing stands unused most of the time, being owned 

by local area (Mobile) residents and used for vacation properties, sometimes rented to 

vacationers. The lone vacation resort that existed prior to Hurricane Frederic was never 

rebuilt. Dauphin Island today offers a few small-scale motels and rental properties. 

According to current housing information, accommodations on the island include eight 

establishments with about 100 units available for rent (Dauphin Island Development 

Network, 1996). The few restaurants and bars located on Dauphin Island cater to only a few 

hundred customers at any one time . 

The two-lane road that runs from the eastern end to the middle of the island is not built to 

accommodate heavy summer traffic. Consequently, the proposed development of two miles 

of new properties beyond this is a concern to town officials . The Alabama Forever Wild 

Land Trust reportedly wants to buy the west end and preserve it from development. 

17 
4.2 Baldwin County Cultural, Historic and Recreation Resources 

Baldwin County, Alabama, located along Alabama's Gulf Coast, has a land area of almost 

1,600 square miles . Baldwin County capitalizes on its Gulf Coast location with a strong and 

growing tourist economy. Communities along Baldwin County's Gulf Coast have become 

popular recreation areas and tourist destinations due to the availability of beach-front 

property, pristine beaches and abundant recreational opportunities . 

The Gulf Coast is Baldwin County's dominant feature and supports the county's most 

lucrative industry - tourism. Baldwin County's Gulf Coast boasts 32 miles of coastline, 

catering to beach-goers, anglers and other recreation enthusiasts . The largest communities 

along Baldwin County's Gulf Coast are those of Gulf Shores and Orange Beach. The Fort 

Morgan peninsula, located on the western tip of the coastline, is sparsely populated. Mainly 

vacation properties and Fort Morgan are on the western tip . 

4.2 .1 Eastern Shore 

The oldest resort area in Baldwin County is Point Clear, located on the eastern shore of 

Mobile Bay near Fairhope . A place where wealthy Mobilians have always summered, the 

bayside resort is centered around the Marriott's four-star Grand Hotel . With 450 employees, 

the hotel, known for its excellent service, is the fourth largest employer in the Eastern Shore 

area (Eastern Shore Chamber of Commerce, 1996) . 

Point Clear, featuring bayfront summer mansions and moss-covered oaks, stands in strong 

contrast to sandy beaches and new condominiums on the Gulf Coast. Gulf Shores, one of 

two towns on the narrow 32-mile-long Baldwin County coastline, didn't have a single condo 

prior to Hurricane Frederic in 1979 . Heavy development began following the storm which 

brought national attention to the area. 

4.2.2 Gulf Shores and Fort Morgan Peninsula 

The City of Gulf Shores and environs provide many recreational opportunities for enjoyment 

of the coastal environment. Located on or near the coast are several parks that provide 

access to miles of hiking trails, nature preserves, wildlife exhibits and other recreational 

facilities . These parks include the Bon Secour National Wildlife Refuge, Gulf State Park and 

other City of Gulf Shores parks. Other recreational resources include boat launch areas and 

marinas, golf courses, dining and shopping. 

Visitor accommodations in Gulf Shores consist of hotels, motels and condominiums . There 

currently are 1,252 hotel and motel rooms in Gulf Shores and as of April 1996, 80 more 

were under construction . Condominiums greatly outnumber hotels and motels, with 2,894 

listed as existing, new or converted. An additional 121 are currently pre-sold or under 

construction . (GCCVB, 1996b) 

The Fort Morgan peninsula offers historic and cultural resources . Fort Morgan was 

constructed to guard the entrance to Mobile Bay. The brick fort was completed in 1834 and 

18 
to this day remains intact . Fort Morgan is now home to a park and museum which chronicle 

the fort's history and its importance from the Civil War through World War II . Among the 

historical highlights is Fort Morgan's stature as one of the last Confederate forts to fall to 

Union forces during the Civil War. This event took place after the famous Battle of Mobile 

Bay in 1864 (Compass Marketing, 1996) . 

Fort Morgan is also a gateway to Dauphin Island, providing seasonal ferry service across 

Mobile Bay to residents and tourists . There are few visitor accommodations in Fort Morgan 

compared to those available in nearby Gulf Shores and Orange Beach . The Fort Morgan 

peninsula has no hotels or motels, but condominiums have begun to sprout up . Currently 

there are 524 existing and 140 pre-sold condominiums in Fort Morgan. (GCCVB, 1996b) 

4 .2 .3 Orange Beach 

Nearby Orange Beach on the eastern end of Baldwin County's coastline was a charter fishing 

village of 400 year-round residents when it was incorporated in 1984 . Now it has about 

4,000 residents and thousands of condo units . Charter fishing is still a primary business in 

Orange Beach and continues to benefit by the growth in tourism. Other recreation 

opportunities include several public access points for boating and fishing, such as launching 

ramps and docks, piers and several marinas. Dive services are based in Orange Beach for 

those who enjoy the Gulf waters. Cultural points of interest in Orange Beach include the 

Orange Beach Indian and Sea Museum and the Orange Beach Recreation Center. 

Visitor accommodations in Orange Beach consist of hotels, motels and condominiums . 

There currently are 814 hotel and motel rooms in Orange Beach and as of April 1996 120 

more were under construction . Condominiums greatly outnumber hotels and motels, with 

3,650 listed as existing or new. An additional 1,083 are currently pre-sold or under 

construction . (GCCVB, 1996ti) 

4.2.4 Other County Resources 

Baldwin County outside of the coastal communities offers many more recreational resources. 

These include several nature preserves, parks and wildlife refuges, such as the Bon Secour 

National Wildlife Refuge, Gulf State Park, Weeks Bay National Esturarine Research 

Reserve, Biophilia Nature Center and Minamac Wildflower Bog. 

The county also has 12 golf courses, seven of which are located in the Gulf Coast region . 

Other courses are located in Foley, Bay Minette, Fairhope and Daphne . 

4.3 Economic Contribution to Coastal Alabama from Tourism Industry 

The growth of tourism in Mobile and Baldwin counties during the past decade can be 

measured by identifying changes in industry characteristics . The economic health of the 

tourist economy is largely characterized by trends in tourist-related services, such as eating, 

drinking and lodging establishments. The following sections discuss recent trends in these 

industry sectors for each county, characterized by data on selected two-digit SICs . Data 

19 
reviewed includes total establishments and employment, taxable sales and tax receipts. For 

Baldwin County, data on two communities, Gulf Shores and Orange Beach, are highlighted. 

4.3 .1 Lodging (SIC 70) Establishments and Employment 

Lodging establishments in Mobile County increased by about 25 percent from 1979 to 1994, 

with few annual fluctuations . Based on 1994 data for Hotels and Other Lodging Places (SIC 

70), 54 establishments were recorded in Mobile County (US DOC, Bureau of Census, 1981-

1996a). Lodging establishments increased steadily through the mid-1980s but experienced a 

dip during 1988 and 1989, as shown on Table 4.2 . This downturn was short-lived, however, 

as the number of establishments increased in 1990 and again in 1993 and 1994 . 

Historical employment associated with lodging establishments reflects a flat trend, with wide 

fluctuations from year to year. In fact, net employment declined from 1979 to 1991 even as 

the number of establishments grew . In recent years, however employment has steadily 

increased, recording the highest level in many years in 1994 . (See Table 4.2 .) Data on 

annual payroll reflect both variable employment levels during the 1980s and growth in recent 

years . In current year dollars, payroll grew over 150 percent since 1979 ; inflation adjusted, 

real wages grew by only about 25 percent. For Mobile County, annual earnings in current 

year dollars for lodging establishments grew from $10 .7 million in 1979 to about $27 .5 

million in 1994 . In real dollars growth was less significant, reflecting only about 26 percent 

growth since 1979 . Earnings increased annually until 1986 when they declined slightly for a 

few years. Earnings have steadily increased since 1990. 

Much of the coastal tourist economy in Baldwin County was adversely affected by Hurricane 

Frederic in 1979 . Data on Baldwin County's lodging industry, shown on Table 4.3, reflect 

this event. These data summarize lodging establishments and associated employment, payroll 

and earnings from 1979 to 1994 . A reconstruction period took place during the early 1980s, 

after which employment and annual earnings continued to increase even as the number of 

establishments fluctuated, resulting in a small net increase from 1979 to 1994. The number 

of lodging establishments increased by almost 50 percent from 1979 to 1983, when 31 

establishments were registered. Growth in Baldwin County's lodging industry during the 

1980s was most significant in terms of annual payroll and earnings. Since 1979, annual 

earnings grew from $6 .0 million to $30 .8 million in 1994, a five-fold increase . During this 

period current dollar payroll quadrupled. Measured in constant 1979 dollars, real incomes 

grew at 5 .1 percent annually and earnings grew at 6 .3 percent annually. These rates of 

growth reflect the importance of this industry sector to Baldwin County's economic growth. 

4.3 .2 Food Service (SIC 58) Establishments and Employment 

The number of eating and drinking establishments in Mobile County has increased by about 

40 percent since 1979 with almost 550 establishments registered in 1994 under SIC 58, 

Eating and Drinking Places (US DOC, Bureau of Census, 1981-1996a) . Table 4.4 

summarizes the number of establishments in Mobile County and their associated 

employment, payroll and earnings since 1979. In 1994, 547 eating and drinking 

establishments in Mobile County employed about 10,300 people . Employment since 1979 

20 
Table 4.2 

Mobile County Lodging Establishments and Employment (SIC 70) 

Number of 

Establishments Employment 

Annual Payroll 

(millions) 

Current $ 1979$ 

Annual Earnings 

(millions) 

Current $ 1979$ 

1979 43 2,163 $7 .6 $7 .6 $10.7 $10.7 

1980 45 1,575 $8 .4 $7 .4 $12.8 $11 .3 

1981 49 1,856 $11 .5 $9.2 $12.5 $10.0 

1982 47 1,578 $10 .1 $7 .6 $12.4 $9.3 

1983 52 976 $7 .2 $5 .2 $14.8 $10.8 

1984 53 1,127 $8 .0 $5 .6 $17.8 $12.4 

1985 53 1,304 $8 .7 $5 .9 $20.4 $13 .8 

1986 54 1,176 $8.6 $5 .7 $21 .6 $14.3 

1987 55 1,148 $7.4 $4 .7 $20.4 $13 .0 

1988 49 902 $6.7 $4.1 $19 .3 $11 .8 

1989 46 1,031 $7.7 $4.5 $23 .3 $13 .6 

1990 50 1,285 $11 .8 $6.5 $22 .4 $12 .4 

1991 50 1,335 $12.3 $6.5 $24 .0 $12 .8 

1992 50 1,374 $14.6 $7.6 $25.0 $12 .9 

1993 51 1,439 $15 .3 $7.7 $26.0 $13 .1 

1994 54 1,890 $19.1 $9.4 $27.5 $13 .5 

Source : US DOC, Bureau of Census, 1981-1996a, b; US DOC, BEA, REIS, 1996. 

N 
N 

N 

Table 4.3 

Baldwin County Lodging Establishments and Employment (SIC 70) 

Number of 

Establishments Em 

Annual Payroll 

(millions) 

Current $ 1979$ 

Annual Earnings 

(millions) 

Current $ 1979$ 

1979 21 651 $3 .8 $3.8 $6.0 $6.0 

1980 25 350 $4.0 $3.5 $6 .4 $5 .6 

1981 24 643 $5 .3 $4.2 $8 .6 $6.8 

1982 28 823 $5 .1 $3.9 $9.6 $7 .2 

1983 31 627 $6.0 $4.4 $10.1 $7 .3 

1984 28 730 $7 .3 $5.1 $11 .6 $8 .1 

1985 28 890 $7 .6 $5.2 $12 .0 $8 .1 

1986 23 870 $7.5 $5.0 $12 .7 $8 .4 

1987 28 823 $7 .6 $4.9 $16 .4 $10 .5 

1988 23 1,082 $11 .4 $7.0 $18 .3 $11 .2 

1989 22 1,063 $12.2 $7.1 $20.3 $11 .9 

1990 22 1,188 $12.9 $7.2 $23 .7 $13 .2 

1991 24 1,184 $13 .7 $7.3 $26.0 $13 .9 

1992 25 1,340 $14.8 $7.7 $27 .0 $14 .0 

1993 29 1,318 $16.1 $8.1 $28 .1 $14 .1 

1994 28 1,228 $16 .3 $8.0 $30 .8 $15 .1 

Source: US DOC, Bureau of Census, 1981-1996a,b ; US DOC, BEA, REIS, 1996. 
Table 4.4 

Mobile County Food Service Establishments and Employment (SIC 58) 

Annual Payroll Annual Earnings 

Number of (millions) (millions) 

Establishments Emplovment Current $ 1979$ Current $ 1979$ 

1979 364 6,119 $28 .3 $28.3 $42 .2 $42 .2 

1980 354 6,922 $33 .2 $29.2 $47 .5 $41 .9 

1981 362 6,746 $35 .1 $28.0 $50.6 $40.4 

1982 366 6,469 $36 .9 $27.7 $53 .8 $40.5 

1983 428 6,443 $40 .1 $29.2 $59.1 $43 .1 

1984 459 6,641 $41 .6 $29.1 $61 .3 $42 .8 

1985 439 7,021 $45 .3 $30.6 $67 .7 $45 .7 

1986 464 7,767 $50 .3 $33 .3 $74 .8 $49.5 

1987 499 8,238 $53.0 $33 .9 $82 .3 $52 .6 

1988 458 8,109 $55.5 $34.1 $85 .3 $52 .3 

1989 481 8,648 $58.7 $34.4 $89 .0 $52 .1 

1990 490 8,892 $63.2 $35 .1 $94 .8 $52 .7 

1991 504 8,991 $64.9 $34.6 $101 .6 $54.2 

1992 514 9,224 $68.3 $35 .3 $111 .5 $57 .7 

1993 544 9,803 $71 .2 $35 .8 $124.8 $62.7 

1994 547 10,272 $73 .2 $35 .9 $140.9 $69.0 

Source: US DOC, Bureau of Census, 1981-1996a, b; US DOC, BEA, REIS, 1996. 

N 

W 
increased more or less in proportion to the number of establishments in business during this 

time, with a net gain of about 68 percent . Annual payroll for employees of these 

establishments grew steadily since 1979 to $73 .2 million in 1994, reflecting almost a threefold increase during the 15-year period . Growth in payroll measured in real dollars 

increased about 27 percent since 1979 . Annual earnings for SIC 58 followed a similar 

pattern, increasing from $42.2 million in 1979 to $140.9 million in 1994. In current dollars 

this reflects a change of more than 200 percent; in real dollars growth was about 64 percent 

since 1979 . 

In Baldwin County, the rate of growth of eating and drinking establishments during the past 

decade was much greater than for Mobile County. The growth of Baldwin County's Gulf 

Coast as a resort destination significantly benefits these and other service industries . As 

shown on Table 4.5, the number of establishments more than tripled from 1979 to 1994, 

increasing steadily to 1987 when a brief decline occurred . In 1994, 224 establishments 

employed 3,398 persons . Up to 1990, employment grew by about half the rate at which 

establishments grew; since 1990 the number of establishments and employment increased by 

30 percent. Data on annual payroll and earnings for food service establishments show steady 

growth over the 15-year period . Since 1990 earnings have jumped 65 percent to $44.6 

million, and payroll increased by more than 50 percent to $29.3 million in 1994 . Since 

1979, real growth in both payroll and earnings has been significant; measured in 1979 

dollars, each has increased by over 200 percent. 

4.3.3 Tourism/Recreation-Related Taxable Sales Trends 

Another indicator of a healthy tourist economy is the growth in taxable retail sales . Data 

were gathered on taxable retail sales for Mobile and Baldwin counties as well as for two 

communities in Baldwin County where tourism is the primary industry : Gulf Shores and 

Orange Beach. 

Table 4.6 shows taxable retail sales for Mobile and Baldwin County since 1986 . Mobile 

County retail sales grew by less than 10 percent in most years, totalling over $3 billion in 

sales by 1995 . In 1992, sales increased by more than 20 percent from the previous year. 

Over the 10-year period retail sales volume in Mobile County grew by more than 60 percent. 

The total retail sales volume in Baldwin County is much lower by comparison; but the 

growth rate during the 10-year period reflects a more significant change. Similar to data 

from Mobile County, retail sales volume in Baldwin County increased steadily since 1986, 

totalling almost $900 million in sales in 1995 . About 25 percent of this volume was 

generated in the cities of Gulf Shores and Orange Beach. Annual growth rates for county 

retail sales increased during this period, albeit inconsistently, peaking in 1989 at 32 percent 

growth. This peak is likely due to the opening of a retail outlet center in Foley, located just 

north of Gulf Shores . Total retail sales growth over the 10-year period was more than 135 

percent, double the growth of Mobile County. Figure 4.1 shows Baldwin County's retail 

sales growth since 1986. 

24 
Table 4.5 

Baldwiu County Food Service Establishments and Employment (SIC 58) 

Number of 

Establishments ment 

Annual Payroll 

(millions) 

Current $ 1979$ 

Annual Earnings 

(millions) 

Current $ 1979$ 

1979 69 1,026 $4 .3 $4 .3 $7.3 $7.3 

1980 75 893 $4 .1 $3 .6 $7.4 $6 .5 

1981 82 1,074 $5 .8 $4 .6 $9.9 $7.9 

1982 92 1,304 $6 .7 $5 .0 $10.9 $8.2 

1983 114 1,194 $7 .6 $5 .6 $12.3 $9 .0 

1984 120 1,459 $9 .1 $6 .4 $15 .1 $10.5 

1985 139 1,803 $11 .1 $7.5 $16.8 $11 .3 

1986 146 2,140 $12 .6 $8 .4 $19.7 $13.0 

1987 171 2,091 $14 .6 $9.3 $22.1 $14.1 

1988 156 2,060 $14 .6 $9.0 $22.3 $13.7 

1989 158 2,225 $15.7 $9.2 $25 .6 $15.0 

1990 170 2,557 $18.7 $10.4 $26.9 $14.9 

1991 180 2,630 $19.7 $10.5 $31 .7 $16.9 

1992 199 2,918 $24.9 $12.9 $35 .8 $18.5 

1993 206 3,204 $26.9 $13 .5 $38 .2 $19.2 

1994 224 3,398 $29.3 $14.4 $44 .6 $21 .8 

Source: US DOC, Bureau of Census, 1981-1996a, b; US DOC, BEA, REIS, 1996. 

N 
N 

ON 

Table 4.6 

Taxable Retail Sales for Alabama Coastal Counties 

1986-1995 

(millions $) 

Mobile County % Change Baldwin County % Change 

1986 $1,914.86 -- $367 .37 -- 

1987 $1,938.14 1 .2% $374 .18 1 .9% 

1988 $1,965 .49 1 .4% $389.87 4.2% 

1989 $2,100.23 6 .9% $513 .14 31 .6% 

1990 $2,187.81 4.2% $556.49 8.4% 

1991 $2,193.35 0 .3% $575 .98 3.5% 

1992 $2,650.93 20 .9% $675 .31 17.2% 

1993 $2,795.48 5 .5% $750.45 11 .1 

1994 $2,929.41 4 .8% $810.44 8 .0% 

1995 $3,093 .81 5 .6% $864.91 6.7% 

1986-1995 61 .6% 135 .4% 

Source : University of Alabama, CBER, 1996 . 
1000 

800 

.° 600 

400 

200 

----- 

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 

Figure 4.1 . Baldwin County Taxable Retail Sales, FY 1986-1995. 

Source : Gulf Coast Convention and Visitors Bureau, 1996b. 

N 

v 
Table 4.7 summarizes similar data for selected Baldwin County communities. For Gulf 

Shores and Orange Beach, total lodging sales data were available in addition to retail sales 

for the years 1992 to 1996 . Data from 1996 show the volume of retail and lodging sales to 

be comparable for both communities ; retail sales were just over $100 million and lodging 

sales reached almost $50 million. The volume of sales in Orange Beach, however, grew by 

almost twice the rate for Gulf Shores . Orange Beach sales during the five year period 

increased by more than 80 percent, compared to about 40 percent for Gulf Shores . This 

difference is attributable to the more recent build-up of vacation units in Orange Beach and 

the growing popularity of the region . Gulf Shores has been growing as well, but its largescale tourism development occurred several years earlier. 

4.3.4 Tourism/Recreation-Related Tax Revenues, State and Coastal Region 

Another indicator of the economic importance of the tourism sector in coastal Alabama is the 

tax revenue generated from tourist-related expenditures . This includes tax revenue for retail 

sales (gross receipts) and lodging sales . 

Mobile County 

In Mobile County, annual sales tax revenue collected by the state grew by almost 100 percent 

from 1979 to 1995, reflecting an average annual growth rate of 4 .2 percent. Retail sales are 

faxed at four percent by the State of Alabama. Mobile County levies an additional one 

percent tax, and the City of Mobile levies an additional four percent. As shown on Table 

4.8, sales tax revenue to the state from Mobile County was $81 .2 million in 1995 . In 

addition to tax revenues collected by the state, Mobile County's general fund received about 

$35 million in revenues from gross receipts in 1995 (Mobile County Commission, 1996), and 

sales tax revenue to the City of Mobile totalled over $57 million in 1995 (University of 

South Alabama, 1996b). 

