Offshore staff
(US, Virginia)-Virginia Governor Timothy M. Kaine recently announced a compromise plan on oil and gas exploration activities off the coast that won praise from both environmental groups and energy companies.
In the compromise, Kaine introduced a substitute state energy bill that endorses exploration of natural gas reserves in waters at least 50 mi offshore, but for the time being suspends development activities.
Energy interests in the state were placated because the bill supported surveying and mapping on the outer continental shelf, which had previously been barred for more than 20 years by Congress. A statement from Virginia Natural Gas read, "This is a key step for Virginia and the nation to help ensure our energy security for years to come."
At the same time, environmentalists were pleased because Kaine proclaimed that he will not support drilling efforts until research indicates that it would be worthwhile. Kaine said in a statement, "Absent that information, it is impossible to fairly weigh the benefits of offshore energy against the numerous concerns expressed by the public."
The Sierra Club praised Kaine's decision, saying that the governor "spared Virginia's coast."
Environmental groups were opposed to the previously existing energy bill, sponsored by Virginia Senator Frank Wagner. Kaine had met with Wagner several times to arrive at compromises on several key points, including the offshore issue.
Kaine's compromise does not clear up the issue of who will conduct and pay for offshore gas exploration. While the MMS has previously proposed that oil and gas exploration be allowed on the outer continental shelf from 3 to 200 mi off the coast, the agency would let energy companies do the expensive work of conducting surveys and mapping the areas.
There is also the unanswered question of the lease itself. Federal law currently requires that when a lease is sold to a private energy company, the lease is to be for both oil and gas development. Kaine wants development to be limited to gas.
Finally, the state has no control over waters more than 3 mi from the shore. Therefore, any requirement that exploration occur at least 50 mi from the coast would conflict with the fact that the federal government controls those waters.
04/11/2006
