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Posted on 09/13/2005 8:50:56 PM PDT by thackney
Language allowing wider access to offshore oil and gas supplies may appear in House budget reconciliation language, Capitol Hill sources say, even though attempts to seek new drilling through the delayed budget process would face considerable political obstacles.
Possibilities reportedly under consideration include providing long-term protections for the Florida coast in return for allowing access to a coveted area farther out in the eastern Gulf of Mexico, the lease sale 181 area.
"Everything is on the table. It is possible," said Brian Kennedy, an aide to House Resources Committee Chairman Richard Pombo (R-Calif.). Backers of wider Gulf access brought up the issue during the energy bill process as well, but it ultimately was not included.
Some specifics of offshore proposals tossed around are beginning to emerge. Sources familiar with the talks say the Minerals Management Service, at the request of resources committee staff, estimated that a proposal for two lease sales over three years in an area that includes some of the original sale 181 area would provide $500 million in bonus payments.
The issue has been discussed between some members of the Florida House delegation and Resources Committee staff, sources familiar with the issue say. "They continue to discuss possibilities and various alternatives that could satisfy the concerns of the delegation," Kennedy said.
The Pensacola News Journal yesterday said the discussions include Rep. Jeff Miller (R-Fla.). Miller voiced support for the plan because Pombo said it would leave the rest of the eastern gulf permanently off-limits, the paper reported.
Other ideas floated include tying new offshore access to allow Florida and other states to not participate in the inventory of outer continental shelf oil and gas contained in the energy bill, said one lobbyist monitoring the talks.
Another idea that has been in play is allowing states to "opt-out" of offshore leasing bans. Some Virginia state and federal lawmakers want to allow offshore drilling there in exchange for a share of revenues from the development. Supporters of the idea failed to win its inclusion in the energy bill signed in August by the president.
Also, the lobbyist said allowing an opt-out of leasing bans in return for guaranteed revenue that would go to coastal impact assistance specifically has been floated in both chambers for inclusion in another legislative vehicle.
But it could be very difficult for the ideas to gain traction. A large number of coastal lawmakers in both chambers support existing offshore leasing bans, and the budget reconciliation package is already controversial due to planned mandatory spending cuts and plans to allow Arctic National Wildlife Refuge drilling. Florida Sen. Bill Nelson (D) has been especially vocal in attacking any changes to current offshore restrictions, but Hurricane Katrina has boosted calls to diversify sources of domestic supply.
Sen. Mel Martinez (R-Fla.) would also oppose any plans that allow drilling closer to Florida's shores than current restrictions, according to spokesman Ken Lundberg. He said that opposition includes the "bulge" section of the 181 area eyed for development, which MMS is not leasing but is also not part of the formal leasing bans.
"The protections we currently have are vital to keeping the entire ecosystem in place," he said. "You can't sliver it here and sliver it there and expect to keep an entire ecosystem intact."
But Kennedy, Pombo's aide, placed the issue in the context of needing to expand domestic production overall. "The chairman has been very consistent in his push for increased domestic production because it would do a world of good for jobs, our economy and our national security. Hurricane Katrina showed us just how vulnerable our economy is to supply disruptions because we have failed to increase and diversify the production of energy at home," Kennedy said.
A spokeswoman for the Senate Energy and Natural Resources Committee said the panel would not address offshore drilling through its reconciliation package. Senate Energy and Natural Resources Committee Chairman Pete Domenici (R-N.M.) has said he will use the $2.4 billion reconciliation instruction to allow drilling in the coastal plain of the ANWR. Domenici does support OCS development but this week said he supported wider offshore drilling to diversify supply as part of a post-hurricane energy package.
However, legislation widening offshore drilling would likely draw a filibuster in the Senate,so attaching OCS provisions to budget legislation not subject to the tactic is among the few options available to supporters.
Pombo is a lead supporter of opening ANWR -- potential inclusion of offshore measures in the House Resources Committee's reconciliation package could come in addition to finding revenues from Arctic energy leasing. The committee leadership has not discussed its final reconciliation plan.
The budget reconciliation process has been delayed in both chambers. The Senate energy committee announced yesterday evening it had postponed a planned Sept. 14 business meeting that was scheduled to take up its reconciliation plan.
Industry pushes for new drilling Industries stung by high natural gas prices are pushing for new OCS leasing in areas that are now restricted. Yesterday, a broad industry coalition including chemical companies, natural gas utilities, the pulp and paper industry, the steel industry and others sent a letter to House GOP leaders on the issue.
"The highest priority should be placed on Lease 181 in the Gulf of Mexico," the letter states. "Lease 181 has an abundant supply of energy resources with access to existing pipeline infrastructure that will speed delivery of natural gas to the market. This is our nearest-term supply addition and, among other things, could save manufacturing facilities from shutting down, while saving good jobs that would otherwise be lost."
Another industry group also weighed in on OCS access yesterday. "As part of the recovery, Congress should consider easing restrictions on tapping America's rich reserves of natural gas and oil located on the Outer Continental Shelf," said National Association of Manufacturers President John Engler in a prepared statement yesterday on the need for post-hurricane energy legislation. He warned that high prices attributable to increased demand and supply interruptions from the storm could have "severe impacts" on manufacturing.
If Katrina can't get our lawmakers off their dead asses to do something about our dependence on foreign oil there's no hope it will ever get done.
Drill Martha's Vinyard!
Sticker Shock-$3 a gallon gas? Click the picture:
Yes, the whole Gulf should be open.
And this is the guy Team Bush backed for the position.
Thanks a lot.
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