The State of Alabama assesses a lodging tax on lodging establishments located in each 

county . Most counties do not assess additional taxes, but some municipalities do. Currently, 

the state assesses a four percent lodging tax. In Mobile County the county has no additional 

lodging tax but the city of Mobile assesses an additional six percent tax; this proportion of 

the total tax benefits the city of Mobile's general fund. For establishments outside the city of 

Mobile but within a 3-mile radius of the city line (referred to as the city of Mobile Police 

Jurisdiction) the six percent is reduced to two percent. Other municipalities in the county 

may tax at a lower rate or assess no additional tax. The majority of lodging revenues 

collected in the county are associated with the city of Mobile and its Police Jurisdiction . In 

Mobile County since 1979, annual lodging tax revenue collected by the state grew by a 

larger proportion than sales tax receipts, increasing by almost 300 percent. These data are 

shown on Table 4.8 . Annual growth in lodging tax revenues since 1986 was 5 .8 percent . In 

1995, lodging tax revenue to the state totalled about $1 .9 million. 

Located within Mobile County, Dauphin Island in recent years has attracted an increased 

number of visitors to the small community . As a result the number of rental units on the 

island has increased to accommodate seasonal vacationers . Lodging tax revenue from these 

28 
Table 4.7 

Taxable Retail and Lodging Sales for Alabama Gulf Coast Communities 

(millions $) 

Fiscal Gulf Shores Orange Beach 

Year Retail Sales Lodging Sales Retail Sales Lodging Sales 

1992 $80 .54 $31 .84 na na 

1993 $89 .60 $34.46 $59 .57 $26.74 

1994 $96 .34 $37.13 $74 .06 $33 .59 

1995 $106.95 $40.35 $92 .74 $40.93 

1996 $118 .27 $44.34 $108 .49 $49.28 

Percent Change1992-1996' 46 .8% 39.3% 82.1% 84.3% 

' Data shown for Orange Beach reflect growth from 1993-1996. 

Source : Gulf Coast Convention and Visitors Bureau, 1996b. 

N 
W 

O Table 4.8 

Summary of Selected State Tax Collections for Alabama Coastal Counties 

(Millions) 

Mobile County Baldwin County 

Sales Lodgin g Sales Lodging 

1979 $40.64 $0.47 $6.41 $0.33 

1980 $48.10 $0.62 $7.53 $0.21 

1981 $48.37 $0.60 $7.75 $0.37 

1982 $47.56 $0.67 $7.77 $0.34 

1983 $47.90 $0.68 $8 .01 $0.53 

1984 $51 .64 $0.91 $9.15 $0.77 

1985 $55 .04 $0 .86 $9 .82 $0.95 

1986 $55 .91 $1 .05 $9.80 $1 .05 

1987 $57 .67 $1 .01 $9.74 $1 .47 

1988 $57.93 $1 .07 $10.18 $1 .79 

1989 $59.85 $1 .11 $11 .09 $1 .97 

1990 $62.42 $1 .25 $12.30 $2 .37 

1991 $63.17 $1 .41 $12.90 $2 .83 

1992 $66.93 $1 .45 $13 .88 $2.93 

1993 $67.51 $1 .47 $14.99 $3.05 

1994 $76.61 $1 .84 $17.90 $3.65 

1995 $81 .15 $1 .85 $19.83 $4.17 

Total Growth 99.7% 296.1% 209.5% 1165.0% 

Annual Growth Rate 4.2% 8.4% 6.9% 16.1% 

Source : University of Alabama, 1996 ; AL Department of Revenue, 1996b. 
establishments is collected by the Town of Dauphin Island for general fund expenses . Since 

1990, lodging tax receipts to the town increased three-fold, to a reported $59,000 in 1996 

(Dauphin Island, Town of, 1996) . 

Baldwin County 

Tourism-related tax revenue in Baldwin County increased by a greater proportion than in 

Mobile County during the period from 1979 to 1995 . As shown on Table 4.8, sales tax 

revenues to the state from Baldwin County grew by more than 300 percent since 1979, 

totalling $19 .8 million in 1995 . Gross receipts in Baldwin County are taxed at a four percent 

base rate plus local taxes. Table 4 .9 shows retail sales tax receipts collected by three coastal 

communities in Baldwin County. The increase in revenues since 1990 reflects the region's 

tourism economy. In Gulf Shores, retail tax receipts to the city totalled over $3 million in 

1995, a 50 percent increase from 1990 . Sales tax receipts to Orange Beach and Foley more 

than doubled during this period, reaching $2 .0 and $2.7 million in 1995, respectively . 

The most significant indicator of the growth of tourism in Baldwin County is shown by the 

trend in lodging tax revenue. The state lodging tax rate is currently four percent and has 

increased only a few times during the past 10 years. Since 1979 lodging tax revenues 

collected by the state have, on average, risen by 16 percent per year, double the growth rate 

for Mobile County. Annual growth in lodging tax revenues to the state since 1986 was 14.8 

percent . Table 4.8 shows that annual receipts from state lodging taxes assessed in Baldwin 

County in 1979 totalled $330,000; in 1995, they were over $4 million. After 1980, when 

the effects of Hurricane Frederic were felt, lodging tax revenue to the state increased 

steadily . For the past five years, lodging taxes collected from Baldwin County were double 

the receipts from Mobile County. 

Similar to Mobile County, Baldwin County assesses no additional lodging tax . Most 

municipalities therefore collect only the four percent state tax and a city tax. In late 1993, 

however, a special district was created that consists of municipalities located in southern 

Baldwin County . This special district was formed to raise funds in support of the growing 

tourism industry located in Gulf Shores and Orange Beach. This special lodging district 

assesses an additional two percent lodging tax. The first year of reported collections was 

fiscal year 1994 (October 1993 to September 1994) . In three years, the special district has 

collected more than $5 million in additional revenue. Table 4.10 shows these collections on 

a monthly basis, reflecting a seasonal pattern for the tourism industry in this region . 

Collections exceeded $2 million for fiscal year 1996. Each municipality within the special 

district distributes half of the collected receipts from this additional tax to the sponsoring 

organization, the Gulf Coast Convention and Visitors Bureau. The remaining funds are kept 

by the municipality . Gulf Shores and Orange Beach both assess an additional city lodging 

tax of three percent. Monies collected from this portion of the total lodging tax are 

designated for the cities' use . 

Table 4.11 compares lodging tax receipts collected in Baldwin County and the State of 

Alabama for fiscal years 1990 to 1995 . Statewide, Baldwin County has continually ranked 

number one in state lodging tax collections. In 1995, 20 percent of state lodging tax 

31 
W 

N 

Table 4.9 

Retail Sales Tax Receipts for Alabama Coastal Communities 

($ Millions) 

Fiscal Year Gulf Shored Oran ge Beach' Foley 

1990 $2.02 $0 .76 $1 .12 

1991 2.25 0 .88 1 .32 

1992 2.35 0 .97 1 .59 

1993 2.64 1 .17 1 .95 

1994 2.91 1 .59 2 .30 

1995 3 .09 2.01 2.71 

Percent Chan g_q_ 

1990-1995 52 .6 162.9 140.9 

' For years prior to 1991 for Gulf Shores and 1994 for Orange Beach, sales tax revenues were 

reported combined with lodging tax revenues . For this analysis estimates were made of the sales 

tax portion based on percentages derived from subsequent years. 

Source: City of Gulf Shores, 1996; City of Orange Beach, 1996; City of Foley, 1996. 
Table 4.10 

Lodging Tax Receipts to Baldwin County Special Lodging Districts 

(Gulf Shores and Orange Beach Corporate Limits) 

FY 93-94 FY 94-95 FY 95-96 FY 94-96 

Oct n/a $117,492 $120,910 

Nov $22,669 $78,524 $85,724 

Dec $32,151 $37,878 $49,644 

Jan $18,341 $25,161 $27,573 

Feb $25,434 $25,404 $23,308 

Mar $35,230 $40,860 $40,071 

Apr $87,492 $103,810 $117,081 

May $131,508 $151,923 $168,493 

Jun $150,546 $180,496 $191,098 

Jul $280,071 $318,047 $374,347 

Aug $352,881 $402,400 $490,465 

Sep $221,206 $231,789 $311,567 

Total $1,357,530 $1,713,784 $2,000,282 $5,071,595 

' Represents collections of special Baldwin County District 2% lodging tax in addition to state 

and city lodging tax collections. Tax was instituted beginning Oct. 1993; receipts reflect 

previous month's collections. Revenues collected from this special District tax 

are distributed to the Gulf Coast Convention and Visitors Bureau . 

Source : Alabama Dept. of Revenue, 1996b. 

w 

w 
W 

Table 4.11 

Summary of State of Alabama and Baldwin County Lodging Tax Receipts 

FY 1990-1995 

Total State Receipts Total Baldwin 

State of From Other Baldwin County Lodging Tax Receipts County 

Alabama Baldwin Special City of City of Total Other Lodging Tax 

Receipts Countv District (CVB) Gulf Shored Orange Beach' Receiats Receipts 

1990 $14,969,039 $2,374,734 $0 $1,090,200 est $509,300 est $1,599,500 $3,974,234 

1991 $15,718,159 $2,833,277 $0 $1,256,300 $586,400 est $1,842,700 $4,675,977 

1992 $15,993,483 $2,913,830 $0 $1,253,700 $648,680 est $1,902,380 $4,816,210 

1993 $15,690,533 $3,051,792 $0 $1,344,100 $779,100 est $2,123,200 $5,174,992 

1994 $18,960,298 $3,646,800 $1,357,530 $1,004,200 $981,190 $3,342,920 $6,989,720 

1995 $20,806,751 $4,169,572 $1,713,784 $1,123,100 $1,242,760 $4,079,644 $8,249,216 

' For years prior to 1991 for Gulf Shores and 1994 for Orange Beach, lodging tax revenues were reported combined with 

sales tax revenues. For this analysis estimates were made of the lodging tax portion based on percentages derived 

from subsequent years. 

Source : University of Alabama, 1996; City of Gulf Shores, 1996; City of Orange Beach, 1996; AL Dept of Revenue, 1996b. 
collections came from Baldwin County, up from 15 percent in 1990. Other leading counties 

include Montgomery and Mobile. Table 4.11 also totals additional Baldwin County lodging 

tax revenue collected by local jurisdictions; this represents the three percent local portion 

discussed above. In 1995 local tax receipts, together with state collections within Baldwin 

County, totalled over $8 million. 

35 
Case Study: Gulf Coast and Dauphin Island Tourism Economy 

Coexistence with Natural Gas 

Coastal Alabama supports a thriving tourism industry . This case study highlights two aspects of 

the local tourism industry : 1) the differences between Dauphin Island and Gulf Shores/Orange 

Beach; and 2) the relationships between the local tourism industry, mostly in Baldwin County, and 

the offshore natural gas industry, supported from Mobile County. 

Dauphin Island Vacation Homes Compared to Gulf Shores Tourism Development 

Mobile Bay tourism brochures highlight several destination areas and attractions around the bay 

that interest the many visitors who travel to the region. The City of Mobile and the Gulf Coast of 

Baldwin County-Gulf Shores and Orange Beach--are primary destination areas. They offer a 

wide variety of recreational, cultural and historical amenities. Local attractions include 

Bellingrath Gardens and historical sights such as Fort Morgan in Baldwin County and Fort Gaines 

located on Dauphin Island. Point Clear, on Baldwin County's eastern shore, is a third major 

destination. This area is not discussed because it is nearly 20 miles from Mobile Bay natural gas 

fields . 

Dauphin Island is a small barrier island 14 miles in length (7 inhabited) where mostly area 

residents maintain second homes. The island road, which runs east-west from the connecting 

bridge, stops in the middle of Dauphin Island. The western half, owned privately, has remained 

largely wildlife habitat since its purchase in 1953 . Influenced by the outflow from the Mobile Bay 

estuary, Dauphin Island does not have the same quality of fine snow white sand found on the 

beaches from Gulf Shores to Panama City. This natural occurrence, the fact that no bridge 

connected the island to Mobile County until 1953, and ownership patterns have limited Dauphin 

Island's tourism over the years to visitors seeking a rustic vacation experience. Much of the land 

has remained in the hands of local Mobile people, many who bought the land in the 1953 land 

sale associated with the bridge development . Few are interested in tourism development . The 

original deed "restrictions and covenants" on 1953 property sales limited the coastal land available 

for commercial development to a small set of designated areas. 

Compared to Gulf Shores and Orange Beach (GS/OB) the island provides visitors with a much 

more limited range of recreational amenities . Accommodations for visitors other than second 

homes located on the island include a few small motels and condominium complexes . A recent 

listing of accommodations on the island compiled by town staff shows about 100 rooms for rent 

(Dauphin Island Development Network, 1996) . Dauphin Island offers a few public beaches and a 

campground that accommodates about 150 campers . There are fewer than five restaurants located 

on the island . These are primarily supported by residents of the island . 

The cities of Gulf Shores and Orange Beach along Alabama's Gulf Coast are home to a densely 

developed tourism industry . This strip of Baldwin County's Gulf Coast has beautiful beaches and 

has attracted commercial developers who have built numerous high-rise vacation resorts on this 

prime piece of real estate . References to Alabama's limited 32 miles of Gulf Coast beach are to 

this beach, from Fort Morgan to the Florida line. Accommodations along Baldwin County's Gulf 

Coast include hotels, motels and condominium complexes that offer over 10,000 lodging units to 

visitors (Gulf Coast Area Chamber of Commerce, 1996). 

36 
Case Study: Gulf Coast and Dauphin Island Tourism Economy 

Coeidstence with Natural Gas, Continued 

The Gulf Shores/Orange Beach tourism industry is supported and monitored by the Gulf Coast 

Convention and Visitors Bureau (GCCVB) located in Gulf Shores. The volume of visitor 

inquiries to the GCCVB increased from 46,858 in 1992 to 119,155 in 1996 (GCCVB, 1996b) . 

The highest volume of visitors to the region is during the months of June, July and August. 

Annual occupancy rates at hotels and motels averaged about 66 percent from 1992 to 1996 ; during 

peak season occupancy rates increased to an average of 82 percent . The average daily rate for 

rooms was about $67 in 1992 and rose to over $85 in 1996. Rates peak during the summer 

season when travellers flock to area beaches . In 1992 summer rates averaged about $95 per room 

and rose to $115 by 1996 (GCCVB, 1996b) . 

According to Gulf Coast building permit reports compiled by the Gulf Coast Area Chamber of 

Commerce (GCACC), the total volume of construction in Orange Beach grew ten-fold from 1991 

to 1995 . In 1995 total construction was valued at $102 .8 million, increasing from $10.6 million 

in 1991 . Orange Beach experienced its largest increase in construction volume from 1994 to 

1995, when it grew by over 50 percent . In nearby Gulf Shores construction volume in 1995 was 

$48 .6 million . The increase in construction in Gulf Shores since 1990 was more gradual than for 

Orange Beach, largely due to the existing number of vacation properties already located in Gulf 

Shores . Construction volume in Gulf Shores peaked for several years in the early 1980s and 

continued at a constant level through 1991 when activity picked up again (GCACC, 1996). Local 

industry representatives, such as the GCCVB and area chambers of commerce, continue to market 

the region as both a destination vacation spot and as a region that is growing economically, 

hoping to attract young families interested in relocating. Condominium sales are booming. Local 

businesses support the continued real estate development . Real estate developers hold important 

civic positions in local politics . 

Coexistence of the Tourism Industry with Offshore Natural Gas Industry 

Following Hurricane Fredric in 1979, Dauphin Island was without a bridge until 1982. Little 

tourism existed before the hurricane and no new tourism developments were built to replace the 

Holiday Inn, the lone island motel that was destroyed in the hurricane. The Baldwin County 

tourism industry initiated its growth after the hurricane, which also destroyed much of the preexisting accommodations. Both the local area and the state have prospered from the growing 

Baldwin County tourist trade, as evidenced by the increase in tax revenues to the coastal 

communities and the state. Significant tax revenues are collected by the state and the local 

communities from tourism-related businesses such as lodging and food service, as shown in 

Section 4 of the report. 

Development of natural gas reserves offshore Alabama began in the early 1980s after gas was 

discovered and the State of Alabama and the federal government leased offshore tracts to oil and 

gas companies. The offshore natural gas industry that has grown up west and southwest of Fort 

Morgan is over 15 miles away from the bulk of Gulf Shores development and nearly 25 miles 

away from Orange Beach. No platforms can be seen from the tourist areas of Baldwin County 

except in the region of Fort Morgan and from some private housing built on the western end of 

37 
Case Study: Gulf Coast and Dauphin Island Tourism Economy 

Coexistence with Natural Gas, Continued 

the Fort Morgan Peninsula. There is no economic evidence that shows that the offshore gas industry 

had an adverse impact on Baldwin County's tourism economy. Both sectors grew up together post 

Hurricane Fredric . 

Dauphin Island, today, is virtually surrounded by visible gas platforms. The natural gas support 

industry grew up in Mobile County from bases on Dauphin Island for shallow draft crew and 

provisions boats, and on the Theodore Ship Channel, for deep draft support vessels . Three gas plants 

are in south Mobile County and the connections to interstate pipelines are in Mobile County. 

Exploration, development, production and transportation is supported from south Mobile 

County-well away from the major destination tourism locations in Baldwin County. Relationships 

between local residents in south Mobile County and Dauphin Island and the gas industry are reported 

to be excellent. 

Goodwill measures provided by several operators have added significantly to the quality of local life . 

One of the largest, and most prized tourist attractions is the historic Bellingrath Gardens and Home, 

which feature 65 acres of landscaped displays. The gardens are located about 10 miles from Bayou 

LaBatre, and close to three natural gas processing plants operated by Exxon, Shell and Mobil. 

Exxon's gas processing plant is located about one mile away from Bellingrath Gardens and according 

to staff at the site there have been no negative reports at the gardens related to plant operations 

(Bellingrath Gardens, 1996). Bellingrath Gardens has received the biggest funding in its history from 

Exxon. Exxon sponsored the construction of a large boardwalk and other projects . Exxon's first 

grant was $100,000 to pave 2 .5 miles of walkways to make them handicapped accessible. A second 

grant of $50,000 was used for an emergency warning system for possible gas plant leaks ; this project 

also allowed the installation of a sound system in the gardens . The third grant of $100,000 paid half 

the cost of an ecological boardwalk through the gardens' wetlands bayou area. New programs at 

Bellingrath Gardens will be conducted around the new 1,600 foot wooden pier. Other industry 

contributions include a $5,000 donation from Shell for a 14-passenger tram for handicapped visitors . 

According to the manager of Bellingrath Gardens, new projects sponsored by gas industry grants have 

helped annual attendance (Bellingrath Gardens, 1996) . Civic contributions by Mobil have largely 

benefitted Dauphin Island and are discussed in a separate case study. (See Case Study: Effects of 

Natural Gas Development on the Town of Dauphin Island.) 

In contrast to the positive relationships between the offshore gas industry with Dauphin Island and 

Bellingrath Gardens in Mobile County, a proposed expansion of the gas industry eastward along 

Alabama's Coast has not been welcomed by tourist venues along Baldwin County's Gulf Coast. Gulf 

Shores, which depends solely on the local tourism economy, has taken an aggressive stance toward 

expansion of gas drilling within sight of its shores, citing concerns about the visual impact from 

drilling rigs located in close proximity to beachfront condominiums . In April 1996 the Department 

of Interior announced it was considering offering an area south of Baldwin County in federal waters 

in the Five Year leasing plan. This action would open a 15-mile strip of Alabama Gulf waters, 

currently protected by the 1988 moratorium designed to protect Florida beaches, to drilling in 2001 . 

The proposed area included waters due south of Gulf Shores and Orange Beach (Mobile Press 

Register, 4/21/96). 

38 
Case Study: Gulf Coast and Dauphin Island Tourism Economy 

Coexistence with Natural Gas, Continued 

South Baldwin County governments, the tourism industry, and developers, represented by the 

Gulf Coast Area Chamber of Commerce (GCACC), quickly raised concerns about the impact 

drilling would have on its beaches . Concerned that new offshore drilling might harm coastal 

Alabama's tourism economy and impact water quality, the GCACC drafted a resolution that 

would require any new offshore drilling to remain at least 15 miles offshore. At this distance, 

offshore activity would be out of sight of the Gulf Shores and Orange Beach tourist areas and 

guarantee unobstructed views from prime beach frontage. The resolution was approved by the 

city councils from Gulf Shores, Orange Beach and Foley and the Baldwin County Commission 

(Mobile Press Register 5/1/96; 5/8/96) . 

