[House Report 112-69]
[From the U.S. Government Publishing Office]
112th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 112-69
======================================================================
REVERSING PRESIDENT OBAMA'S OFFSHORE MORATORIUM ACT
_______
May 2, 2011.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hastings of Washington, from the Committee on Natural Resources,
submitted the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 1231]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 1231) to amend the Outer Continental Shelf Lands
Act to require that each 5-year offshore oil and gas leasing
program offer leasing in the areas with the most prospective
oil and gas resources, to establish a domestic oil and natural
gas production goal, and for other purposes, having considered
the same, report favorably thereon with an amendment and
recommend that the bill as amended do pass.
The amendment is as follows:
Strike section 4.
Purpose of the Bill
The purposes of H.R. 1231 are to amend the Outer
Continental Shelf Lands Act to require that each five-year
offshore oil and gas leasing program offer leasing in the areas
with the most prospective oil and gas resources and to
establish a domestic oil and natural gas production goal.
Background and Need for Legislation
The Reversing President Obama's Offshore Moratorium Act
will lift the President's ban on new offshore drilling by
requiring the Administration to move forward on American energy
production in areas estimated to contain the most oil and
natural gas resources. It requires that each five-year leasing
plan include lease sales in the areas assessed as containing
the most oil and natural gas resources and requires the
Secretary of the Interior to establish a production goal when
writing a five-year plan. It also allows the governor of a
state with resources estimated to be lower than the oil and
natural gas target levels to opt-in to a five-year leasing
plan.
The 1953 Outer Continental Shelf Lands Act (OCSLA) requires
the Secretary of the Interior to prepare an oil and natural gas
leasing program for the outer continental shelf (OCS) every
five years. The OCS has been divided into 26 planning areas--11
along the Lower 48 states, and 15 along Alaska. Only planning
areas that have been included in a current five year plan can
be leased for oil and natural gas development.
OCS Moratorium: Beginning in Fiscal Year (FY) 1982,
Congress included an annual spending prohibition in
appropriations acts preventing the Minerals Management Service
(MMS), superseded by the Bureau of Ocean Energy Management
Regulation and Enforcement (BOEMRE), from spending money to
plan for and conduct oil and natural gas lease sales for
significant portions of the OCS. In addition, an overlapping
presidential moratorium for these activities was issued in 1990
and extended to 2012 in 1998.
Lifting the OCS Moratoria: At the request of the Alaska
delegation, the spending moratoria for the North Aleutian Basin
was dropped from the FY2004 and subsequent appropriations acts.
In addition, the Gulf of Mexico Energy Security Act of 2006
lifted the Congressional moratoria for the ``181 South Area''
in the Gulf of Mexico. President George W. Bush lifted the
Presidential moratoria for these areas in January 2007. In July
2008 President Bush revoked the Presidential moratorium for the
OCS with exceptions for the Eastern Gulf of Mexico and
designated Marine Sanctuaries. Congress did not include the
annual spending moratorium for leasing activities on the OCS in
the Continuing Resolution that funded the government from
October 1, 2008, through March 6, 2009.
The actions taken in 2008 by President Bush and Congress to
lift the OCS moratoria on oil and natural gas exploration and
development was in response to record-high gasoline prices in
the spring and summer of 2008. The Bush Administration began
work on a new five-year (2010-2015) leasing plan for the OCS to
allow oil and natural gas leasing and development activities in
the planning areas no longer under moratoria to occur.
Since President Obama took office, he has systematically
taken steps to re-impose a new offshore drilling moratorium. He
first abandoned the 2010-2015 leasing plan that would have
provided for oil and natural gas leasing in the newly opened
areas. He postponed and cancelled previously scheduled lease
sales in the Gulf of Mexico and Virginia identified in the
2007-2012 five-year leasing plan for the OCS. In December 2010,
the President announced a restrictive drilling plan that placed
the entire Pacific Coast, the entire Atlantic Coast, the
Eastern Gulf of Mexico, and much of Alaska off-limits to future
energy production--as it was before record high gasoline prices
in 2008 prompted President Bush and Congress to lift the
moratoria.
