Post by shoreman on Aug 2, 2006 7:31:52 GMT -5
Senate moves forward on oil drilling in Gulf
By DAVID IVANOVICH
Washington Bureau
www.chron.com/disp/story.mpl/front/4084884.html
WASHINGTON — The Senate today narrowly agreed to shut off debate on a bill to allow oil and gas producers to drill in the eastern Gulf of Mexico, all but ensuring senators will approve the legislation as early as Tuesday.
But questions remain as to whether Senate negotiators will be able to reach a compromise with their counterparts in the House, who have passed a bill that would open up much more offshore acreage to oil and gas exploration.
"I will do everything in my power to bring back something that can pass the Senate," said Senate Energy and Natural Resources Committee Chairman Pete Domenici, R-N.M.
Responding to voters' complaints about painfully high energy bills, the Senate voted 72-23 this evening to wrap up debate this week on a proposal to open an 8.3 million-acre stretch of water west of Florida to oil and gas drilling.
That vote bodes well for passage of the bill. Domenici said today he expects a final vote Tuesday, although the debate could carry over into Wednesday.
Oil and gas producers have long eyed the eastern Gulf. The U.S. Minerals Management Service has estimated those waters could hold some 1.26 billion barrels of recoverable oil and 5.8 trillion cubic feet of natural gas.
The strong momentum in the Senate delighted industry groups, who have been struggling to pay higher energy costs — particularly for natural gas.
"We're so close," said W. Henson Moore, president of the American Forest & Paper Association,
But environmentalists fear offshore drilling could endanger the nation's coastline and prolong America's dependence on oil and gas.
Annie Strickler, a spokeswoman for the Sierra Club, said the Senate refused to even consider "smart energy solutions," such as raising fuel mileage requirements for cars, trucks and sport utility vehicles.
The bill even has come under attack from drilling supporters such as Sen. Jeff Bingaman of New Mexico, ranking Democrat on the Senate Energy and Natural Resources Committee.
Bingaman argued the measure actually expands the area where drilling is banned by Congress, to cover acreage that otherwise might have been explored under previous leasing plans. He also accused supporters of the bill of overstating its impact, since the Minerals Management Service was on track to lease a portion of this area next year anyway.
The bill, to help assuage concerns of Florida lawmakers worried about the impact on that state's beaches, would bar any exploration within 125 miles of Florida's west coast or within 100 miles of the Florida panhandle.
And to compensate the Gulf states for encouraging oil and gas exploration off their shores, the bill would turn over 37.5 percent of the royalties generated by production in the new area to the nation's four Gulf producing states — Texas, Louisiana, Mississippi and Alabama.
The Senate action follows a House vote a month ago to pave the way for possible drilling off both the East and West coasts, as well as the Gulf.
The House plan would authorize the federal government to lease acreage beyond 50 miles of a state's coastline for natural gas exploration within a year, unless the state government took action to block a lease sale. And then within three years, the federal government could begin leasing acreage for oil drilling, again unless a state government voted to bar the activity.
House Resources Committee Chairman Richard Pombo, R-Calif., deems the time ripe for a bold move on offshore exploration, Pombo spokesman Brian Kennedy said.
But Domenici and other Senate supporters have called on House negotiators to accept the Senate bill, fearing any more dramatic effort will go down to defeat in the Senate.
"I think you take one big step at a time," Domenici said. "This is a big step."
By DAVID IVANOVICH
Washington Bureau
www.chron.com/disp/story.mpl/front/4084884.html
WASHINGTON — The Senate today narrowly agreed to shut off debate on a bill to allow oil and gas producers to drill in the eastern Gulf of Mexico, all but ensuring senators will approve the legislation as early as Tuesday.
But questions remain as to whether Senate negotiators will be able to reach a compromise with their counterparts in the House, who have passed a bill that would open up much more offshore acreage to oil and gas exploration.
"I will do everything in my power to bring back something that can pass the Senate," said Senate Energy and Natural Resources Committee Chairman Pete Domenici, R-N.M.
Responding to voters' complaints about painfully high energy bills, the Senate voted 72-23 this evening to wrap up debate this week on a proposal to open an 8.3 million-acre stretch of water west of Florida to oil and gas drilling.
That vote bodes well for passage of the bill. Domenici said today he expects a final vote Tuesday, although the debate could carry over into Wednesday.
Oil and gas producers have long eyed the eastern Gulf. The U.S. Minerals Management Service has estimated those waters could hold some 1.26 billion barrels of recoverable oil and 5.8 trillion cubic feet of natural gas.
The strong momentum in the Senate delighted industry groups, who have been struggling to pay higher energy costs — particularly for natural gas.
"We're so close," said W. Henson Moore, president of the American Forest & Paper Association,
But environmentalists fear offshore drilling could endanger the nation's coastline and prolong America's dependence on oil and gas.
Annie Strickler, a spokeswoman for the Sierra Club, said the Senate refused to even consider "smart energy solutions," such as raising fuel mileage requirements for cars, trucks and sport utility vehicles.
The bill even has come under attack from drilling supporters such as Sen. Jeff Bingaman of New Mexico, ranking Democrat on the Senate Energy and Natural Resources Committee.
Bingaman argued the measure actually expands the area where drilling is banned by Congress, to cover acreage that otherwise might have been explored under previous leasing plans. He also accused supporters of the bill of overstating its impact, since the Minerals Management Service was on track to lease a portion of this area next year anyway.
The bill, to help assuage concerns of Florida lawmakers worried about the impact on that state's beaches, would bar any exploration within 125 miles of Florida's west coast or within 100 miles of the Florida panhandle.
And to compensate the Gulf states for encouraging oil and gas exploration off their shores, the bill would turn over 37.5 percent of the royalties generated by production in the new area to the nation's four Gulf producing states — Texas, Louisiana, Mississippi and Alabama.
The Senate action follows a House vote a month ago to pave the way for possible drilling off both the East and West coasts, as well as the Gulf.
The House plan would authorize the federal government to lease acreage beyond 50 miles of a state's coastline for natural gas exploration within a year, unless the state government took action to block a lease sale. And then within three years, the federal government could begin leasing acreage for oil drilling, again unless a state government voted to bar the activity.
House Resources Committee Chairman Richard Pombo, R-Calif., deems the time ripe for a bold move on offshore exploration, Pombo spokesman Brian Kennedy said.
But Domenici and other Senate supporters have called on House negotiators to accept the Senate bill, fearing any more dramatic effort will go down to defeat in the Senate.
"I think you take one big step at a time," Domenici said. "This is a big step."