In July 1996 the Alabama House of Representatives passed a resolution which "expressed 

opposition to drilling within 15 miles of Orange Beach and Gulf Shores" (Mobile Press Register 

8/1/96) . In response to Baldwin County opposition, Alabama Governor Fob James reversed his 

prior support of the drilling proposal and in August 1996 requested that the Department of Interior 

lease no new tracts within 15 miles of the shoreline . These actions influenced the Minerals 

Management Services' recommendation to the Secretary of the Interior to limit offshore gas 

drilling from within sight of Gulf Shores and Orange Beach (Mobile Press Register 8/3/96). In 

August 1996, U.S. Secretary of the Interior Bruce Babbitt limited drilling within a 15-mile buffer 

zone offshore Alabama (Mobile Press Register 8/31/96). 

In contrast to Baldwin County interests, local supporters of the offshore drilling proposal included 

the Business Council of Alabama, Mobile Chamber of Commerce and city of Bayou LaBatre 

which identified the economic benefits to the state of drilling. These include the allocation of 

funds to support Forever Wild land acquisitions-the purchase of pristine acreage for protection 

against development and pollution. Supporters claimed that risk to the environment from natural 

gas development is negligible (Mobile Press Register, 4/21/96, 7/20/96). Mobile County 

supporters of the gas industry point to high rise condominiums in Orange Beach as greater 

environmental intrusions than the offshore gas industry. 

Large scale development of the Baldwin County Gulf Coast is creating a conflict with 

conservationists who fear the coastal natural resource is becoming threatened by intense 

development of the Baldwin County coastline (Mobile Press Register 11/10/96). Development of 

structures on the coastline will continue to prevent the natural beach from repairing itself, causing 

increased damage and loss of beach habitat . The loss of wetland and salt marsh habitat will be 

detrimental to native species . These habitats function to replenish underground water supplies, 

filter surface water, add oxygen and provide nurseries for seafood species . The recent drilling 

conflict spurred local activists to join forces toward protection of coastal resources from future 

development and is likely a sign of things to come in the future regarding both offshore platforms 

and Gulf Coast beachfront development . 

39 
Case Study: Gulf Coast and Dauphin Island Tourism Economy 

Coexistence with Natural Gas, Continued 

No Platforms! Versus What Platforms? 

The conflict between Gulf Shores tourism representatives and the offshore gas industry is easily 

understandable in view of the : 

" stock of real estate investment by developers 

" tax revenues paid by tourists to local, county and state coffers 

" limited economic benefits that accrue to Baldwin County from natural gas 

" large number of in-migrating people who bought a vista with no evidence of offshore 

industry 

" fear of the unknown 

Dauphin Island's coexistence with the gas industry is equally understandable in terms of the 

noticeable fiscal and economic effects, a slow-growing local population that grew up with the gas 

industry, absence of problems with producers, carefully nurtured relationships, and prospects of 

more benefits . Dauphin Island leaders report no problems with the platforms-"What platforms?"-

-while Gulf Shore and Orange Beach leaders successfully opposed more platforms-"No 

platforms! " . 

40 
5.0 Marine Recreation 

The Alabama Gulf Coast is known for its excellent marine resources and residents and 

visitors participate in various forms of marine recreation. The Gulf waters offshore Alabama 

are home to several popular sportfishing species. The City of Orange Beach houses a 

growing charter fishing fleet to support recreational anglers . The tourism industry along 

Baldwin County's Gulf Coast is well supported by patrons of deep water fishing excursions 

who spend many days (and dollars) a year fishing off Alabama's coast. The once small 

fishing village of Orange Beach has grown into a popular destination city that now houses 

several charter fishing operations targeting seasonal tourists . 

This section presents data on the recreational fishing industry in Alabama, including local 

resources and recreational fish landings trends . Also highlighted are important recreational 

species found in Alabama waters . At the end of the section a case study is presented which 

discusses the coexistence between recreational anglers who depend on the coastal resources 

and the offshore gas industry . 

5.1 Pleasure Boat Registration and Boat Launching Areas 

In recent years the number of residents in Mobile and Baldwin Counties who own and 

register personal craft has increased. The most recent count of pleasure boats in the coastal 

area, based on state registrations in fiscal year 1995, was about 42,000 . This shows an 

increase of about 28 percent from 1989 levels . Table 5 .1 summarizes pleasure boat 

registrations for each county for four recent years . The upward trend in registrations is 

shown on Figure 5.1 . 

Table 5.1 

Recent Pleasure Boat Registrations for Coastal Alabama 

Mobile County Baldwin County 

FY 1988-1989 21,923 10,780 

FY 1990-1991 24,707 11,669 

FY 1992-1993 25,389 12,967 

FY 1994-1995 26,037 15,975 

Source: AL DOC, 1996b. 

Launching areas include individual boat ramps and launches, as well as marinas where these 

facilities are also available. A count of such sites in Mobile County revealed almost 20 

different sites from which recreational boaters can reach Mobile Bay's waters . Of these, 

about one-half include individual boat ramps or launch areas and the remainder are marinas 

(Alabama Sea Grant Extension Service, 1987) . 

41 
N 

cd 

O 

E-4 

30 

20 

10 

0 

1989 1991 1993 1995 

D Mobile County E Baldwin County 

Figure 5 .1 . Coastal Alabama Pleasure Boats Registrations. 

Source: Alabama Dept. of Conservation, 1996b . 
In Baldwin County, by contrast, about 40 sites give recreational boaters access to Mobile 

Bay and adjacent waters . Baldwin County has a much larger land mass than Mobile County 

and extends slightly farther south into the Gulf of Mexico. Also, several small bays are 

located in Baldwin County near the Florida border . These sites are high-use areas for 

recreational boaters . The majority of the county's launching sites can be found in this 

region . About half of the launching areas in Baldwin County are marinas; the remainder are 

individual boat ramps and fishing camps (Alabama Sea Grant Extension Service, 1987). 

5 .2 Party Boat and Charter Boat Operations (Orange Beach) 

Residents and visitors who don't own boats and are interested in participating in the abundant 

recreational reef fisheries in the Gulf may use either party boats or charter boats, both of 

which are available commercially on a fee-for-service basis . Charter boat fees are generally 

higher because the charge includes rental of the boat with captain and mate; the cost is 

spread among fewer people (charters are usually limited to about six anglers plus crew) ; so 

per-head charges are more than party boat fees (which are generally large-group rates) . 

Also, charter boats operate only when reserved by a person or group while party boats 

typically operate on a daily schedule. 

Private boat operators are found in coastal areas adjacent to tourist destinations, major urban 

areas, and commercial fishing ports (Holland, et al ., 1992). A 1986-1987 assessment of the 

distribution of party boats in the Gulf of Mexico identified fewer than five boats operating in 

Alabama (Ditton, et al ., 1992). Current data on charter boat operations in Alabama show 

that the number of charter boats in Orange Beach, Alabama alone is over 100 (Orange Beach 

Fishing Association, 1996), reflecting a 20-fold increase . Recent figures on party boat 

operations are not available. According to local sources, however, recreational and charter 

fishing, sailing, and cruising services have increased by about three-fold during the past five 

years. 

Recent data reported by NMFS on the number of fish caught by recreation anglers by fishing 

mode reflect the growing popularity of charter boat and party boat fishing . Data from the 

1995 Marine Recreational Fishing Statistical Survey (1VIRFSS) reported almost 20 million fish 

caught by parry and/or charter boats along the Atlantic and Gulf Coasts, up almost 30 

percent from 1993 (US DOC, NOAA, NMFS, 1987-1996e). 

5.3 Fishing Permits 

Recent data for Mobile and Baldwin Counties show that almost 95,000 fishing permits were 

issued for the coastal area in 1992-1993 (Alabama Department of Conservation, 1996a). 

This figure includes all permits issued for saltwater and freshwater fishing as well as those 

for hunting/fishing combined. Non-residents of Alabama were issued only 10 percent of 

Mobile County's fishing permits, whereas this proportion was close to 35 percent in Baldwin 

County . Saltwater fishing permits issued in Mobile County made up just over 90 percent of 

total permits ; in Baldwin County this proportion was about 70 percent. 

43 
5.4 Recreational Fish Landings Trends 

Saltwater fish commonly caught off the coast of Alabama by recreational anglers include the 

following species (not necessarily in order of abundance or catch) : 

Red snapper Vermilion snapper " Southern flounder 

Cobia " Triggerfish " Blue runner 

King mackerel " Spanish mackerel " Crevalle jack 

According to area fishery specialists and recreational charter operators in Alabama, the top 

five species targeted for recreational fishing in recent years are Red snapper, Vermilion 

snapper, Triggerfish, King mackerel and Spanish mackerel. Snappers, Amberjacks and 

Triggerfish are popular reef fishes found off Alabama's coast. Near shore species include 

the mackerels, cobia and pompano. Inshore species include Tarpon, Speckled trout, 

Flounder, Red fish and Mullet . Offshore pelagic species include billfish, tunas and wahoo 

(Gulf Coast Conservation Association, 1996b) . 

For several years the National Marine Fisheries Service has conducted the MRFSS for the 

Gulf of Mexico to quantify the types and numbers of fish caught by recreational anglers . 

Table 5 .2 summarizes catch data from these surveys for five recent years for both Alabama 

and the entire Gulf Region (including Florida, Alabama, Mississippi and Louisiana) . As 

shown on the table for Alabama, total landings for several species have not been significant 

in the past . For the targeted recreational species listed above, however, recreational landings 

for Alabama are a significant proportion of Gulf-wide totals for each species.' For example, 

Red snapper (species code 28) landings in Alabama since 1990 have ranged from a catch of 

474,000 fish to 950,000 fish, showing some fluctuations year to year. 

Between 1990 and 1995, Red snapper landings reported for Alabama averaged about 40 

percent of all such landings in the Gulf. Recreational landings data for other popular game 

fish such as Spanish mackerel and Triggerfishes validate the importance of these fish to 

recreational anglers, relative to other species, but show fluctuations in total landings since 

1990. 

Figure 5 .2 shows the trend in recreational catch since 1987. Recreational landings have 

generally increased over time, with a few dips during 1989 and 1994. Overall, landings rose 

from about two million fish in 1987 to over six million by 1995 . Growth in the charter 

business in Orange Beach largely contributes to this increasing trend. 

Table 5 .3 summarizes, for 1990 through 1995, the top 10 species caught by recreational 

anglers in Alabama. In each year the most or second-most common species caught is Red 

snapper . Other common species caught by recreational anglers include Sheepshead, Sand 

seatrout, Spanish mackerel, Vermilion snapper and Atlantic croaker. The variance in catch 

by year is largely due to the seasonal availability of species. 

Fish landings are reported in the state where catch is landed, not where the fish are caught. 

44 
6 

5 

. ., 

w 

0 

4 

. 0 .. 

. .., 

3 

2 

1 

Figure 5.2. Recreational Fishing Catch in Alabama, 1987-1995. 

Source : US DOC, NOAH, NMFS, 1987-1996e . 

1987 1988 1989 1990 1991 1992 1993 1994 1995 
Estimated Total Number 

in Alabama and 

Table 5.2 

of Fish Caught by Marine Recreational Anglers 

the Gulf of Mexico by Year, 1990 -1995 

(1,OOOs) 

1990 1991 1992 1993 1994 1995 

Species Grou p Alabama Gulf Total Alabama Gulf Total Alabama Gulf Total Alabama Gulf Total Alabama Gulf Total Alabama Gulf Total 

43 Sand seatrout 294 4,583 508 5,135 401 3,780 949 4,068 853 5,665 1,206 4,355 

28 Red snapper 474 930 638 1,509 634 1,908 950 2,458 766 1,916 603 1,539 

47 Atlantic croaker 85 4,094 217 7,122 362 3,827 338 3,959 396 3,445 452 2,537 

58 Spanish mackerel 563 3,665 372 2,924 243 3,994 200 2,506 150 2,007 424 1,574 

37 Pinfish 55 6,063 190 14,764 328 9,423 461 9,887 387 10,513 371 12,349 

5 Herrings 1 18,051 20 28,310 221 23,337 102 29,013 241 33,562 335 23,813 

30 Vermilion snapper 345 593 198 1,020 299 812 447 1,090 187 706 325 1,029 

7 Saltwater catfishes 164 11,435 154 13,779 258 11,913 311 10,568 142 11,317 318 9,906 

38 Sheepshead 364 2,071 244 2,240 147 4,389 178 4,329 141 2,663 282 3,552 

67 Other fishes 160 4,940 209 7,849 113 7,300 212 7,743 100 7,809 251 6,790 

65 Triggerfishes/filefishes 426 1,116 126 968 157 837 169 695 103 719 245 685 

51 Mullets 127 2,389 69 2,648 180 1,896 121 1,574 52 1,724 234 1,746 

46 Kingfisher 44 876 147 1,683 191 1,224 111 782 253 1,029 196 1,013 

41 Spotted seatrout 50 1,862 99 26,054 47 19,986 145 19,026 40 19,438 148 20,610 

20 Bluefish 54 427 104 959 85 589 129 376 178 484 144 464 

49 Red Drum 41 2,401 51 6,642 86 7,809 85 6,310 62 5,913 125 7,096 

62 Southern founder 62 1,168 27 839 49 616 95 572 54 539 117 706 

22 Blue runner 53 1,123 65 1,283 73 1,559 89 2,962 174 4,680 102 1,211 

35 Grunts, other 0 2,498 24 2,907 66 1,814 100 2,532 35 1,898 95 2,006 

57 King mackerel 81 487 47 751 64 485 78 500 111 682 86 622 

21 Crevalle jack 30 1,003 9 2,043 6 2,367 10 1,489 20 1,357 81 2,145 

50 Drums, other 46 1,261 201 1,141 103 1,101 49 1,002 40 1,307 55 1,119 

19 Sea basses, other 120 2,444 20 2,806 13 2,426 31 2,338 7 1,491 47 1,572 

23 Greater amberjack 40 139 39 518 56 577 80 380 60 233 46 126 

27 Gray snapper 5 1,872 6 6,332 26 4,185 20 4,408 10 3,534 41 3,237 

64 Flounders 19 322 6 557 2 339 7 331 6 189 39 153 

34 White grunt 35 3,356 21 7,864 19 4,434 0 4,642 0 4,992 29 5,380 

48 Black drum 124 680 7 671 37 1,130 37 1,268 19 824 23 1,063 

18 Groupers 2 2,747 2 4,740 2 4,449 7 4,050 18 4,317 22 4,691 

2 Sharks, other 25 409 3 487 21 570 35 527 22 681 14 669 

39 Red porgy 11 147 6 164 19 105 13 128 18 130 12 157 

55 Little tunny/Atl bonito 20 328 16 531 35 513 71 500 103 418 11 210 

3 Skates/rays 8 402 9 560 64 668 15 469 21 550 10 568 

16 Striped bass 0 157 0 97 0 162 1 15 2 15 9 30 

33 Pigfish 18 958 34 2,653 66 1,571 109 1,615 43 1,910 9 1,621 

26 Dolphins 5 681 2 1,114 25 406 42 701 8 683 9 1,004 

61 Gidfflounder 23 250 30 343 6 214 14 183 13 775 5 138 
Table 5.2 (Continued) 

Estimated Total Number of Fish Caught by Marine Recreational Anglers 

in Alabama and the Gulf of Mexico by Year, 1990 -1995 

(1,OOOs) 

1990 1991 1992 1993 1994 1995 

S eciesGrou Alabama GultTotal Alabama GultTotal Alabama GuIfTotal Alabama GuItTotal Alabama GuItTotal Alabama Gulf Total 

32 Snappers, other 1 495 2 795 2 545 14 606 1 176 5 211 

29 Lane snapper 5 156 15 1,290 7 759 2 933 3 970 4 758 

24 Florida pompano 5 74 4 339 5 174 8 125 2 89 4 104 

45 Spot 0 424 148 413 38 229 1 988 4 227 2 185 

25 lacks, other 1 1,058 6 2,960 6 4,171 10 3,227 13 1,275 2 900 

4 Eels 2 29 0 65 1 . 34 1 42 4 46 2 51 

40 Porgies 8 161 0 241 3 318 1 313 3 204 1 249 

6 Freshwater catfishes 3 188 0 333 4 157 11 199 8 164 1 100 

13 Searobins 0 77 3 71 2 48 6 52 2 20 0 18 

59 Tunas/mackerels 1 60 2 262 5 898 6 248 3 139 0 291 

66 Puffers 1 347 0 285 0 253 1 307 2 340 0 221 

8 Toadfishes 1 152 1 73 1 169 4 124 1 160 0 145 

52 Barracudas 0 186 1 452 0 274 2 389 1 327 0 320 

12 Codfishes/hakes, other 0 0 0 0 1 1 0 0 0 0 0 1 

17 Black sea bass 0 3,323 2 3,280 0 2,380 0 2,375 0 2,735 0 2,170 

44 Silver perch 3 424 0 393 0 579 4 603 3 690 0 1,323 

31 Yellowtail snapper 0 1,142 0 3,889 0 1,087 0 1,577 0 975 0 1,020 

1 Sharks, dogfish 0 5 0 0 1 13 3 4 7 8 0 13 

Totals 4,003 96,228 4,102 177,148 4,581 144,809 5,887 147,109 4,892 148,661 6,542 135,574 

Percent of Gulf Total 4.16% 2.32% 3.16% 4.00% 3.29% 4.83% 

i Includes Florida, Alabama, Mississippi, and Louisiana . 

: Actual figures included in totals ; "( ")" denotes none reported . 

Source: US DOC, NOAA, NMFS, 1987-1996e . 

J 
Table 5.3 

Recreational Catch in Alabama by Species, 1990 -1995 

(1,OOOs) 

Rank Species Group Number of Fish 

1990 1 58 Spanish mackerel 563 

2 28 Red snapper 474 

3 65 Trigger6shes/filefishes 426 

4 38 Sheepshead 364 

5 30 Vermilion snapper 345 

6 43 Sand seatrout 294 

7 07 Saltwater cashes 164 

8 67 Other fishes 160 

9 51 Mullets 127 

10 48 Black drum 124 

1991 1 28 Red snapper 638 

2 43 Sand seatrout 508 

3 58 Spanish mackerel 372 

4 38 Sheepshead 244 

5 47 Atlantic croaker 217 

6 67 Other fishes 209 

7 50 Drums, other 201 

8 30 Vermilion snapper 198 

9 37 Pinfish 190 

10 07 Saltwater catfishes 154 

1992 1 28 Red snapper 634 

2 43 Sand seatrout 401 

3 47 Atlantic croaker 362 

4 37 Pinfish 328 

5 30 Vermilion snapper 299 

6 07 Saltwater catfishes 258 

7 58 Spanish mackerel 243 

8 OS Herrings 221 

9 46 Kingfisher 191 

10 51 Mullets 180 

1993 1 28 Red snapper 950 

2 43 Sand seatrout 949 

3 37 Pinfish 461 

4 30 Vermilion snapper 447 

5 47 Atlantic croaker 338 

6 07 Saltwater catfishes 311 

7 67 Other fishes 212 

8 58 Spanish mackerel 200 

9 38 Sheepshead 178 

10 65 Triggerfishes/filefishes 169 

1994 1 43 Sand seatrout 853 

2 28 Red snapper 766 

3 47 Atlantic croaker 396 

4 37 Pinfish 387 

5 46 Kingfishes 253 

6 OS Herrings 241 

7 30 Vermilion snapper 187 

8 20 Bluefish 178 

9 22 Blue runner 174 

10 58 Spanish mackerel 150 

1995 1 43 Sand seatrout 1,206 

2 28 Red snapper 603 

3 47 Atlantic croaker 452 

4 58 Spanish mackerel 424 

5 37 Pinfish 371 

6 OS Herrings 335 

7 30 Vermilion snapper 325 

8 07 Saltwater cashes 318 

9 38 Sheepshead 282 

10 67 Other fishes 251 

Source : US DOC, NOAA, NMFS. 1987-1996e 

48 
Case Study: Recreational Angler User Coexistence with Natural Gas 

Development 

Coastal Alabama has long supported recreational anglers due to its healthy stock of marine species 

and its proximity to some of the finest fisheries in the Gulf of Mexico. The recreational fishing 

industry along Baldwin County's coastline supports over 100 charter boat businesses that depend 

on access to the marine resources and a healthy supply of marine species popular with 

sportfishermen. This case study discusses coastal Alabama recreational fishing in relation to the 

offshore natural gas industry and its impact on marine resources. 

Contacts with local marine resource and sportfishing representatives revealed a largely positive 

attitude toward offshore natural gas development and comment on the importance of the offshore 

natural gas platforms to the marine environment . The presence of natural gas structures in nearshore waters has proven beneficial for sportfishing . The platforms, which serve as artificial reefs, 

provide habitat to many recreationally-desirable reef species . Due to their varied locations in the 

Gulf of Mexico, offshore gas platforms in state and federal waters provide a range of excellent 

fishing locations . 

