House Reps. strike bipartisan OCS energy plan

Offshore Staff

(US, GoM) - Representatives of the House Committee on Resources, lead by Chairman Richard Pombo (R-Calif.), drafted a bipartisan OCS energy policy - Deep Ocean Energy Resources (DOER) Act.

The plan represents a compromise between the bills authored by Reps. John Peterson (R-Pa), Neil Abercrombie (D-Hawaii), Bobby Jindal (R-La), and Charlie Melancon (D-La). The House Committee will debate the Act tomorrow.

"Roughly two-dozen OCS-related energy bills have been introduced in this Congress," said Pombo. "The DOER Act is a hybrid of these bills, making it the most comprehensive, balanced and forward-thinking approach proposed to date. I look forward to a spirited debate on this bill in committee on Wednesday."

ACT HIGHLIGHTS:

* Codifies the executive moratorium into permanent law, for the first time ever, banning oil & gas leasing within 50 mi of the coastline. This does not expire, but allows states to opt-out with the express approval of the state legislature and agreement of the governor.

* States are given one year from the date of enactment of the DOER Act to decide whether to permit or deny natural gas leasing in the area between 50 mi and 100 mi off their coastlines. If a state does not act, natural gas, but not oil, leasing can occur.

* For oil leasing, states have until June 30, 2009, to enact a prohibition on activities in the area between 50 mi and 100 mi from the coast.

* States are given the power to extend the prohibitions against either oil and gas leasing OR natural gas leasing, in up to 5-year increments, by simple votes of the legislature on extending the prohibition against oil & gas and/or natural gas leasing.

* Prohibits all leasing within 25 mi off the coastline of a neighboring state that does not support leasing within its adjacent zone. It prohibits issuing an oil & gas lease within 50 mi of the coastline of a neighboring state that does not support leasing.

* Repeals the OCS inventory provision of EPACT.

* Provides for a sharing of 75% of OCS revenues within the area between state waters and 12 mi offshore, and a sharing of 50% of OCS revenues with adjacent states and nearby producing states over time.

* Creates a new Federal Energy Natural Resources Enhancement Fund, Federal Energy and Mineral Resources Professional Development Fund, and the National Geo Fund.

Revenues from these funds will be spent for a number of purposes including education, transportation, reducing taxes, coastal, environmental and wildlife restoration, energy infrastructure and projects, state seismic monitoring programs, alternative energy development, energy efficiency and conservation, hurricane and natural disaster insurance programs, and others.

* Grants the Secretary of the Interior the authority to renegotiate leasing contracts with willing companies. For those 1998 and 1999 lease-holders unwilling to renegotiate, a new Conservation of Resources fee will be levied upon each unit of production of oil & gas. It further mandates the inclusion of a price threshold in all future leases.

06/19/06