[Congressional Record Volume 145, Number 78 (Thursday, May 27, 1999)]
[Extensions of Remarks]
[Page E1132]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 INTRODUCTION OF THE FEDERAL OIL AND GAS LEASE MANAGEMENT IMPROVEMENT 
                              ACT OF 1999

                                 ______
                                 

                           HON. BARBARA CUBIN

                               of wyoming

                    in the house of representatives

                         Thursday, May 27, 1999

  Mrs. CUBIN. Mr. Speaker, production of oil and gas from our public 
lands is fast becoming a rarity. Today I am introducing a bill, 
together with Rep. Joe Skeen of New Mexico, which we trust will stem 
this decline, and encourage investment in federal mineral leases. We 
call it the Federal Oil and Gas Lease Management Improvement Act of 
1999. Senator Murkowski has already introduced a companion bill in the 
other body.
  The ``oil patch'' in the United States is in tough shape. Consumers 
blissfully enjoyed record low gasoline prices until very recently, but 
producers have suffered immeasurably from the diminished proceeds they 
have received for their crude oil for many, many months. Even the 
recent slow climb back to semi-respectable oil and gas prices in the 
last few weeks has turned back down again in the last week of trading. 
Our bill, is will provide some incentives to federal oil and gas 
lessees to ``stay the course'' when prices drop below $18 per barrel, 
or $2.30 per million BTU's for natural gas. Furthermore, our bill says 
to producers ``you know better than the government what your make or 
break price threshold is, so if low prices are sustained your lease 
terms are suspended, at your option, not the Secretary of the 
Interior's.''
  But, Mr. Speaker, its not just producers who are being squeezed by 
today's global oil price environment. So are the oil patch states for 
which their share of federal mineral receipts are critical in meeting 
budget priorities. For many public land states, these receipts are 
dedicated to education trust funds, yet since 1991 these states have 
had to ``share'' in the burden of the federal government's costs to 
administer the Mineral Leasing Act before receiving their half of the 
remaining revenue. My home state of Wyoming has had over seven million 
dollars annually taken from the receipts flowing into its Treasury 
because of this law. And, these states, until now have had no option to 
take over the federal government's responsibilities and perform the 
same tasks more cost effectively.
  That will change with the Federal Oil and Gas Lease Management 
Improvement Act. This bill offers states the opportunity to take over 
post-lease issuance duties from the federal Bureau of Land Management 
and allow the state's oil and gas conservation commission to perform 
those functions on federal leases within their borders, if they so 
choose. As an incentive to take over the fed program, thereby saving 
federal budget outlays, volunteering states would no longer have to 
share in the federal administrative burden which unfairly diminishes 
their school funds.
  Mr. Speaker, I urge my colleagues from other public land states to 
cosponsor this legislation and work with me toward its passage. This 
bill seeks the balance necessary to keep a domestic oil and gas 
industry working to explore and develop our public mineral resources. 
Without such balance, the long term decline in domestic production will 
continue to worsen and the royalties the taxpayers receive for such 
production will decline as well. Our oil patch states have shown the 
way this year by passing numerous severance tax reductions and other 
legislation designed to keep production on-stream and the workers 
associated with that production paying taxes. The Federal Oil and Gas 
Lease Management Improvement Act of 1999 is a small step in that 
direction by the federal government, and I urge its adoption.

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