According to staff of the Marine Resource Division of the Alabama Department of Conservation 

(DOC), located on Dauphin Island, the biologic finfish stock offshore Alabama has never been 

healthier . The finfish resource and catch is much enhanced by both the presence of platforms and 

Alabama's aggressive artificial reef program. DOC officials feel the gas industry has had a 

positive impact on the fisheries and consider coastal Alabama to be a world class fishery 

(Alabama Department of Conservation, 1996c) . 

Natural gas platforms provide a target destination for anglers . The Orange Beach Fishing 

Association (OBFA) represents the charter boat operators who are based out of Orange Beach and 

support the continued presence of gas structures as artificial reefs (OBFA, 1996) . The increase in 

habitat for many reef fish species benefits the charter boats operating in the Gulf. According to 

the president of the OBFA, business for over 100 charter boats based out of Orange Beach is 

doing very well ; these boats take in from $600 to $1,000 in charter fees per trip and employ 

several hundred people locally . The challenge faced by both resource officials and charter 

captains is to manage the catch to preserve the resource. Fishermen who come to Orange Beach 

tend to stay in local hotels and add nearly $20 million annually to the local economy for food, 

beverages and lodging, according to the Orange Beach Fishing Association (OBFA, 1994) . 

Although mutual admiration exists between the gas industry and recreational anglers, some 

conflict exists between segments of the fishing industry and resource managers. Saltwater sport 

fishermen in the region are active in support of marine conservation measures ensuring designated 

game fish habitat . Due to the presence of commercial fishing in the region, recreational anglers 

support conservation measures designed to protect important game fish from commercial harvest . 

The Gulf Coast Conservation Association represents the conservation arm of the sportfishing 

industry and rallies support from local recreational anglers on various conservation-oriented 

proposals . For example, the GCCA is involved in stopping the incidental kill by shrimp trawlers 

of juvenile fish important to recreational anglers, such as red snapper. In late 1996 the GCCA 

was successful in pushing for the requirement of a Byproduct Release Device (BRD) on shrimp 

nets. Other conservation and enhancement measures supported in the region include the continued 

establishment of artificial reefs, fish restocking programs and marine habitat restoration. 

49 
6.0 Commercial Fishing 

The Alabama Gulf Coast region supports a significant commercial fishing industry . 

Commercial fishing along Alabama's coast has long contributed to the character of the region 

due to the presence of a large number of both vessels and seafood processing plants . The 

capital of Alabama's commercial fishing industry is Bayou LaBatre, located in southeastern 

Mobile County . Bayou LaBatre offers a channel into Mobile Bay and the Gulf of Mexico 

and houses the majority of the industry's fishing fleet, as well as numerous seafood 

processing facilities . Most processors in Bayou LaBatre process shrimp, oysters and 

crab-which comprise the greatest percentage of Alabama's catch from the Gulf of Mexico . 

Processing facilities in Alabama are supported by the large annual harvests from Alabama 

waters as well as from other Gulf of Mexico locations. 

This section presents data on the Alabama commercial fishing industry including commercial 

landings trends and highlights important commercial species found in Alabama waters . Data 

are also presented to reflect the significance of the seafood processing industry in Alabama 

relative to the Gulf Coast region . At the end of the section a case study is presented which 

discusses the coexistence between commercial fishing enterprises that depend on the coastal 

resources and the offshore gas industry . 

6.1 Commercial Fishing Vessels and Boats 

The number of commercial fishing vessels in Alabama's coastal area is difficult to measure 

accurately . State and region-specific records for Alabama are not maintained on an annual 

basis nor are licensing records highly reliable . Instead, a "count" is usually taken at some 

interval to gauge the general size of the fleet (Auburn University Marine Resource Center, 

1994) . On a region-wide basis, the National Marine Fisheries Service (NMFS) tabulates data 

from required documentation for vessels working in federal waters . Recent NMFS data 

identify about 1,000 fishing vessels and boats working in Alabama's waters in 1994 (US 

DOC, NOAA/NMFS, 1984-1996d) . These data have remained relatively constant since 

1990 . Table 6 .1 summarizes similar data for adjacent states in the gulf region . The greatest 

number of commercial fishing vessels and boats are registered in Louisiana followed by 

Florida, with 15,800 and 10,800, respectively, in 1994. The data reported by NMFS may 

not reflect information on vessels not actively fishing, however, and may mis-state the actual 

number of active vessels . 

6.2 Commercial Fish Landing Trends, Alabama and Gulf of Mexico 

Since about the mid-1980s, commercial fish landings have declined throughout the Gulf of 

Mexico, including Alabama. In spite of this general decline, Alabama's major commercial 

seafood port ranks in the top 50 U.S . ports in terms of volume of seafood landed . In 1995, 

commercial catch landed at Bayou LaBatre ranked 36th in volume, up from a rank of 47th in 

1992 . Total value of these landings in 1995 ranked 12th nationally, as reported by NMFS 

(US DOC, NOAA, NMFS, 1984-1996d) . The significance of landings at Bayou LaBatre 

was much greater in the mid-1980s when landings ranked 29th in volume among the top 50 

50 
Table 6.1 

Number of Commercial Fishing Vessels' and Fishing 

in the Gulf of Mexico Region, 1990-1994 

Boatsz 

Alabama Florida Louisiana Mississippi 

Vessels Boats Total Vessels Boats Total Vessels Boats Total Vessels Boats Total 

1990 451 587 1,038 2,500 4,800 7,300 3,628 9,113 12,741 704 1,199 1,903 

1991 411 531 942 2,349 6,609 8,958 2,945 9,786 12,731 761 1,145 1,906 

1992 409 694 1,103 2,264 9,409 11,673 2,824 8,917 11,741 885 1,003 1,888 

1993 411 676 1,087 2,248 9,464 11,712 2,820 13,737 16,557 531 976 1,507 

1994 426 644 1,070 2,340 8,439 10,779 2,846 12,954 15,800 535 934 1,469 

' Vessels are craft greater than 5 net registered tons. 

2 Boats are craft less than 5 net registered tons . 

Source: US DOC, NOAH, NMFS, 1984-1996d . 
U.S . ports and ninth in total value. The high rank of commercial seafood landings in 

Alabama is due largely to the volume of shrimp caught ; shrimp has a high value compared to 

other types of seafood landed at ports across the United States . 

Table 6.2 shows total commercial seafood landings for the port at Bayou LaBatre, Alabama, 

for the state, and for the entire Gulf of Mexico region . Landings for all areas peaked 

between 1984 and 1986 . During this time, landings at Bayou LaBatre represented about 70 

percent of total state landings, increasing from 18.2 to 25 .6 million pounds. The total value 

of fish landed at Bayou LaBatre since 1980 has ranged from 65-70 percent of total 

commercial fish value for Alabama, and has increased to more than 75 percent of total state 

value in 1994 and 1995 . In the late 1980s seafood landings in all regions declined annually, 

but in recent years have seen an upturn in both volume and value. Figures 6 .1 and 6.2 

reflect this trend, showing historic volume and value data for Bayou LaBatre and Alabama. 

Table 6 .3 shows landings for all species caught commercially in Alabama between 1990 and 

1995 . Total commercial catch between 1990 and 1994 has fluctuated, averaging about 23 

million pounds ; landings in 1995 increased to over 28 million pounds. Value of landings in 

1995 totalled almost $50 million. In terms of total volume of landings, the top three catches 

during most years included brown shrimp, white shrimp and blue crab . Since 1990, the 

volume of brown shrimp landed has ranged from nine (1992) to over 12 million pounds 

(1990). Total catch of brown shrimp in 1995 was about 11 .2 million pounds with a value of 

almost $25 million. Landings of other shrimp species such as pink, white and bobs are much 

lower than that for brown shrimp but have enjoyed a consistent increase in catch since 1990. 

During the years 1990 to 1995 shrimp landings averaged over 65 percent of Alabama's total 

catch and over 85 percent of total value. Shellfish landings in Alabama since 1990, 

including shrimp, crab and oyster, averaged about 80 percent of total landings and close to 

95 percent of total value. 

Table 6.4 shows a ranking by total volume and total value for the top 25 species landed in 

Alabama for 1995 . Other species important to Alabama's commercial fishing industry 

include Atlantic and Gulf Menhaden, Striped Mullet, Spanish Mackerel and Atlantic and Gulf 

Flounder. 

The downturn in the commercial seafood industry that occurred in the mid- to late 1980s is 

attributable both to a general decline in the availability of resources during this time and to 

the over-capitalization of the shrimp industry that occurred during the early part of the 

decade (Auburn University Marine Resource Center, 1994) . Because shrimp landings are so 

high valued, an increasing number of vessels entered the market in the early 1980s . As a 

result, shrimp prices declined and many commercial harvesters found increasing competition 

from imported product. A combination of these factors, and the subsequent general decline 

in fishing stock affected Gulf-wide commercial fishing . 

Commercial fishing in Mobile and Baldwin counties has long been an important, albeit small, 

contributor to the region's industrial base. The most recent County Business Patterns for 

Alabama (1994) shows that a small percentage of jobs and wages is attributed to the fishing 

industry in Alabama's coastal region (as denoted by SIC 09 - Fishing, Hunting and 

52 
Table 6.2 

Total Commercial Fish Landings for Alabama and the Gulf Coast 

(Millions of Pounds and Dollars) 

1980 

1981 

1982 

1983 

1984 

1985 

1986 

1987 

1988 

1989 

1990 

1991 

1992 

1993 

1994 

1995 

Ba you La Batre, AL 

of Total 

Pounds Value AL Value 

19.9 $23 .7 71 .3% 

25.1 $31 .4 71 .4% 

17 .8 $33 .8 72.8% 

13 .6 $28.5 66.4% 

18 .2 $31 .5 71 .8% 

21 .0 $30.4 73.2% 

25 .6 $43 .3 67.6% 

15 .1 $29.8 66.9% 

12.4 $23 .8 60.9% 

14.9 $24.7 64.5% 

13 .7 $20.7 56.9% 

14.9 $24.6 66.9% 

16.2 $24.0 67.5% 

16.0 $24.3 71 .1% 

18.3 $36.7 76.0% 

22.1 $37.5 75 .5% 

Alabama Total 

Pounds Value 

24.8 $33 .2 

32.9 $44.0 

24.7 $46.4 

21 .1 $42.9 

26.3 $43 .9 

29.1 $41 .5 

36.7 $64.0 

24.5 $44.6 

22.3 $39.1 

25.4 $38.3 

23 .3 $36.4 

22.1 $36.8 

23.7 $35.6 

22.1 $34.2 

23.5 $48.3 

28.7 $49.7 

Gulf Coast Total 

Pounds Value 

1,924.5 $498.6 

1,680.4 $568.0 

2,298.7 $626.0 

2,516.9 $634.4 

2,623.7 $663.8 

2,416.6 $622.7 

2,366.4 $814.9 

2,523.4 $781 .9 

1,902.4 $729.1 

1,774.3 $630.9 

1,624.6 $640.4 

1,678.5 $641 .2 

1,426.4 $652.1 

1,714.8 $630.7 

2,152.7 $806.3 

1,464.7 $724.6 

Alabama Percent 

of Gulf 

Pounds Value 

1 .3% 6.7% 

2.0% 7.7% 

1 .1% 7.4% 

0.8% 6.8% 

1 .0% 6.6% 

1 .2% 6.7% 

1 .6% 7.9% 

1 .0% 5 .7% 

1 .2% 5 .4% 

1 .4% 6.1% 

1 .4% 5 .7% 

13% 5.7% 

1 .7% 5.5% 

13% 5.4% 

1 .1% 6.0% 

2.0% 6.9% 

Source : US DOC, NOAH, NMFS, 1984- 1996d. 

w 
.A 

40 

'~ 30 

U 

a 20 

4-4 0 

0 

~H 

~H 

l 

O 

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 

D Bayou La Batre M Alabama 

Figure 6.1 . Commercial Fish Landings in Coastal Alabama, 1986-1995 . 

Source: US DOC, NOAA, NMFS, 1984-1996d. 
$80 

$60 

$40 

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 

D Bayou La Batre M Alabama 

Figure 6.2 . Value of Commercial Fish Landings in Coastal Alabama, 1986-1995. 

Source : US DOC, NOAH, NMFS, 1984-1996d . 
Table . 

Total Alabama Commercial Fish Landings add Dockside Value by Species, 1990 - 1995 

1990 1991 1992 1993 

- 

1994 1995 

S ecies Pounds e ue Pound s Va lue Pounds a ue Poun ds Varu e Pounds WE= Pounds Val ue 

AmbeQack 15,206 $12,503 2,194 $2,088 21,432 $19,039 1,65 $7,639 0 SO 2,704 52,777 

Bearded brotula 9,243 $3,351 17,465 $7,877 18,514 $7,665 12,340 $5,856 6,980 $2,517 20,382 519,855 

Blue runner 1,350 $199 1,154 5276 3,895 $890 0 S0 14,012 $3,888 40,402 S10,015 

Bluefish 25,536 $5,626 28,220 $7,256 16,443 54,292 2,123 $527 4,727 $1,277 34,991 $7,917 

Bonito 0 SO 0 SO 0 $O 0 $O 0 $O 0 $O 

Butterfish, lg 0 $O 0 SO 0 SO 0 $O 0 $O 0 SO 

Butterfish, unc 0 $O 0 $O 0 SO 0 SO 0 SO 0 SO 

Catfish 44 $33 0 SO 721 $219 0 SO 0 S0 0 f0 

Cobie 5,221 54,660 1,965 $1,669 2,998 $3,520 3,897 54,486 4,310 $5,137 865 $961 

Crab, blue, soft/peeler 0 SO 3 $3 655 S1,696 0 $O 0 SO 0 SO 

Crabs, blue, herd 3,302,889 $1,264,543 2,731,120 $942,256 3,549,713 51,464,938 2,554,158 $1,185,526 2,687,961 $1,473,800 2,520,268 $1,712,120 

Croaker, At unc 6,596 $2,647 21,632 $8,102 18,463 56,015 8,765 53,268 23,281 58,718 6,469 $3,372 

Dalphinlish 170 $197 1,255 $1,537 330 $494 0 S0 0 SO 0 S0 

Drum, black 57,138 $17,591 22,172 $4,433 37,368 57,971 66,494 $12,694 56,008 510,367 57,204 $9,936 

Drum, red 0 SO 19 $8 0 SO 0 SO 0 SO 0 SO 

Finfishes,wcbait 331,997 $77,420 855,178 585,163 96,928 S11,661 0 SO 0 SO 0 SO 

Fintishes,unc for food 14,341 $10,470 5,261 $2,618 0 SO 5,221 $2,272 7,044 $3,539 6,557 $3,294 

Finfishes,unc gen 0 SO 0 SO 2,110,254 $173,379 0 $O 0 SO 0 SO 

Flounder, AtBcGfwc 167,200 $187,276 228,819 $225,378 170,461 $174,928 175,380 $209,455 198,055 $227,521 207,513 S286,779 

Gizzard shed 0 $O 0 SO 0 SO 0 SO 0 $O 0 $O 

Grouper, black 0 SO 0 SO 0 $O 0 SO 0 $o 0 SO 

Grouper, gag 179 $281 0 SO 0 SO 0 SO 0 SO 0 $O 

Grouper, red 0 SO 0 SO 0 $O 0 $O 0 $O 0 $O 

Grouper, snowy 0 $O 86 $131 0 SO 0 $O 0 SO 0 SO 

Grouper, yellowedge 798 $1,427 0 $O 1,179 $2,534 0 $O 0 SO 0 SO 

Grouper, yellowfin 134 $241 232 $348 0 SO 0 SO 0 SO 0 SO 

Groupers 12,656 $20,935 44,034 $85,263 41,200 $86,645 35,395 $78,620 1,485 $2,875 4,307 $10,995 

Grunts 0 $O 0 SO 0 SO 0 SO 0 SO 0 SO 

Harvcsdish, unc 0 SO 0 SO 0 $O 0 SO 0 SO 0 SO 

Hind, speckled 0 $O 0 SO 0 SO 0 $O 0 SO 0 SO 

HogLsh 0 SO 0 $0 0 SO 0 $O 0 SO 0 $O 

Jewfish 0 SO 0 $O 0 SO 0 $O 0 SO 0 $O 

King meckereVcero 471 5412 53 $53 8,696 55,921 1,949 $1,992 0 SO 0 f0 

King whiting 86,613 $41,084 101,895 549,199 141,436 $70,648 83,850 543,804 59,386 $29,809 73,612 $36,348 

Lobster, slipper 2,493 59,572 1,891 $8,399 10,099 $36,042 2,006 $6,889 8,620 530,057 589 $1,992 

Lobsters, spiny 336 5839 0 SO 255 $765 0 SO 0 SO 0 SO 

Marlin, unc 0 SO 0 SO 0 $O 0 SO 0 SO 0 SO 

Marlin, white 0 $O 0 SO 0 SO 0 SO 0 SO 0 SO 

Menhaden, At & Gf 0 $O 0 SO 176,969 $16,046 1,805,432 $130,103 1,328,850 $131,047 2,614,442 $249,733 

Mullet, striped 1,999,483 $2,313,759 1,279,809 $1,155,936 723,705 $197,502 834,273 $383,081 1,038,307 $915,270 1,098,386 $928,807 

Mullet with roe red 28,072 $41,850 630 $535 504,866 $619,579 370,969 $478,158 110,949 $145,928 22,488 $29,238 

Oyster, esm,pb,C 46,266 $129,639 113,720 $172,260 620,878 5936,510 424,024 5578,474 426,919 $763,200 337,771 $621,091 

Oyster, estn, pb, s 325 51,874 139,800 $292,006 554,285 $752,680 462,821 $489,742 277,916 $300,227 363,949 5480,127 

Oyster, esm, pv, f 19,226 $37,268 1,376 $1,737 11,299 519,256 8,498 511,757 3,614 $12,476 4,672 $10,458 

Oyster, estn,pv,s 18,038 542,266 24,063 $31,209 15,337 $20,287 24,275 526,019 1,543 $1,880 3,600 $5,872 

Pompano 740 $1,109 1,225 51,972 1,513 52,705 2,860 $6,854 1,688 $1,839 4,384 $10,725 

Porgy, rcd(w.snapper) 165 $140 268 $215 191 $156 0 SO 0 SO 0 $O 

Porgy, whitebone 0 $O 0 SO 0 $O 0 $O 0 SO 0 SO 

Scads (except bigeye) 0 SO 0 SO 90 $103 0 $O 0 $O 0 SO 

Scamp 745 $1,253 83 5158 0 S0 0 S0 0 SO 0 f0 

Scups or porgies, unc 0 SO 0 SO 0 SO 0 $O 0 SO 0 SO 

4 9 1 12 $1 1 897 8 0 0 
Table 6.3 ( 

Total Alabama Commercial Fish Landings 

Continued) 

and Dockside Value by Species, 1990 - 1995 

1990 1991 1992 1993 1994 

- - 

1995 

Species Pounds a ue Pounds a ue Pound s s ue Poun ds e ue Pounds Va ru e Pounds Val ue 

sea trout spotted o so o so o so o so o so o so 

Sea trout, white 56,246 $27,761 68,008 $32,511 120,472 $55,627 142,85 $67,145 141,381 $73,786 73,320 $36,578 

Shark, black tip 4,270 $2,503 0 so 11,734 $6,923 0 $O 0 $O 0 so 

Shark, bonito 1,258 $1,123 74 $74 o so 0 $O o $o 0 $o 

Sharks, dogfish, spiny 0 so SS $59 0 so 0 so 0 so 0 so 

Shark, hammerhead 13,035 $7,494 0 so 0 $O 0 so 0 $O 0 $O 

Shark, longfin mako 0 so 0 so 45 $33 0 so 0 so 0 so 

Shark, lemon 288 $169 0 so 0 so 0 so 0 so 0 so 

Shark, sandbar 0 so 0 so 0 so 0 so o so 0 so 

Shark, tiger 790 $466 0 so 0 so 0 so 0 so 0 so 

Sharks, thresher 228 $102 0 so 0 so 0 so 0 so 0 so 

Sharks, we 1,414,341 $803,308 1,071,864 $625,790 507,886 $285,441 58,117 $33,973 389,159 S301,I06 31,011 $21,473 

Sheepshead, At 342,206 $70,607 84,748 $22,604 278,017 581,517 . 122,969 $37,896 131,974 $36,738 117,420 $42,583 

Shecpshead,Fw 300 $60 0 so 0 $O 0 $O 0 so 0 $O 

Shrimp, At & Gf,bm. 12,516,046 $24,615,838 12,140,849 525,458,671 9,040,714 $21,285,908 9,231,976 $18,593,741 10,137,693 $29,001,366 11,156,659 $24,878,927 

Shrimp, At&Gf,pink 733,192 $1,117,095 567,911 51,054,118 678;230 $1,104,062 2,081,310 $3,703,511 2,228,570 $4,546,322 3,557,597 $7,087,352 

Shrimp, At & Gf,red 163,027 $331,121 170,867 $328,642 241,229 $471,731 552,187 5984,670 512,800 $957,286 447,209 $887,572 

