[Congressional Record Volume 148, Number 14 (Thursday, February 14, 2002)]
[Senate]
[Pages S859-S860]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. BOXER (for herself, Ms. Landrieu, Mrs. Feinstein, and Mr. 
        Breaux):
  S. 1952. A bill to reacquire and permanently protect certain leases 
on the Outer Continental Shelf off the coast of California by issuing 
credits for new energy production in less environmentally sensitive 
areas in the Western and Central Planning Areas of the Gulf of Mexico; 
to the Committee on Energy and Natural Resources.
  Mrs. BOXER. Mr. President, for decades, Californians have opposed oil 
and gas drilling along their coasts. Nothing sharpened this concern 
more than the horrific tanker spill that occurred off the coast of 
Santa Barbara in 1969. Californians are still living with the 
ecological implications of that spill and the myriad other spills and 
leaks associated with the rigs that are currently along our coast.
  Unfortunately, 36 more leases off our coast remain eligible for oil 
and gas development and four additional leases remain in legal limbo.
  That is the last thing Californians want or need.

[[Page S860]]

  California is now in a pitched legal battle with the Department of 
Interior over whether the State has the ability to deny these leases. I 
strongly support the State in this effort and have joined 
Representative Capps in filing an amicus brief in the case.
  Every State should have the right to deny oil and gas development off 
their shores, as offshore activities inevitably impact the people and 
resources that are onshore. Last year, I reintroduced legislation, the 
Coastal States Protection Act, to place a moratorium on new drilling 
leases in Federal waters that are adjacent to State waters that have a 
drilling moratorium. That bill, however, addresses only the issue of 
future leases.
  With regard to the existing leases off of California's coast, I am 
not completely confident that the courts will solve the problem. We 
must therefore act now to eliminate the threat, the threat to 
California's natural resources and the threat to our economy through 
losses in the tourism and fishing industries.
  It is for this reason that I am proud to introduce today with my 
colleague Senator Landrieu, the California Coastal Protection and 
Louisiana Energy Enhancement Act.
  Our bill would end the seemingly endless battle over the California 
leases and would permanently protect those areas from oil, gas, and 
mineral development.
  Here's how it would work. Within 30 days of enactment, the Secretary 
of Interior would provide the oil companies holding the 40 California 
leases with a swap of equivalent value in the Gulf of Mexico. If all of 
the companies holding the California leases agree to this offer and 
agree to drop all pending litigation regarding those leases, then the 
California leases will be canceled, and the lessees will receive a 
credit equal to the amount paid for the leases plus the amount already 
spent to develop them.
  These credits could be used only in the central and western Gulf, an 
area already open to drilling and open to further leasing. They could 
be used for bidding on new leases in that area or to pay royalty 
payments for existing drilling activities in that area.
  The 40 tracts off of California's coast would then be converted to an 
ecological preserve, thus permanently protecting the areas from future 
mineral leasing and development. The tracts would be managed for the 
protection of traditional fishing activities as well as conservation, 
scientific, and recreational benefits.
  I am very proud of this legislation, and this very promising proposal 
to end the imminent threat of additional drilling off California's 
coast. We have been very careful to make sure that these credits are 
designed in a way that will not promote new drilling in environmentally 
sensitive areas. Instead, these credits can only be used in non-
controversial areas that have already been set aside for future 
development.
  We have also been very careful to ensure that the Federal Government, 
and in turn, the Federal taxpayer are protected from any future claims 
by these companies regarding these leases.
  And, I am very pleased to say that we have worked to ensure that the 
40 California tracts will never again be threatened by offshore 
development.
  In short, we get rid of unwanted drilling in California and 
permanently protect these sensitive areas. The oil companies are freed 
from a protracted legal battle and allowed to take their business 
elsewhere. And, the Federal Government is protected from expensive 
litigation that the companies are currently pursuing.
  I believe that we have hit upon the proverbial win-win situation. And 
I look forward to having this bill became a reality soon.
                                 ______