[Congressional Record Volume 151, Number 62 (Thursday, May 12, 2005)]
[Senate]
[Pages S5157-S5158]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. LANDRIEU:
  S. 1026. A bill to ensure that offshore energy development on the 
outer Continental Shelf continues to serve the needs of the United 
States, to create opportunities for new development and the use of 
alternative resources, and for other purposes; to the Committee on 
Energy and Natural Resources.
  Ms. LANDRIEU. Mr. President, today I rise to introduce legislation, 
The Stewardship for our Coasts and Opportunities for Reliable Energy 
Act--SCORE Act--which will ensure that offshore energy development on 
the Outer Continental Shelf--OCS--continues to serve our nation's 
needs, create opportunities for new development on the OCS as well as 
the use of alternative resources such as renewable energy.
  Since the energy frontier of the OCS was officially opened to 
significant oil and gas exploration in 1953, no single region has 
contributed nearly as much to our Nation's energy production. Today, 
the OCS represents more than

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25 percent of our Nation's natural gas production and more than 30 
percent of our domestic oil production and it is estimated that 60 
percent of the oil and natural gas still to be discovered in U.S. will 
come from the OCS.
  An average of more than $5 billion in revenues from oil and gas 
production are returned to the federal treasury each year from the 
OCS--$145 billion since production began. That is the second biggest 
contributor of revenue to the Federal Treasury after income taxes.
  But just as the Western frontier once represented a great unknown to 
our Nation's policymakers, the impact and reality of the OCS seems lost 
in a time warp. While much of the OCS has been off limits for decades, 
technological advancements have developed in that time to better target 
the resources and dramatically reduce the environmental footprint. 
These innovations will continue to allow crucial exploration and 
production to take place but in an environmentally responsible way. For 
example, we have produced three times as many resources on the OCS as 
we thought existed 30 years ago.
  In fact, the Minerals Management Service--MMS--estimates that from 
1985 to 2001, OCS offshore facilities and pipelines accounted for only 
2 percent of the oil released into U.S. waters. In fact, 97 percent of 
OCS spills are one barrel or less in volume. Serving America's energy 
needs and being good stewards of the environment need not be mutually 
exclusive goals.
  However, despite our technological prowess and responsible 
exploration, we have yet to fully realize the potential the OCS has to 
offer. Today only 2.5 percent of the 1.76 billion acres that make up 
the OCS are leased. Most of the Pacific Coast and the eastern Gulf of 
Mexico are off limits as is the entire Atlantic seaboard.
  Almost all of the area on the OCS that is currently leased is in the 
Central and Western Gulf of Mexico, off the coasts of Louisiana and 
Texas, where 98 percent of total OCS production occurs. However, we 
cannot continue to take without giving something back in return. A 
significant portion of OCS revenues must be returned to the coastal 
producing states off whose coasts they are generated.
  The Mineral Leasing Act of 1920 shares automatically with states 50 
percent of revenues from mineral production on Federal lands within 
that State's boundaries. These funds are distributed to States 
automatically, outside the budget process and not subject to 
appropriations. In fiscal year 2004, the State of Wyoming received $564 
million as a result of this law and the State of New Mexico received 
$365 million. However, there is no similar provision in law for coastal 
producing states to share federal oil and gas revenues generated on the 
OCS.
  For both onshore and offshore production, the justification for 
sharing with the state is the same: the state serves as the platform 
which enables the Federal Government to support a basic element of our 
daily lives--turning on our lights, heating our homes and running our 
commuter trains. In light of the OCS' vital contribution to our 
Nation's energy needs, economy and national security, it seems only 
fair and logical that we should return a portion of these revenues to 
the few states that are providing this crucial supply of energy.
  The SCORE Act would automatically distribute a significant portion of 
OCS revenues to the five coastal producing States without moratoria off 
their coasts Alaska, Texas, Louisiana, Mississippi and Alabama based on 
each state's production, with 35 percent of each State's allocation 
directed to coastal counties and parishes.
  When Hurricane Ivan struck back in September of last year, it should 
have been a wake up call to us all. Although the storm did not hit 
Louisiana directly, its impact on the price and supply of oil and gas 
in this country could still be felt four months later. One can only 
imagine what the impact would have been had Ivan cut a more Western 
path in the Gulf. How many more hurricane seasons are we going to spend 
playing Russian roulette with our oil and gas supply?
  Returning a portion of OCS revenues to coastal producing states is 
crucial to restoring and preserving the vital wetlands and the billions 
in energy investments they protect. It will also help further 
strengthen our national economic security by maintaining our current 
energy supply and continuing to provide the platform for us to go 
further in our quest to develop domestic resources while attempting to 
reduce our reliance on foreign energy supplies.
  In addition to ensuring that the vital offshore energy development 
that has served our Nation's needs for 50 years can continue, the SCORE 
Act also seeks to establish opportunities for new development on the 
OCS.
  The legislation would direct the Secretary of Interior to establish 
seaward lateral boundaries for all coastal States by regulation. 
Coastal States with a moratoria currently in place off their coasts 
would have the option, through their Governor with the consent of the 
State legislature, to explore the possibility of offshore energy 
development off their coasts.
  These coastal States could petition the Secretary of Interior for a 
resource assessment of energy sources located within their seaward 
lateral boundaries. With these assessments in hand, the State 
legislature of the State could request that any or all of the area 
within their boundaries, but only beyond 20 miles from their coastline, 
be made available for leasing. If the Secretary permits leasing within 
the requesting State's boundary, the State qualifies to receive a 
portion of revenues generated from any production that takes place 
within their seaward lateral boundary.
  Finally, SCORE would provide the opportunity for innovative, 
alternative uses of the OCS, including renewable energy projects such 
as wind, wave and solar. A portion of revenues from this production 
would be shared with the State off whose coastline the production took 
place.
  Next week the Senate Energy and Natural Resources Committee, under 
the leadership of Chairman Domenici and Senator Bingaman, will begin 
marking up comprehensive energy legislation. I am hopeful that some 
aspects of the proposal I have laid out today will be included as part 
of the bill reported out of committee. I look forward to working with 
my colleagues on the Committee over the next few weeks to further 
discuss these concepts and make them a reality.
  Quite simply, SCORE allows our country to continue to utilize the 
tremendous and vital natural resources of the OCS while also providing 
us the opportunity to further explore the unlimited potential of this 
vast frontier. It is time to base our decisions on modern successes 
rather than out-dated worries.
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