Shrimp, At & Gf, bobs 0 so 4,755 $2,852 0 so 0 so 2,905 $2,324 0 f0 

Shrimp, At & Gf, wht. 1,531,990 $4,88,063 2,038,691 $5,921,668 2,279,546 $6,129,407 2,180,053 56,585,538 2,699,845 58,481,225 3,088,084 $9,632,145 

Shrimp, rock 40,126 (24,465 11,999 (9,893 1,260,599 $1,188,638 257,115 $223,687 180,962 $226,247 2,134,471 52,542,765 

Snapper, grey 439 $399 2 $2 0 so 0 $O 0 so 0 so 

Snapper, lane 0 $O 0 $O 0 $O 0 so 0 so 0 so 

Snapper, mangrove 0 so 0 so 55 $SS 0 so 0 $O 0 $O 

Snapper, mutton 130 $217 0 so 0 so 0 so 0 so 0 so 

Snapper, queen 0 so 9 $9 0 so 0 so 0 so 0 $O 

Snapper, red 51,297 $126,391 51,278 $126,007 62,705 $138,854 45,213 $91,019 76,240 $135,616 36,440 $79,182 

Snapper, silk 0 $O 0 $O 0 $O 0 so 0 so 0 so 

Snapper, vermilion 20,048 $36,038 6,629 $10,520 18,855 532,342 22,373 $35,990 23,326 $38,697 3,766 $6,579 

Snapper, yellowtail 0 $O 0 so 0 so 0 $O 0 $O 0 f0 

Snappers, unc 0 $O 0 $O 0 $O 0 so 0 $O 0 so 

Spanish mackerel 146,651 $46,250 136,188 542,975 146,452 541,199 117,697 $37,604 241,075 $82,359 368,600 $94,851 

Spot 35,017 $9,523 60,314 $14,435 76,505 $15,204 71,712 $15,483 64,802 514,372 30,571 $9,479 

Squids, long finned 0 $O 721 $288 0 so 0 $O 0 $O 0 so 

Squids, unc 12,559 $3,579 4,366 $2,058 3,567 S1,572 4,902 $2,337 3,155 $1,412 2,111 $1,039 

Swordfish 1,017 $3,122 84 $222 1,379 $4,222 0 so 0 so 0 so 

Tenpounder 0 $O 1,550 $232 0 $O 0 so 0 so 0 so 

Tilefish 7,133 $12,484 5,908 $9,227 10,025 $10,389 0 S0 0 so 0 S0 

Tilefish, blueline 31 $IS 0 so 0 so 0 so 0 $O 0 $O 

Tilefish, unc 0 so 3,834 54,914 37,255 542,259 0 so 0 so 0 so 

Triggeifishes 16,613 $9,269 6,993 $4,910 6,551 $5,626 10,413 59,905 8,389 57,512 5,268 S5,875 

Tripleteil 126 $50 30 $6 4 S4 0 so 0 so 0 f0 

Tuna, big eye 0 so 0 so 0 $O 0 so 0 so 0 so 

Tuna, blacktm 279 $113 732 5470 833 $732 2,987 $781 0 S0 0 so 

Tune,blueCm,giants 0 so 0 so 0 $O 0 so 0 so 0 $O 

Two we 0 so 0 so 1,116 $1,674 0 $O 0 so 0 so 

Tuna, yellowfin 204 $493 6,282 512,322 7,107 $16,343 0 so 0 so 0 so 

Wehoo 0 so 171 $196 161 $201 0 so 0 S0 0 so 

Warsaw 3,274 $3,100 526 $504 19 541 0 so 0 so 0 so 

AL 23,268,094 $36 ,361 ,876 22, 073,502 $36,774, 295 23,652,123 $ 35 ,564,1 78 21794 272 S3 4. 110 .476 2 3.1 25.931 S4 7 .997. 740 28 .478. 092 S49.769.933 

Source : US DOC, NOAA,NMFS, 1996a . 

J 
oc Table 6.4 

Top Ranked Commercial Fish Landings in Alabama by Weight and Dockside Value 

1995 1995 

Rank Species Pounds Rank Species Value 

1 Shrimp, At & Gf, brn. 11,156,659 1 Shrimp, At & Gf, brn. $24,878,927 

2 Shrimp, At & Gf, pink 3,557,597 2 Shrimp, At & Gf, wht. $9,632,145 

3 Shrimp, At & Gf, wht. 3,088,084 3 Shrimp, At & Gf, pink $7,087,352 

4 Menhaden, At & Gf 2,614,442 4 Shrimp, rock $2,542,765 

5 Crabs, blue, hard 2,520,268 5 Crabs, blue, hard $1,712,120 

6 Shrimp, rock 2,134,471 6 Mullet, striped $928,807 

7 Mullet, striped 1,098,386 7 Shrimp, At & Gf, red $887,572 

8 Shrimp, At & Gf, red 447,209 8 Oyster, Estn, pb, f $621,091 

9 Spanish mackerel 368,600 9 Oyster, Esm, pb, s $480,127 

10 Oyster, Estn, pb, s 363,949 10 Flounder, At&Gf unc $286,779 

11 Oyster, Estn, pb, f 337,771 11 Menhaden, At & Gf $249,733 

12 Flounder, At&Gf unc 207,513 12 Spanish mackerel $94,851 

13 Sheepshead, At 117,420 13 Snapper, red $79,182 

14 King whiting 73,612 14 Sheepshead, At $42,583 

15 Sea trout, white 73,320 15 Sea trout, white $36,578 

16 Drum, black 57,204 16 King whiting $36,348 

17 Blue runner 40,402 17 Mullet with roe red $29,238 

18 Snapper, red 36,440 18 Sharks, unc $21,475 

19 Bluefish 34,991 19 Bearded brotula $19,855 

20 Sharks, unc 31,011 20 Groupers $10,995 

21 Spot 30,571 21 Pompano $10,725 

22 Mullet with roe red 22,488 22 Oyster, Estn, pv, f $10,458 

23 Bearded brotula 20,382 23 Blue runner $10,015 

24 Fishes, unc for food 6,557 24 Drum, black $9,956 

25 Croaker, At unc 6,469 25 Spot $9,478 

Source : US DOC, NOAH, NMFS, 1996a. 
Trapping) . In 1994, between 100 and 250 jobs were generated under this industry 

classification . Perhaps a better representation of the fishing industry in coastal Alabama is 

the seafood processing sector, classified in SIC 20 - Food and Kindred Products . In 1994 in 

Mobile County, 23 establishments were classified under SIC 2092 - Fresh or Frozen 

Prepared Fish. Employment for this industry sector totalled about 800 in 1994 with a payroll 

of about $9 million. About 70 percent of these establishments employ less than 50 people . 

6.3 Alabama Commercial Seafood Processing 

In 1995 there were 87 seafood processing firms located in Mobile and Baldwin counties . Of 

these, 14 process shrimp products, 29 process crabmeat and 47 process oysters (US DOC, 

NOAH, NMFS, 1996b). Most firms process more than one product. The majority of these 

firms are located in Mobile County, notably in Bayou LaBatre. All shrimp, oysters and crab 

landed in Alabama waters are processed by Alabama plants . About 80 percent of product 

processed by Alabama plants consists of seafood caught between Florida and Texas or within 

foreign waters (US DOC, NOAA, NMFS, 1996c) . Fishermen land their catch anywhere 

from Florida to Louisiana to rendezvous with a trucker, who brings the raw frozen product 

to Bayou LaBatre for processing . 

Seafood processing volume for Alabama plants, however, has declined in recent years . As 

shown on Table 6 .5, almost 40 million pounds of seafood was processed by 87 Alabama 

plants in 1995 . The primary products of shrimp, crab and oyster are represented also. This 

is a decline from about 54 million pounds in 1990 and 71 million pounds in 1986 . Table 6 .6 

shows the total value of processed products from Alabama's firms . The value of all 

processed catch has also declined since the mid 1980s . Figure 6 .3 shows this trend for both 

volume and value of processed seafood. Figure 6 .4 compares total processing volume for all 

Gulf Coast states . In recent years Louisiana has led the region in total processed volume . 

In Alabama, shrimp represented about 75 percent of all processed products in 1995 ; crab and 

oyster round out the majority of Alabama's processed products. Table 6.7 shows that in 

1995 shrimp products totalled $111 .2 million, representing over 70 percent of the state's total 

processing value. Table 6 .7 also shows data for shrimp processing companies and 

employment in Alabama. About 700 people were employed by 14 firms in Alabama in 

1995 . In the Gulf Coast region, including Alabama, 82 shrimp processing companies 

employed about 4,700 people and processed over 200 million pounds of shrimp in 1995 . 

Table 6.8 shows historic data on shrimp processing for the entire Gulf of Mexico. Alabama 

shrimp processing represents less than 20 percent of total processing Gulf-wide. Figure 6.5 

shows the trend in shrimp processing in Alabama since 1986 . Figures 6 .6 and 

6 .7 show that shrimp processing in Alabama is a relatively small percentage of total Gulf of 

Mexico processing. 

According to Alabama seafood processing industry representatives, the decline in production 

is due to a variety of influences . Most significant is the cyclicity of the seafood industry and 

the effect annual fluctuations in catch can have on processing volume . Environmental 

conditions play a large role in the annual landings data. Declining shrimp processing volume 

in Alabama, for example, has been attributed to less than abundant resources Gulf-wide year59 
Table 6.5 

Alabama Seafood Processing Volume for Selected Species 

Shrimp Crab Oyster All Catch 

1986 46,584,790 9,531,049 4,737,208 70,881,402 

1987 48,110,221 7,257,886 3,274,226 67,386,333 

1988 38,016,401 8,073,542 2,383,048 55,405,283 

1989 32,692,457 5,455,907 2,042,154 42,123,954 

1990 41,252,847 6,891,226 2,376,302 54,287,324 

1991 30,744,470 6,582,468 2,395,723 41,541,613 

1992 30,016,154 4,870,226 3,796,835 39,919,960 

1993 30,152,472 4,635,407 5,208,843 41,355,860 

1994 30,849,251 4,920,195 5,094,132 42,096,702 

1995 29,464,745 3,655,496 5,779,860 39,808,659 

Source: US DOC, NOAH, NMFS, 1996b. 

60 
Table 6.6 

Alabama Seafood Processing Value for Selected Species 

Shrimp Crab Oyster All Catch 

1986 $189,565,194 $23,682,789 $15,189,191 $242,373,849 

1987 185,096,039 18,812,451 12,289,681 228,907,578 

1988 142,137,158 20,511,273 9,354,958 183,886,053 

1989 127,522,602 16,787,904 8,620,907 160,946,092 

1990 139,098,886 19,442,864 10,080,720 184,127,089 

1991 118,570,780 18,302,653 9,281,897 152,349,576 

1992 120,236,995 21,860,076 12,441,747 158,997,650 

1993 111,116,357 20,677,418 14,655,772 152,809,013 

1994 119,663,425 22,668,880 14,408,354 163,139,495 

1995 111,183,996 21,190,574 18,053,626 155,247,011 

Source: US DOC, NOAH, NMFS, 1996b. 

61 
N 

OO 

70 

60 

0 

0 50 

. .., 

H 

40 

30 

Pounds + Dollars 

Figure 6.3. Alabama Seafood Processing Volume and Value. 

260 

240 

220 0 

200 0 

0 

180 . .y 

160 

140 

Source : US DOC, NOAH, NMFS, 1996b. 

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 
100 

80 

60 a 

0 

.0 40 

20 

0 

1990 1991 1992 1993 1994 1995 

M AL M FL O LA M MS M TX 

Figure 6.4. Total Volume of Processed Seafood for Gulf States . 

Source : US DOC, NOAH, NMFS, 1996b. 

w 
Table 6.7 

Alabama Shrimp Processing Production and Employment 

Number of Employ ment Volume Value % of AL Percent of Gulf 

Companies Average Seasonal Pounds Dollars Process. Volume Value 

1986 17 1011 1011 46,584,790 $189,565,194 66% 17 .8% 19.1% 

1987 19 1163 1178 48,110,221 $185,096,039 71% 20.5% 20.8% 

1988 19 1030 1074 38,016,401 $142,137,158 69% 15.9% 17.2% 

1989 17 884 905 32,692,457 $127,522,602 78% 13.1% 13.8% 

1990 18 847 863 41,252,847 $139,098,886 76% 15 .7% 15 .3% 

1991 18 879 899 30,744,470 $118,570,780 74% 13 .4% 14.6% 

1992 17 835 851 30,016,154 $120,236,995 75% 14.6% 17.3% 

1993 15 762 782 30,152,472 $111,116,357 73% 14.8% 16.5% 

1994 15 769 769 30,849,251 $119,663,425 73% 15.3% 16.9% 

1995 14 733 733 29,464,745 $111,183,996 74% 13 .7% 14.3% 

Source : US DOC, NOAA, NMFS, 1996b. 
Table 6.8 

Gulf of Mexico Shrimp Processing Production and Employment 

Number of Emp loyment Volume Value 

Companies Average Seasonal (Pounds) (Dollars) 

1986 119 6847 6918 261,308,585 $991,696,485 

1987 124 6710 6824 234,488,199 $888,272,831 

1988 123 6609 6924 239,499,754 $826,418,353 

1989 115 6959 7113 248,612,306 $921,964,178 

1990 114 6097 6252 262,021,527 $906,514,161 

1991 103 5366 5560 228,778,408 $812,979,586 

1992 101 4999 5113 205,219,464 $694,471,387 

1993 90 4447 4558 203,144,320 $672,178,112 

1994 88 4452 4484 201,512,709 $707,518,426 

1995 82 4688 4776 215,423,224 $776,208,222 

Source : US DOC, NOAH, NMFS, 1996b. 

65 
50 

45 

0 

40 

35 

0 

30 

25 

f Volume + Value 

Figure 6.5. Alabama Shrimp Processing Volume and Value. 

$200 

$180 

0 .,.., 

$160 

$140 

03 

$120 

$100 

Source: US DOC, NOAH, NMFS, 1996b. 

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 
0 

a 

4-4 0 

0 

300 

200 

100 

. . . . . . . . 

1986 1987 1988 1989 1990 

t Alabama 

1991 1992 1993 1994 1995 

D Gulf Total 

Figure 6.6. Total Volume of Processed Shrimp. 

Source : US DOC, NOAH, NMFS, 1996b. 

oIS 

1-l 
00 

$1,200 

$1,000 

$800 

$600 

$400 

$200 

$0 

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 

Alabama D Gulf Total 

Figure 6.7. Total Value of Processed Shrimp. 

Source: US DOC, NOAH, NMFS, 1996b. 
to-year. This is due in part to the increasing presence of natural predators such as red fish . 

Resource management strategies designed to protect certain species found in Alabama coastal 

waters have indirectly hindered commercial fishing efforts . In Alabama, conservation 

measures sponsored by the recreational fishing groups have led to the protection of red fish 

whose primary diet consists of shrimp and crab . Restrictions on catch of this and other 

species prevent commercial fishermen from reducing the presence of such predators. Also, 

some Alabama shrimpers have been negatively affected by the harvesting of juvenile product 

by competing shrimp boats in neighboring waters . 

Other more recent actions imposed on Alabama's commercial fishing industry which affect 

the volume of catch include gear restrictions . In 1996, shrimp boats were required to install 

fish excluder devices in addition to the turtle excluder devices already in place . According to 

shrimp industry representatives these devices significantly reduce the volume of shrimp 

caught. 

69 
Case Study: Relationship of Commercial Fishing Industry with Natural 

Gas Development 

The abundant fisheries along Alabama's Gulf Coast support the commercial fishing industry as 

much as they do recreational anglers . The commercial fishing and seafood processing industries 

in Alabama depend on access to the Gulf and rely each year on an abundant marine supply. This 

case study discusses coastal Alabama commercial fishing in relation to the offshore natural gas 

industry and its impact on marine resources . 

Commercial fishing representatives, including both vessel operators and seafood processors, were 

contacted to provide perspective on their relationship with the offshore gas industry . Contact with 

several of coastal Alabama's biggest seafood processing companies and the Alabama Seafood 

Association (ASA) president revealed a positive attitude toward offshore gas exploration and 

development and few conflicts with commercial fishing . The gas platforms are generally viewed 

as "good neighbors" by seafood processors although trawling area has been slightly reduced due 

to certain platform locations . They reported no concerns about offshore industry pollution 

because Alabama strictly enforces its zero tolerance emission rule (Deep Sea Foods, 1996; 

Alabama Seafood Association, 1996). 

One main concern is the presence of unmarked artificial reefs installed by recreation anglers 

which occasionally have torn trawler nets and damaged boats. When unmarked artificial reef 

material is dumped outside authorized reef areas, nets snag and tear, creating expense from loss of 

equipment and catch. Gas related activity is sometimes blamed, if only for the "deep pockets." 

The Alabama Seafood Association (ASA), representing the local fish processing industry, is 

friendly to the offshore industry and comments that the presence of structures has been a positive 

influence on the fish habitat . However similar concerns about underwater debris cutting into 

trawling area were cited (Alabama Seafood Association, 1996) . Another seafood processor has 

experienced "peaceful coexistence" with the industry and generally thinks the gas industry and its 

workers are good for the community and feels obliged to work together (Sea Pearl Seafood, 

1996). 

One concern in the local region includes the concentration of gas processing plants in an area 

where evacuation roads are limited, in the event of an emergency. Another concern cited by each 

industry representative contacted is the absence of direct fiscal stimulus to the local area from the 

millions of dollars collected by the state each year in offshore tax revenues. Commercial fishing 

processors stated that they have seen no evidence of fiscal benefit to the region; i .e ., government 

spending of gas revenues. Although the industry is their neighbor, the gas tax and royalty 

revenues are seen as going directly to Montgomery, with none of it coming back to the local 

community. Bayou LaBatre gets no portion of the severance tax revenue distributed to Mobile 

County (Deep Sea Foods, 1996 ; ASA, 1996 ; Sea Pearl Seafood, 1996). Gas industry civic 

contributions to the new Bayou LaBatre high school and MOEPSI's recent staging from the City 

Dock represent the largest local economic stimulus reported by local seafood processors and 

elected officials . (This overlooks the significant direct and secondary economic effects associated 

with Schambeau's Foodland and SEACOR's (John E . Graham's) longstanding services provided to 

the offshore oil and gas industry . New crew boat construction in local ship yards will add 

noticeable economic benefits beginning in 1997.) 

70 
7.0 Onshore Natural Gas Support Industry and Government Revenues 

Since 1979, when large deposits of natural gas were first discovered in Mobile Bay, the gas 

industry has experienced significant growth in Alabama's offshore waters . The State of 

Alabama coastal waters extend three nautical miles seaward from all land areas under the 

jurisdiction of the State of Alabama to the state/federal boundary . These waters are confined 

to Mobile Bay, the Alabama portion of Mississippi Sound, and all open Gulf waters north of 

the state/federal boundary (Alabama Oil and Gas Board, 1986) . Federal Outer Continental 

Shelf (OCS) waters are adjacent to the boundary . 

Significant gas reserves are located in the deep Norphlet Formation underlying the waters off 

Alabama. As a direct result of the 1979 gas discovery in Mobil's Mary Ann Field, several 

State of Alabama lease sales took place during the 1980s. Major oil companies purchasing 

state leases included Mobil Offshore Exploration and Producing Southeast, Inc . (MOEPSI), 

Exxon Corporation and Shell Offshore Inc. This activity in state waters spurred new lease 

sales in adjacent federal OCS waters in the Mobile and Pensacola OCS. Phase II of this 

study will focus on the history of natural gas development offshore Alabama. 

As offshore development began in the state and federal waters offshore Alabama, oil and gas 

companies required the use of existing coastal facilities . This section documents existing 

coastal facilities, offshore natural gas support bases and other coastal industries that operate 

in the Mobile Bay region. The section then details the total revenue contribution to the state 

and coastal region from offshore gas industry tax and royalty payments . At the end of the 

section two case studies are presented which discuss : 

1 . The effects of Natural Gas Development on the Town of Dauphin Island; and 

2. A comparison of the tax revenues collected by the state and local counties 

from the tourism and natural gas industries . 

7.1 Coastal Facilities 

In addition to the waterways which support waterborne commerce in the Mobile Bay region, 

this area also houses several facilities to support the shipping and other industries . The two 

major port facilities in the Mobile Bay region include the Port of Mobile and the former 

Naval Station Mobile, now known as the Mobile Middle Bay Port. These facilities are 

described below . 