Despite abundant domestic onshore and offshore energy
resources, due to development restrictions and the moratorium
in the Gulf and other portions of the nation's OCS, the United
States continues to import over half of its oil, leaving the
nation vulnerable to hostile, unstable foreign countries. For
example, in 2009, the United States imported 347,285 thousand
barrels of crude oil from Venezuela, 283,091 thousand from
Nigeria, and 22,354 thousand barrels from Libya. Over 3 billion
barrels of crude oil were imported into the United States in
2009 alone.
Failure to develop our offshore energy resources is costing
American jobs, hurting our economy, facilitating our dependence
on foreign sources of oil, and denying American taxpayers
revenue to help pay down the national debt. According to the
American Energy Alliance, permanently lifting the offshore
moratoria would result in the creation of 1.2 million private
sector U.S. jobs, $8 trillion in additional economic output
(GDP), $2.2 trillion in total tax receipts, and $70 billion in
additional wages each year.
The President's actions put some of the most promising
shallow water energy resources in the world off-limits and
pushed domestic oil development into a smaller fraction of the
Gulf of Mexico and into deeper water. Domestic exploration and
development are an essential component of our nation's energy
and economic security. A robust domestic energy industry will
create new jobs, generate much-needed revenue to help pay down
our national debt, and strengthen our national security by
lessening our dependence on foreign countries.
Committee Action
H.R. 1231, the Reversing President Obama's Offshore
Moratorium Act, was introduced on March 29, 2011, by Natural
Resources Committee Chairman Doc Hastings (R-WA). The bill was
referred to the Committee on Natural Resources, and within the
Committee to the Subcommittee on Energy and Mineral Resources.
On April 6, 2011, the Subcommittee on Energy and Mineral
Resources held a hearing on the bill. On April 13, 2011, the
Full Natural Resources Committee met to consider the bill. The
Subcommittee on Energy and Mineral Resources was discharged by
unanimous consent. Congressman Jon Runyan (R-NJ) offered
amendment designated 008; the amendment was not adopted by a
roll call vote of 15-28, as follows:
Congressman Frank Pallone (D-NJ) offered amendment
designated 028; the amendment was not adopted by voice vote.
Congressman Rush Holt (D-NJ) offered amendment designated 007;
the amendment was not adopted by a roll call vote of 12-31, as
follows:
Congressman Andy Harris (R-MD) offered amendment designated
008; the amendment was not adopted by voice vote. Congresswoman
Colleen Hanabusa (D-HI) offered amendment designated 003; the
amendment was not adopted by a roll call vote of 14-29, as
follows:
Congressman Edward Markey (D-MA) offered amendment
designated 002; the amendment was not adopted by a roll call
vote of 13-30, as follows:
Congressman John Garamendi (D-CA) offered amendment
designated 018; the amendment was not adopted by a roll call
vote of 14-29, as follows:
Chairman Doc Hastings (R-WA) offered an amendment which was
adopted by voice vote. Congressman Edward Markey (D-MA) offered
amendment designated 005; the amendment was ruled out of order.
Congressman John Garamendi (D-CA) offered amendment designated
019. Congressman Garamendi offered an amendment to the
amendment which was adopted by unanimous consent. The
amendment, as amended, was ruled out of order. Congressman
Edward Markey (D-MA) offered amendment designated 005-2; the
amendment was not adopted by a roll call vote of 14-29, as
follows:
Congressman Frank Pallone (D-NJ) offered amendment
designated 027; the amendment was ruled out of order.
Congressman Frank Pallone (D-NJ) offered amendment designated
030; the amendment was not adopted by a roll call vote of 14-
29, as follows:
The bill was then favorably reported, as amended, to the
House of Representatives by a roll call vote of 29-14, as
follows:
Major Provisions of H.R. 1231
Section 2. Outer Continental Shelf leasing program
This section requires each five-year OCS leasing plan to
include lease sales in the planning areas estimated to contain
the greatest known oil and natural gas resources. For the 2012-
2017 leasing plan being written by the Obama Administration,
the areas with the greatest known resources are specifically
defined as those estimated to contain a minimum of 2.5 billion
barrels of oil or 7.5 trillion cubic feet of natural gas. At
least 50 percent of the planning area must be made available
for leasing in the 2012-2017 five-year OCS leasing plan.
