[StBernard] House members revive bill to expand OCS activity

[Westley Annis]

House members revive bill to expand OCS activity 
  
Nick Snow
Washington Editor 
 
WASHINGTON, DC, May 5 -- US House members who tried to legislatively repeal
offshore drilling bans in previous sessions introduced a bill on May 4 to
restore a 5-year Outer Continental Shelf plan, which US Interior Secretary
Ken Salazar has delayed. 
 
Rep. Tim Murphy (R-Pa.) sponsored the bill, HR 2227, with Neil Abercrombie
(D-Ha.). Cosponsors are Shelley Moore Capito (R-W.Va.), Jim Costa
(D-Calif.), Joe Wilson (R-SC), Timothy J. Walz (D-Minn.), and Lee Terry
(R-Neb.). It was immediately referred to the Natural Resources Committee. 
 
On Feb. 10 Salazar announced that he would delay implementation for 6 months
of a 5-year OCS plan for 2010-15 that his predecessor, Dirk A. Kempthorne,
had launched the previous summer in response to record retail gasoline
prices. 
 
The current secretary said he wanted the plan to include alternative and
renewable energy sources. He ordered the US Geological Survey and US
Minerals Management Service to prepare an evaluation of US offshore
conventional and alternative resource potential, and held four public
meetings to receive additional comments. 
 
HR 2227's proposed offshore leasing provisions also provide jurisdiction for
state royalty payments over a wider area by extending coastal states'
boundaries to a uniform 12 miles from 3 miles. It also would repeal the
125-mile moratorium on oil and gas production in the eastern Gulf of Mexico,
establish an expedited inventory of offshore energy resources, and mandate
procedures to expedite judicial reviews of oil and gas leases. 
 
Other provisions
The bill also would prohibit surface occupancy within 10 miles of the
shoreline and permanent surface occupancy within 20 miles. It would open
offshore resources 20 miles and further out, and mandate mitigation of
offshore facilities on coastal vistas. It would mandate federal agency
coordination with adjacent states on construction of pipelines to move oil
and gas from the OCS. Interior also would have to coordinate leasing with
the US Department of Defense and refer any unresolved issues to the
president for an immediate decision. 
 
The bill also contains provisions to share OCS oil and gas revenues,
including 30% to states directly affected by activity, 20% to pay for
alternative energy and conservation tax incentives, 10% for clean coal
technology development, 10% for environmental restoration, 10% for the
general federal treasury, 8% for conservation programs, 5% for carbon-free
technology including nuclear power, 5% for water programs, and 2% for
low-income home energy assistance. 
 
The bill's second title would modify the Strategic Petroleum Reserve to
reflect current refining capabilities by exchanging 70 million bbl, or 10%
of its content, and dedicating the projected $400 million of proceeds to
existing conservation, assistance, and energy research and development
programs. 
 
The bill's third title would extend alternative and renewable energy tax
credits to 2019, while its fourth title would encourage development of
electric-powered motor vehicles. 
 
The bill's sposors, Murphy and Abercrombie, said they met regularly with
other cosponsors over several weeks to develop a comprehensive energy bill.
"This legislation will be paid for: developing our own resource will bring
an estimated $2.2-3.7 trillion in federal revenue," he said on May 5. 
 
'Begin the path'
"With this bill, we truly begin the path toward a clean-energy future by
investing in clean energy, creating US jobs immediately and long into the
future, and cleaning the environment, all without raising taxes," Murphy
said. 
 
Wilson said the bill was particularly important to South Carolina because it
contains provisions to expand and develop nuclear power. Additionally, a
sizable portion of the royalties and revenues garnered from offshore oil and
natural gas exploration will be returned to the coastal states; and the
tourism and hospitality industry that is so vital to our coastal communities
will not be adversely affected because all offshore activity will take place
far beyond the line of sight," he said. 
 
American Petroleum Institute Pres. Jack N. Gerard reacted favorably to the
bill's introduction, calling it a step in the right direction. 
 
"This bipartisan bill recognizes the importance of increased access to
offshore oil and natural gas resources not only to our nation's economy, in
terms of generating federal, state, and local revenues and new well-paying
jobs, but also to America's energy security," he said. 
 
Contact Nick Snow at nicks at pennwell.com.