7.1.1 Port of Mobile 

The Port of Mobile is served by a 36 .5 mile channel with a 45-foot depth through Mobile 

Bay. This waterway is the deep-water outlet for the Tennessee-Tombigbee Waterway and 

the Warrior-Tombigbee and Coosa-Alabama Rivers (Mobile Area Chamber of Commerce, 

1996b) . Other waterways providing coastal access include the Theodore Ship Channel (40-

foot depth), Bayou LaBatre Channel (12-foot depth) and the Port of Chickasaw Channel (25- 

71 
v 

N Table 7.1 

Port of Mobile Tonnage, 1991-1995 

1991 1992 1993 1994 1995 

Alabama State Docks 16,240,342 15,231,026 14,775,281 14,855,060 17,622,563 

General Cargo 3,477,679 3,054,196 3,000,848 3,413,543 3,684,198 

Bulk Ores & Coal 10,629,572 9,136,267 9,058,731 9,573,623 12,761,444 

Grain Elevator 298,859 480,500 858,655 754,996 1,176,921 

Industry 1,834,232 1,619,447 1,857,047 1,112,898 271,097 

General Port 19,030,470 20,535,555 22,210,868 26,396,814 24,561,813 

Total Port of Mobile 35,270,812 35,766,581 36,986,149 41,251,874 42,184,376 

Source : Mobile Area Chamber of Commerce, 1996a, b. 
foot depth) . Facilities at the Port of Mobile are operated by the Alabama State Docks and 

include 37 berths . Table 7 .1 shows the volume of cargo that typically moves through the 

Port of Mobile . In 1995 42 million tons of cargo was transferred, an increase of about 20 

percent from 1991 levels . 

Similar data provided by the US Army Corps of Engineers (USAGE) identifies total 

waterborne freight traffic at Mobile Harbor. Table 7 .2 shows the breakout of ship traffic at 

Mobile Harbor among domestic and foreign shipments . In 1994, foreign imports and exports 

represented about 40 percent of the total waterborne freight tonnage at Mobile Harbor. 

Variation in the data reported by the USAGE compared to Alabama State Docks information 

reflect the differences in reporting entities and the type of information recorded. In 1995, 

according to the National Association of Port Authorities (NAPA), the Port of Mobile was 

ranked 33rd among the nation's ports in terms of total container shipment volume. Mobile 

has maintained this position in recent years, ranking 34th and 33rd in 1994 and 1993, 

respectively (NAPA, 1996). 

7.1 .2 Mobile Middle Bay Port 

The Mobile Middle Bay Port is the former Naval Station Mobile, one of several Gulf of 

Mexico homeports recently closed by the federal government in the past two years . The land 

with improvements was sold back to the Alabama State Docks (ASD) and renamed Middle 

Bay Port after the homeport was decommissioned . The site is located on the north side of 

the Theodore Ship Channel, south of the main State Docks along the Mobile River in 

Mobile. The 200-acre site is set up to support industry services, including offshore gas 

services, with its lay berth, ship repair berth, warehouses and dock facilities . 

According to ASD this facility appears to be ideal for offshore industry service use. 

Facilities at the site could move pipe and are set-up to fabricate, bundle and export . There is 

a 69,000 square foot industrial machine shop on the base and housing for offshore crews. A 

38-foot turning basin is dredged off the port (off the 40-foot ship channel) and there is a 

state-of-the-art double decker pier designed to service battleships ; these facilities could handle 

most gas industry requirements. 

The offshore gas industry was the first industry targeted as a potential buyer, but with a $100 

million asking price there have been no buyers . The port has been approached by several rig 

companies but according to Alabama State Docks, use by these types of companies pose 

liability concerns with respect to handling jack-up and floating rigs (Mobile Middle Bay Port, 

1996) . The facilities are currently being used by the U.S . Navy on a temporary basis. In 

1997, ASD will begin to lease the facilities piecemeal to create revenue. It currently costs 

the State $650,000 annually to maintain the underused facility . 

7.2 Support Bases for Offshore Natural Gas Production and Development 

Existing support bases for offshore natural gas development are located along the Theodore 

Ship Channel, at Bayou LaBatre and on Dauphin Island . The facilities and operations at 

these locations are described below . 

73 
v 

-41 Table 7.2 

Waterborne Freight Traffic at Mobile Harbor, AL 

(1,OOOs of Short Tons) 

Foreign Domestic 

Coastwise Internal 

Total Imports Exports Receipts Shipments Receipts Ship ments Intra ort Local 

1988 36,476 5,652 11,130 294 1,245 12,617 5,193 N/A 346 

1989 39,980 6,623 11,831 1,149 1,089 12,117 6,491 N/A 681 

1990 41,136 8,046 11,294 1,880 699 11,539 7,193 485 N/A 

1991 41,260 7,041 13,580 1,527 1,095 11,624 5,784 610 N/A 

1992 40,482 7,636 12,276 2,049 886 11,293 5,845 497 N/A 

1993 43,960 7,576 11,865 1,948 968 12,405 7,333 121 N/A 

1994 44,997 8,864 9,859 1,827 791 11,348 9,794 721 N/A 

Source: US Army Corps of Engineers, 1996. 
7.2.1 Theodore Ship Channel 

Theodore, Alabama is an unincorporated portion of Mobile County that is home to many 

industrial facilities . The Theodore Ship Channel provides access to Mobile Bay and is the 

support site for several offshore producers . The Theodore Ship Channel is currently the only 

deep water access (40-foot depth) available to the natural gas industry in coastal Alabama. 

That depth will govern support base locations for future gas industry deep water draft vessel 

requirements . 

Currently Theodore's position for providing base support to the offshore gas industry is 

guaranteed by its deep channel. The existing channel into Bayou LaBatre, at 12 feet, is too 

shallow for most supply vessels that support the offshore industry . Businesses located in 

Bayou LaBatre recognized this as a competitive disadvantage and have joined with state and 

federal agencies to sponsor a channel deepening project that will dredge the channel to 18 

feet . This dredging project is currently underway and is expected to be completed by 1999 . 

On the Theodore Ship Channel three shore bases are present: 

Midstream Fuel Service, Inc. 

M-I Drilling Fluids 

Exxon 

Midstream Fuel Services set up a supply base at Theodore to provide mud, drilling pipe, 

workers and supply boat services for its operations . Midstream also has a base in Bayou 

Cassotte at Pascagoula, Mississippi . Midstream's facilities currently provide support services 

to offshore producers . Unocal currently works out of Midstream at Theodore, and Chevron 

works out of the Midstream Bayou Cassotte dock in Mississippi to service work on its OCS 

development facilities . Future Chevron production from the Destin Dome OCS will likely be 

serviced out of Midstream's Theodore location. Also located at Midstream's property are 

two drilling fluid suppliers : Baroid Drilling Fluids and Baker Hughes. 

Across the channel on the north side is M-I Drilling Fluids . This company provides drilling 

supplies to offshore operators from tanks located at this facility . Also located on M-I's 

property is Coastal Oil and Gas, a fuel supplier . 

Theodore is the main staging area for Eon. Facilities at Theodore which support Exxon's 

offshore operations include docking and crew loading facilities ; a parking area and support 

building are available for crew changes. Exxon contracts with local suppliers to provide 

fuels and drilling materials . 

7 .2 .2 Bayou LaBatre 

Bayou LaBatre largely supports the seafood processing and ship building industries and is 

gearing up to offer additional resources along the channel to the offshore gas industry . As 

discussed above, a long-awaited dredging program is currently underway, sponsored by the 

federal and state governments and the Town of Bayou LaBatre, to dredge the channel to an 

75 
18-foot depth. The economic development of Bayou IaBatre, population 2,400, has been 

negatively affected by the current depth of its channel (12 feet), which foreclosed access 

from heavy offshore supply boats. Most of the local services which support the offshore gas 

industry are located out of the Theodore Ship Channel . In view of the positive economic 

advantages a deeper channel will offer Bayou LaBatre, town officials are actively recruiting 

industry business . 

Bayou LaBatre is well-situated to service offshore gas industry activity on the western side of 

Mobile Bay. The new 18-foot channel will help the town compete in the offshore marine 

business, especially handling deeper draft offshore support vessels. The Town of Bayou 

LaBatre currently leases dock space to MOEPSI which uses the location as a staging area for 

offshore drilling . For now Mobil is the only offshore operator working out of Bayou 

LaBatre. 

7.2.3 Dauphin Island 

Coastal facilities that support the offshore industry also include those located on Dauphin 

Island . The proximity of producing wells in Alabama's waters to Dauphin Island contributed 

to the location of support services and facilities on the island . Due to channel limitations, 

shore bases at Dauphin Island only provide crew support service and small consumables 

movement, notably groceries . 

Facilities at Dauphin Island largely support shallow draft vessels . Three offshore support 

shore bases exist on Dauphin Island : 

" McHugh Oilfield Services, Inc . 

" Crewboat Services, Inc . 

" Mobil's small shorebase on the eastern edge of the island . 

McHugh Oilfield Services was founded by a geologist who came to Dauphin Island from 

Louisiana in the 1970s to open a support base, even before Mobil made the 1979 offshore 

gas discovery. McHugh operates the largest support base on Dauphin Island, serving 

miscellaneous crew boats including Shell's . Mike McHugh, the founder's son, moved to 

Dauphin Island in 1990 from Louisiana to take over his father's business . McHugh's 

business sells crane services, fuel, and miscellaneous support and dock usage. 

Adjoining Crewboat Services, Inc., operated by Collier Farnell, is a smaller site . Mobil is 

said to use Crewboat Services facilities . Mobil also owns and operates a small site on the 

eastern end of the Dauphin Island near the pilots' dock and the ferry dock. At each 

shorebase, a couple dozen parked cars with mostly Louisiana and Mississippi license plates 

were observed. The site visit occurred during completion of Mobil's 95-5 well in November 

1995 . A Mobil spokesperson stated that the out-of-state cars predominately reflect workers 

on the new well. Offshore operations and maintenance (O&M) crews are reported to be 

relocating to the area . Drilling crews will remain largely out-of-state workers as they work 

all over the Gulf. 

76 
In addition to these facilities, PHI operates helicopter services from the Dauphin Island 

landing strip, and Miller Diving provides industry diving services. Miller Divers, one of the 

oldest diving companies in the United States, has gone from profits of $80,000 in 1991 to 

more than $1 million annually, largely due to the offshore gas industry, mostly pipeline 

work. Headquartered near Fairhope in Baldwin County, the diving company formed in the 

late 1800s is still owned and operated by descendants of the founder. It employees between 

six to 20 people, depending on the work available . About 90 percent of the company's work 

is offshore Alabama for Mobil, Shell, Exxon and Transco. Miller diving teams have worked 

around the world on gas and oil projects (Miller Divers, 1996) . 

7.3 Services to Offshore Gas Industry 

In addition to offshore support base locations, the offshore industry is supported by local 

business services . These services, largely based out of Bayou LaBatre, include water 

transportation and offshore supplies . 

7.3 .1 Transportation Services 

Water transportation services are provided to the offshore gas industry by local businesses . 

John E. Graham Marine company, a Bayou LaBatre-based company supplying offshore 

support vessels, is the largest among local offshore support businesses . Graham Marine has 

sales of $50 million annually, 75 vessels and 600 employees with 350 in the Alabama, 

Mississippi and Florida Panhandle areas . About 10 of Graham's boats work the Alabama 

platforms . This has a reasonably large economic effect on Bayou LaBatre. Crews for boats 

are specialized and hub around Bayou LaBatre . Graham Marine recently sold itself to 

SEACOR, headquartered in New Orleans, which now operates the transportation business. 

Vessels are manned and operated by the company and leased by offshore companies on a day 

rate to provide everything from food to rope for the rigs . Supplies to the boats are 

purchased locally. SEACOR's purchase of the company in late 1995 is not likely to change 

local employment patterns related to operations . 

After Graham sold to SEACOR in 1995, descendants of the family started two new marine 

businesses which focus on construction and leasing of offshore crew boats. C&G Boat 

Works, the construction company, is a shipyard and repair facility and will be the only 

crewboat construction facility in Bayou LaBatre. They currently have a contract to build a 

140-foot boat for an oil company customer . According to the owner, offshore demand is 

increasing because fields are moving to deeper water. Local construction will benefit from 

this because most Louisiana shipyards are full with orders through 1998. 

7.3.2 Supply Services 

Schambeau's Foodland, started 75 years ago in 1921, is the oldest and largest grocery market 

in Bayou LaBatre. Schambeau serves individual gas rigs in addition to crew boats. Boat 

customers include SEACOR in Bayou LaBatre, McHugh Oilfield Services and Crewboat 

Services on Dauphin Island and other gas field boats that come into Midstream Fuel and 

Exxon docks on the Theodore Ship Channel . The grocery is unique because they provide 

77 
dockside service. This service was in place to support the commercial shrimping industry 

long before the Alabama gas fields were developed. 

Crum Schambeau, a fourth generation owner, says offshore customers are the third largest 

part of his business behind households and shrimp boats. Several rigs located in Mobile Bay 

are customers; orders are faxed to the store and shipped to Dauphin Island where supplies 

are transferred to the rigs' crewboats. 

7.3.3 Other Services 

The local restaurants in Bayou LaBatre are positively effected by the employees working out 

of the gas industry plants located nearby. Workers from Exxon, Mobil and Shell's gas 

processing facilities drive only about 10 minutes to patronize several eating and drinking 

establishments in Bayou LaBatre . During construction at these plants, the large workforce 

created a very beneficial impact on the local restaurants. A motel is under construction in 

Bayou LaBatre, anticipating business from gas industry workers. The next closest hotel 

rooms are at the Tillman's Corner section of Mobile at the intersection of U.S. HWY 90 and 

I-10. 

7.4 Ship Building 

Ship construction in the Mobile Bay region is an established industry that has weathered 

fluctuations in business over the past 25 years . According to the 1995 Mobile Area 

Manufacturers Directory, about 20 firms in the region perform ship building and repair 

operations (SIC 3731) . An additional 15 firms build and repair boats (SIC 3732) . Among 

the ship building and repair businesses, over 60 percent are located in Bayou LaBatre. The 

rest are based either out of the City of Mobile or Baldwin County . Operations include repair 

and conversion of ships, barges and drill rigs ; construction of ships, barges and drill rigs as 

well as construction of fishing vessels and work boats. The largest ship builders listed are 

Atlantic Marine and Bender Shipbuilding . Both employ between 500-1000 workers. Other 

large employers (100-250 employees) include Steiner Shipyard, Master Marine, and Alabama 

Shipyard (Mobile Area Chamber of Commerce, 1994). 

Among the boat building firms, a greater percentage are located in Baldwin County where 

there is more demand for recreational and sport fishing vessels . The boat building and repair 

companies are smaller, most with under 10 employees . 

The ship building firms based in -or near Bayou LaBatre constructed approximately 1100 

vessels for domestic use from 1975 through 1986 and about 250 vessels for foreign interests 

during the same time (US Army Corps of Engineers, 1988). Data on total ships constructed 

in the region since 1986 were not available, but information dating back to 1988 estimate that 

about 150 new ships are constructed each year in Bayou LaBatre and over 1000 vessels are 

repaired and/or outfitted. Ship builders who build vessels bigger than the Bayou LaBatre 

Channel allows (> 12 foot draft) typically split their construction operations between two 

yards, one located on a deeper channel . The current dredging project along the Bayou 

LaBatre's channel will alleviate this burden in the future . 

78 
Mobile grew up around its waterfront, and its two major shipyards view the growing 

offshore gas industry as positive for their business . These shipyards are Atlantic Marine and 

Bender Shipbuilding . 

7.4.1 Atlantic Marine 

Atlantic Marine, with headquarters in Jacksonville, Florida, in the late 1980s bought the 

Alabama Dry Dock and Shipbuilding Corporation (ADDSCO), established in 1917. It grew 

to cover nearly a square mile of land across the Mobile River from the city by turning out 

Liberty ships during World War II . The yard is capable. of building the biggest offshore 

equipment in use. Four offshore semi-submersible drilling rigs and a pipe-laying barge were 

constructed at ADDSCO in the 1970s . In 1972 ADDSCO built the first of seven semisubmersible deep-water, propulsion-assisted drilling rigs for Diamond M. Company of 

Houston, Texas . In 1974 Exxon contracted for the Semac I, 400-foot catamaran-hulled 

pipelayer . The vessel set pipe-laying records when it was first used in the North Sea . 

The push to develop offshore gas reserves has been a boon to Atlantic Marine, Inc. After a 

slowdown, their Mobile yard is getting new conversion work on rigs, semi-submersibles and 

drill ships, along with derrick barge repairs . It is refitting the "Global Explorer" - a vessel 

built for the U.S . Navy to raise submarines - for offshore duty . 

The Mobile yard of Atlantic Marine, which specializes in conversion and repair of heavy 

vessels, has been busy since the beginning of 1996 due to the offshore industry boom. They 

are currently seeking contracts for new drilling rigs and floating production platforms and 

drill ships . Almost all of the gas field vessels are 15 to 20 years old and nearing 

replacement age so the local yards are planning to bid on building AHTVS s (offshore supply 

boats) in addition to heavy drill ships (Atlantic Marine, 1996) . 

7.4.2 Bender Shipbuilding 

Mobile's other big shipyard, Bender Shipbuilding and Repair Co., Inc. has nearly a mile of 

yards along both sides of the Mobile River. Bender, a Mobile family-owned and operated 

shipyard founded 75 years ago, does conversion, construction and repair, including work on 

some offshore boats . 

The company currently is designing some offshore vessels for the gas industry . Two vessels 

are under construction for North America Shipyard of LaRose, Louisiana, a subsidiary of 

Edison Shouest, a worldwide company providing support vessels for drilling rigs . Both are 

seismic research vessels in the 220-foot range. One supply boat is being outfitted and a 

drilling rig is in the yards for repair . Design work also is being constructed for possible 

contracts, and in the past six months Bender has also bid on upgrading several rigs for 

deepwater drilling (Bender Shipbuilding, 1996). 

79 
7.4.3 Steiner Shipyard 

Steiner is the largest boat builder in the area and is primarily engaged in new boat 

construction . Steiner Shipyard builds vessels for industrial and fishing needs : trawlers, tugs, 

tows, supply boats, environmental work boats and passenger ferries. Steiner was founded in 

1954 as family owned business ; now Steiner has two boat building yards, one almost 

exclusively for construction of fishing boats, the other for work boats. They build tugs and 

ferries and do not currently service the offshore industry . According to development staff at 

Steiner the company is beginning to actively seek gas industry customers (Steiner Shipyard, 

Inc ., 1996) . 

7.5 Revenue Contribution from Offshore Taxes and Royalties to State and Coastal 

Region 

This section describes revenue sources to the State of Alabama and coastal region related to 

offshore natural gas production . Revenue sources include severance tax payments to the 

State of Alabama, Mobile County and Baldwin County as well as royalty payments to the 

state . Also discussed is the significance of severance tax payments to the counties' finances, 

relative to other revenue sources. Economic impacts more generally will be addressed in 

Phase III of this study . 

7.5.1 Natural Gas Severance Tax Revenues 

Gas produced in Alabama is subject to a severance tax, administered through the Alabama 

Department of Revenue and currently levied at 10 percent . The severance tax includes both 

privilege taxes and production taxes, which are assessed on the basis of "engaging in the 

business of producing or severing oil or gas within the state" (Alabama Department of 

Revenue, 1992) . On average, privilege taxes are assessed at eight percent of gross value of 

hydrocarbons .2 Production taxes are always assessed at two percent of gross value of 

hydrocarbons . Together, these tax rates total 10 percent. Tax is based on the value of the 

hydrocarbons at the point of production. In addition, all gas produced, all leases in 

production, and all gas submerged on producing properties within the State of Alabama are 

exempt from ad valorem (property) taxes levied by the state or by any county or municipality 

(Alabama Department of Revenue, 1996a) . 

In 1996 the State of Alabama passed a new tax law designed to encourage development of 

the state's oil and natural gas resources. The state issued a blanket tax reduction on all new 

wells drilled between July 1996 and July 1999. The law promises a 50 percent severance tax 

` Exemptions to privilege taxes have been granted in recent years depending on the type of offshore well drilled. 

For instance, production greater than 200 MMCFD from gas fields with permits granted on or after July 1988 is 

taxed at four percent; production from wells drilled to depths greater than 18,000 feet is taxed at six percent. Other 

exemptions exist for occluded gas wells, enhanced recovery projects, and discovery wells. Therefore, based on 

individual circumstances, privilege taxes are assessed at from two to eight percent of gross value of production 

(Alabama Department of Revenue, 1992). 

80 
break for five years on all new wells (Mobile Press Register, 9/9/96) . With this new law, 

Alabama hopes to provide incentives for more oil and gas development within its borders. 

Payments of Severance Tax Revenues to the State of Alabama 

Severance tax payments for offshore gas production are collected by each county where gas 

is produced . A state collector in each county receives wire transfer directly from the 

operator . The distribution of severance tax revenues, once collected by the state Department 

of Finance, is as follows: privilege taxes are dispersed to the state's General Fund (90 

percent) and to the county from which the tax was assessed (10 percent) ; all production tax 

revenues (100 percent) are directed to the state's General Fund. The exception to this relates 

to offshore revenues collected from producing wells annexed by the Town of Dauphin Island . 

The state categorizes these wells as "onshore" therefore the dispersement of funds to the 

local regions is calculated based on a different, more complicated formula. 