Currently, the Obama Administration's 2012-2017 draft OCS
leasing plan does not include planning areas for possible
future lease sales outside of the Western and Central Gulf of
Mexico. The requirements to lease in the most prospective
offshore areas reverses the Administration's defacto moratorium
on leasing in new planning areas opened in 2008.
A state's governor may request to opt-in to a five-year
leasing plan and if so, the Secretary of the Interior will
include a lease sale, or sales, of the state's offshore area in
the plan.
Section 3. Domestic oil and natural gas production goal
This section requires the Secretary of the Interior to
establish a production goal when writing a five-year plan. The
goal will be the specific amount of oil and natural gas
production that is estimated to result from leases issued under
the plan. The section establishes the production goal for the
2012-2017 OCS leasing plan being written by the Obama
Administration at 3 million barrels of oil per day and 10
billion cubic feet of natural gas per day by 2027. This time
frame, 2012-2027, encompasses the five-year OCS leasing plan
(2012-2017) and resulting five to ten-year leases issued under
the plan. By comparison to current production from the OCS,
including this production goal for oil and natural gas in the
2012-2017 five-year plan will yield a tripling of current
American offshore production and would reduce foreign imports
by nearly one-third.
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
Compliance With House Rule XIII
1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(2)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974. Under clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
403 of the Congressional Budget Act of 1974, the Committee has
received the following cost estimate for this bill from the
Director of the Congressional Budget Office:
May 2, 2011.
Hon. Doc Hastings,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1231, the
Reversing President Obama's Offshore Moratorium Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CB0 staff contact is Kathleen
Gramp.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 1231--Reversing President Obama's Offshore Moratorium Act
Summary: H.R. 1231 would direct the Department of the
Interior (DOI) to auction leases for the development of oil and
gas resources in the most geologically productive areas of the
Outer Continental Shelf (OCS). For the 2012-2017 leasing
period, the bill would require leasing in areas that are
projected to contain more than 2.5 billion barrels of oil or
7.5 trillion cubic feet of natural gas. Areas meeting those
criteria include the Central, Western, and Eastern Gulf of
Mexico; the Beaufort, Chukchi, and North Aleutian areas off
Alaska; the North and Mid-Atlantic planning areas; and the
Southern California planning area.
Enacting H.R. 1231 would affect direct spending; therefore,
pay-as-you-go procedures apply. CB0 estimates that enacting
this legislation would reduce direct spending (by increasing
offsetting receipts) by about $350 million over the 2012-2016
period and by $800 million over the 2012-2021 period. Enacting
this legislation would not affect revenues. In addition, CB0
estimates that the administrative costs of implementing the
bill would total about $22 million over the 2011-2016 period,
assuming appropriation of the necessary amounts.
H.R. 1231 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 1231 is shown in the following table.
The costs of this legislation fall within budget function 950
(undistributed offsetting receipts).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------------------------
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012-2016 2012-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated Budget Authority.................... 0 0 0 -100 -250 -300 -150 0 0 0 -350 -800
Estimated Outlays............................. 0 0 0 -100 -250 -300 -150 0 0 0 -350 -800
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level................. 5 5 5 5 5 0 0 0 0 0 25 25
Estimated Outlays............................. 2 5 5 5 5 3 0 0 0 0 22 25
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Basis of estimate: For this estimate, CB0 assumes that H.R.
1231 will be enacted before the end of fiscal year 2011 and
that DOI will conduct the sales of federal leases in the OCS
according to the schedule included in the President's budget
request for fiscal year 2012. Bonus bids, rental fees, and
royalty payments for OCS leases are recorded in the budget as
offsetting receipts, which are an offset to direct spending.
CBO also assumes the amounts necessary to implement the bill
will be appropriated by the beginning of each fiscal year.
