Currently bill in congress that gives 50-75% royalties to gulf states. Senate version at like 32.5%. Why should the feds get even 50% of this money? This should fall under the "its your money" argument.

I'm sure FL, TX, AL, MS, and LA schools could sure use the money or maybe the money could buy health insurance for all those citizens. How about pay the property taxes of the citizens of those states or maybe pay those ever increasing electricity bills. States are so weak. What will the feds use the money for: A bloated contract to Lockeed Martin, General Dynamics or Haliburton complete with upcharges for the cost of lobbying them and donating to the campaigns?

Probably because it is offshore. Most of the Gulf rigs are at least 20 miles out, and I guess that makes them technically International waters