Severance tax collections from Mobile Bay began in 1988 when gas was first produced for 

sale . Table 7.3 shows the amount of offshore gas tax revenues received by the state since 

1988 . In 1993, Dauphin Island increased the town's jurisdiction by annexing several 

additional miles of adjacent waters where producing gas wells are located. Currently a total 

of six gas wells are in production within the town limits and a percentage of severance tax 

revenues paid by the operators to the state is remitted to the Town of Dauphin Island . (These 

payments are presented in the next section.) Although the wells are located offshore, the 

state of Alabama categorizes them as "onshore" wells since they fall within Dauphin Island's 

jurisdiction . However, the state records all tax movies paid by these offshore operators as 

"onshore" dollars even though they technically are collected from offshore production. 

Contacts with Alabama Department of Revenue and Mobile County were not able to provide 

detail on these "onshore" payments from production off Dauphin Island . As a result, Foster 

Associates estimated the payments to the state and the share received by Mobile County from 

this production, based on actual Dauphin Island tax receipts and the tax allocation formula 

provided by the Alabama Department of Revenue . 

As shown on Table 7.3, tax receipts to the state from offshore gas production for fiscal years 

1988 through 1996 totalled almost $37 million. Severance tax revenues to the state from 

offshore production were significantly higher after 1992, increasing from $2 .8 million in 

1992 to over $6 million thereafter . Total tax revenues to the state related to offshore 

production in 1996 are estimated to be over $8 million . 

Severance Tax Revenue Disbursements to Mobile County 

As noted above, 10 percent of privilege-tax revenues are distributed to the counties from 

which they are collected . Table 7.3 also shows revenue distributions to Mobile County since 

1988 . Payments to Mobile County in 1988 were small, totalling about $15,000 and peaked 

at almost $600,000 in 1993, prior to payments received from the Dauphin Island "onshore" 

allocation . After 1993, when Dauphin Island's annexation took effect, tax receipts to Mobile 

County related to offshore production more than doubled . Mobile County tax receipts from 

offshore gas production are estimated at $1 .9 million in 1996 . These revenues are allocated 

81 
00 

N Table 7.3 

Severance Tax Payments to Alabama and Coastal Counties 

from Offshore Gas Production in State Waters 

(Millions $) 

Fiscal State of Alabama Mobile County Baldwin 

Year Offshore DI Onshore' Total Offshore DI Onshore' Total County 

1988 $0.26 -- $0.26 $0.15 -- $0.15 $0.012 

1989 $1 .03 -- $1 .03 $0.06 -- $0.06 $0.043 

1990 $0.65 -- $0.65 $0.04 -- $0.04 $0.027 

1991 $1 .36 -- $1 .36 $0.06 -- $0.06 $0.073 

1992 $2.82 -- $2.82 $0.22 -- $0.22 $0.057 

1993 $6.81 -- $6.81 $0.59 -- $0.59 $0.086 

1994 $6.08 $3.57 $9.65 $0.42 $1 .69 $2.11 $0.189 

1995 $3.89 $2.27 $6.16 $0.24 $1 .10 $1 .34 $0.149 

1996 $4.84 $3.40 $8.24 $0.27 $1 .61 $1 .88 $0.215 

Source : Alabama Dept. of Finance, 1996 ; Alabama Dept. of Revenue, 1996a. 

' The portion of the Dauphin Island offshore tax revenues, designated as "onshore" by the state, allocated to the state and Mobile County 

were estimated based on historical offshore tax revenues to Dauphin Island and the Alabama onshore tax allocation formula. 
to three primary funds: the County General Fund (35 percent), School Fund (35 percent), 

and Indigent Care Fund (30 percent) . 

In addition to Mobile County, The Town of Dauphin Island, located within the jurisdiction of 

Mobile County, also directly benefits from offshore gas production . The Town of Dauphin 

Island's boundary extends into Mobile Bay and encompasses an area where six producing gas 

wells are located. Mobil's Aloe Bay well is due to be completed in July 1997 and will be an 

additional source of revenue to the town. Table 7 .4 shows the total annual payments to the 

town's general fund since 1990. Revenues peaked at about $320,000 in 1994, and were 

about $302,000 in 1996 . 

Table 7.4 

Severance Talc Payments to the Town of Dauphin Island 

Fiscal Year 

1990 $226 

1991 $28,348 

1992 $27,696 

1993 $121,205 

1994 $317,656 

1995 $205,644 

1996 $301,871 

Source : Dauphin Island, Town of, 1996. 

Severance Tax Revenue Disbursements to Baldwin County 

Table 7 .3 also shows revenue distributions to Baldwin County since 1988 . Payments to 

Baldwin County were first recorded for fiscal year 1989 in the amount of about $40,000. 

Revenues dropped slightly the next year but rose to $70,000 in 1991 and to $84,000 in 1993 . 

Payments peaked in 1996 with $215,000 collected by the county . Baldwin County revenues 

are allocated to four primary funds: the County General Fund (32.5 percent), School Board 

(32.5 percent), Indigent Care Board (five percent) and the Alabama Trade School (five 

percent) (Baldwin County Commission, 1996). 

In addition to the state severance tax levied on offshore gas producers, in 1993 Baldwin 

County began to collect an additional one percent of the value of gas production from all 

operators within the County's jurisdiction. Revenues collected are deposited into the 

"Baldwin County One Percent Oil and Gas Severance Tax Fund." Fund provisions require 

83 
that the fund reach $15 million before the interest can be spent. Also, when the fund totals 

$15 million, the tax is no longer in effect (Alabama Department of Revenue, 1996a) . As of 

September 30, 1996, the trust fund had about $2 .5 million. Under law the county can spend 

90 percent of the interest and must put 10 percent back into the trust fund. The county has 

been putting all the interest back into the fund and to date it amounts to about $300,000 to 

$350,000 (PASH Inc., 1996). 

7.5.2 Royalty Payments to Alabama from Offshore Gas Production 

Royalty payments are based on the net back value of gas production at the well head. The 

percentage of value assessed varies by operator based on the payment term arranged at the 

time an offshore tract was leased . Bidders in the 1981, 1982 and 1984 lease sales were 

granted royalty terms from 16.67 percent upwards to 28 percent . Mobil currently pays a 

royalty rate of 16.67 percent from gas production in the state's Mary Ann Field. 

Actual royalty payments vary by operator because producers are allowed to deduct from the 

total value of production "reasonable direct costs" (Alabama Department of Revenue, 1996a) . 

Allowable expenses typically include the costs of transportation and processing. 

Table 7.5 summarizes the annual offshore gas royalty payments collected by the State of 

Alabama between 1988 and 1995 . When gas production increased, royalty payments 

generally followed suit . Royalty payments can decrease in some years due to variance in gas 

prices, the amount of production, the terms of the producing leases, and from allowable 

deductions . Royalty payments were first recorded in 1988 at $1 .5 million and grew to over 

$17 million by 1992. Payments totalled about $90 million in 1994, declined to just over $70 

million in 1995 and increased to about $102 million in 1996. As of February, 1997 royalty 

payments to the state for the current fiscal year total about $44 million. 

84 
Table 7.5 

Royalty Payments to Alabama from Offshore Gas Production 

in Federal and State Waters 

(Millions $) 

Fiscal Year Federal State 

Waters (8g) Waters 

1988 $0.25 $1 .54 

1989 0.71 3 .35 

1990 n/a 1 .02 

1991 0.30 4 .68 

1992 1 .56 17 .91 

1993 6.56 46 .90 

1994 8 .33 89 .80 

1995 7 .37 70.80 

1996 10.27 101 .82 

1997 (prelim .) 3 .87 44.96 

Source : Alabama Dept. of Revenue, 1996a. Note: Preliminary 

1997 8(g) royalty payments reflect data as of January ; state 

royalty payments reflect data as of February. 

7.5.3 Mobile County Revenue Sources 

Table 7.6 shows total revenues received by Mobile County for fiscal years 1991-1995 . (Data 

were only available for selected years.) In 1995, Mobile County's revenue base totalled 

about $110 million, about 64 percent of which was collected from taxes . Since 1991, Mobile 

County's revenue grew by almost 30 percent. Revenue collections by the county increased 

the most from "Charges for Services," which includes county fees for services provided by 

agencies and courts . Severance tax receipts by Mobile County from offshore gas production 

totalled about $1 .34 million in 1995 ; in all years offshore tax revenue to the county 

represented less than three percent of revenues received by the county . 

Town of Dauphin Island 

Table 7.7 shows total revenues received by the Town of Dauphin Island for the years 1990-

1996 . Dauphin Island's receipts more than doubled from 1990 to 1995, when revenues 

totalled about $850,000 . Data for 1996 show increased growth, largely due to a significant 

state grant. Dauphin Island relies on the funds collected from offshore gas companies for 

85 
00 o1\ Table 7.6 

Mobile County Revenues 

(Millions $) 

Fiscal 

Year 

Taxes 

All Offshore 

Sources Production 

Licenses & 

Permits 

Intergovernmental Charges for 

Services Misc. 

Total 

Revenues 

Offshore Production 

as % of Total: 

Taxes Revenues 

1991 $58.04 $0.06 $0.92 $13.58 $6.64 $538 $84.56 0.11% 0.07% 

1992 $63.92 $0.22 $1 .00 $13 .39 $9.91 $5.74 $93.96 035% 0.24% 

1993 $62.74 $0.59 $1 .13 $14.93 $11 .80 $6.76 $97.37 0.95% 0.61 

1994 $67.45 $2.11 $1 .41 $15.27 $11 .11 $4.81 $100.05 3.13% 2.11% 

1995 $69.96 $1 .34 $134 $15.81 $13 .74 $8.69 $109.54 1 .91% 1 .22% 

Source: Mobile County Commission, 1991-1995 ; Alabama Dept. of Finance, 1996; Alabama Dept. of Revenue, 1996a; Table 7.3 . 
Table 7.7 

Town of Dauphin Island Revenues 

Offshore Prod. 

Fiscal State & Federal Ad Valorem Sales Onshore Licenses & Other Total Tax as 

Year Grants Tax Tax Prod. Tax Permits Revenues of Total 

1990 $27,000 $0 $79,548 $226 $43,717 $195,758 $346,249 0.07% 

1991 $36,760 $87,654 $96,869 $28,348 $54,060 $168,109 $471,800 6.01% 

1992 $36,500 $87,202 $89,347 $27,696 $61,708 $340,488 $642,941 4.31% 

1993 $27,000 $90,923 $129,899 $121,205 $65,374 $211,173 $645,574 18 .77% 

1994 $27,000 $90,766 $140,044 $317,657 $77,749 $237,754 $890,970 35.65% 

1995 $22,237 $103,181 $165,513 $205,645 $83,696 $264,661 $844,933 24.34% 

1996 $198,735 $101,715 $233,216 $301,871 $104,721 $407,639 $1,347,897 22.40% 

Source : Dauphin Island, Town of, 1996. 

00 

J 
their general fund expenses . As shown on the table, tax receipts from gas production 

contribute a significant portion of annual revenues, increasing from six percent in 1991 to 

about 25 percent in recent years . For the last three years, gas tax revenues were the largest 

single source of income to Dauphin Island . 

7.5.4 Baldwin County Revenue Sources 

Table 7.8 shows total revenues received by Baldwin County for the years 1990-1995 . In 

1995, Baldwin County's revenue base totalled about $28 million, about 54 percent of which 

was collected from taxes . Since 1990, Baldwin County's revenue grew by over 75 percent. 

This growth is largely attributable to revenues collected from taxes and fees for licenses and 

permits . Severance tax receipts by Baldwin County from offshore gas production totalled 

about $150,000 in 1995 ; in all years offshore tax revenue to the county represented less than 

one percent of revenues received by the county . 

88 
Table 7.8 

Baldwin County Revenues 

(Millions $) 

Taxes Offshore Production 

Fiscal All Offshore Licenses & Intergovern- Charges for Total as % of Total : 

Year Sources Production Permits mental Services Misc. Revenues Taxes Revenues 

1990 $7.58 $0.027 $0.38 $4.92 $2.14 $1.14 $16.17 036% 0.35% 

1991 $8 .53 $0.073 $0.43 $4.66 $2.28 $1.03 $16.94 0.86% 0.51% 

1992 $11 .13 $0.057 $0.49 $5.76 $2.35 $1.20 $20.92 0.51% 0.90% 

1993 $11 .72 $0.086 $0.59 $6.14 $2.55 $1.32 $22.31 0.74% 0.67% 

1994 $13 .02 $0.189 $0.88 $6.59 $2.65 $1.15 $24.29 1 .45% 0.78% 

1995 $15 .30 $0.149 $0.94 $7.26 $2.80 $2.10 $28.40 0.97% 0.52% 

Source: Baldwin County Commission, 1990-1995 ; Alabama Dept. of Finance, 1996; Alabama Dept. of Revenue, 1996a; Table 7 .3 . 

00 

11o 
Case Study: Effects of Natural Gas Development on the Town of 

Dauphin Island 

The first Mobile Bay Norphlet natural gas discovery was made in November 1979 by Mobil 

Offshore Exploration and Producing (MOEPSI) about a mile northeast of Dauphin Island near the 

mouth of Mobile Bay. The bridge to Dauphin Island had been destroyed by Hurricane Fredric in 

September; the island had little tourism business before the hurricane and none until the bridge 

was rebuilt in 1982, although home owners could ferry to the island . The gas discovery 

represented an exciting new business prospect to local and state officials. Today, 18 years later, 

the natural gas industry has been an influencing presence to the small island community. 

Natural gas platforms can be seen from numerous points on the island . Although these platforms 

may be considered a visual eyesore to some, leaders of Dauphin Island report no problems 

associated with their presence. The gas industry has contributed to the growth of the island's 

economy and benefitted local residents . The Town of Dauphin Island annexed several miles of 

offshore waters in 1992 and extended the town limits to capture revenues from producing wells 

located nearby, significantly adding to the town's revenue base. This case study describes the 

impacts to the community from the gas industry, including direct industry activity and 

expenditures; tax receipts by local government ; royalty receipts by landowners; and civic 

contributions by the industry . 

Direct Industry Activity and Expenditures 

Dauphin Island is home to several shore base suppliers to the offshore gas industry and has 

limited staging facilities . These include McHugh Oilfield Services, Inc., Crewboat Services, Inc., 

PHI Helicopter Services and Miller Diving . MOEPSI also owns and operates a small shorebase 

on the eastern edge of the island near the pilots' dock and the ferry dock. Local suppliers mainly 

operate with a limited workforce, but the facilities serve as a staging point for local crews as well 

as those based out of other states . 

The MOEPSI site on the eastern end of the island is about the only place on the island where local 

conflict with the gas industry has been reported in the past. The Dauphin Island Parks and Beach 

Board (DIPBB) manages a campground nearby and in the past campground residents complained 

about the smell of diesel fumes and noise of idling diesel crewboats . This problem has been 

corrected . 

Tax Receipts by Local Government 

The Town of Dauphin Island receives about $300,000 annually in severance tax revenue from five 

wells owned by Exxon and one Union well annexed by the town. (Refer to Section 7.3 .1 .) This 

amount represents about 22 percent of the 1996 town budget . This is the largest single source of 

the town's budget. No money comes to Dauphin Island from the state earnings on the Alabama 

Trust Fund, the depository for Alabama offshore royalty movies. Dauphin Island's income from 

the industry increased in 1997 when MOEPSI's Aloe Bay well in tract 75 came on line in July . 

Mobil may ultimately drill more wells in the Mississippi Sound within the jurisdiction of the 

town. 

90 
Case Study: Effects of Natural Gas Development on the Town of 

Dauphin Island, Continued 

Royalty Receipts by Land Owners 

Over the last 15 years land owners on Dauphin Island have received bonus checks at five year 

intervals . On a per lot basis, the checks totalled : 

$500 for the first five years; 

$750 for the second five years; 

$1,000 for the most recent five years . 

The Dauphin Island Property Owners Association (POA) received substantially more, about $1 .2 

million . The DIPBB also received a substantial bonus check. Contacts with the DIPBB 

confirmed that about $80,000 a year has been received in royalty income from Mobil, related to 

state tracts 76 and 94 (DIPBB, 1996). A unification agreement exists among the property owners 

which defines the distribution of royalty money among mineral rights holders . Most island 

residents are anticipating the start-up of Mobil's well in tract 75 (Aloe Bay) as a source of royalty 

income. 

Civic Contributions by Industry 

Industry goodwill toward the communities influenced by natural gas development are apparent on 

Dauphin Island . Recent examples of funds contributed to the local community by the gas industry 

include the following: 

" Mobil sponsored the construction of a new bike trail on the island . 

" Exxon and Mobil currently contribute to the Estuarium under construction by the Dauphin 

Island Sea Lab. 

" Mobil paid for a $1 .0 million sand stabilization project on the east end of the island . 

" Mobil, Exxon, and Shell all financially support the Sea Lab education program. 

91 
Case Study : Comparison of Tourism and Natural Gas Tax Revenues to 

Local Governments and State of Alabama 

The State of Alabama currently benefits from two thriving industries located along its 

Gulf Coast: tourism and offshore natural gas development. Each industry makes 

significant payments to both the state and local governments. This case study compares 

recent fiscal contributions to the state and local governments, based on materials in 

Sections 4 and 7. 

Comparison of Selected State Tourism and Gas Industry Tax Revenues 

Tourism expenditures in the State of Alabama total several billions of dollars annually and 

include spending for travel, lodging, food and beverages, retail purchases, and recreation. 

Visitor spending in Mobile and Baldwin Counties provides significant tax revenues to the 

state. Collection of lodging tax revenues by the state reflects the importance of this 

industry to the state . The state levies a four percent lodging tax on all lodging sales in 

the state. 

Table 1 shows state collections of lodging tax for 1990-1995. In 1995, over $20 million 

was received by Alabama from sales of overnight accommodations, reflecting a 40 

percent increase in total revenues since 1990. State collections in Baldwin County for 

many years have been the highest in the state. Table 1 shows the amount of state lodging 

tax revenues collected in the coastal region, from Mobile and Baldwin counties . In 1995, 

almost 30 percent of all state revenues came from this region, with Baldwin County's 

contribution twice Mobile's. Since 1990, lodging tax collections in the coastal region 

increased almost 70 percent from $3 .6 million to $6.0 million in 1995, nearly twice the 

statewide increase, and mostly arising from the tourism boom in Gulf Shores and Orange 

Beach. 

The offshore natural gas industry also has significantly contributed to Alabama's tax base, 

especially with the increase in offshore production in recent years . Table 1 summarizes 

offshore gas severance tax revenues to the state since 1990. (Refer to Section 7 for 

additional discussion .) Collections of severance tax revenue by the state began when 

offshore production was initiated in 1988 . Revenues in the first few years were small but 

gained momentum when more producers came online after 1990 . By 1992 the state had 

collected only a few million dollars in tax revenue from offshore production, but this 

increased significantly in 1993, when $6 .8 million was received from offshore producers. 

To date the largest amount was received in 1994, close to $10 million. With increasing 

production offshore, and rising prices, future revenues to the state from gas industry 

operators will continue to grow. MOEPSI's well 95-5, which came on line in December 

1996, and MOEPSI's Aloe Bay well, which came on line in July 1997, both added 

significant tax revenues in 1997 because both of these wells produced at daily rates much 

higher than Mary Ann field wells . 

92 
Case Study: Comparison of Tourism and Natural Gas Tax Revenues to 

Local Governments and State of Alabama, Continued 

Table 1 

Comparison of Selected State of Alabama Revenues 

(Millions $) 

Lodging Tax Lodging Tax Offshore Offshore Gas 

(Total State) (from MC & BC) Gas Tax Interest 

(To State) Income 

(To State) 

1990 14.97 3 .62 0.65 95.80 

1991 15 .72 4 .24 1 .36 105 .50 

1992 15 .99 4.38 2.82 93 .60 

1993 15.69 4.52 6.81 97 .50 

1994 18.96 5 .49 9 .65 92.40 

1995 20.81 6.02 6 .16 99.40 

1996 23.12 6.73 8 .24 102.40 

Source : Table 4 .8 ; Table 4 .11 ; Table 7.3 ; Alabama Treasurer's Office, 1996. 

Data on Table 1 show that taxes to the state from regional tourism and gas production 

activity have been of a similar magnitude, with both showing signs for a healthy future 

trend--$6 .7 and $8 .2 million for FY 1996. But these revenue flows are swamped by the 

earnings from the two trust funds established by Governors Fob James and George 

Wallace . The State of Alabama manages the trust funds, which hold funds collected from 

bonus payments from offshore leases, state royalty payments which run between 16 .67 

and 28 percent of wellhead gas values, and 8(g) revenues-27 percent of the federal 

royalty payment-received from the federal government for wells producing within the 

three- to six-mile lines. The principal cannot be spent by the state but these funds earn 

significant yields each year. The interest income is spent by the state and benefits 

programs funded by the state's general fund. Table 1 shows that income from the state 

trust funds adds about $100 million annually to the state budget. These earnings will 

continue to grow because new royalty income is added to the principal every month from 

existing wells--and more wells are anticipated. Tourism tax receipts are important to the 

state budget, but earnings on the gas trust funds have changed the face of Alabama. 