Direct spending
The estimated budgetary impact of H.R. 1231 primarily
reflects an assumption that leasing activity in areas in the
Atlantic and California OCS would increase. CBO estimates that
enacting the bill would have no effect on offsetting receipts
from areas already included in the administration's leasing
plans, such as the Central and Western Gulf of Mexico and the
Beaufort and Chukchi Seas. Similarly, while the geologic
criteria in this bill would apply to the Eastern Gulf of
Mexico, CBO does not expect any leasing to occur in that area
over the 2011-2021 period because of the statutory prohibition
on such leasing under the Gulf of Mexico Energy Security Act.
CBO's baseline projections assume that areas off the
Atlantic and Pacific coasts will not be opened for leasing
until after June 30, 2017. Under existing law, the department
cannot auction acreage unless it is included in an approved
five-year plan. A final leasing plan for the 2012-2017 period
has not yet been adopted. However, the President's budget
request for 2012 indicated that the Atlantic and Pacific areas
are not included in the current scoping process for that plan.
As a result, CBO expects that it is unlikely that leasing will
occur over the 2012-2017 period under current policies.
Based on information from DOI on the potential oil and gas
resources in the Atlantic and Pacific regions, CBO estimates
that holding additional lease sales in those areas would
increase net offsetting receipts (and thus reduce direct
spending) by about $800 million over the 10-year period. For
this estimate, CBO assumes that the department would conduct
the consultations and assessments necessary to incorporate the
Atlantic and Pacific lease sales into the five-year plan for
2012-2017, which could take at least two years to complete.
Given the lead times needed to conduct sales and issue leases,
CBO anticipates that proceeds from leasing in those areas
probably would be collected after fiscal year 2014.
Spending subject to appropriation
Based on historical spending trends for similar activities,
CBO estimates that DOI would spend about $22 million over the
2012-2016 period to complete the necessary environmental and
other assessments necessary to conduct lease sales in the
Atlantic and Pacific regions, assuming appropriation of the
necessary amounts.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 1231, THE REVERSING PRESIDENT OBAMA'S OFFSHORE MORATORIUM ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE
ON NATURAL RESOURCES ON APRIL 13, 2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012-2016 2012-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go-Impact........ 0 0 0 0 -100 -250 -300 -150 0 0 0 -350 -800
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Intergovernmental and private-sector impact: H.R. 1230
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Estimate prepared by: Federal Costs: Kathleen Gramp: Impact
on State, Local, and Tribal Governments: Melissa Merrell;
Impact on the Private Sector: Amy Petz.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
2. Section 308(a) of Congressional Budget Act. As required
by clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives and section 308(a) of the Congressional Budget
Act of 1974, this bill does not contain any new budget
authority, spending authority, credit authority, or an increase
or decrease in revenues or tax expenditures. According to the
Congressional Budget Office, enactment of this bill would
reduce direct spending (by increasing offsetting receipts) by
about $350 million over the 2012-2016 period and by $800
million over the 2012-2021 period. Enacting this legislation
would not affect revenues. In addition, CBO estimates that the
administrative costs of implementing the bill would total about
$22 million over the 2011-2016 period, assuming appropriation
of the necessary amounts.
3. General Performance Goals and Objectives.
This bill does not authorize funding and therefore, clause
3(c)(4) of rule XIII of the Rules of the House of
Representatives does not apply.
Earmark Statement
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
Compliance With Public Law 104-4
This bill contains no unfunded mandates.
Preemption of State, Local or Tribal Law
This bill is not intended to preempt any State, local or
tribal law.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
OUTER CONTINENTAL SHELF LANDS ACT
* * * * * * *
Sec. 18. Outer Continental Shelf Leasing Program.--(a) The
Secretary, pursuant to procedures set forth in subsections (c)
and (d) of this section, shall prepare and periodically revise,
and maintain an oil and gas leasing program to implement the
policies of this Act. The leasing program shall consist of a
schedule of proposed lease sales indicating, as precisely as
possible, the size, timing, and location of leasing activity
which he determines will best meet national energy needs for
the five-year period following its approval or reapproval. Such
leasing program shall be prepared and maintained in a manner
consistent with the following principles:
(1) * * *
* * * * * * *
(4)(A) In each oil and gas leasing program under this
section, the Secretary shall make available for leasing
and conduct lease sales including--
(i) at least 50 percent of the available
unleased acreage within each outer Continental
Shelf planning area considered to have the
largest undiscovered, technically recoverable
oil and gas resources (on a total btu basis)
based upon the most recent national geologic
assessment of the outer Continental Shelf, with
an emphasis on offering the most geologically
prospective parts of the planning area; and
(ii) any State subdivision of an outer
Continental Shelf planning area that the
Governor of the State that represents that
subdivision requests be made available for
leasing.