Interest income amounts to about 12 percent of the state General Fund. 

93 
Case Study: Comparison of Tourism and Natural Gas Tax Revenues to 

Local Governments and State of Alabama, Continued 

Comparison of Local Government Tourism and Gas Industry Tax Revenues 

The Gulf Coast communities of Gulf Shores and Orange Beach represent the largest share 

of the tourism industry in coastal Alabama . These communities have greatly benefitted 

from increased visitation to area beaches, where numerous resorts have been built. Fiscal 

contributions to the region from tourism are reflected by both lodging tax and retail sales 

tax revenues . 

Table 2 summarizes lodging and sales tax collections by the Cities of Gulf Shores and 

Orange Beach since 1990. Revenues shown reflect taxes that accrue to the local 

communities. Municipalities levy additional taxes for selected business operations . In 

Gulf Shores and Orange Beach, an additional three percent lodging tax is collected by the 

cities and an additional two percent benefits the Gulf Coast Convention and Visitors 

Bureau (GCCVB). Since 1990, lodging tax revenues received by these entities increased 

by over 150 percent, totalling over $4 million in 1995 . Retail sales tax revenues received 

by Gulf Shores and Orange Beach increased just as significantly during this time 

increasing by over SS percent to $5 .1 million in 1995 . These two tax items totalled $9 .2 

million in 1995 . 

Table 2 

Comparison of Selected Local Government Revenues 

(Millions $) 

Lodging Tax Retail Sales Tax Offshore Gas Tax 

(GS, OB & (GS & OB) (MC, BC, & DI) 

GCCVB) 

1990 1 .60 2.78 0.07 

1991 1 .84 3 .13 0.16 

1992 1 .90 3 .32 0.30 

1993 2 .12 3 .81 0.80 

1994 3 .34 4.50 2 .62 

1995 4.08 5.10 1 .69 

Source : Table 4.9 ; Table 4.11 ; Table 7.3 ; Table 7.4 . 

94 
Case Study: Comparison of Tourism and Natural Gas Tax Revenues to 

Local Governments and State of Alabama, Continued 

The coastal counties and the Town of Dauphin Island receive a portion of offshore gas 

severance taxes redistributed by the state. Monies are allocated by the state based on a 

severance formula and payments are received by the counties typically on a monthly 

basis. In Mobile and Baldwin counties, offshore gas tax revenues are allocated between 

the general fund and other special revenue funds . Table 2 summarizes total payments to 

both counties since 1990. Revenues reached almost $1 .0 million in 1993 and significantly 

increased after this time, totalling $2.6 million in 1994 . The large increase in offshore 

tax payments in 1994 is due to the annexation of six offshore wells by the Town of 

Dauphin Island, which adds over $1 .0 million to Mobile County and $300,000 to the 

Town of Dauphin Island . Variability in production flows and prices governed the 

downturn in 1995 . Although offshore gas tax payments to the region were much less 

than total tourism tax dollars received, the continued growth of each will benefit the 

coastal region . Clearly, however, tourism tax revenues in Baldwin County are 3-4 times 

greater than offshore tax revenues received by the entire coastal region . 

Comparison of State and Local Government Tourism and Gas Revenues 

Table 1 revealed that State government has an important reliance on natural gas severance 

tax and trust funds' revenues. Local governments along the Baldwin County Gulf Coast 

(Gulf Shores and Orange Beach) have an overwhelming reliance on tourism revenues . 

Table 2 shows the lodging, sales and gas tax collections arising from the Gulf Coast 

regions of Mobil and Baldwin Counties . Dauphin Island has an important reliance on 

natural gas revenues . State government is the real winner from Alabama's natural gas 

revenue payments . Gulf Shores and Orange Beach have little to gain and fear the loss of 

tourism dollars with the expansion of the gas industry in federal waters southeast of 

Baldwin County. 

95 
8 .0 References and Literature Cited 

Alabama Bureau of Tourism and Travel, 1995 . Report to Taxpayers from the Alabama 

Bureau of Tourism and Travel 1995 (Brochure) . Montgomery, Alabama. 

Alabama Department of Conservation, 1996a. License Division. Telcon with staff to obtain 

data on fishing permits . 

Alabama Department of Conservation, 1996b . Marine Police Division. Telcon with R. 

Thornall to obtain pleasure boat registration data . 

Alabama Department of Conservation, 1996c . Marine Resource Division. Dauphin Island 

Field Office . Interview with Vernon Minton, Director Marine Resources Division, 

and Steve Heath, Assistant Director, November . 

Alabama Department of Conservation, 1996d. Marine Resource Division. Coastal Alabama 

Sportfishing Guide. 

Alabama Department of Economic and Community Affairs, 1996. Telcon with Jeff Jordan, 

Staff, November. 

Alabama Department of Economic and Community Affairs, 1992a. Alabama County Data 

Book 1992-1993, 16th Edition. Montgomery, Alabama. September . 

Alabama Department of Economic and Community Affairs, 1992b. Alabama Municipal Data 

Book 1993 . Montgomery, Alabama. 

Alabama Department of Economic and Community Affairs, 1987. Alabama Coastal Area 

Development Guide. September. Montgomery, Alabama. 

Alabama Department of Examiners of Public Accounts, 1996. Telcon with staff to obtain 

historic audited reports for the Mobile County Commission and Baldwin County 

Commission, various years. 

Alabama Department of Finance, 1996. Division of Control and Accounts. Obtained 

statements of offshore natural gas production privilege tax revenues for Alabama, 

Mobile County and Baldwin County . 

Alabama Department of Industrial Relations, 1996. Research and Statistics Division . Telcon 

with Delia Clenny and staff for data excerpts from Employment Security Statistical 

Bulletin (various years) and historical labor force data. Montgomery, Alabama. 

Alabama Department of Revenue, 1992 . General Summary of State Taxes. Montgomery, 

Alabama. September. 

96 
Alabama Department of Revenue, 1996a. Natural Resources and License Tax Division, 

Severance Tax Section. Telcons with Nancy Cone and Anita Gregory to obtain 

historic offshore natural gas tax collection data, October, Montgomery, Alabama. 

Alabama Department of Revenue, 1996b . Tax Division. Telcon with Rex Martin to obtain 

historic and current lodging and sales tax revenue data, November, Montgomery, 

Alabama. 

Alabama Gulf Coast Convention and Visitors Bureau, 1996 . Telcon with H. Malone, 

President. 

Alabama Oil and Gas Board, 1986. Oil and Gas Exploration and Development in Alabama 

State Coastal Waters and Adjacent Federal OCS Waters, October 1951-June 1986. 

Oil and Gas Report 7D. Tuscaloosa, Alabama. 

Alabama Seafood Association, 1996. Interview with Pete Barber, Mobile County President, 

November. 

Alabama Sea Grant Extension Service, 1987. Guide to Boat Launching Sites in Coastal 

Alabama . Circular CRD-10, May. 

Alabama Treasurers Office, 1996 . Telcon with staff to obtain Alabama and Heritage Trust 

Fund financial statements . Montgomery, Alabama. 

Atlantic Marine, 1996 . Telcon with Trey LeBlanc, Marketing Sales Engineer, November. 

Auburn University Marine Resource Center, 1994. Sea Grant Extension Office, Circular 

ANR-686; telcon with staff, March. 

Baldwin County Commission, 1996. Telcon with Locke Williams, Clerk-Treasurer, 

November . 

Baldwin County Commission, 1990-1995 . Audited Financial Statement for the Baldwin 

County Commission, various years, provided by the State of Alabama, Department of 

Examiners of Public Accounts, Montgomery, Alabama . 

Bayou LaBatre Chamber of Commerce, 1996 . Interview with C. Allen Horn, President, 

November . 

Bayou LaBatre Port Authority, 1996 . Interview with Brett Dungan, Chairman, November . 

Bellingrath Gardens, 1996. Telcon with Carolyn Gibson, Admission Manager, and Bob 

Pearson, Managing Director, Bellingrath Gardens . 

Bender Shipbuilding, 1996 . Telcon with Joe Comer, Director of Engineering . 

97 
C & G Boatworks, 1996 . Telcon with Janson Graham, Co-Owner, November. 

Compass Marketing, 1996. Alabama's Gulf Coast Vacation Guide, prepared for the 

Alabama Gulf Coast Convention and Visitor's Bureau . Gulf Shores, Alabama. 

Davidson-Peterson Associates, 1995a. The Economic Impact of Expenditures by Tourists on 

Alabama - 1995, Prepared for the Alabama Department of Tourism and Travel . 

York, Maine. 

Davidson-Peterson Associates, 1995b. The Economic Impact of Expenditures by Tourists on 

Baldwin County - 1994. Prepared for the Alabama Gulf Coast Convention and 

Visitors Bureau, July. York, Maine . 

Dauphin Island Development Network/Chamber of Commerce, 1996. 1996 Town of 

Dauphin Island : An Introspective Look at Growth and Development, prepared by 

A.M. Agapos. 

Dauphin Island Park and Beach Board, 1996 . Interview with Mike Henderson, Executive 

Director, November. 

Dauphin Island Sea Lab, 1996. Interview with Dr. George Crozier, Director, and John 

Dindo, November. 

Dauphin Island, Town of, 1996 . Telcons with and data provided by Linda Barousse, Town 

Clerk. 

Deep Sea Foods, 1996. Interview with Walton Kraver, President, November. 

Ditton, R.B ., D.A. Gill, and C.L. MacGregor, 1991 . "Understanding the Market for 

Charter and Headboat Fishing Services." Marine Fisheries Review, 53(1):19-26 . 

Ditton, R.B ., S .M . Holland, and D.A. Gill, 1992 . "The U.S. Gulf of Mexico Party Boat 

Industry : Activity Centers, Species Targeted, and Fisheries Management Options . " 

Marine Fisheries Review, 54(2) :15-20 . 

Eastern Shore Chamber of Commerce, 1996 . Telcon with staff at Eastern Shore Chamber of 

Commerce and Grand Hotel . 

Foley, City of, 1996 . Telcon with Meg Parnell, Revenue Clerk, November. 

Fort Conde, 1996. Telcon with Eva Golson, Director Fort Conde and Mobile Film Office. 

Fort Gaines Historic Site and Museum, 1996. Telcon with staff, Dauphin Island, Alabama. 

Fort Morgan, 1996. Telcon with staff, Gulf Shores, Alabama. 

98 
Gordon, W.R., 1993 . "Travel Characteristics of Marine Anglers Using Oil and Gas 

Platforms in the Central Gulf of Mexico." Marine Fisheries Review, 55(1):25-31 . 

Graham Marine, Inc., 1996. Interview with Dale Gatchell, Controller; Billy Maples, 

Administrative Manager, November. 

Gulf Coast Area Chamber of Commerce, 1996. Economic Indicators, and Tourism Statistics, 

Gulf Shores, Alabama . 

Gulf Coast Conservation Association, 1996a . Interview with David Dexter, Executive 

Director, November. 

Gulf Coast Conservation Association, 1996b. GCCA Undercurrents, The Official Newsletter 

of the Gulf Coast Conservation Association of Alabama, Summer 1996 . 

Gulf Coast Convention and Visitors Bureau, 1996a . Telcon with Herb Malone, President; 

Sandra Hendrix, Staff, November, Gulf Shores, Alabama. 

Gulf Coast Convention and Visitors Bureau, 1996b. Economic Update, October revision, 

Gulf Shores, Alabama. 

Gulf Shores, City of, 1996. Telcon with Debbie West to obtain financial reports. 

Holland, S.M ., R.B. Ditton, and D.A. Gill, 1992 . "The U.S. Gulf of Mexico Charter Boat 

Industry : Activity Centers, Species Targeted, and Fisheries Management Opinions . " 

Marine Fisheries Review, 54(2) :21-27 . 

Miller Divers, 1996. Telcon with Ray Miller, Owner. 

Mobile Area Chamber of Commerce, 1996x. Economic Development Department. Telcon 

with Carol Lambert to obtain historic data from MCC Statistical Abstract. 

Mobile Area Chamber of Commerce, 1996b. Mobile Statistical Abstract 1996-1997. 

Mobile Area Chamber of Commerce, 1996c . Telcon with Ritchie Hurt, Research and 

Information Director. 

Mobile Area Chamber of Commerce, 1995 . 1995-1996 Guide to Mobile. 

Mobile Area Chamber of Commerce, 1994. 1994-1995 Mobile Area Manufacturers 

Directory . 

Mobile Area Chamber of Commerce, 1993 . Mobile's Economic Review 1985-1992. 

Mobile, City of, 1996 . Tax Division, telcon with Leroy Pritchitt, December . 

99 
Mobile Convention and Visitors Corporation, 1996 . Telcons with Ron McConnell, Director 

of Tourism, and Phillipa Webber, Convention Services Director. 

Mobile County Commission, 1996 . Department of Finance. Telcon with Roger Rendleman, 

Director of Finance, to obtain historic data from county financial reports, November. 

Mobile County Commission, 1990-1995 . Audited Financial Statement for the Mobile County 

Commission, various years, provided by the State of Alabama, Department of 

Examiners of Public Accounts, Montgomery, Alabama. 

Mobile Middle Bay Port, 1996. Telcon with Judith Adams, Marketing, October. 

Mobile Press Register, 4/21/96 . "Oil, Gas Rigs in Future for Gulf Shores?," by Craig 

Myers . 

Mobile Press Register, 5/1/96 . "Coastal Leaders: Shield Beach From Rigs," by Craig 

Myers . 

Mobile Press Register, 5/8/96 . "Officials : Keep Offshore Drilling Out of Our Sight," by 

Craig Myers and Joey Bunch. 

Mobile Press Register, 7/20/96 . "Coast Area Best for Drilling Rigs," by Joey Bunch. 

Mobile Press Register, 8/1/96 . "James Changes Mind; Wants Rigs Out of Sight," by Eddie 

Curran. 

Mobile Press Register 8/3/96. "Agency : No Rigs off Beach," by Craig Myers . 

Mobile Press Register 8/31/96. "Interior Agrees Rigs Should Be Out of Sight," by Joey 

Bunch. 

Mobile Press Register, 9/9/96 . "Will Tax Cuts Really Give Big Payback?, " by Ronni 

Patriquin Clark. 

Mobile Press Register, 11/10/96 . "Living on the Edge," by Joy Morrill. 

National Association of Port Authorities, 1996. Telcon with Rex Sherman, September . 

Orange Beach, City of, 1996. Telcon with Clara Myers, Clerk's Office to obtain historic 

data from annual financial reports, November. 

Orange Beach Fishing Association, 1996. Interview with Nathan Cox, President, November. 

Orange Beach Fishing Association, 1994. The Economic Impact of Charter Fishing in 

Orange Beach, Alabama. Prepared by H. Malone, Alabama Gulf Coast Convention 

and Visitors Bureau, September . 

100 
PASH Inc., 1996 . Telcon with Bob Wright, October . 

Schambeau Foodland, 1996 . Telcon with Cram Schambeau, Owner, November . 

Sea Pearl Seafood, 1996. Interview with Joe Ladnier, President, November. 

South Alabama Regional Planning Commission, 1996 . Personal communication with G. 

Nettles for 1995 County population estimates. Adapted from U.S. Department of 

Commerce, Bureau of Census, Population Estimates Branch, County Population 

Estimates for Alabama. 

South Alabama Regional Planning Commission, 1993 . Baldwin County Long Range 

Development and Management Plan. April. 

Steiner Shipyard, Inc ., 1996. Interview with Wanda Duke, Project Development, 

November. 

U.S . Army Corps of Engineers, 1988 . Bayou LaBatre, Alabama Feasibility Report on 

Improvement of the Existing Federal Navigation Channel. U.S . Army Engineer 

District, Mobile, Coastal Section, Planning Division, Mobile, Alabama. September. 

U.S . Army Corps of Engineers, 1996 . New Orleans District, Waterborne Commerce 

Statistics. Telcon with Staff to obtain data from MV-GC Region Freight Traffic 

Tables, October. 

U.S . Department of Commerce, Bureau of the Census, 1981-1996a. County Business 

Patterns, ALABAMA. U.S . Government Printing Office, Washington, DC. 

U .S . Department of Commerce, Bureau of the Census, 1996b . Statistical Abstract of the 

United States 1996, Tables 692 and 746, October. 

U.S. Department of Commerce, Bureau of Economic Analysis, Regional Economic 

Information System, 1996. Tables CAS and CA25 for Mobile and Baldwin Counties, 

Alabama; and State of Alabama. Washington, DC. 

U.S . Department of Commerce, NOAH, National Marine Fisheries Service (NMFS), 1996a . 

Telcon with Guy Davenport to obtain historical commercial fish landings statistics for 

Alabama. Miami, Florida, October. 

U.S . Department of Commerce, NOAH, National Marine Fisheries Service (NMFS), 1996b. 

Telcon with Steve Koplin to obtain historical commercial seafood processing statistics 

for Alabama. Silver Spring, Maryland, November. 

U.S . Department of Commerce, NOAH, National Marine Fisheries Service (NMFS), 1996c. 

Mobile Field Office . Interview with Ted Flowers, Mobile Field Agent, November. 

101 
U.S. Department of Commerce, NOAA, NMFS, 1984-1996d . Fisheries of the United 

States, various years. Current Fishery Statistics Numbers 8320 through 9500 . Silver 

Spring, Maryland. 

U.S. Department of Commerce, NOAA, NMFS, 1987-1996e . Marine Recreational Fishery 

Statistics Survey, Atlantic and Gulf Coasts, various years . Current Fishery Statistics 

Numbers 8392 through 9204 obtained hard copy . Data for years beyond 1992 

obtained via intemet on NMFS web site . Silver Spring, Maryland. 

U.S . Department of Transportation, U.S . Coast Guard, Mobile 'Office, 1997 . Telcon with 

John Fredella, Marine Safety Office, Inspection Department, January. 

U.S . Fish and Wildlife Service, 1996. Mobile Field Office, telcon with Larry Goldman, 

Field Supervisor, November. 

University of Alabama, 1996 . Center for Business and Economic Research, Division of 

Research and Statistics . Telcons with Anisette Watters and Kathryn Rivers to obtain 

historic and current material from the Economic Abstract of Alabama. Tuscaloosa, 

Alabama. 

University of Alabama, 1994 . Center for Business and Economic Research, Division of 

Research and Statistics . Economic Abstract of Alabama - 1995 . Printed Series No . 

53, November. Tuscaloosa, Alabama. 

University of South Alabama, 1996a. Current Economic Trends of Southwest Alabama, 

Center for Business and Economic Research, February . 

University of South Alabama, 1996b. Midyear Graphic Update of Mobile Economy, Center 

for Business and Economic Research, August. 

University of South Alabama, 1993a. Socio-Economic Data for Southwest Alabama. Center 

for Business and Economic Research, CBER Research Report #27, March 15 . 

University of South Alabama, 1993b. Prospects of the Mobile Economy for 1994. Center 

for Business and Economic Research, CBER Research Report #30, December. 

USS Alabama, 1996. Telcon with Bill Tunnell, Executive Director, USS Battleship 

Commission . 

102 
S~,ENT OF Ty The Department of the Interior Mission QPQ ~' 

Z 

a `` p As the Nation ' s principal conservation agency, the Department of the Interior has responsibility 

for most of our nationally owned public lands and natural resources . This includes fostering 

sound use of our land and water resources; protecting our fish, wildlife, and biological diversity; 

_ a9 

4 e 

preserving the environmental and cultural values of our national parks and historical places; and 

RCH 3 ~ providing for the enjoyment of life through outdoor recreation . The Department assesses our 

energy and mineral resources and works to ensure that their development is in the best interests 

of all our people by encouraging stewardship and citizen participation in their care . The 

Department also has a major responsibility for American Indian reservation communities and for 

people who live in island territories under U.S . administration . 

The Minerals Management Service Mission 

As a bureau of the Department of the Interior , the Minerals Management Service's (MMS) primary 

o responsibilities are to manage the mineral resources located on the Nation ' s Outer Continental 

. ~. Shelf (OCS), collect revenue from the Federal OCS and onshore Federal and Indian lands, and 

distribute those revenues. 

~` 6~~ Moreover, in working to meet its responsibilities, the Offshore Minerals Management Program 

administers the OCS competitive leasing program and oversees the safe and environmentally 

sound exploration and production of our Nation's offshore natural gas, oil and other mineral 

resources . The MMS Royalty Management Program meets its responsibilities by ensuring the 

efficient, timely and accurate collection and disbursement of revenue from mineral leasing and 

production due to Indian tribes and allottees, States and the U.S . Treasury . 

The MMS strives to fulfill its responsibilities through the general guiding principles of : (1) being 

responsive to the public's concerns and interests by maintaining a dialogue with all potentially 

affected parties and (2) carrying out its programs with an emphasis on working to enhance the 

quality of life for all Americans by lending MMS assistance and expertise to economic 

development and environmental protection .