(B) In this paragraph the term ``available unleased
acreage'' means that portion of the outer Continental
Shelf that is not under lease at the time of a proposed
lease sale, and that has not otherwise been made
unavailable for leasing by law.
(5)(A) In the 2012-2017 5-year oil and gas leasing
program, the Secretary shall make available for leasing
any outer Continental Shelf planning areas that--
(i) are estimated to contain more than
2,500,000,000 barrels of oil; or
(ii) are estimated to contain more than
7,500,000,000,000 cubic feet of natural gas.
(B) To determine the planning areas described in
subparagraph (A), the Secretary shall use the document
entitled ``Minerals Management Service Assessment of
Undiscovered Technically Recoverable Oil and Gas
Resources of the Nation's Outer Continental Shelf,
2006''.
[(b) The leasing program shall include estimates of the
appropriations and staff required to--
[(1) obtain resource information and any other
information needed to prepare the leasing program
required by this section;
[(2) analyze and interpret the exploratory data and
any other information which may be compiled under the
authority of this Act;
[(3) conduct environmental studies and prepare any
environmental impact statement required in accordance
with this Act and with section 102(2)(C) of the
National Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C)); and
[(4) supervise operations conducted pursuant to each
lease in the manner necessary to assure due diligence
in the exploration and development of the lease area
and compliance with the requirement of applicable laws
and regulations, and with the terms of the lease.]
(b) Domestic Oil and Natural Gas Production Goal.--
(1) In general.--In developing a 5-year oil and gas
leasing program, and subject to paragraph (2), the
Secretary shall determine a domestic strategic
production goal for the development of oil and natural
gas as a result of that program. Such goal shall be--
(A) the best estimate of the possible
increase in domestic production of oil and
natural gas from the outer Continental Shelf;
(B) focused on meeting domestic demand for
oil and natural gas and reducing the dependence
of the United States on foreign energy; and
(C) focused on the production increases
achieved by the leasing program at the end of
the 15-year period beginning on the effective
date of the program.
(2) 2012-2017 program goal.--For purposes of the
2012-2017 5-year oil and gas leasing program, the
production goal referred to in paragraph (1) shall be
an increase by 2027 of--
(A) no less than 3,000,000 barrels in the
amount of oil produced per day; and
(B) no less than 10,000,000,000 cubic feet in
the amount of natural gas produced per day.
(3) Reporting.--The Secretary shall report annually,
beginning at the end of the 5-year period for which the
program applies, to the Committee on Natural Resources
of the House of Representatives and the Committee on
Energy and Natural Resources of the Senate on the
progress of the program in meeting the production goal.
The Secretary shall identify in the report projections
for production and any problems with leasing,
permitting, or production that will prevent meeting the
goal.
* * * * * * *
DISSENTING VIEWS
We oppose H.R. 1231 because, in seeking to ``reverse'' a
drilling moratorium that does not even exist, the bill will
reverse any progress towards safer off-shore energy production.
Section 18(a) of the Outer Continental Shelf Lands Act
(OCSLA) (43 U.S.C. 1344) currently requires the Secretary of
Interior to maintain an oil and gas leasing program consisting
of a schedule of proposed lease sales to meet national energy
needs for a five-year period. Section 18(a)(3) specifically
requires that leasing be conducted so as to ``obtain the proper
balance between the potential for environmental damage, the
potential for the discovery of oil and gas, and the potential
for adverse impact on the coastal zone.''
In sharp contrast to this fundamental requirement for
balance, H.R. 1231 would insert provisions into Section 18(a)
mandating that the Secretary make available for lease ``at
least 50 percent of the available unleased acreage within each
outer Continental Shelf planning area considered to have the
largest undiscovered, technically recoverable oil and gas
resources'' and setting arbitrary triggers that would make
broad swaths of the Atlantic and Pacific Coasts open for
leasing automatically. The bill would also dictate that the
plan include ``production goals'' that would increase the
amount of oil produced per day by at least 3 million barrels
and natural gas produced per day by 10 billion cubic feet by
2027.
Current law requires a balancing of energy production and
environmental impacts. That balance must be reevaluated in the
wake of the BP disaster. H.R. 1231 responds to the devastation
caused by that spill by amending the law to further elevate oil
and gas production above environmental and other concerns.
None of the justifications offered for taking such drastic
steps withstand scrutiny. No moratorium, de facto or otherwise,
exists. While a temporary halt to drilling in the aftermath of
the BP Deepwater Horizon disaster was an essential measure
needed to allow regulators time to ensure that offshore
drilling was safe, there is currently no moratorium on offshore
drilling. Since October, the Administration has approved 39
shallow-water permits. In February, for the first time,
drilling companies demonstrated a capability to respond to a
deep-water spill that could establish the new safety standards
put in place by the Interior Department; the Department began
issuing deep-water permits. Since that time, 10 new deepwater
permits have been issued.
The Majority further alleges that energy companies deserve
access to large new areas off the East and West Coasts because
they have diligently and responsibly developed leases they
already hold in the Gulf of Mexico. In fact, energy companies
are not producing on thousands of Gulf leases, covering tens of
millions of acres. According to data provided to the Committee
by the Department of the Interior, oil companies are
stockpiling Gulf leases covering more natural gas and nearly as
much oil as could ever be produced by opening up the Atlantic
and Pacific Coasts. Granting these companies access to sweeping
new areas while they warehouse existing leases in the Gulf
cannot be justified.
A third false assertion made by the Majority in offering
this legislation is that it would be feasible or even desirable
for Congress to mandate specific leasing plan requirements. As
written, OCSLA establishes clear, appropriate principles to
guide such planning but leaves actual development of the plan
to the Interior Department, in consultation with the industry.
There is no rationale for stripping these plans of critical
flexibility by inserting arbitrary numbers selected by the
Republican Majority.
The Majority's zeal for expanding drilling at any cost was
laid bare by the votes cast on amendments offered by Democrats.
Republicans on the Committee voted in lock step to defeat an
amendment offered by Ranking Member Markey and Subcommittee
Ranking Member Holt that would have halted new leasing until
the industry reduced its annual fatality rate. Rejection of
this amendment is egregious given that the BP commission found
that the rate of fatalities, per person-hour worked, in U.S.
waters is four times higher than in the waters off Europe. An
amendment offered by Representative Holt to incentivize oil
companies to develop the leases they already hold before
awarding them whole new coastlines was also defeated. Even a
simple amendment offered by Representative Hanabusa requiring
the 5-year plan to identify a ``worst-case discharge scenario''
so that the public could be on notice of the potential impacts
of drilling was rejected by all Republican Committee Members.
As with the other off-shore drilling measures being
proposed by the Majority--H.R. 1229 and H.R. 1230--H.R. 1231 is
nothing like it has been described by its proponents. This
legislation cannot reverse a moratorium, since one does not
exist and it will not reduce the price of oil. Beyond tipping
the balance between drilling and protecting the Gulf, H.R. 1231
smashes the scales.
Edward J. Markey.
Peter A. DeFazio.
John P. Sarbanes.
Raul M. Grijalva.
Dale E. Kildee.
Niki Tsongas.
Betty Sutton.
Gregorio Kilili Camacho Sablan.
Frank Pallone, Jr.
Colleen W. Hanabusa.
Grace F. Napolitano.
Eni F.H. Faleomavaega.
Ben Ray Lujan.
John Garamendi.
Rush Holt.